100:00:00,000 --> 00:00:02,280Do you feel like he was asking those questions to?

200:00:02,280 --> 00:00:03,720I know why they asked those questions.

300:00:03,720 --> 00:00:07,120They want to test me because obviously, again, like you said,

400:00:07,120 --> 00:00:09,960big black guy looked like I played football,

500:00:09,960 --> 00:00:12,840but they think athlete, throw a football, jubble a ball.

600:00:12,840 --> 00:00:15,880They're not thinking private equity fund manager.

700:00:15,880 --> 00:00:16,280No.

800:00:16,280 --> 00:00:18,920They just got that money sitting there waiting for you to call.

900:00:18,920 --> 00:00:21,760You need to raise $10 million in equity.

1000:00:21,760 --> 00:00:23,840You need people that can bring half a million,

1100:00:23,840 --> 00:00:25,400$250 million.

1200:00:25,400 --> 00:00:29,240They make a lot of money because they're trying to get taxes down.

1300:00:29,240 --> 00:00:32,000How did you start to bind these people?

1400:00:32,000 --> 00:00:36,640To operate an agreement, that's like another 40, 50 pages.

1500:00:36,640 --> 00:00:39,960I read through every single one of them.

1600:00:39,960 --> 00:00:40,960Word for word.

1700:00:40,960 --> 00:00:42,520Because this is real--

1800:00:42,520 --> 00:00:43,680this is jammed your life.

1900:00:43,680 --> 00:00:46,760If you're in a lot of someone about something like taxes,

2000:00:46,760 --> 00:00:49,200how much they can get reducing their taxes?

2100:00:49,200 --> 00:00:50,960Because you're the manager of the fund.

2200:00:50,960 --> 00:00:51,840You can't get sued.

2300:00:51,840 --> 00:00:53,920I'm going to cut you off right quick and apologize.

2400:00:53,920 --> 00:00:59,040Welcome to the Power Unit Success Cast.

2500:00:59,280 --> 00:01:02,440The show where we push the limits to unlock our greatness.

2600:01:02,440 --> 00:01:05,520Each week, we dive into the world of real estate, business,

2700:01:05,520 --> 00:01:08,880and entrepreneurship to bring you stimulating talks, insights

2800:01:08,880 --> 00:01:11,880from movers and shakers, and the mindset to do more

2900:01:11,880 --> 00:01:13,480so we can become more.

3000:01:13,480 --> 00:01:14,920Let's get into this week's episode.

3100:01:14,920 --> 00:01:18,560What's up, everybody?

3200:01:18,560 --> 00:01:22,040Welcome to another episode of the Power Unit Success Cast.

3300:01:22,040 --> 00:01:25,360Man, y'all been getting some heat on this show.

3400:01:25,360 --> 00:01:28,160I hope you've been writing down the jam

3500:01:28,160 --> 00:01:30,680people been dropping because I know

3600:01:30,680 --> 00:01:34,360that I have received some transformation.

3700:01:34,360 --> 00:01:38,400Just with the guests that we've had on here lately,

3800:01:38,400 --> 00:01:39,920I mean, we've talked about real estate.

3900:01:39,920 --> 00:01:42,880We've talked childhood traumas.

4000:01:42,880 --> 00:01:45,120We've talked emotions.

4100:01:45,120 --> 00:01:47,520We've talked relationships.

4200:01:47,520 --> 00:01:49,880We talk about it all here on the Power Unit Success Cast.

4300:01:49,880 --> 00:01:53,440So if that's what you are into, we support the lives

4400:01:53,440 --> 00:01:56,640of entrepreneurs, people out there making it happen.

4500:01:56,640 --> 00:01:58,720I know a lot of you are in real estate.

4600:01:58,720 --> 00:02:01,760However, if you're an entrepreneur, small business owner,

4700:02:01,760 --> 00:02:04,760you're thinking about starting your own business,

4800:02:04,760 --> 00:02:07,640you definitely want to be tuned into this show

4900:02:07,640 --> 00:02:10,880because we are very well-rounded.

5000:02:10,880 --> 00:02:14,800And look, I wish I had this when I was building my business.

5100:02:14,800 --> 00:02:20,800So I appreciate all the love everybody's been giving.

5200:02:20,800 --> 00:02:22,720Thank you for the reviews.

5300:02:22,720 --> 00:02:25,200I can see y'all sharing these episodes.

5400:02:25,200 --> 00:02:27,720And so I really, really, really appreciate it.

5500:02:27,720 --> 00:02:31,680And if this is your first time here, definitely leave a review

5600:02:31,680 --> 00:02:34,720after the episode and subscribe.

5700:02:34,720 --> 00:02:36,200Let us know what you need to hear.

5800:02:36,200 --> 00:02:37,800Let us know who we need to talk to.

5900:02:37,800 --> 00:02:40,280That's how this podcast grows.

6000:02:40,280 --> 00:02:44,840Now today, I have another great guest on here,

6100:02:44,840 --> 00:02:48,920Y'all gonna get filled with some very tactical things

6200:02:48,920 --> 00:02:52,480that you can do to pretty much make more money.

6300:02:53,600 --> 00:02:57,880My guest today manages a lot of people's money.

6400:02:57,880 --> 00:03:00,760Hundreds of thousands of millions of dollars

6500:03:00,760 --> 00:03:02,520big into multi-family.

6600:03:02,520 --> 00:03:05,720And I'm gonna let him explain what all he does

6700:03:05,720 --> 00:03:07,760because I don't wanna mess anything up.

6800:03:07,760 --> 00:03:10,520But we recently got connected.

6900:03:10,520 --> 00:03:12,000But well, let me just bring him on.

7000:03:12,000 --> 00:03:16,200Everybody, welcome to the Power In the Testcast, Mr. Joseph Kimbro.

7100:03:16,200 --> 00:03:17,520Hey, thank you for having me on.

7200:03:17,520 --> 00:03:22,160Yeah, so Joseph and I, we actually this past weekend,

7300:03:22,160 --> 00:03:26,640we participated in a TED Talk together.

7400:03:26,640 --> 00:03:29,320So he was another speaker at the TED Talk

7500:03:29,320 --> 00:03:34,320and leading up to that, we have to do these coaching sessions

7600:03:34,320 --> 00:03:38,760and it was a whole thing, but that's how we connected.

7700:03:38,760 --> 00:03:43,760And during the whole process of it, it was kinda like,

7800:03:43,760 --> 00:03:45,800man, you gotta be on the podcast.

7900:03:45,800 --> 00:03:48,920He wanted to be on the podcast, so I'm glad you're here.

8000:03:48,920 --> 00:03:50,880So yeah, welcome, welcome, Joseph.

8100:03:50,880 --> 00:03:51,680Yeah, thanks.

8200:03:51,680 --> 00:03:54,600Yeah, tell everybody a little bit about you, what you do,

8300:03:54,600 --> 00:03:57,320who you are, whatever you wanna share really.

8400:03:57,320 --> 00:03:58,760Yeah, first off, I was gonna say,

8500:03:58,760 --> 00:04:01,800when I saw you using real estate on those things,

8600:04:01,800 --> 00:04:03,880'cause we at Followed Treadon Instagram,

8700:04:03,880 --> 00:04:05,520I said, this one, my real estate, bro, is right here.

8800:04:05,520 --> 00:04:06,840We gotta talk.

8900:04:06,840 --> 00:04:08,160Yeah, yeah, I'm sure.

9000:04:08,160 --> 00:04:09,000For sure.

9100:04:09,000 --> 00:04:11,400So yeah, so just to explain what I do is,

9200:04:11,400 --> 00:04:14,600I managed what's called a 506C fund.

9300:04:14,600 --> 00:04:17,760And what that allows me to do is to raise funds

9400:04:17,760 --> 00:04:19,680from accredited investors.

9500:04:19,680 --> 00:04:23,280So let's say, for example, someone makes $200,000 a year,

9600:04:23,280 --> 00:04:26,480as a single individual or $300,000 a year,

9700:04:26,480 --> 00:04:28,760as a married couple, or they have a net worth

9800:04:28,760 --> 00:04:31,640of $1 million of fund investment,

9900:04:31,640 --> 00:04:34,320excluding their primary residents,

10000:04:34,320 --> 00:04:36,440then they are accredited.

10100:04:36,440 --> 00:04:38,320And they can invest in my fund.

10200:04:38,320 --> 00:04:40,440So how that works is they invest a minimum

10300:04:40,440 --> 00:04:43,480of $100,000 into my fund.

10400:04:43,480 --> 00:04:46,680And then that money is diversified

10500:04:46,680 --> 00:04:49,480amongst multiple apartment buildings,

10600:04:49,480 --> 00:04:53,200throughout all of Texas and the Southeast markets.

10700:04:53,200 --> 00:04:59,160So Southeast markets such as Alabama, Florida, Tennessee,

10800:04:59,160 --> 00:05:03,400Louisiana, Mississippi, all over the Southeast,

10900:05:03,400 --> 00:05:06,160all landlord-friendly states primarily.

11000:05:06,160 --> 00:05:10,120Okay, so you take people's money and invest it

11100:05:10,120 --> 00:05:13,320in these apartment communities

11200:05:13,320 --> 00:05:16,040that what are they already making money or?

11300:05:16,040 --> 00:05:17,040They already making money.

11400:05:17,040 --> 00:05:19,560So we acquire these buildings, typically,

11500:05:19,560 --> 00:05:24,360they're gonna be roughly 90% to 99% already occupied

11600:05:24,360 --> 00:05:26,000and cash flowing.

11700:05:26,000 --> 00:05:29,400They're gonna be class B, class C, some class A,

11800:05:29,400 --> 00:05:31,280we never touch class D.

11900:05:31,280 --> 00:05:33,440I have this rule, I was in the Marine Corps.

12000:05:33,440 --> 00:05:36,760If I need my rifle to go to a building that I'm part owner of,

12100:05:36,760 --> 00:05:38,280

• You're trying to do that.

12200:05:38,280 --> 00:05:39,720

• I don't need to be there,

12300:05:39,720 --> 00:05:41,560none of that clearing out houses.

12400:05:41,560 --> 00:05:44,320

• Yeah, yeah, yeah, yeah, I got you.

12500:05:44,320 --> 00:05:45,960Wow, okay.

12600:05:45,960 --> 00:05:47,360This is interesting.

12700:05:47,360 --> 00:05:50,960All right, so obviously someone has to be accredited.

12800:05:50,960 --> 00:05:53,320They have to have a certain amount of money

12900:05:53,320 --> 00:05:57,160and this is a liquid cash available to straight up give you

13000:05:57,160 --> 00:05:58,000at that time.

13100:05:58,000 --> 00:06:00,560

• Exactly, liquid cash or they can,

13200:06:00,560 --> 00:06:03,680like they've been doing business for a long time,

13300:06:03,680 --> 00:06:07,720but they've worked in a professional corporate America job

13400:06:07,720 --> 00:06:09,760role for a long time.

13500:06:09,760 --> 00:06:13,200They can roll over their 401(k) or an IRA

13600:06:13,200 --> 00:06:16,320into what's called a self-directed IRA.

13700:06:16,320 --> 00:06:19,560And now you can invest that into the fund as well

13800:06:19,560 --> 00:06:21,520and it's protected from taxes.

13900:06:21,520 --> 00:06:24,320

• All right.

14000:06:24,320 --> 00:06:27,840

• Joe, how did you get in all of that?

14100:06:27,840 --> 00:06:28,760Like, what?

14200:06:28,760 --> 00:06:29,760(laughs)

14300:06:29,760 --> 00:06:32,840Okay, you were in the Marines

14400:06:32,840 --> 00:06:35,360and is this what you started doing right after?

14500:06:35,360 --> 00:06:36,200

• No, okay.

14600:06:36,200 --> 00:06:40,280

• Supposed enough, I did nothing to this tune right after.

14700:06:40,280 --> 00:06:42,880I was a personal trainer for two years, bro.

14800:06:42,880 --> 00:06:47,040

• Mm, yep, and then, but while I was a personal trainer,

14900:06:47,040 --> 00:06:51,040I started learning how to do what's called wholesaling.

15000:06:51,040 --> 00:06:53,040And while learning how to wholesal,

15100:06:53,040 --> 00:06:57,080I also was learning like, hey, how do you flip houses?

15200:06:57,080 --> 00:06:59,920I did taxes, I prepared taxes for people.

15300:06:59,920 --> 00:07:02,480And while I was a personal trainer,

15400:07:02,480 --> 00:07:04,640I did it not at your regular gym,

15500:07:04,640 --> 00:07:06,360but I did it more at a private gym

15600:07:06,360 --> 00:07:08,320where people coming in there with bent leaves

15700:07:08,320 --> 00:07:10,200and rose, roses and stuff.

15800:07:10,200 --> 00:07:12,760And so I started talking to people, hey, what do you do?

15900:07:12,760 --> 00:07:14,240Guys, like they're all in gas.

16000:07:14,240 --> 00:07:16,000They do all this serious stuff in private equity.

16100:07:16,000 --> 00:07:19,680So I started thinking, I wanna get into private equity

16200:07:19,680 --> 00:07:22,120one day by having the cash.

16300:07:22,120 --> 00:07:25,640So I started off in wholesale and did that for three years.

16400:07:25,640 --> 00:07:29,840And 2021 sold over 20 something properties,

16500:07:29,840 --> 00:07:34,360land, mobile homes, houses.

16600:07:34,360 --> 00:07:37,640And then also was learning multi-family during that time.

16700:07:37,640 --> 00:07:42,240And then met some mentors later that year of 2021.

16800:07:42,960 --> 00:07:45,880And they don't want to got me started with the fund.

16900:07:45,880 --> 00:07:46,800

• Hmm.

17000:07:46,800 --> 00:07:48,480So, okay.

17100:07:48,480 --> 00:07:52,200If I wanted to get in private equity,

17200:07:52,200 --> 00:07:53,600I don't want to, though.

17300:07:53,600 --> 00:07:55,320So I'm not gonna try to do what you do.

17400:07:55,320 --> 00:07:57,600I'm so busy.

17500:07:57,600 --> 00:08:02,600But like, what's the first things that someone has to do?

17600:08:02,600 --> 00:08:07,880So you were saving up money through wholesaling, right?

17700:08:07,880 --> 00:08:08,700

• Yes.

17800:08:08,700 --> 00:08:12,120

• So obviously you need some money to get into private equity.

17900:08:12,120 --> 00:08:12,960

• Yeah.

18000:08:12,960 --> 00:08:15,280Okay.

18100:08:15,280 --> 00:08:18,040First, explain where private equity is.

18200:08:18,040 --> 00:08:22,280And then second, how would one get into that line of work,

18300:08:22,280 --> 00:08:23,360line of business?

18400:08:23,360 --> 00:08:27,160

• So private equity, when you said it was called a 5.6 C,

18500:08:27,160 --> 00:08:29,200or a 5.6 B fund.

18600:08:29,200 --> 00:08:31,680And just to explain what a 5.6 B is,

18700:08:31,680 --> 00:08:35,480a 5.6 B is for none accredited investors as well.

18800:08:35,480 --> 00:08:37,760So let's say someone's making 175,

18900:08:37,760 --> 00:08:41,480they got like 50 to 75,000 to invest.

19000:08:41,480 --> 00:08:46,480Now, that person's allowed to invest in these type of assets.

19100:08:46,480 --> 00:08:50,120But the type of assets you invest have to be only approved

19200:08:50,120 --> 00:08:51,120by 5.6 B.

19300:08:51,120 --> 00:08:53,000So that's kind of a caveat with that.

19400:08:53,000 --> 00:08:55,520But by doing so,

19500:08:55,520 --> 00:08:58,240and there's a bunch of ways you can move this around.

19600:08:58,240 --> 00:09:00,760Like I can sit up a 5.6 B fund and then say,

19700:09:00,760 --> 00:09:03,160"Hey, if you're none accredited, invest with me.

19800:09:03,160 --> 00:09:04,920You have 90 days.

19900:09:04,920 --> 00:09:08,040I'm taking as much none accredited as money as possible

20000:09:08,040 --> 00:09:10,640up to 22 people, 35 people."

20100:09:10,640 --> 00:09:14,520And then what I'm gonna do is switch it over

20200:09:14,520 --> 00:09:19,040to what's called a 5.6 C fund, which then allows me

20300:09:19,040 --> 00:09:20,960to market to the masses.

20400:09:20,960 --> 00:09:21,800

• Yeah, so it's--

20500:09:21,800 --> 00:09:24,960

• Now I'm giving none accredited, I hate to do this.

20600:09:24,960 --> 00:09:25,840(laughs)

20700:09:25,840 --> 00:09:28,800This is already going over my head.

20800:09:28,800 --> 00:09:32,120And I mean, maybe it's the phones,

20900:09:32,120 --> 00:09:36,040the 5.0, you know, 'cause every time I hear you say 5,

21000:09:36,040 --> 00:09:38,040something, I think 5.1 C3, 5.0,

21100:09:38,040 --> 00:09:38,880(laughs)

21200:09:38,880 --> 00:09:39,720'Cause that's all I'm really--

21300:09:39,720 --> 00:09:41,520

• You think charities, yeah.

21400:09:41,520 --> 00:09:42,360

• Yeah, yeah.

21500:09:42,360 --> 00:09:44,520

• So there are, there's a lot of stuff in it.

21600:09:44,520 --> 00:09:45,600You need attorneys.

21700:09:45,600 --> 00:09:46,680

• Yeah. - Yeah.

21800:09:46,680 --> 00:09:47,760

• Huh.

21900:09:47,760 --> 00:09:49,400

• Yeah, upfront cost is like,

22000:09:49,400 --> 00:09:50,920I'm telling you now, the upfront cost,

22100:09:50,920 --> 00:09:55,400let's say you want to sit up a 5.6 B or 5.6 C fund,

22200:09:55,400 --> 00:09:59,200you're paying that attorney $15,000 cash out your pocket.

22300:09:59,200 --> 00:10:02,720

• Okay, so to break it down,

22400:10:02,720 --> 00:10:07,720a fund has to be set up in order for people to give you money

22500:10:08,520 --> 00:10:09,520for it to be legal.

22600:10:09,520 --> 00:10:10,600

• For it to be--

22700:10:10,600 --> 00:10:12,480

• Yes, you get registered with the SEC.

22800:10:12,480 --> 00:10:14,680

• No, no, you didn't say for it to be legal, look,

22900:10:14,680 --> 00:10:17,280and my mind, well, what's the alternate way?

23000:10:17,280 --> 00:10:18,120(laughs)

23100:10:18,120 --> 00:10:18,960

• Some people--

23200:10:18,960 --> 00:10:21,040

• Some people doing, hey, some people--

23300:10:21,040 --> 00:10:22,280

• What's the way to get started?

23400:10:22,280 --> 00:10:23,520They will get legal.

23500:10:23,520 --> 00:10:25,280(laughs)

23600:10:25,280 --> 00:10:30,280Okay, so you gotta get this, this 5.0, whatever,

23700:10:30,280 --> 00:10:34,560to, that will let you open up a fund.

23800:10:34,560 --> 00:10:35,400

• Yes.

23900:10:35,400 --> 00:10:37,320

• Once you have the fund open,

24000:10:37,320 --> 00:10:41,960you, and it's accredited, you can, I don't wanna say solicit,

24100:10:41,960 --> 00:10:46,400but you can get investments from people like me

24200:10:46,400 --> 00:10:49,920and take that money to invest it in other stuff.

24300:10:49,920 --> 00:10:51,320

• Into apartment buildings.

24400:10:51,320 --> 00:10:52,160

• Okay.

24500:10:52,160 --> 00:10:54,560

• So I have to tell you exactly what I'm investing in.

24600:10:54,560 --> 00:10:58,080I can't say I'm investing in apartment buildings,

24700:10:58,080 --> 00:11:03,080and then call you and say, yo, I'm about to buy 300 properties,

24800:11:03,080 --> 00:11:06,040single family home, life, yeah.

24900:11:06,040 --> 00:11:06,880

• Okay.

25000:11:06,880 --> 00:11:11,880

• So, is this what, like, grant card owned,

25100:11:11,880 --> 00:11:13,360like card owned cash, but--

25200:11:13,360 --> 00:11:14,360

• It's similar, okay.

25300:11:14,360 --> 00:11:15,200

• It's similar.

25400:11:15,200 --> 00:11:18,160We, we somewhat use the same attorneys.

25500:11:18,160 --> 00:11:21,280One of the attorneys they use is, actually,

25600:11:21,280 --> 00:11:23,640we've been in discussion, if I wanted to set up a fund

25700:11:23,640 --> 00:11:28,720similar to his, then it's what would be called a regulation,

25800:11:28,720 --> 00:11:29,560A fund.

25900:11:29,560 --> 00:11:35,800That fund allows everybody to invest as little as $2,000.

26000:11:36,200 --> 00:11:40,280For me, I'm not sitting it up because $2,000 is not gonna be

26100:11:40,280 --> 00:11:42,480life changing for that person.

26200:11:42,480 --> 00:11:46,240In my eyes, you could take that $2,000 by a course,

26300:11:46,240 --> 00:11:48,560you can invest in yourself, anything else.

26400:11:48,560 --> 00:11:50,120

• Right. - Right.

26500:11:50,120 --> 00:11:51,920So, and y'all can tell--

26600:11:51,920 --> 00:11:53,160

• Also, that's more expensive.

26700:11:53,160 --> 00:11:56,000It's like $60,000 to sit there to cash out your pocket.

26800:11:56,000 --> 00:11:57,000

• Please.

26900:11:57,000 --> 00:12:02,000

• Well, y'all can tell that I'm very interested in this topic

27000:12:02,000 --> 00:12:03,720right now, so,

27100:12:04,920 --> 00:12:07,600not that we ever use a script on this show,

27200:12:07,600 --> 00:12:09,480but I'm about to be all over the place

27300:12:09,480 --> 00:12:10,840'cause that's how my brain works.

27400:12:10,840 --> 00:12:13,000I got a real ADHD brain.

27500:12:13,000 --> 00:12:15,160And so, I'm about to get the information

27600:12:15,160 --> 00:12:17,960that I want out of him for this,

27700:12:17,960 --> 00:12:20,440because I'm so intrigued right now.

27800:12:20,440 --> 00:12:24,920So, you as the person who sets it up

27900:12:24,920 --> 00:12:27,760and goes through all that, what's,

28000:12:27,760 --> 00:12:29,280like, what do you get out of it?

28100:12:29,280 --> 00:12:32,920Is it what a percentage of the returns?

28200:12:32,920 --> 00:12:33,760I mean,

28300:12:33,760 --> 00:12:36,680so I get paid a yearly salary,

28400:12:36,680 --> 00:12:40,760which is pretty small in comparison to the size of the fund.

28500:12:40,760 --> 00:12:42,400And then also,

28600:12:42,400 --> 00:12:46,000I make the bulk of my money off of acquiring assets.

28700:12:46,000 --> 00:12:47,880So, I'll invest in,

28800:12:47,880 --> 00:12:51,760by the way, I invest in a hundred units or more.

28900:12:51,760 --> 00:12:55,080If it's 99 units, I'm not touching it.

29000:12:55,080 --> 00:12:57,760So, a hundred units or more.

29100:12:57,760 --> 00:12:59,200So, like, right now, for example,

29200:12:59,200 --> 00:13:02,120working on 400 plus units and Phoenix.

29300:13:02,120 --> 00:13:04,480And then almost 300 units in Grand Prairie,

29400:13:04,480 --> 00:13:07,680almost 200 units in the Valley Ranch Area,

29500:13:07,680 --> 00:13:09,200Lost Cleaners Area,

29600:13:09,200 --> 00:13:11,800working on getting invested into those.

29700:13:11,800 --> 00:13:14,760I might come on as what's called a limited partner,

29800:13:14,760 --> 00:13:17,440through my fund with some of those,

29900:13:17,440 --> 00:13:20,640or I might come on as what's called a general partner,

30000:13:20,640 --> 00:13:25,400where now I have more say so, more responsibility,

30100:13:25,400 --> 00:13:27,960okay, with more responsibility, more risk.

30200:13:27,960 --> 00:13:31,920So, this actually reminds me,

30300:13:31,920 --> 00:13:33,520and you could tell me if this is the same thing,

30400:13:33,520 --> 00:13:36,880because a buddy of mine approached me

30500:13:36,880 --> 00:13:39,280about being a part of a fund,

30600:13:39,280 --> 00:13:43,160and it was kind of broken down to,

30700:13:43,160 --> 00:13:46,800hey, we're gonna invest in commercial buildings,

30800:13:46,800 --> 00:13:51,800and whatever the amount of your investment,

30900:13:51,800 --> 00:13:53,320basically all of the investors,

31000:13:53,320 --> 00:13:55,280there was big investors at the top,

31100:13:55,280 --> 00:13:57,840which I was one of the big investors,

31200:13:57,840 --> 00:14:01,840where I had to bring a sizeable amount,

31300:14:01,840 --> 00:14:06,840now I could source the funds from other people,

31400:14:06,840 --> 00:14:09,200to make up that sizeable amount,

31500:14:09,200 --> 00:14:13,080but based on the amount that I was bringing to the table,

31600:14:13,080 --> 00:14:16,960that's what kind of gave me a role, right?

31700:14:16,960 --> 00:14:19,160And then with these roles,

31800:14:19,160 --> 00:14:22,600you can have someone who fronts the credit,

31900:14:22,600 --> 00:14:25,240someone who fronts the lawyers,

32000:14:25,240 --> 00:14:28,440and these people are coming together, I guess,

32100:14:28,440 --> 00:14:30,480that's just more like a syndication.

32200:14:30,480 --> 00:14:32,320

• Okay. - So, for example,

32300:14:32,320 --> 00:14:35,040there's a difference between a syndicator

32400:14:35,040 --> 00:14:37,080and a fund manager.

32500:14:37,080 --> 00:14:38,480The main difference is,

32600:14:38,480 --> 00:14:40,400when a syndicator needs money to close

32700:14:40,400 --> 00:14:42,040on these apartment buildings,

32800:14:42,040 --> 00:14:44,720they'll come talk to me, the fund manager,

32900:14:44,720 --> 00:14:49,240and I bring equity and exchange for general partnership.

33000:14:49,240 --> 00:14:51,240Or sometimes I don't want general partnership,

33100:14:51,240 --> 00:14:53,360I'll just say, look, I'll be a limited partner,

33200:14:53,360 --> 00:14:56,240because I trust you.

33300:14:56,240 --> 00:14:58,520I know I've seen your track record is strong,

33400:14:59,480 --> 00:15:01,760but you have to have a really strong track record

33500:15:01,760 --> 00:15:04,080for me to come on as a limited partner.

33600:15:04,080 --> 00:15:09,080

• So, is this something that anyone can get into?

33700:15:09,080 --> 00:15:15,360I mean, not from the standpoint of being an investor

33800:15:15,360 --> 00:15:20,080but someone becoming a fund manager

33900:15:20,080 --> 00:15:24,760or getting into this private equity space.

34000:15:24,760 --> 00:15:29,120

• I think it's very possible for people to get into this space.

34100:15:29,120 --> 00:15:31,800I think that you do have to be willing to,

34200:15:31,800 --> 00:15:36,360like if you know people who really have money accredited,

34300:15:36,360 --> 00:15:37,360definitely go for it.

34400:15:37,360 --> 00:15:40,640I would not recommend anyone start off

34500:15:40,640 --> 00:15:44,600as with a 506B fund, because that's word of mouth.

34600:15:44,600 --> 00:15:48,840

• You gotta stop using those terms.

34700:15:48,840 --> 00:15:51,400

• Is there another word we can say for it?

34800:15:51,400 --> 00:15:53,000

• Okay, the five of it.

34900:15:53,000 --> 00:15:57,280

• I would say, I would not recommend someone start a fund

35000:15:57,280 --> 00:16:00,320where you can accept none accredited investors

35100:16:00,320 --> 00:16:04,040and the reason why is because you have to only do things

35200:16:04,040 --> 00:16:05,520word of mouth.

35300:16:05,520 --> 00:16:07,680And when you do things word of mouth,

35400:16:07,680 --> 00:16:10,920if you don't already have a strong network of wealthy people,

35500:16:10,920 --> 00:16:11,840it makes it harder.

35600:16:11,840 --> 00:16:13,720

• It makes it way harder.

35700:16:13,720 --> 00:16:17,640I've been there, done it, sucked, made it through,

35800:16:17,640 --> 00:16:19,040by switching my fund over.

35900:16:19,040 --> 00:16:23,800

• This is the people who have the money under the mattress.

36000:16:23,800 --> 00:16:24,640

• Yes.

36100:16:24,640 --> 00:16:29,640

• So it's not document, like there's no paper trail all the time,

36200:16:29,640 --> 00:16:31,600or it's not an asset.

36300:16:31,600 --> 00:16:32,600

• But no, there's a paper trail.

36400:16:32,600 --> 00:16:33,440

• No, there's paper trail.

36500:16:33,440 --> 00:16:36,680Why do I mean by none accredited is people who,

36600:16:36,680 --> 00:16:38,480they're making one 75 a year.

36700:16:38,480 --> 00:16:40,080

• Oh, it does need that.

36800:16:40,080 --> 00:16:41,760

• Exactly, they don't need that threshold,

36900:16:41,760 --> 00:16:43,680but they every 10,

37000:16:43,680 --> 00:16:47,400invest still nonetheless, $25,000.

37100:16:47,400 --> 00:16:53,520

• Now, so what's the, well, I guess if they're none accredited,

37200:16:54,480 --> 00:16:59,240you have to find more of them to make the deal happen.

37300:16:59,240 --> 00:17:01,600

• That's another reason why people stick with,

37400:17:01,600 --> 00:17:04,920I would say dealing with only accredited investors,

37500:17:04,920 --> 00:17:06,600'cause I ain't wanna use the acronym again.

37600:17:06,600 --> 00:17:07,440

• Yeah, thank you.

37700:17:07,440 --> 00:17:09,120

• Yes, 'cause that threw me off.

37800:17:09,120 --> 00:17:13,640

• That's why people stick with using accredited investors only,

37900:17:13,640 --> 00:17:17,920because when you need to raise $10 million in equity,

38000:17:17,920 --> 00:17:20,840you can't, like, chipping away 50, 100,

38100:17:20,840 --> 00:17:24,920you need people that can bring half a million, $250 million.

38200:17:24,920 --> 00:17:27,760

• Yes, so.

38300:17:27,760 --> 00:17:29,440

• And I love talking big money.

38400:17:29,440 --> 00:17:30,640I'm not gonna lie.

38500:17:30,640 --> 00:17:34,240I love talking big money, but I'm just a little kid

38600:17:34,240 --> 00:17:35,960from the hood too.

38700:17:35,960 --> 00:17:37,600So you saying those, those,

38800:17:37,600 --> 00:17:38,880

• I grew up in Oak Cliff, man.

38900:17:38,880 --> 00:17:39,720

• Gotcha.

39000:17:39,720 --> 00:17:41,120So when you're saying those numbers,

39100:17:41,120 --> 00:17:42,480I'm sitting here like,

39200:17:42,480 --> 00:17:44,000they just got that money sitting there,

39300:17:44,000 --> 00:17:45,960waiting for you to call.

39400:17:45,960 --> 00:17:48,960And because, like, for instance, me,

39500:17:48,960 --> 00:17:51,360most of my money is invested in stuff,

39600:17:51,360 --> 00:17:55,280which makes it very difficult when I need it,

39700:17:55,280 --> 00:17:58,880because there's all this red tape around, you know,

39800:17:58,880 --> 00:18:03,320just the stuff, but these people who you reach out to,

39900:18:03,320 --> 00:18:06,080is it just, yeah, they got that 100, 200,

40000:18:06,080 --> 00:18:08,520just sitting there waiting for your call.

40100:18:08,520 --> 00:18:11,400

• Like a lot of people who I work with,

40200:18:11,400 --> 00:18:13,640in this space, they really will have

40300:18:13,640 --> 00:18:16,800like a hundred, 200,000 sitting in liquid cash.

40400:18:16,800 --> 00:18:17,720

• Okay, so there we go.

40500:18:17,720 --> 00:18:19,960This is a good turning point.

40600:18:19,960 --> 00:18:22,600So as you're building this business,

40700:18:22,600 --> 00:18:25,840how did you start to find these people

40800:18:25,840 --> 00:18:28,480or know who these people are?

40900:18:28,480 --> 00:18:30,080

• Well, I had to do first,

41000:18:30,080 --> 00:18:32,840was be able to recognize who really has money

41100:18:32,840 --> 00:18:33,760and who doesn't.

41200:18:33,760 --> 00:18:36,920So at first, I was going to people,

41300:18:36,920 --> 00:18:39,960while I was like, hey, this person has a Porsche 911,

41400:18:39,960 --> 00:18:41,640chances are they got the money.

41500:18:41,640 --> 00:18:44,120I'm looking at the cars, that kind of stuff.

41600:18:45,040 --> 00:18:48,040I realized, nope, this person don't have the money.

41700:18:48,040 --> 00:18:50,560All the money is sitting in that Porsche 911.

41800:18:50,560 --> 00:18:53,000All the money is sitting in that Lamborghini,

41900:18:53,000 --> 00:18:56,400but you check that bank account, nothing is there.

42000:18:56,400 --> 00:18:58,640They're living paycheck to paycheck.

42100:18:58,640 --> 00:19:01,880So I said, okay, avoid those people.

42200:19:01,880 --> 00:19:03,960I started meeting people, they didn't necessarily

42300:19:03,960 --> 00:19:07,080have those kind of cars, regular cars,

42400:19:07,080 --> 00:19:11,200but then they're able to write a check for 100,000

42500:19:11,200 --> 00:19:14,240and it goes through into the fund account.

42600:19:14,240 --> 00:19:16,240I'm like, hold up.

42700:19:16,240 --> 00:19:17,520As I'm on to something, okay?

42800:19:17,520 --> 00:19:19,360So I started paying attention to little things

42900:19:19,360 --> 00:19:21,440people said, what do they do?

43000:19:21,440 --> 00:19:24,200Someone says, hey, I like to go big game hunting

43100:19:24,200 --> 00:19:27,440in East Africa or South Africa.

43200:19:27,440 --> 00:19:30,680Yeah, okay, that's not normal for most people.

43300:19:30,680 --> 00:19:31,680He talked to you.

43400:19:31,680 --> 00:19:33,520(laughing)

43500:19:33,520 --> 00:19:34,360

• Happy?

43600:19:34,360 --> 00:19:35,520That's what happy?

43700:19:35,520 --> 00:19:36,680Yeah.

43800:19:36,680 --> 00:19:37,520Yeah.

43900:19:37,520 --> 00:19:39,320'Cause I'm talking to him and we connect because, look,

44000:19:39,320 --> 00:19:43,120I've been on Safari where we did what's called glamping,

44100:19:43,120 --> 00:19:46,600and you sit like you have like this really nice tan

44200:19:46,600 --> 00:19:47,920and everything, not the regular tan,

44300:19:47,920 --> 00:19:50,400but really nice tan, nice view and everything,

44400:19:50,400 --> 00:19:52,800but you're out there looking at lines,

44500:19:52,800 --> 00:19:54,760hyenas and stuff, so I've done this.

44600:19:54,760 --> 00:19:55,920I connect with them.

44700:19:55,920 --> 00:19:58,480

• Joseph, I'm gonna cut you off right quick and I apologize,

44800:19:58,480 --> 00:20:00,920but I wanna make sure that everyone is paying attention

44900:20:00,920 --> 00:20:04,640to this because although we're talking about private equity,

45000:20:04,640 --> 00:20:08,560a lot of you who are watching this are real estate agents

45100:20:08,560 --> 00:20:13,100who wanna do more hiring deals and work with hiring people,

45200:20:13,100 --> 00:20:17,020this is straight up networking right here.

45300:20:17,020 --> 00:20:20,860This is something you can apply to any business, okay.

45400:20:20,860 --> 00:20:23,540So, sorry to cut you off.

45500:20:23,540 --> 00:20:24,380

• Oh no you've got it.

45600:20:24,380 --> 00:20:27,540

• I just wanted to make sure everybody's ears perked up

45700:20:27,540 --> 00:20:31,220'cause this is real, this is gems you're dropping right now.

45800:20:31,220 --> 00:20:32,380Okay.

45900:20:32,380 --> 00:20:35,060

• African Safari, y'all connected on that glamping.

46000:20:35,060 --> 00:20:37,900

• Glamping, we connect on stuff like that.

46100:20:37,900 --> 00:20:40,420Most people who go on safaris, they stay in the tent,

46200:20:40,420 --> 00:20:42,420out in the field with the snakes.

46300:20:42,420 --> 00:20:45,620I tell them, no, I say I pay the extra money.

46400:20:45,620 --> 00:20:48,900I don't wanna feel like I'm on a military app on vacation.

46500:20:48,900 --> 00:20:50,860

• Right, right.

46600:20:50,860 --> 00:20:51,860

• Yes.

46700:20:51,860 --> 00:20:52,700

• Yeah.

46800:20:52,700 --> 00:20:54,780

• I say I'm slipping in tents, I'm good.

46900:20:54,780 --> 00:20:56,020

• Yeah.

47000:20:56,020 --> 00:20:59,100

• So, yeah, so just connecting on things like that,

47100:20:59,100 --> 00:21:02,460or even going vacation in East Africa,

47200:21:02,460 --> 00:21:04,420you would be surprised how many people,

47300:21:04,420 --> 00:21:07,060or even West Africa, you'd be surprised how many people

47400:21:07,060 --> 00:21:10,660who make money, they tend to vacation there

47500:21:10,660 --> 00:21:12,820versus going to Europe.

47600:21:12,820 --> 00:21:14,340

• Hmm.

47700:21:14,340 --> 00:21:15,180

• Hmm.

47800:21:15,180 --> 00:21:17,180

• Europe becomes very cliche after a while.

47900:21:17,180 --> 00:21:21,060So, they wanna do stuff different.

48000:21:21,060 --> 00:21:25,860

• But, okay, so I get that, it makes sense.

48100:21:25,860 --> 00:21:30,180How did you even get up to that,

48200:21:30,180 --> 00:21:32,620like, where were you placing yourself

48300:21:32,620 --> 00:21:34,940to even have these conversations,

48400:21:34,940 --> 00:21:36,940to even meet these people?

48500:21:36,940 --> 00:21:38,900

• Different networking events.

48600:21:38,900 --> 00:21:40,980

• Also, I'm a member, like, at a private club

48700:21:40,980 --> 00:21:42,420here in the Dallas-Fort Worth area.

48800:21:42,420 --> 00:21:45,140I was just there earlier today as a matter of fact.

48900:21:45,140 --> 00:21:48,060But, you will meet a lot of people there

49000:21:48,060 --> 00:21:51,380that there's stuff called the investor club there.

49100:21:51,380 --> 00:21:53,340You have to be a member of the club,

49200:21:53,340 --> 00:21:56,340to even go to be a part of that club.

49300:21:56,340 --> 00:21:58,180And so, just putting yourself in those rooms,

49400:21:58,180 --> 00:22:02,180very exclusive rooms, go to, I would say,

49500:22:02,180 --> 00:22:04,980and then also, who you talk to,

49600:22:04,980 --> 00:22:08,380I would say go to places where

49700:22:08,380 --> 00:22:09,740you know where money is gonna be.

49800:22:09,740 --> 00:22:12,900So, I don't go to a, like, a cheap gym.

49900:22:12,900 --> 00:22:16,180I go to a lifetime, maybe Cowboys fit.

50000:22:16,180 --> 00:22:20,620If the gym is 100 plus, lifetime is what,

50100:22:20,620 --> 00:22:23,020$200, $220 almost.

50200:22:23,020 --> 00:22:25,780So, you paying that much to be at a gym,

50300:22:25,780 --> 00:22:27,460that automatically priceless out the people

50400:22:27,460 --> 00:22:29,220who can't afford to be there.

50500:22:29,220 --> 00:22:31,060Now, when you're having a conversation,

50600:22:31,060 --> 00:22:34,460it's more likely that you're having a conversation

50700:22:34,460 --> 00:22:37,660with someone who can afford what you're offering.

50800:22:37,660 --> 00:22:40,900I love that you brought up lifetime.

50900:22:40,900 --> 00:22:45,300Gems like lifetime, equinox, all those high-up gyms.

51000:22:45,300 --> 00:22:51,420For one, I used to work in a gym, back in high school.

51100:22:51,420 --> 00:22:52,500I worked in a gym.

51200:22:52,500 --> 00:22:55,860Gym rates are negotiable.

51300:22:55,860 --> 00:22:57,220Memberships are negotiable.

51400:22:57,220 --> 00:23:00,180But if you're listening to this and you're under,

51500:23:00,180 --> 00:23:02,780I wanna say under 40, right?

51600:23:02,780 --> 00:23:07,780Most places like gyms, even the private clubs.

51700:23:07,780 --> 00:23:10,220I have a membership set at all of them.

51800:23:10,220 --> 00:23:12,860And most of them offer a discount.

51900:23:12,860 --> 00:23:15,620If you're under 40, under 35,

52000:23:15,620 --> 00:23:18,460you get discount to these places.

52100:23:18,460 --> 00:23:21,980Like for the private club that I'm a part of,

52200:23:21,980 --> 00:23:24,580my discount was significant.

52300:23:24,580 --> 00:23:28,740It was significant just because I was under a certain age.

52400:23:28,740 --> 00:23:31,700And then they had a little referral program.

52500:23:31,700 --> 00:23:35,300So as you introduce people there and they get memberships,

52600:23:35,300 --> 00:23:37,340you get money off of your membership.

52700:23:37,340 --> 00:23:39,900So I ended up making it free for me.

52800:23:39,900 --> 00:23:40,740

• Exactly.

52900:23:40,740 --> 00:23:43,380

• My house does it for dining, so I can eat free.

53000:23:43,380 --> 00:23:44,220

• Exactly.

53100:23:44,220 --> 00:23:48,660And that's how you can work the system to cut your costs,

53200:23:48,660 --> 00:23:50,980but don't think that this stuff is so--

53300:23:50,980 --> 00:23:51,900

• Overly price.

53400:23:51,900 --> 00:23:52,740

• Right.

53500:23:52,740 --> 00:23:53,900

• Yeah, it's not overly priced at all.

53600:23:53,900 --> 00:23:58,900

• It's not, you don't get the value or just going there,

53700:24:00,100 --> 00:24:02,980seeing the views, the amenities, yeah, that's all good.

53800:24:02,980 --> 00:24:04,460That's not what you're paying for.

53900:24:04,460 --> 00:24:08,940You're paying for the conversations and the access

54000:24:08,940 --> 00:24:11,660that those types of places get you, right?

54100:24:11,660 --> 00:24:15,940Like, I mean, there's a lot of things out there

54200:24:15,940 --> 00:24:18,220such as charity events or greats.

54300:24:18,220 --> 00:24:19,740

• Charities are great, yes.

54400:24:19,740 --> 00:24:20,580

• Absolutely.

54500:24:20,580 --> 00:24:21,420

• You wanna be at those.

54600:24:21,420 --> 00:24:23,500

• You wanna be at charity events.

54700:24:23,500 --> 00:24:25,260Because what are people doing there?

54800:24:25,260 --> 00:24:26,900They're donating money.

54900:24:26,900 --> 00:24:27,740

• Donating money.

55000:24:27,740 --> 00:24:29,820

• Chances are, they're donating money.

55100:24:29,820 --> 00:24:33,780They make a lot of money because they're trying to get taxes

55200:24:33,780 --> 00:24:36,660down as being someone like myself.

55300:24:36,660 --> 00:24:38,260And being someone like myself.

55400:24:38,260 --> 00:24:39,460I'm sorry, it's the truth.

55500:24:39,460 --> 00:24:40,300

• Yeah, yeah, yeah.

55600:24:40,300 --> 00:24:41,260

• Everybody is just doing this stuff

55700:24:41,260 --> 00:24:42,940about the kind of hard, hard, hard times.

55800:24:42,940 --> 00:24:46,300

• So that person was doing the big donations.

55900:24:46,300 --> 00:24:48,460You know, they got a big tax bill,

56000:24:48,460 --> 00:24:50,020and they gonna ask for their receipt.

56100:24:50,020 --> 00:24:51,380

• Exactly.

56200:24:51,380 --> 00:24:53,100

• Tell them to donate half a million

56300:24:53,100 --> 00:24:55,380and walk away with no receipt and see if they do it.

56400:24:55,380 --> 00:24:56,380

• Oh, it's not happening.

56500:24:56,380 --> 00:24:57,220It's not happening.

56600:24:57,220 --> 00:24:58,220But that's real.

56700:24:58,220 --> 00:25:03,220And especially in real estate, where for one,

56800:25:03,220 --> 00:25:05,860we don't get taxes taken out,

56900:25:05,860 --> 00:25:08,900'cause we're commission and with that commission,

57000:25:08,900 --> 00:25:11,020that tax rate can be very high.

57100:25:11,020 --> 00:25:14,540There's only so much you can write off,

57200:25:14,540 --> 00:25:17,380but think about like for one,

57300:25:17,380 --> 00:25:21,500what rooms can you get in that can end up being tax deductible?

57400:25:21,500 --> 00:25:23,100Like my memberships.

57500:25:23,100 --> 00:25:25,580Tax deductible because I'm working.

57600:25:25,580 --> 00:25:28,620I'm always talking business when I go to the club.

57700:25:28,620 --> 00:25:30,900And I'm not talking about the dance club.

57800:25:30,900 --> 00:25:32,860I'm literally talking about the private clubs.

57900:25:32,860 --> 00:25:33,860

• The private clubs, yeah.

58000:25:33,860 --> 00:25:37,260

• Okay, country clubs, whatever you wanna call them.

58100:25:37,260 --> 00:25:38,980These events that you go to,

58200:25:38,980 --> 00:25:42,500that you have to make donations at your tickets,

58300:25:42,500 --> 00:25:44,980your donation amount, all of that.

58400:25:44,980 --> 00:25:48,900Like that's what helps you when it comes to tax time.

58500:25:48,900 --> 00:25:50,940And you're getting that double benefit

58600:25:50,940 --> 00:25:54,980because you are building your business.

58700:25:54,980 --> 00:25:56,660

• Because you're meeting those people.

58800:25:56,660 --> 00:25:57,700

• Yep.

58900:25:57,700 --> 00:26:00,620

• So you start meeting these people

59000:26:00,620 --> 00:26:05,260and you're realizing who has money, this and the other.

59100:26:05,260 --> 00:26:10,140Do you already have deals when you approach them

59200:26:10,140 --> 00:26:14,420or is it more so, hey, I'm just trying to build a relationship

59300:26:14,420 --> 00:26:16,980and I'm gonna see if they'd be interested.

59400:26:16,980 --> 00:26:19,980Like what's your next step once you identify these people?

59500:26:19,980 --> 00:26:22,180

• What I do is I build the relationship.

59600:26:22,180 --> 00:26:27,180Starting now, I just talked to them, maybe do a FaceTime.

59700:26:27,180 --> 00:26:28,780Like I'll give you an example.

59800:26:28,780 --> 00:26:31,460I did online networking before.

59900:26:31,460 --> 00:26:34,100This was last year, end of last year.

60000:26:34,100 --> 00:26:37,340And a guy, he maybe knew me for a week or two weeks.

60100:26:37,340 --> 00:26:39,220He invested a hundred thousand with me.

60200:26:39,220 --> 00:26:41,820We had a conversation maybe twice,

60300:26:41,820 --> 00:26:43,540do FaceTime and phone call.

60400:26:43,540 --> 00:26:46,900Same thing happened at the beginning of this year.

60500:26:46,900 --> 00:26:49,300Had a conversation maybe twice.

60600:26:49,300 --> 00:26:51,300Also, because I do webinars as well.

60700:26:51,300 --> 00:26:53,260Like I do a webinar where I teach people

60800:26:53,260 --> 00:26:56,300the 10 benefits of investing to multi-family.

60900:26:56,300 --> 00:26:57,940So they would've already started a webinar

61000:26:57,940 --> 00:26:59,820when they reach out or something.

61100:26:59,820 --> 00:27:02,740So that's automatically, they know, hey, this guy,

61200:27:02,740 --> 00:27:03,700he's with this company.

61300:27:03,700 --> 00:27:05,540This company has two billion

61400:27:05,540 --> 00:27:07,540and X number of funds on the management.

61500:27:07,540 --> 00:27:08,660They obviously trust him.

61600:27:08,660 --> 00:27:10,460Okay, I'll park my money with him too.

61700:27:10,460 --> 00:27:15,020

• I'm gonna ask you a question.

61800:27:15,020 --> 00:27:17,620'Cause...

61900:27:19,420 --> 00:27:20,500You're a black man.

62000:27:20,500 --> 00:27:22,860You're a big black man.

62100:27:22,860 --> 00:27:23,700

• I know about the good thing.

62200:27:23,700 --> 00:27:24,540

• Black question.

62300:27:24,540 --> 00:27:26,300

• Yeah, he's milled to...

62400:27:26,300 --> 00:27:27,300All the muscles.

62500:27:27,300 --> 00:27:28,140

• Six three.

62600:27:28,140 --> 00:27:28,980

• Six three.

62700:27:28,980 --> 00:27:30,660You're a big black man.

62800:27:30,660 --> 00:27:31,500Okay.

62900:27:31,500 --> 00:27:34,180And I can only imagine who you're approaching

63000:27:34,180 --> 00:27:38,060for this type of money and everything.

63100:27:38,060 --> 00:27:43,940Did you or do you face adversities or trusts with people?

63200:27:47,020 --> 00:27:49,660I mean, how do you break that barrier?

63300:27:49,660 --> 00:27:50,740'Cause I know that it exists.

63400:27:50,740 --> 00:27:52,260Please don't tell me that it doesn't exist.

63500:27:52,260 --> 00:27:53,500

• No, it exists, trust me.

63600:27:53,500 --> 00:27:57,420How do you break down those walls and barriers?

63700:27:57,420 --> 00:27:59,820

• By being extremely knowledgeable.

63800:27:59,820 --> 00:28:01,460When I first set my fund up,

63900:28:01,460 --> 00:28:06,700the private placement memorandum is 60 something pages.

64000:28:06,700 --> 00:28:10,620The subscription agreement is roughly 50 to 60 something pages.

64100:28:10,620 --> 00:28:12,340

• And I don't know what need are those already, way.

64200:28:12,340 --> 00:28:15,100

• Exactly, but the operating agreement,

64300:28:15,100 --> 00:28:18,220that's like another what 40, 50 pages.

64400:28:18,220 --> 00:28:22,720I read through every single one of them, word for word.

64500:28:22,720 --> 00:28:25,380If they ask me, when I sit in,

64600:28:25,380 --> 00:28:27,460and I've sat in the room with a guy,

64700:28:27,460 --> 00:28:30,900older white guy, oil and gas for 30 years.

64800:28:30,900 --> 00:28:35,260Yeah, and he asked me questions.

64900:28:35,260 --> 00:28:36,660All of them asked me questions.

65000:28:36,660 --> 00:28:38,500I'm the only black person in the room

65100:28:38,500 --> 00:28:40,620asking me questions, questions, questions.

65200:28:40,620 --> 00:28:43,020And I'm just answering, boom, boom.

65300:28:43,020 --> 00:28:45,380Do you feel like he was asking those questions to?

65400:28:45,380 --> 00:28:46,900

• I know why they asked those questions.

65500:28:46,900 --> 00:28:50,220They want to test me because obviously, again, like you said,

65600:28:50,220 --> 00:28:53,820big black guy, look like I played football.

65700:28:53,820 --> 00:28:58,380They're not thinking athlete, private equity fund manager.

65800:28:58,380 --> 00:29:02,540No, they think athlete, throw a football, jibble ball,

65900:29:02,540 --> 00:29:03,660is different.

66000:29:03,660 --> 00:29:05,780So you have to know your stuff.

66100:29:05,780 --> 00:29:09,300And so when I knew every single thing that they was asking,

66200:29:09,300 --> 00:29:11,900and even more than what they even knew,

66300:29:11,900 --> 00:29:14,460it was like, okay, this guy, wow.

66400:29:14,460 --> 00:29:18,140

• Yeah, and that's true.

66500:29:18,140 --> 00:29:21,980I've definitely said that here on this podcast

66600:29:21,980 --> 00:29:26,540before, even about how you present yourself,

66700:29:26,540 --> 00:29:29,980like, yeah, be the smartest person in the room,

66800:29:29,980 --> 00:29:31,900but don't be the loudest.

66900:29:31,900 --> 00:29:32,900

• Exactly.

67000:29:32,900 --> 00:29:33,740

• Right?

67100:29:33,740 --> 00:29:38,740And like the rooms, I tend to be very mysterious.

67200:29:38,740 --> 00:29:41,660Like even the room we were in.

67300:29:41,660 --> 00:29:44,980You know, I'm a very introverted person,

67400:29:44,980 --> 00:29:47,340but I'm very mysterious.

67500:29:47,340 --> 00:29:51,660And then when you open your mouth and you start talking

67600:29:51,660 --> 00:29:54,420and doing whatever performance you gotta do,

67700:29:54,420 --> 00:29:56,020then they're like, oh snap.

67800:29:56,020 --> 00:29:59,420Like this guy, where did he come from?

67900:29:59,420 --> 00:30:02,300Then you're gonna see everybody wants to know.

68000:30:02,300 --> 00:30:06,740And so I definitely know what you're talking about.

68100:30:06,740 --> 00:30:08,500And that starts with being knowledgeable, yeah.

68200:30:08,500 --> 00:30:10,540

• Yeah, starts with being knowledgeable.

68300:30:10,540 --> 00:30:12,020If you don't know something,

68400:30:12,020 --> 00:30:14,020and if you don't know the answer to something, let 'em know.

68500:30:14,020 --> 00:30:15,620Look, I can figure this out.

68600:30:15,620 --> 00:30:16,460

• I can figure this out.

68700:30:16,460 --> 00:30:17,300

• I can figure this out.

68800:30:17,300 --> 00:30:18,140

• Yes, yes.

68900:30:18,140 --> 00:30:18,980

• I figure it out.

69000:30:18,980 --> 00:30:18,980

• Yes.

69100:30:18,980 --> 00:30:19,940

• Is somewhere in my private place,

69200:30:19,940 --> 00:30:21,220Memorandum was something.

69300:30:21,220 --> 00:30:22,820Probably forgot, but I figure it out.

69400:30:22,820 --> 00:30:24,300I'll send it to you.

69500:30:24,300 --> 00:30:27,700

• Yes, that's something I feel like more people need

69600:30:27,700 --> 00:30:29,300to be comfortable with.

69700:30:29,300 --> 00:30:32,820And I think that that shows a different confidence.

69800:30:32,820 --> 00:30:35,620When you say you don't know something,

69900:30:35,620 --> 00:30:37,860but you're gonna figure it out, that shows that,

70000:30:37,860 --> 00:30:39,660hey, I'm comfortable with what I'm doing.

70100:30:39,660 --> 00:30:41,540I'm comfortable with what I'm saying.

70200:30:41,540 --> 00:30:44,620And I'm willing to admit that I don't necessarily

70300:30:44,620 --> 00:30:46,100know the answer to this,

70400:30:46,100 --> 00:30:49,540but I will get back to you versus that person

70500:30:49,540 --> 00:30:52,820who tries to make up what they think it is.

70600:30:52,820 --> 00:30:54,900And then that person on the other side saying,

70700:30:54,900 --> 00:30:55,900oh, this is very important.

70800:30:55,900 --> 00:30:56,740

• Yeah.

70900:30:56,740 --> 00:30:59,980And let's just be completely transparent.

71000:30:59,980 --> 00:31:03,780From going from being a wholesaler, selling contracts

71100:31:03,780 --> 00:31:05,260to in buyers,

71200:31:05,260 --> 00:31:06,460I need nothing about this world.

71300:31:06,460 --> 00:31:08,100Why, first, I started.

71400:31:08,100 --> 00:31:10,060So I had to educate myself.

71500:31:10,060 --> 00:31:12,900And that educating myself on real estate so much,

71600:31:12,900 --> 00:31:15,260I didn't know about retirement accounts.

71700:31:15,260 --> 00:31:17,460But when I started talking to people about retirement accounts,

71800:31:17,460 --> 00:31:18,500that's okay.

71900:31:18,500 --> 00:31:21,540As a fund manager, I can't just know real estate,

72000:31:21,540 --> 00:31:24,620how to pick a good deal to invest in for my investors.

72100:31:24,620 --> 00:31:28,060I need to also know how to self-direct the IRA's work.

72200:31:28,060 --> 00:31:30,820So I need to know how that works.

72300:31:30,820 --> 00:31:33,260I need to know how trust works.

72400:31:33,260 --> 00:31:35,820Everything in the financial perspective,

72500:31:35,820 --> 00:31:36,820I need to know how it works.

72600:31:36,820 --> 00:31:39,100How long it should take to roll something over

72700:31:39,100 --> 00:31:41,220to get funds to me?

72800:31:41,220 --> 00:31:42,940I should know all of that stuff.

72900:31:42,940 --> 00:31:46,340It's a lot broader than just picking a deal.

73000:31:46,340 --> 00:31:47,180

• Yep.

73100:31:47,180 --> 00:31:50,260And that parallels with even real estate agency,

73200:31:50,260 --> 00:31:54,620you know, you don't just want to know how to sell a house

73300:31:54,620 --> 00:31:55,820or help a buyer,

73400:31:55,820 --> 00:31:59,700but when you start working with high net worth individuals,

73500:31:59,700 --> 00:32:03,740you want to know how our tax is going to affect

73600:32:03,740 --> 00:32:05,180what they're doing with you

73700:32:05,180 --> 00:32:07,940and what recommendations can you provide

73800:32:07,940 --> 00:32:10,060to lower their tax liability?

73900:32:10,060 --> 00:32:12,660Say they have a whole bunch of equity in the home,

74000:32:12,660 --> 00:32:14,620you want to be able to provide their recommendation

74100:32:14,620 --> 00:32:18,140to roll X amount over to another property or put it here,

74200:32:18,140 --> 00:32:20,660so you won't get taxes like--

74300:32:20,660 --> 00:32:22,660

• Plus in my business too,

74400:32:22,660 --> 00:32:26,300with you lot of someone about something like taxes,

74500:32:26,300 --> 00:32:29,380how much they can get reducing their taxes

74600:32:29,380 --> 00:32:31,140because you're the manager of the fund,

74700:32:31,140 --> 00:32:32,740you can't get sued.

74800:32:32,740 --> 00:32:33,580

• I'm sure.

74900:32:33,580 --> 00:32:35,140

• Like you can get sued a lot in my business.

75000:32:35,140 --> 00:32:35,980

• Yeah.

75100:32:35,980 --> 00:32:37,220

• And there are also,

75200:32:37,220 --> 00:32:39,540also if you don't do something right,

75300:32:39,540 --> 00:32:41,860misappropriate funds, don't invest in something

75400:32:41,860 --> 00:32:44,220like you said you're just gonna invest in,

75500:32:44,220 --> 00:32:46,500you can find yourself in federal prison.

75600:32:46,500 --> 00:32:47,340

• I'm sure.

75700:32:47,340 --> 00:32:50,340That's like, like American greed right there.

75800:32:50,340 --> 00:32:51,340

• I tell people,

75900:32:51,340 --> 00:32:53,260I look, a cage is a cage and,

76000:32:53,260 --> 00:32:54,900I mean, you can be,

76100:32:54,900 --> 00:32:57,260I can be playing tennis with a bunch of people

76200:32:57,260 --> 00:32:58,540or basketball,

76300:32:58,540 --> 00:33:00,940it's still a cage, it's still a cage.

76400:33:00,940 --> 00:33:05,260So, okay, we made some good traction,

76500:33:05,260 --> 00:33:06,540my head is spinning.

76600:33:06,540 --> 00:33:11,900When it comes to the actual deals, right?

76700:33:11,900 --> 00:33:15,700So the community is that you're going to invest in,

76800:33:15,700 --> 00:33:16,900how does that go down?

76900:33:16,900 --> 00:33:18,540Do you source the deals?

77000:33:18,540 --> 00:33:20,100Do people bring them to you?

77100:33:20,100 --> 00:33:21,180

• People bring them to me.

77200:33:21,180 --> 00:33:22,020

• Okay.

77300:33:22,020 --> 00:33:23,820

• I would say, so syndicators,

77400:33:23,820 --> 00:33:25,540so that's why I always make it very clear,

77500:33:25,540 --> 00:33:26,540like if people,

77600:33:26,540 --> 00:33:29,260so when I say I invest in multi-family,

77700:33:29,260 --> 00:33:31,180syndicators might see me as competition,

77800:33:31,180 --> 00:33:32,460so I make it very clear to them,

77900:33:32,460 --> 00:33:34,300you are not my competition.

78000:33:34,300 --> 00:33:36,140My competition is another fund.

78100:33:36,140 --> 00:33:40,700You, I will be willing to work with you.

78200:33:40,700 --> 00:33:43,780I wanna work with the best syndicators,

78300:33:43,780 --> 00:33:47,260because the better the deals in the stronger,

78400:33:47,260 --> 00:33:50,460the syndicators/operators are,

78500:33:50,460 --> 00:33:52,140over those deals,

78600:33:52,140 --> 00:33:54,340the better returns it is for my investors.

78700:33:54,340 --> 00:33:58,540

• Okay.

78800:33:58,540 --> 00:34:00,580What's going through my head right now,

78900:34:00,580 --> 00:34:03,700especially since you brought up the syndicators is,

79000:34:03,700 --> 00:34:08,700okay, you have you plus all of your investors on your side,

79100:34:08,700 --> 00:34:12,180then the syndicators and everyone who they have involved

79200:34:12,180 --> 00:34:13,420on their side.

79300:34:13,420 --> 00:34:15,900So these returns,

79400:34:15,900 --> 00:34:18,340are they being split with everybody?

79500:34:18,340 --> 00:34:20,660Like, it's blended, right?

79600:34:20,660 --> 00:34:23,260So you're not getting paid off the returns

79700:34:23,260 --> 00:34:25,700of just one property in my fund.

79800:34:25,700 --> 00:34:28,260One fund will have 1,000 plus units in it.

79900:34:28,260 --> 00:34:31,020You're getting paid from all 1,000 plus units.

80000:34:31,020 --> 00:34:34,180Now that return on your investment is all blended

80100:34:34,180 --> 00:34:36,580on an annual basis,

80200:34:36,580 --> 00:34:38,900because you own units of the fund.

80300:34:38,900 --> 00:34:39,900

• Yeah.

80400:34:39,900 --> 00:34:42,900

• And this is great for people who are in real estate

80500:34:42,900 --> 00:34:43,940full of time.

80600:34:43,940 --> 00:34:47,260If you're flipping houses, if you're wholesaling,

80700:34:47,260 --> 00:34:49,780you're a realtor, you making 200,000 plus a year,

80800:34:49,780 --> 00:34:51,460and you invest into the fund,

80900:34:51,460 --> 00:34:54,740you're getting tax benefits.

81000:34:54,740 --> 00:34:56,020You're writing off,

81100:34:56,020 --> 00:34:57,100like this year alone,

81200:34:57,100 --> 00:34:59,460you're writing off up to 80% of what you're investing.

81300:34:59,460 --> 00:35:01,500

• Oh, okay.

81400:35:01,500 --> 00:35:04,940Let's dissect that.

81500:35:04,940 --> 00:35:06,340Okay.

81600:35:06,340 --> 00:35:10,020The tax benefits of this, 80% is a lot.

81700:35:10,020 --> 00:35:14,340And here it goes, my head is like,

81800:35:14,340 --> 00:35:17,940"Wait, so I might get a refund by doing this stuff?"

81900:35:17,940 --> 00:35:21,020I haven't got a refund since high school, damn, man.

82000:35:21,020 --> 00:35:22,580

• But,

82100:35:22,580 --> 00:35:23,420

• But,

82200:35:23,420 --> 00:35:26,220okay, the tax advantages of this,

82300:35:26,980 --> 00:35:29,740what do those look like?

82400:35:29,740 --> 00:35:32,820

• You get to, when we do these cost-seq studies

82500:35:32,820 --> 00:35:33,820on these properties,

82600:35:33,820 --> 00:35:37,420to see how much was lost

82700:35:37,420 --> 00:35:40,500from doing all the renovations and stuff to the properties,

82800:35:40,500 --> 00:35:42,500then you get to take advantage of what's called

82900:35:42,500 --> 00:35:44,780bonus depreciation.

83000:35:44,780 --> 00:35:46,460Now, that allows you,

83100:35:46,460 --> 00:35:49,700let's say you invest 100,000,

83200:35:49,700 --> 00:35:52,940that allows you to write off up to 80,000

83300:35:52,940 --> 00:35:55,180of that investment this year.

83400:35:55,180 --> 00:35:59,220On top of that, you get quarterly distributions,

83500:35:59,220 --> 00:36:00,860you get monthly distributions,

83600:36:00,860 --> 00:36:03,620depending on which operators I work with.

83700:36:03,620 --> 00:36:04,980You're also getting,

83800:36:04,980 --> 00:36:06,740let's say we do cash-yay refinances,

83900:36:06,740 --> 00:36:09,540which we are not doing in this current market.

84000:36:09,540 --> 00:36:11,580Let's say we do a cash-yay refinance,

84100:36:11,580 --> 00:36:13,180you get paid from that as well.

84200:36:13,180 --> 00:36:16,940So, and then when we sell the property,

84300:36:16,940 --> 00:36:19,260you get paid from that as well.

84400:36:19,260 --> 00:36:24,020

• So, within, with an investor on your end,

84500:36:24,020 --> 00:36:27,620are you, so say I gave you 100,000 dollars, right?

84600:36:27,620 --> 00:36:32,180Would I know specifically what property I'm investing in,

84700:36:32,180 --> 00:36:34,060and is it just one property,

84800:36:34,060 --> 00:36:37,260or do you work kind of like a mutual fund

84900:36:37,260 --> 00:36:41,420where it's like, I'm gonna put 20 of his here, 30 here,

85000:36:41,420 --> 00:36:45,100where it's diversified on different projects.

85100:36:45,100 --> 00:36:46,260

• It's diversified.

85200:36:46,260 --> 00:36:47,100

• Okay.

85300:36:47,100 --> 00:36:50,460

• Now, you'll know the properties that are already in the fund.

85400:36:50,460 --> 00:36:52,380So, when we're talking prior, I'll tell you,

85500:36:52,380 --> 00:36:57,020hey, for example, Charleston South Carolina property,

85600:36:57,020 --> 00:36:59,500that I have, that's 160 units.

85700:36:59,500 --> 00:37:01,500Then I'll tell you about a Phoenix property

85800:37:01,500 --> 00:37:04,020that's 400 plus units, that's in the fund.

85900:37:04,020 --> 00:37:07,100I will show you those, you will see the numbers on them.

86000:37:07,100 --> 00:37:09,220And then, those are properties,

86100:37:09,220 --> 00:37:11,260every property I acquire after

86200:37:11,260 --> 00:37:13,740is gonna be extremely similar to those.

86300:37:13,740 --> 00:37:20,220

• And are these returns similar to like,

86400:37:20,220 --> 00:37:22,540you know, just like normal real estate appreciation,

86500:37:22,540 --> 00:37:25,380or is there a bigger upside with?

86600:37:25,380 --> 00:37:27,580

• It's a bigger upside because it's more units, right?

86700:37:27,580 --> 00:37:29,660So, better economies of scale.

86800:37:29,660 --> 00:37:34,460Also, what in multi-family, it's not like single family.

86900:37:34,460 --> 00:37:39,060You know, in single family, it's based off Cumps, ARV.

87000:37:39,060 --> 00:37:42,420So, you say, hey, you could put a million dollars

87100:37:42,420 --> 00:37:43,540into your house.

87200:37:43,540 --> 00:37:46,140If this is a $250,000 neighborhood,

87300:37:46,140 --> 00:37:48,420I promise you you won't get past $250,000.

87400:37:48,420 --> 00:37:49,260

• Right.

87500:37:49,260 --> 00:37:51,420

• Right, yeah. - True.

87600:37:51,420 --> 00:37:54,020

• But the thing is though, in multi-family,

87700:37:54,020 --> 00:37:57,020we have what's called forced appreciation.

87800:37:57,020 --> 00:37:59,580An apartment building is ran more like a business

87900:37:59,580 --> 00:38:01,980than it is a piece of real estate.

88000:38:01,980 --> 00:38:04,540So, what we'll do is,

88100:38:04,540 --> 00:38:07,100cover parking, charge for that.

88200:38:07,100 --> 00:38:09,980We'll cover, we might put a vending machine,

88300:38:09,980 --> 00:38:11,700little things that add money,

88400:38:11,700 --> 00:38:13,620depending on if it's class C or not,

88500:38:13,620 --> 00:38:17,980you could add in maybe a paid washing machines or something.

88600:38:18,900 --> 00:38:21,140You can renovate the units.

88700:38:21,140 --> 00:38:25,140So, you go and you renovate 200 of the units in a building.

88800:38:25,140 --> 00:38:30,020Now you can charge more rent, $400 plus in rent.

88900:38:30,020 --> 00:38:31,340You can increase it.

89000:38:31,340 --> 00:38:34,580All those little increases in value,

89100:38:34,580 --> 00:38:36,420raises the value of the building.

89200:38:36,420 --> 00:38:39,180I know of a property right now,

89300:38:39,180 --> 00:38:43,180gained what, a million dollars in value

89400:38:43,180 --> 00:38:44,420over the year of holding it.

89500:38:46,180 --> 00:38:50,420What, a million dollars over a year?

89600:38:50,420 --> 00:38:51,260

• Of holding it.

89700:38:51,260 --> 00:38:54,340I know of a property right now that gained.

89800:38:54,340 --> 00:38:55,940So, I was telling me about it,

89900:38:55,940 --> 00:38:58,740gained over a million dollars in value.

90000:38:58,740 --> 00:39:02,820

• 12 months. - 12 months just by adding all these things.

90100:39:02,820 --> 00:39:06,100

• So, at that point,

90200:39:06,100 --> 00:39:10,100who do you get to make the decision?

90300:39:10,100 --> 00:39:11,780

• You hold that property still.

90400:39:11,780 --> 00:39:13,220

• 'Cause you're still adding value.

90500:39:13,220 --> 00:39:15,900But I've seen some operators

90600:39:15,900 --> 00:39:18,140but they've showed me their track records

90700:39:18,140 --> 00:39:20,700and they've made a bond the property for,

90800:39:20,700 --> 00:39:23,940let's say, $4.75 million.

90900:39:23,940 --> 00:39:27,580And they've sold it at $9.15 million three years later.

91000:39:27,580 --> 00:39:30,260I've actually seen that.

91100:39:30,260 --> 00:39:32,300So, that's the power of multifamily

91200:39:32,300 --> 00:39:34,140when you're adding value to these buildings

91300:39:34,140 --> 00:39:36,500and you're raising that rent up.

91400:39:36,500 --> 00:39:39,300

• So, who makes those decisions?

91500:39:39,300 --> 00:39:44,300

• The operators, the lead GPs, lead general partners.

91600:39:44,460 --> 00:39:46,900

• Okay. - Lead general partners.

91700:39:46,900 --> 00:39:51,460I'm literally like, right now.

91800:39:51,460 --> 00:39:56,460Okay, so, breakdown the structure of everyone

91900:39:56,460 --> 00:39:59,540that comes together to make this deal.

92000:39:59,540 --> 00:40:01,820So, you say, lead general partners.

92100:40:01,820 --> 00:40:03,580

• Yeah, general partners. - Limited partners.

92200:40:03,580 --> 00:40:04,500

• Limited partners.

92300:40:04,500 --> 00:40:08,020You might need someone to guarantee loans.

92400:40:08,020 --> 00:40:10,980You call them KP's, I forget what that stands for.

92500:40:10,980 --> 00:40:13,860But, keep partners, that's what stands for.

92600:40:13,860 --> 00:40:15,500KP's key partners.

92700:40:15,500 --> 00:40:17,660So, you have those three.

92800:40:17,660 --> 00:40:19,420And the reason why you might need a key partners

92900:40:19,420 --> 00:40:22,100because if you're getting into multifamily,

93000:40:22,100 --> 00:40:25,180because you say, well, shoot, I want to be a general partner

93100:40:25,180 --> 00:40:27,740and do that, it's kind of tough

93200:40:27,740 --> 00:40:29,900because you need to have a net worth

93300:40:29,900 --> 00:40:32,820to guarantee the loan on some of these buildings.

93400:40:32,820 --> 00:40:35,340You can't walk in and say, I want a loan

93500:40:35,340 --> 00:40:37,340for a $30 million property

93600:40:37,340 --> 00:40:39,740and your net worth isn't anywhere near $30 million.

93700:40:39,740 --> 00:40:42,380So, now you got to bring in a key partner.

93800:40:42,380 --> 00:40:44,900And now you're going to give up part of the general partnership

93900:40:44,900 --> 00:40:49,580to them meaning they might ask for 10% in return

94000:40:49,580 --> 00:40:51,020or 20% in return.

94100:40:51,020 --> 00:40:57,100So, with those roles, what's your role in all of that?

94200:40:57,100 --> 00:41:01,900You're just the manager.

94300:41:01,900 --> 00:41:02,740

• My role?

94400:41:02,740 --> 00:41:04,780

• No, so my role is fund management.

94500:41:04,780 --> 00:41:05,980I provide equity.

94600:41:05,980 --> 00:41:10,740I come in and I come in as a general partner.

94700:41:10,740 --> 00:41:13,220I come in as a limited partner.

94800:41:13,220 --> 00:41:18,220I could even be a key partner on deals based off of net worth.

94900:41:18,220 --> 00:41:20,180That's another beautiful thing to why I switch

95000:41:20,180 --> 00:41:23,060from wholesaling to this because when you're wholesaling,

95100:41:23,060 --> 00:41:25,220you don't have a net worth, not really.

95200:41:25,220 --> 00:41:28,380But when you switch over and you acquire assets,

95300:41:28,380 --> 00:41:29,540

• Oh, this is part of your life.

95400:41:29,540 --> 00:41:30,740

• You have a net worth.

95500:41:30,740 --> 00:41:37,060

• I don't know if this is going over Y'all's heads

95600:41:37,060 --> 00:41:42,060and I hope not, but this is some real real stuff.

95700:41:42,060 --> 00:41:49,540Yeah, 'cause all that is under you at that point.

95800:41:49,540 --> 00:41:51,460

• All that is under my fund.

95900:41:51,460 --> 00:41:53,660I get based off how much money is in my fund.

96000:41:53,660 --> 00:41:55,180That's part of my net worth.

96100:41:55,180 --> 00:41:57,340That would be like a few million dollars in the fund.

96200:41:57,340 --> 00:42:01,100Then you have based off of these properties

96300:42:01,100 --> 00:42:04,620every time I acquire a new property, my net worth goes up.

96400:42:05,620 --> 00:42:07,460So now I'm building my net worth

96500:42:07,460 --> 00:42:12,460and then I can go guarantee a $30 million, $40, $50 million asset

96600:42:12,460 --> 00:42:15,620and then getting paid more just because

96700:42:15,620 --> 00:42:18,420not only am I a general partner on that building,

96800:42:18,420 --> 00:42:21,740I'm also a key partner, so I can ask for more.

96900:42:21,740 --> 00:42:24,660

• And that's how the equity percentages break up,

97000:42:24,660 --> 00:42:27,060depending on what role you are.

97100:42:27,060 --> 00:42:27,900

• Exactly.

97200:42:27,900 --> 00:42:31,460

• And like my mentors, for the $30 million property,

97300:42:31,460 --> 00:42:33,660they were key partners on that.

97400:42:33,660 --> 00:42:35,300They guaranteed the loan for $30 million.

97500:42:35,300 --> 00:42:38,900The net worth is higher than $30 million, like $50 or more each.

97600:42:38,900 --> 00:42:44,540

• Okay, I'm getting it all now.

97700:42:44,540 --> 00:42:45,380I'm getting it all.

97800:42:45,380 --> 00:42:48,780So that's the assets.

97900:42:48,780 --> 00:42:53,260When it comes down to deciding whether to sell

98000:42:53,260 --> 00:42:55,460at a third point or whole, is that already said

98100:42:55,460 --> 00:43:00,260in stone ahead of time or does everyone have input into that?

98200:43:00,260 --> 00:43:02,420

• Went to sales, so all the general partners

98300:43:02,420 --> 00:43:03,940determine have input.

98400:43:03,940 --> 00:43:04,780

• Okay.

98500:43:04,780 --> 00:43:08,700

• Typically with these deals, they're gonna sell conservatively

98600:43:08,700 --> 00:43:10,340within five to seven years.

98700:43:10,340 --> 00:43:13,780Some can sell in three years.

98800:43:13,780 --> 00:43:15,140You might sell one in two years

98900:43:15,140 --> 00:43:16,860if the market is permits.

99000:43:16,860 --> 00:43:19,980Like I told you before, I've literally seen

99100:43:19,980 --> 00:43:23,340where some of these operators showed me their pitch decks.

99200:43:23,340 --> 00:43:28,340I've seen them hold a property, buy it at 4.75 million.

99300:43:28,340 --> 00:43:32,780Three years later, sell it at 9.5, 9.15 million, I mean.

99400:43:33,780 --> 00:43:36,380And you just like, that is phenomenal.

99500:43:36,380 --> 00:43:39,620And then they show a body of work

99600:43:39,620 --> 00:43:42,140where they've done this 26 times.

99700:43:42,140 --> 00:43:43,780Over 20 years.

99800:43:43,780 --> 00:43:46,420They own over 10,000 units already.

99900:43:46,420 --> 00:43:47,980These are the people I work with.

100000:43:47,980 --> 00:43:51,620

• We'll be right back.

100100:43:51,620 --> 00:43:52,820

• Attention, real estate agents,

100200:43:52,820 --> 00:43:54,420are you at a point in your business

100300:43:54,420 --> 00:43:57,940where you simply just need some systems and processes?

100400:43:57,940 --> 00:44:00,100You're selling homes, you're making money,

100500:44:00,100 --> 00:44:02,620however, everything on the back end is a mess.

100600:44:02,620 --> 00:44:04,700You need to hire some assistance

100700:44:04,700 --> 00:44:06,300or possibly even some agents,

100800:44:06,300 --> 00:44:08,700but you don't want to bring them into this whole mess

100900:44:08,700 --> 00:44:10,660of an operation that you have going on.

101000:44:10,660 --> 00:44:13,020That's exactly how I can help you.

101100:44:13,020 --> 00:44:15,860Lately, I've been helping real estate agents get

101200:44:15,860 --> 00:44:17,700to that next level and make sure

101300:44:17,700 --> 00:44:19,660that they are consistently closing,

101400:44:19,660 --> 00:44:24,020expanding into teams and running a sustainable real estate

101500:44:24,020 --> 00:44:24,540business.

101600:44:24,540 --> 00:44:25,700How are we doing this?

101700:44:25,700 --> 00:44:29,220We're implementing six pillars inside of your business

101800:44:29,220 --> 00:44:32,020to make sure that everything gets done

101900:44:32,020 --> 00:44:33,500when it's supposed to get done.

102000:44:33,500 --> 00:44:35,860Just here recently, I helped an agent

102100:44:35,860 --> 00:44:39,060who was making great money, closing deals,

102200:44:39,060 --> 00:44:41,620but she couldn't move up to the next level.

102300:44:41,620 --> 00:44:45,140She couldn't bring anybody in and she was getting unhappy.

102400:44:45,140 --> 00:44:47,660She was getting resentful to the business.

102500:44:47,660 --> 00:44:51,500I said, hey, we don't need to completely change up everything

102600:44:51,500 --> 00:44:53,060and it's not a matter of time.

102700:44:53,060 --> 00:44:55,300It's just a matter of making sure

102800:44:55,300 --> 00:44:57,660that we have everything running smoothly.

102900:44:57,660 --> 00:45:00,540I have these systems that I created when I was

103000:45:00,540 --> 00:45:03,700running my real estate team and it helped us close

103100:45:03,700 --> 00:45:06,340over 100 homes year after year.

103200:45:06,340 --> 00:45:08,820And that's the system that we are implementing

103300:45:08,820 --> 00:45:10,500into your business.

103400:45:10,500 --> 00:45:13,900So this opportunity is available for you

103500:45:13,900 --> 00:45:18,620if you want me to hand hold, if you want me to hold you by the hand

103600:45:18,620 --> 00:45:21,620and work with you one on one for six months.

103700:45:21,620 --> 00:45:24,300While we implement these systems and processes

103800:45:24,300 --> 00:45:26,420and expand your real estate business

103900:45:26,420 --> 00:45:28,820from being just a solo agent to where

104000:45:28,820 --> 00:45:31,700now you have a team that's consistently closing

104100:45:31,700 --> 00:45:35,260two to three deals a month at minimum on autopilot.

104200:45:35,260 --> 00:45:36,820If that's something that you're looking for,

104300:45:36,820 --> 00:45:38,820go ahead, click the link on this video

104400:45:38,820 --> 00:45:40,220and let's get to talking.

104500:45:40,220 --> 00:45:42,340Let's see how I can help you.

104600:45:42,340 --> 00:45:43,340All right, and we're back.

104700:45:43,340 --> 00:45:49,340So Joseph, one thing is you the first black person

104800:45:49,340 --> 00:45:54,580I have ever seen and talked to about this type of thing.

104900:45:55,820 --> 00:46:00,820So the private equity, the investing, I noted it exists.

105000:46:00,820 --> 00:46:04,340I've heard of some scammers out there.

105100:46:04,340 --> 00:46:06,500I'm not gonna, yeah, I can say any names.

105200:46:06,500 --> 00:46:08,740Yeah, yeah, I'm not gonna say any names,

105300:46:08,740 --> 00:46:13,500but why are we so,

105400:46:13,500 --> 00:46:16,860why are we not represented in this space?

105500:46:16,860 --> 00:46:21,500I would say because not many people just know about it.

105600:46:21,500 --> 00:46:23,860Like think about early when I was saying five or six

105700:46:23,860 --> 00:46:26,220being if I was six years old, you just like,

105800:46:26,220 --> 00:46:27,220what is that?

105900:46:27,220 --> 00:46:28,500Is it like a charity?

106000:46:28,500 --> 00:46:29,340Yeah.

106100:46:29,340 --> 00:46:30,860Like not many of us know about it,

106200:46:30,860 --> 00:46:32,820and they also the barrier of entry.

106300:46:32,820 --> 00:46:36,820People started now, how many people started now

106400:46:36,820 --> 00:46:40,180have 15 to $20,000 to put on the line

106500:46:40,180 --> 00:46:43,180to even get into this kind of business?

106600:46:43,180 --> 00:46:46,780You know, coming from like,

106700:46:46,780 --> 00:46:49,460where we come, like you said you grew up in the hood,

106800:46:49,460 --> 00:46:51,380I grew up in Oak Cliff, I don't know people in Oak Cliff,

106900:46:51,380 --> 00:46:55,980they got 15, $20,000 land around there, if they do,

107000:46:55,980 --> 00:46:57,220they still can't do this here,

107100:46:57,220 --> 00:46:59,340'cause they got a record account here.

107200:46:59,340 --> 00:47:01,220It's already a account, you know what that money's going.

107300:47:01,220 --> 00:47:04,180Exactly, you know where it came from, too, they can't do it.

107400:47:04,180 --> 00:47:05,180Yeah.

107500:47:05,180 --> 00:47:06,020Yep.

107600:47:06,020 --> 00:47:09,380So, okay, so with that barrier of entry,

107700:47:09,380 --> 00:47:12,020well, not just the barrier of entry,

107800:47:12,020 --> 00:47:16,500how can we get going in this?

107900:47:16,500 --> 00:47:21,020How can one get started, get going, start to build this,

108000:47:21,020 --> 00:47:23,460'cause I think this is a legacy project,

108100:47:23,460 --> 00:47:26,700like this can last, right?

108200:47:26,700 --> 00:47:29,780I could take this business public if I wanted to.

108300:47:29,780 --> 00:47:33,420Like literally, do it on the stock market, shares.

108400:47:33,420 --> 00:47:36,540It can literally change, it can change generations,

108500:47:36,540 --> 00:47:40,540it can change your family line, your lineage.

108600:47:40,540 --> 00:47:45,380Like, okay, so how does one get going in it?

108700:47:45,380 --> 00:47:48,180I would say how I got going,

108800:47:48,180 --> 00:47:49,860I can give you the blue print if I did it.

108900:47:49,860 --> 00:47:50,700Okay.

109000:47:51,100 --> 00:47:52,980I got into a wholesaling.

109100:47:52,980 --> 00:47:56,700Holes selling and being a realtor is very similar.

109200:47:56,700 --> 00:48:01,460Contrary to how most people might believe is very similar.

109300:48:01,460 --> 00:48:03,140One is making a spread on the deal,

109400:48:03,140 --> 00:48:05,420the other one is making a percentage on the deal.

109500:48:05,420 --> 00:48:07,140You both can pay commissions, though.

109600:48:07,140 --> 00:48:10,580So, build that up.

109700:48:10,580 --> 00:48:13,340When I got started in a wholesaling,

109800:48:13,340 --> 00:48:16,460I did not, when I started getting checks consistently,

109900:48:16,460 --> 00:48:19,860I never went in bought a bunch of fancy stuff.

110000:48:19,860 --> 00:48:21,700I only pay for stuff that got me in rooms

110100:48:21,700 --> 00:48:23,860around people who had more than what I had.

110200:48:23,860 --> 00:48:28,860But I kept the same old things that always had the same car,

110300:48:28,860 --> 00:48:34,380same clothes, everything, and just very conservative.

110400:48:34,380 --> 00:48:38,460And saved up money, saved up money,

110500:48:38,460 --> 00:48:40,300and when I started this fund,

110600:48:40,300 --> 00:48:42,420I actually, the first three to six months,

110700:48:42,420 --> 00:48:44,620three to eight months, I didn't even get an investor.

110800:48:44,620 --> 00:48:48,300Remember, I was sold, the reason why is because

110900:48:48,300 --> 00:48:51,420I was in East Africa on vacation,

111000:48:51,420 --> 00:48:53,060and I stayed there for three months.

111100:48:53,060 --> 00:48:56,220So people wasn't wiring funds to someone

111200:48:56,220 --> 00:48:58,740with a big African symbol sitting in the background

111300:48:58,740 --> 00:49:00,380of the off-camera.

111400:49:00,380 --> 00:49:04,140Yeah, somebody asked me, it's like, dude, are you like an African prince?

111500:49:04,140 --> 00:49:05,300I was like, no, what is it?

111600:49:05,300 --> 00:49:08,300I was like, are you an African scammer?

111700:49:08,300 --> 00:49:11,620Yeah, you said I'm hurt about that.

111800:49:11,620 --> 00:49:14,140I was like, nah, man, I'm American, yeah.

111900:49:14,140 --> 00:49:15,220Like whatever.

112000:49:15,220 --> 00:49:16,140Yeah.

112100:49:16,140 --> 00:49:19,540So, yeah, so no, I didn't get any investors that the first time,

112200:49:19,540 --> 00:49:21,900especially, and then my, like, mentors, they tell me,

112300:49:21,900 --> 00:49:23,580do you need to come back?

112400:49:23,580 --> 00:49:25,740So I have to be in there for three months, I came back.

112500:49:25,740 --> 00:49:29,860And this is after you had invested your money to get it started.

112600:49:29,860 --> 00:49:30,700Exactly.

112700:49:30,700 --> 00:49:34,940After I invested my 15, 12,000 to 15,000 dollars to get started.

112800:49:34,940 --> 00:49:35,460Okay.

112900:49:35,460 --> 00:49:37,100I need you make a return yet.

113000:49:37,100 --> 00:49:42,500So 12 to 15,000 is how much you need to pretty much set it all up.

113100:49:42,500 --> 00:49:43,180Exactly.

113200:49:43,180 --> 00:49:49,740You said they all look plus any extra money because attorneys, they might add extra money for stuff.

113300:49:49,740 --> 00:49:50,740Okay.

113400:49:50,740 --> 00:49:57,700So, just for context, I know that he mentioned wholesaling, but it doesn't have to be wholesaling

113500:49:57,700 --> 00:49:59,420that gets you that money.

113600:49:59,420 --> 00:50:01,860It can be any business you do.

113700:50:01,860 --> 00:50:03,860It can be commissioning, and making business.

113800:50:03,860 --> 00:50:04,860It can be any business you do.

113900:50:04,860 --> 00:50:05,860It can be any business you do.

114000:50:05,860 --> 00:50:06,860It can be commissioning.

114100:50:06,860 --> 00:50:07,860It can be any business you do.

114200:50:07,860 --> 00:50:08,860It can be commissioning, and making business you do.

114300:50:08,860 --> 00:50:09,860It can be any business you do.

114400:50:09,860 --> 00:50:10,860It can be commissioning, and making business you do.

114500:50:10,860 --> 00:50:11,860And then the business, 12 to 15,000 plus whatever any other attorneys, yeah, 20 fees.

114600:50:11,860 --> 00:50:12,860Okay.

114700:50:12,860 --> 00:50:13,860Next step.

114800:50:13,860 --> 00:50:16,940Next step, you just a backtrack on that.

114900:50:16,940 --> 00:50:17,940Okay.

115000:50:17,940 --> 00:50:23,620I actually didn't even put the 12,500 up myself.

115100:50:23,620 --> 00:50:24,620Check this out.

115200:50:24,620 --> 00:50:26,420Don't tell me you use other people's money.

115300:50:26,420 --> 00:50:27,420I didn't use OPM.

115400:50:27,420 --> 00:50:28,420Okay.

115500:50:28,420 --> 00:50:33,260When I met my mentors and they saw what I was doing in real estate, they just like do it

115600:50:33,260 --> 00:50:34,260is no big deal.

115700:50:34,260 --> 00:50:38,820We'll write the check for you as a gift or as a loan as a loan, just say, pick it back

115800:50:38,820 --> 00:50:39,820later.

115900:50:39,820 --> 00:50:40,820Yeah.

116000:50:40,820 --> 00:50:41,820So I picked them back and cash later.

116100:50:41,820 --> 00:50:42,820And I had cash on hand.

116200:50:42,820 --> 00:50:45,380There's like, we believe in you so much.

116300:50:45,380 --> 00:50:49,780You like, we don't even want you to put the money up front.

116400:50:49,780 --> 00:50:50,780Networking.

116500:50:50,780 --> 00:50:51,780Networking.

116600:50:51,780 --> 00:50:52,780Networking.

116700:50:52,780 --> 00:50:53,780Networking.

116800:50:53,780 --> 00:50:54,780Okay.

116900:50:54,780 --> 00:50:58,980So you got the funds set up now, or you can use OPM.

117000:50:58,980 --> 00:51:00,780Or you can use OPM.

117100:51:00,780 --> 00:51:02,220You got the funds set up.

117200:51:02,220 --> 00:51:03,220What comes after that?

117300:51:03,220 --> 00:51:04,980What comes after that?

117400:51:04,980 --> 00:51:10,020Once you used the waiting period really two to three months, once the fund is fully

117500:51:10,020 --> 00:51:16,220up and they say you can accept funds starting this day, that's when the hustle starts.

117600:51:16,220 --> 00:51:19,380You got to get in front of investors.

117700:51:19,380 --> 00:51:22,980So once you get in front of these investors, now you're raising this capital.

117800:51:22,980 --> 00:51:26,820Every time somebody invests in your fund, there's a payment to the attorney for that too,

117900:51:26,820 --> 00:51:27,820by the way.

118000:51:27,820 --> 00:51:29,660Because they got to drop the documents.

118100:51:29,660 --> 00:51:30,980They have to drop documents.

118200:51:30,980 --> 00:51:35,420They have to like report to the state, hey, this person is an investor.

118300:51:35,420 --> 00:51:37,460So yeah, as a fund manager, you pay for that.

118400:51:37,460 --> 00:51:39,820Pay for that out of the fund expenses.

118500:51:39,820 --> 00:51:46,420Wait, but before you're approaching these people, do you have properties yet?

118600:51:46,420 --> 00:51:49,660No, that's even if you don't have properties.

118700:51:49,660 --> 00:51:52,140You're trying to sell a blind pool fund.

118800:51:52,140 --> 00:51:54,860Yeah, that sounds a little difficult.

118900:51:54,860 --> 00:51:56,620That is very difficult.

119000:51:56,620 --> 00:52:00,140So it became much easier after I acquired my first building.

119100:52:00,140 --> 00:52:03,540But in the beginning, when you just trying to sell a blind pool fund, you like, look, I

119200:52:03,540 --> 00:52:06,700don't have anything yet, but this is what we're going for.

119300:52:06,700 --> 00:52:10,140Three few people are willing to give you the money for that.

119400:52:10,140 --> 00:52:15,540It takes a lot of sales skills to get that first $100,000 investor off of not even having

119500:52:15,540 --> 00:52:16,540a property.

119600:52:16,540 --> 00:52:17,540Right.

119700:52:17,540 --> 00:52:18,540Right.

119800:52:18,540 --> 00:52:19,540Yeah.

119900:52:19,540 --> 00:52:20,540Okay.

120000:52:20,540 --> 00:52:21,540Yeah.

120100:52:21,540 --> 00:52:22,540Okay.

120200:52:22,540 --> 00:52:28,740So once you get this in, well, once you get these investments, well, even before that, are

120300:52:28,740 --> 00:52:34,300you looking for, are you going out doing your activities based on a certain amount that

120400:52:34,300 --> 00:52:38,780you need or is it just whatever you can get?

120500:52:38,780 --> 00:52:41,940It's based off of how much do I need to raise for the fund?

120600:52:41,940 --> 00:52:43,820So let's say I sit up a $10 million fund.

120700:52:43,820 --> 00:52:45,620I know I need to raise $10 million.

120800:52:45,620 --> 00:52:46,620Oh.

120900:52:46,620 --> 00:52:47,620Yes.

121000:52:47,620 --> 00:52:48,620Okay.

121100:52:48,620 --> 00:52:49,620Okay.

121200:52:49,620 --> 00:52:50,620So it's pretty sick.

121300:52:50,620 --> 00:52:51,620You already know what you're going to raise.

121400:52:51,620 --> 00:52:54,260So the fund has a set amount that you got to raise.

121500:52:54,260 --> 00:52:55,260Exactly.

121600:52:55,260 --> 00:52:56,260Oh.

121700:52:56,260 --> 00:52:57,260Okay.

121800:52:57,260 --> 00:52:59,620And you can invest in properties as you're raising that money.

121900:52:59,620 --> 00:53:06,620So for example, I sit up a $5 million fund and I'm going to raise that up to a $10 million

122000:53:06,620 --> 00:53:11,380fund and sit up a simultaneous $10 million fund next to it.

122100:53:11,380 --> 00:53:14,620Oh, she's got $20 million.

122200:53:14,620 --> 00:53:15,620Yeah.

122300:53:15,620 --> 00:53:16,620Yes.

122400:53:16,620 --> 00:53:17,620Huh.

122500:53:17,620 --> 00:53:20,620So you know that you're raising these funds.

122600:53:20,620 --> 00:53:22,300Now you're getting it from the investors.

122700:53:22,300 --> 00:53:24,180Now you think about it like this here.

122800:53:24,180 --> 00:53:29,700If I need to raise $5 million, let's say everybody does $100,000.

122900:53:29,700 --> 00:53:31,620How many people do I need to talk to?

123000:53:31,620 --> 00:53:32,62050.

123100:53:32,620 --> 00:53:33,620Right.

123200:53:33,620 --> 00:53:37,180Or I can talk to 10 people that can give me half a million each.

123300:53:37,180 --> 00:53:41,780So now you're just constantly trying to get in front of the higher caliber investors.

123400:53:41,780 --> 00:53:44,860So you always try to get into the better room.

123500:53:44,860 --> 00:53:49,580You know what this is reminding me of that movie billionaire's boys club.

123600:53:49,580 --> 00:53:50,580Yeah.

123700:53:50,580 --> 00:53:51,580Yeah.

123800:53:51,580 --> 00:53:52,580Yeah.

123900:53:52,580 --> 00:53:55,020So this is that.

124000:53:55,020 --> 00:53:56,020Okay.

124100:53:56,020 --> 00:54:04,900So once you had mentioned that as you're collecting investments, you can still invest the

124200:54:04,900 --> 00:54:08,180funds into stuff or exactly as you collect it.

124300:54:08,180 --> 00:54:11,700So let's say you get in half a million dollars into your account.

124400:54:11,700 --> 00:54:15,060You could take that half a million and move it right into a property.

124500:54:15,060 --> 00:54:17,260And now you put the account back down to zero.

124600:54:17,260 --> 00:54:18,260You go raise more money.

124700:54:18,260 --> 00:54:20,060You put that into another property.

124800:54:20,060 --> 00:54:24,860You just repeat, repeat, like for example, right now with the three properties, I'm looking

124900:54:24,860 --> 00:54:27,860at acquiring that's $2 million.

125000:54:27,860 --> 00:54:31,300I'll be moving in like two months.

125100:54:31,300 --> 00:54:32,300Mm-hmm.

125200:54:32,300 --> 00:54:34,300Right.

125300:54:34,300 --> 00:54:39,700So yeah, two to three million dollars, I've been moving in two months.

125400:54:39,700 --> 00:54:40,700So yeah.

125500:54:40,700 --> 00:54:46,740Let's just say I invested with you 100k today, right?

125600:54:46,740 --> 00:54:53,580Because my money just sit there until you get what you need from other people to do something

125700:54:53,580 --> 00:54:54,580with it.

125800:54:54,580 --> 00:54:55,580No, it goes in.

125900:54:55,580 --> 00:54:56,580Like I can move it into a property.

126000:54:56,580 --> 00:54:57,580You immediately put it in.

126100:54:57,580 --> 00:54:58,580Yeah.

126200:54:58,580 --> 00:54:59,580Move it into a property.

126300:54:59,580 --> 00:55:03,500And then that's based on diversified automatically as soon as it touches the fund account,

126400:55:03,500 --> 00:55:07,340it's already diversified into the properties that I already have.

126500:55:07,340 --> 00:55:08,340Gotcha.

126600:55:08,340 --> 00:55:11,340And you're getting distributions from those.

126700:55:11,340 --> 00:55:12,340Okay.

126800:55:12,340 --> 00:55:13,300So let's talk about that a little bit.

126900:55:13,300 --> 00:55:17,380So distributions, are they on a schedule or?

127000:55:17,380 --> 00:55:18,380Yes.

127100:55:18,380 --> 00:55:19,380Okay.

127200:55:19,380 --> 00:55:22,940So distributions, I'll pay quarterly with one operator.

127300:55:22,940 --> 00:55:27,620Well, two of the operators I work with, quarterly distributions, another operator I work

127400:55:27,620 --> 00:55:28,620with.

127500:55:28,620 --> 00:55:34,780And yeah, the other operator is monthly distributions.

127600:55:34,780 --> 00:55:36,300Okay.

127700:55:36,300 --> 00:55:43,260And so what about if there's not like, I don't know, profit or is there any profit?

127800:55:43,260 --> 00:55:45,340There's always profit.

127900:55:45,340 --> 00:55:47,220So that can happen.

128000:55:47,220 --> 00:55:53,180Let's say a property, you and I invest into a property in the property, doesn't pay out,

128100:55:53,180 --> 00:55:55,980it's going to be a year, year and a half before we can pay out.

128200:55:55,980 --> 00:55:58,620Then no, there's no profit with that.

128300:55:58,620 --> 00:56:00,020So that is a downside.

128400:56:00,020 --> 00:56:03,860But you get different percentages.

128500:56:03,860 --> 00:56:05,780You can get preferred returns.

128600:56:05,780 --> 00:56:10,940And what a preferred return means, it's no matter what, the investors have to get paid

128700:56:10,940 --> 00:56:15,960X amount for that year, whether there was a profit or not.

128800:56:15,960 --> 00:56:21,980So let's say someone comes to me and says, hey, I'm giving you a 8% preferred return.

128900:56:21,980 --> 00:56:27,180Whether they make money or not, they have to pay you 8% of your money that year.

129000:56:27,180 --> 00:56:29,780And so what does that just come off of a balance sheet?

129100:56:29,780 --> 00:56:32,620It's like, you know, negative on there.

129200:56:32,620 --> 00:56:34,740On their end, they didn't make money.

129300:56:34,740 --> 00:56:36,660They didn't get to eat off that property.

129400:56:36,660 --> 00:56:39,300But you, their investor is taking care of.

129500:56:39,300 --> 00:56:40,900And that's the most important thing.

129600:56:40,900 --> 00:56:42,660You take care of your investors.

129700:56:42,660 --> 00:56:43,660Right.

129800:56:43,660 --> 00:56:44,660Over yourself.

129900:56:44,660 --> 00:56:48,820It seems like there's no downside to it.

130000:56:48,820 --> 00:56:51,140I mean, I'm sure there is.

130100:56:51,140 --> 00:56:53,580With any investment, it's a risk.

130200:56:53,580 --> 00:56:54,740There's a downside.

130300:56:54,740 --> 00:57:01,780But, you know, real estate, real estate, like I always say, if there's any investment, like

130400:57:01,780 --> 00:57:09,100investing real estate and this, this seems like it's great for that person who doesn't

130500:57:09,100 --> 00:57:11,540necessarily want to be hands on.

130600:57:11,540 --> 00:57:12,540Exactly.

130700:57:12,540 --> 00:57:16,700Doesn't necessarily want to do all the whole flipping and rental properties.

130800:57:16,700 --> 00:57:19,860You know, I know people out there preach rental properties and stuff.

130900:57:19,860 --> 00:57:25,540But, man, when you really run the numbers of how many rental properties you need to make

131000:57:25,540 --> 00:57:30,180a significant increase to your income, like, it's a lot.

131100:57:30,180 --> 00:57:31,180It's a lot.

131200:57:31,180 --> 00:57:36,060And I know people, literally, that do these rental properties, I put it like this here.

131300:57:36,060 --> 00:57:42,380When I was a wholesaler, you will buy a list called a Tired Landlord List.

131400:57:42,380 --> 00:57:48,180There's a reason why there's a Tired Landlord List because people are tired of being a landlord.

131500:57:48,180 --> 00:57:49,180Yeah.

131600:57:49,180 --> 00:57:50,180So, why pitch people?

131700:57:50,180 --> 00:57:55,500I say, look, you can have all the benefits of a landlord investing with me.

131800:57:55,500 --> 00:57:56,500None of the headache.

131900:57:56,500 --> 00:57:57,500Yeah.

132000:57:57,500 --> 00:57:58,500It's a no-brainer.

132100:57:58,500 --> 00:57:59,500I can see that.

132200:57:59,500 --> 00:58:04,340I mean, even when you're evaluating, do I want to flip, do I want to hold?

132300:58:04,340 --> 00:58:05,340I mean, heck.

132400:58:05,340 --> 00:58:13,260Let's say you hold a property and you make $12,000 a year on it.

132500:58:13,260 --> 00:58:20,860But on the flipping side, you can make $36,000 exactly in that same year, like, heck, just flip

132600:58:20,860 --> 00:58:22,180a property every year.

132700:58:22,180 --> 00:58:27,220Now, of course, you won't have those net worth benefits and have that big portfolio, but

132800:58:27,220 --> 00:58:29,620that's where something like this could come in.

132900:58:29,620 --> 00:58:30,620Exactly.

133000:58:30,620 --> 00:58:31,620Yeah.

133100:58:31,620 --> 00:58:35,140Plus, if you're flipping houses and you're making a bunch of money flipping houses, so you

133200:58:35,140 --> 00:58:39,940are making a bunch of money as a realtor, if you have to then go be a landlord, guess what?

133300:58:39,940 --> 00:58:41,820Something's going to suffer.

133400:58:41,820 --> 00:58:45,620Because now your attention is over here trying to be play landlord.

133500:58:45,620 --> 00:58:46,940Well, why do that?

133600:58:46,940 --> 00:58:51,540Park that money into a fund or syndication, whichever one.

133700:58:51,540 --> 00:58:53,820Let them handle that for you.

133800:58:53,820 --> 00:58:55,260Focus on what you're good at.

133900:58:55,260 --> 00:58:57,300You're focused on generating money as a realtor.

134000:58:57,300 --> 00:59:00,900You're focused on generating money as a house flipper, a wholesaler.

134100:59:00,900 --> 00:59:01,900Yeah.

134200:59:01,900 --> 00:59:02,900Build on that.

134300:59:02,900 --> 00:59:03,900Scale that up.

134400:59:03,900 --> 00:59:06,020That gives you more money to build your pacifink.

134500:59:06,020 --> 00:59:07,500Come over here.

134600:59:07,500 --> 00:59:08,500Okay.

134700:59:08,500 --> 00:59:10,300I have one more question then.

134800:59:10,300 --> 00:59:11,820We have to wrap up.

134900:59:11,820 --> 00:59:15,420What is exiting like?

135000:59:15,420 --> 00:59:19,420So say, investors, good, they're done.

135100:59:19,420 --> 00:59:23,820They've made a bunch of money and then they're ready to get out.

135200:59:23,820 --> 00:59:24,820How does that look?

135300:59:24,820 --> 00:59:25,820Yeah.

135400:59:25,820 --> 00:59:30,540So, after we sell all these different properties and stuff within the fund, and you have

135500:59:30,540 --> 00:59:33,860this lump sum of cash, you can either.

135600:59:33,860 --> 00:59:38,260Or choose to reinvest it or you could just pocket it.

135700:59:38,260 --> 00:59:39,740Go buy a car, do what you want.

135800:59:39,740 --> 00:59:41,780But you're going to pay taxes if you take it out.

135900:59:41,780 --> 00:59:44,620Well, so is that tax like normal capital gain?

136000:59:44,620 --> 00:59:45,620No, long term.

136100:59:45,620 --> 00:59:46,620Okay.

136200:59:46,620 --> 00:59:47,620Long term capital gain.

136300:59:47,620 --> 00:59:48,620So it's less.

136400:59:48,620 --> 00:59:49,620Okay.

136500:59:49,620 --> 00:59:50,620Okay.

136600:59:50,620 --> 00:59:52,620Your tax significantly less by investing.

136700:59:52,620 --> 00:59:53,620Sheesh y'all.

136800:59:53,620 --> 01:00:01,060Man, I can sit here and talk about this for like hours, but we got to wrap up.

136901:00:01,060 --> 01:00:02,060Yeah.

137001:00:02,060 --> 01:00:10,180So, if you, if, if our listeners and people watching this podcast do want more information

137101:00:10,180 --> 01:00:13,980about this or even want to connect with you, how can we make that happen?

137201:00:13,980 --> 01:00:14,980Yeah.

137301:00:14,980 --> 01:00:16,660So they can reach out to me.

137401:00:16,660 --> 01:00:20,340Text me at 4.6 9.458 9.295.

137501:00:20,340 --> 01:00:21,820You did not just give your phone number.

137601:00:21,820 --> 01:00:23,300It's not my actual phone number.

137701:00:23,300 --> 01:00:24,300Okay.

137801:00:24,300 --> 01:00:25,780It's not business number.

137901:00:25,780 --> 01:00:26,780Okay.

138001:00:26,780 --> 01:00:27,780Okay.

138101:00:27,780 --> 01:00:34,980I would say you can, but preferably follow me on Instagram at Joseph Kimbrough J.O.S.E.

138201:00:34,980 --> 01:00:36,980pH K.I.M.

138301:00:36,980 --> 01:00:38,980B R O U.D.H.

138401:00:38,980 --> 01:00:39,980Yes.

138501:00:39,980 --> 01:00:43,540And, and Joseph does not have course.

138601:00:43,540 --> 01:00:46,300He's not selling you anything.

138701:00:46,300 --> 01:00:50,220Even though maybe 30 more minutes of talking with me, I'm going to have you put together

138801:00:50,220 --> 01:00:55,420a course because people don't need to abuse your time and knowledge.

138901:00:55,420 --> 01:01:01,140You're a wealth of information when it comes to this and I think it would be beneficial

139001:01:01,140 --> 01:01:07,500to have you back where or maybe even, you know what?

139101:01:07,500 --> 01:01:09,260I do a conference every year.

139201:01:09,260 --> 01:01:10,260Okay.

139301:01:10,260 --> 01:01:12,460It's called the Do The Most Conference.

139401:01:12,460 --> 01:01:16,980Our next one is going to be in April and it's normally here locally.

139501:01:16,980 --> 01:01:17,980Awesome.

139601:01:17,980 --> 01:01:20,100Can you be a speaker at the Do The Most Conference?

139701:01:20,100 --> 01:01:21,100Definitely.

139801:01:21,100 --> 01:01:22,100I will.

139901:01:22,100 --> 01:01:28,060I'm going to be a speaker at the Next Do The Most Conference, which, you know what?

140001:01:28,060 --> 01:01:30,900As of this podcast, tickets are launched.

140101:01:30,900 --> 01:01:35,340You can get a ticket to the, to the, to the event.

140201:01:35,340 --> 01:01:40,820Y'all know it sells out every single year, but yes, because I would love for you to really

140301:01:40,820 --> 01:01:47,860just put this out there because yeah, more people who look like us, think like us, do

140401:01:47,860 --> 01:01:51,380what we do need to be doing things like business.

140501:01:51,380 --> 01:01:53,900Yes, absolutely.

140601:01:53,900 --> 01:01:55,500Thank you, man, for being here.

140701:01:55,500 --> 01:01:56,940Be sure to follow him on Instagram.

140801:01:56,940 --> 01:01:59,660You can put any questions you have in the comments.

140901:01:59,660 --> 01:02:06,380He's going to see him, but yeah, man, thank you for being so open and just sharing.

141001:02:06,380 --> 01:02:08,140There's any last words you want to say?

141101:02:08,140 --> 01:02:12,980Feel free to take it away, but yeah, I would just say thank you for having me on and then

141201:02:12,980 --> 01:02:19,820also really just have to just believe in yourself to do stuff like this.

141301:02:19,820 --> 01:02:28,900It takes a lot of, I would say, a lot of confidence to ask somebody for $100,000, $250,000,000,

141401:02:28,900 --> 01:02:35,260to a park in your fund, but you have to develop that.

141501:02:35,260 --> 01:02:38,100Thank you for listening to the Power Unit Success Casp.

141601:02:38,100 --> 01:02:41,980If you're excited about what you just experienced, make sure to subscribe.

141701:02:41,980 --> 01:02:46,380Also, leave us a rating if something you heard resonated with me and feel free to share

141801:02:46,380 --> 01:02:49,220your thoughts about this episode on Instagram.

141901:02:49,220 --> 01:02:50,220See you next week.

142001:02:50,220 --> 01:02:52,800(upbeat music)

142101:02:52,800 --> 01:02:55,380(upbeat music)

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