The Truth About The 2022 Housing Collapse | Ryan Pineda

Welcome back to the Ice Coffee Hour. My name is Ryan Pineda and the podcast has made $336,000. Wow, great guess. It's $202,112. Close. Very close. [laughter] Thank you so much for making it on, man. Yeah, I'm happy to be back. It's been a while. Yeah, I know. We got the real estate expert here. Yeah. Buying up a lot of real estate this year. You know, I I think I said it the last two Ice Coffee Hours that everyone needs to keep buying and they would have did pretty good. have you bought this year so far? Uh this year, I think we've been buying around 10 a month. So, we're buying a lot. And that's just flips. That's all in Las Vegas as well. Yeah, those are flips and then obviously we're buying the apartments now which we'll talk about. So, it's going good. Wow. Well, before we go into the state of the real estate market, what you're doing, what you're buying, and if there are any good deals out there, we got to ask you. Every single shot uh we set up the camera here, you look chiseled. Yeah. How do you How do you do this? What's your secret, man? Uh man, dude. do I have done like botox or anything like that? Or do you just like what's the secret? No, dude. You know, it's funny people ask me like do you have um fake teeth? Do you do botox and like do you do the hair restoration? And I'm like, dude, I've haven't done any of that. The only thing I've ever done is um I have two fake teeth right here. And now people will know about it, but they're kind of discolored cuz they're they're fake and they can't be colored. But um No, no botox or anything. Why? Why why two teeth in the side? Uh when I was younger, I had braces and all that stuff and then when they removed them, like these two teeth were like really tiny. Just super small. And so, they had to fill them in. They put like the fake caps on them or something. And then eventually as I got older, they're like you can do veneers now and so, yeah, two fake veneers just cuz they were small teeth. Do you get like 11 hours of sleep every night because you have no bags, no wrinkles, and you just look pristine. Well, you know, I don't edit my own videos. I think editing is what kills all these creators, dude. Really? Editing's a lot of work, man. You guys are up late. That's true. But no, I I don't know. I go to bed at like 11:00, wake up at 5:30. Do you wear sunscreen, moisturize? Like I don't [laughter] know. I just got to I'm trying to find How can we emulate this I know. I know. I Graham, it's just dude. I tell people this all the time. It's just being Asian, dude. Asians look younger and um they have better skin. It's just what it is. I've been moisturizing now I've for like 3 months every single day morning and night I've been putting on the moisturizer on my face to help with wrinkles. Yeah, I like that um CeraVe. Shout out to them. They've got like a moisturizing cream. So I like that. That keeps it nice. I'll try it. And you uh you walked in [laughter] What jacket are you wearing? So you walked in I see myself in in the in the podcast. I just look terrible. I look like I'm 45. [laughter] Man, anyway. [clears throat] So this watch you walk in rocking this watch. It's a AP Royal Oak and it's massive. Yeah, of course. Yep, so I bought this wait. Alex is supposed to guess how much you bought that for. Okay, Alex. What do you guess? Yeah, so guys my camera is out here, but my guess is that that watch costs approximately $17,500. [laughter] Come on, Alex. Come on. I'm guessing I'm guessing 85. No. My guess is 35 because you got a deal and you could buy it at MSRP. I wish. So I bought this I think I did a YouTube video maybe 7-8 months ago. Um I've been looking for this specific watch for over a year. I think I even showed you it Graham. Like you're the first person back in 2020 to be like you should treat yourself with a watch. I was like I'm never going to buy a watch. I don't need them. And you're like no, it's a good investment. It's a way to hold your money and stuff. I was like all right, I'm going to buy a watch. And so it sounds like something I would say. But Jack's [snorts] wearing a Submariner. I I had to talk him into buying this. Yeah? And it's it's like almost double what what Jack got it for. So that's the other watch I have is the exact same one as Jack. So I go to this place called Happy Jewelers and he does a lot of athletes and stuff like that out in California and he just so happened to get this watch in stock. And I had text him for months. I was like, if ever see this exact watch, let me know. I love black and blue. And he says, I got it in stock. You know, I'm going to get you it but it's above MSRP. And at the time, you know, MSRP on these was like 35,000 and if you went on eBay or something, they were selling for 50 to 55,000. And so I just started thinking about it. I'm like, man, if I'm ever going to buy a watch, I'm not going to get it at MSRP. They won't even sell it to me. AP won't sell you a watch like this. And so I said, okay, like what can we do? And he's like, I'm actually going to give it to you below cost of what I have it at. He's like, just because I know you're going to make content. It's going to help out. I want to build a relationship with you. You're going to refer me a bunch of clients, which I have. You know, now I'm talking about it on this podcast, right? So I ended up getting it from him for like 42,000. And I was looking at it on eBay the other day. I think it was like worth 60 to 70 now. So it's crazy. The watch market is ridiculous right now. It makes no sense to me. Yeah. At all. So I think eventually Rolex prices are beginning to come down, believe it or not. They're finally got to that point where people are starting to realize maybe it's not worth triple over [laughter] I mean, it's still ridiculously expensive but it's come down a little bit. Yeah. I mean, dude, I mean, real estate's one thing that that's gone crazy but the luxury cars and watches and all this stuff, you're like, I don't get it. But like my buddy flipped a a Lambo for like 50k the other day. I'm like, what's going on here? He drove it for 6 months. So what crazy times. What compels you to spend $45,000 on a watch? Um Graham. Graham told me to do it. That's a good reason to do that, yeah. And I was I was right. Yeah. He was right. Yep. You guys can go back to that first episode. He was like, "Buy it." I was like, "Dude, if like the cheapest millionaire ever tells me to buy a luxury watch, then I've no excuse." And so, um I don't know, dude. I just I've never bought like a luxury item like this. So, I wanted to do it. Have you found any value outside of like the the the monetary value of the watch? Like for example, like marketing and stuff like that, networking? Um so, actually that YouTube video I did, um it did really well for me anyways. But, um I did a bunch of TikToks and Reels and stuff from that video. We cut it up. It was actually my highest performing TikTok ever. It got 9 million views. Wow. So, I mean, I'm sure it probably led to something that got me more than 45,000. Wow. That's incredible. Let's talk about how you got your start for people that are not familiar with you. Starting in baseball, could you tell us about that and then how you transition that to working as a real estate agent to then investing in real estate? Yeah, so growing up I never wanted to get into real estate. Um I wanted to just play pro baseball. That was it. Just played Little League, then, you know, high school, got Division 1 scholarship, became an All-American, then, you know, in 2010 I got drafted by the Oakland A's. So, that was me like living my dream, doing what I wanted to do. But, um in the minor leagues you make 1,200 bucks a month. People don't really know that, but you're like scraping by. For 6 months, that's all you're making. It's not like you can go get another job. And so, in the off-seasons I had to go work and and make money somehow. And so, at that time I was like, "Well, I can do this realtor thing because I I don't need to like go get a job and then nobody's going to hire me because I'm going to go leave 6 months from now." So, I just became a realtor, and I didn't realize like that was the hardest time ever to be a realtor because prices were so cheap that even if you sold something, um you didn't make much. Um people were dealing with foreclosures and bankruptcies and all this stuff. So, nobody could buy and um there was so much inventory on the market that it just was really hard to sell something cuz people were like, "Oh, well, I can go buy eight million other things. Like, why why this one? The market's going to keep going down. I can get a deal." And um it was a tough time and I I sold some homes, definitely wasn't that successful at it. Um and after a couple years, I just kind of gave it up. I was like, "Dude, this is not for me. Um I'm going to go figure other stuff out." And so, I started doing other side hustles. Um I was a substitute teacher for a little bit and then I started doing what's now kind of famous with couch flipping. Um you know, it was just this thing. I just was like, "Man, I bet you I could go flip this couch and make some good money." And it was right. Like, I started making, you know, 8,000 a month at my best levels um flipping couches. I was like, "This is great." But, eventually I got burnt out by that, too, cuz that wasn't really fulfilling and we kind of hit the cap of buying every couch in Las Vegas. And I said, "Dude, what am I going to do?" Well, in 2015, um my wife and I are on our one-year anniversary. Um we'd saved up $10,000 from couch flipping and stuff and um eventually, I was just like praying one day. I'm like, "God, what do you want me to do with my life? Is it like baseball? Is it, you know, couch flipping? I don't think it's real estate. I suck at that." Um and I just remember him showing me like this commercial for flipping houses. It was like one of those scammy commercials. Uh you know, you could flip houses today with no money, no credit, all this stuff. And I'd been a realtor for five years and I'm like, "I would have heard about this by now. There's no way that you can do this and that's a scam." Well, it led me down the path of finding BiggerPockets, which kind of influenced me and I was like, "Oh, there is ways to do this. You could wholesale. You could raise private money. You could get hard money loans." And so, um I ended up uh going and finding my first deal after that. I got a hard money loan. Um I maxed out all my credit cards to fund the down payment on that hard money loan. And thankfully, it worked out. How do I'm curious. How do they do How are you maxing [clears throat] out credit lines as a down payment? Yeah. Are you just doing a cash out of that? Like uh like taking out the the the cash from the credit cards and paying that like high fee? How are you doing that? Yeah, so what happened was I actually got credit lines for me and my wife. So, we signed up for those 0% credit cards, you know, and it was like 18 months 0% and they had like these balance transfers where they would send you a check. And so, we ended up doing the balance transfer for a check and um that's how I got 50 grand in that. 50 grand just from credit cards alone? Yeah. Yep. And like hard money lenders, people people don't realize this. They're not like normal conventional or FHA lenders where they're looking at your debt-to-income ratios and all that stuff. Like all they really care about is the deal itself and like do you have the down payment? And so, if you got a good enough deal, they'll fund it. And so, that's what happened. Like um I got a good deal and he's like, "All right, you need this amount of money to fund it. Like you going to do it?" I was like, "Yeah." And so, I got the money, maxed out the cards, and was off to the races. But first, I want to thank our sponsor Upstart. Graham, I just bought a premium subscription to every single dating app and I don't have any matches now and now I have a ton of high interest credit card debt. I don't know what to do. Just calm down. You could use Upstart. 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Once again, upstart.com/icedcoffee. Thank you so much Upstart and back to the pod. podcast Did you ever pay interest on those credit cards or like what about the the rates on the hard money loan as well? I'm wondering just like the actual finances of this deal itself. Yeah, so I mean the hard money rates were 12% and four points. So, very expensive today, but back then, you know, eight years ago going to seven eight years ago wasn't I was like, "Whatever, dude. It's the cost of doing business. Like I don't care." Um So, I did that. I mean and the credit card was 0% for 18 months. So, it wasn't I had to pay a Yeah, I had to pay a fee of like 3% to borrow the money, but that was nothing. Once again, a cost of doing business. How much you make in that first deal? That first deal made 25 grand. Profit? So, after you paid everything to the hard money lender? Oh, wow. Yeah. So, from there I was like, "Man, this is this is it. This is the way to go." And so, I did um five deals that first year, then 20 the next year, 50 the year after that, and then 150 um in year four, and then I've been doing a 100 ever since. You know, a bunch of businesses s- spread off from that and you know, now we're doing the apartments and education and everything else. And in order to flip houses that successfully, you have to have a lot of knowledge. And I always wonder because like I know a decent amount about real estate and how you can add value and stuff like that, but it seems like I'm surrounded by people that just have like so much knowledge on that type of stuff. Where did you learn that stuff? I actually did starting out was I I I just was on BiggerPockets. I was listening to a podcast like three times a day while I was delivering couches. I was literally just learning the game nonstop. And so, I remember I watched every Bigger Pockets episode for probably the first 150 episodes. I just binged them. And that gave me the foundation of like, okay, I get this. And it also like gave me confidence to hear all these other people's stories who, you know, were in the same boat I was in. I was like, oh, if these guys could do it, I can do it. And so, you know, I learned a lot doing that. Um I started attending local meetups. I started, you know, networking with these other guys and you know, truthfully, I didn't do it the way that I would do it now. I just kind of like winged it and just trial by error. But now, I mean, there's so many resources with YouTube, with coaching programs, with like so many more transparent ways versus back then, you know, 8 years ago, nothing was like transparent. It was like, you have to go to the free event and then be upsold and then be upsold and like then you'll learn the information. But now on YouTube, dude, I mean, you can go watch my stuff, you can go watch other people's stuff and I'm like, here's how you do it. Boom, boom, boom, boom, boom. And you know, anyone could really get started today with no information or I mean, I guess no like connections in the space. YouTube and podcasts can teach you, but um there's definitely a lot more you'll speed up your time frame being with a mentor and like and a program that can push you through. Mhm. Who cuts your hair? Dude, I get a haircut every Monday, dude. How much does it cost? Yes. 80 bucks. 80 bucks? What do you think? I don't think See, the thing is it looks expensive. It [laughter] can't be It can't be 80 bucks. It can't be 80 bucks. dang expensive. but like Uh no, I see I think you have someone probably coming to you. You're not going and like So, my guess is probably 120 bucks. Yeah, so Graham Graham guessed right. I I used to go to the barber shop and you know, I'm like And honestly, the typical haircut was like 30 bucks. And then you tip them and you know, I I'd be usually at like 50 bucks. I'm like, thanks, dude. Um and then I was like one day, dude, this is wasting so much time having to always come to the barber shop every week. Like, can you come to my house? I was like, I'll pay you double. He's like, all right. So, it's just 100 bucks every Monday. Wow. $100 or $400 a month on haircuts. Has your wife not just said, "Hey Ryan, we got to sit down. We got to talk about this." [laughter] Seriously, would this not create like arguments in the house? Because I just would I I How? Why? Who's going to argue? What's the reason for arguing about What are we arguing about? It's $100 a week for a You don't need a haircut every week. You do when it's your signature. What difference does a week make? I I just Is it actually It's not as crispy as you're seeing it today. You'll be like, "Yeah, he's got good hair." But now you're like, "Dude, how is it so crisp?" You're talking about it right now. [laughter] Yeah, I mean, it's true. But it's like the line. But see, you could have the line for more than just No, you can't. It it would grow in. And I'd have to like maintain it myself, which is How did you pick that haircut? That's what like my hair naturally does. Like my hair naturally like goes up. Like I don't blow dry it. I don't do anything crazy. Like, yeah, I put gel in it. But um that's it. Have you made a video of my hair routine? No, I need to though. That would honestly it would blow up. My hair routine and you just show like you just got out of the shower, you know, and you just like combing your hair back, put the gel in. What kind of gel you use? Something like that would be How often you get a haircut? That would do really well. I should do it. I think it though would piss a lot of people off because um people talk about my hair all the time. They're like, "Dude, it must take you a long time." And like, it really doesn't. Like be funny if you did a satirical video. Where it's like 4 hours [laughter] Like I get up at 5:00 cuz that's when my hair is perfect. Yeah, it's like 3:00 a.m. dedication. Yeah. You eat certain things to like help your hair. [laughter] Oils to your hair. Broccoli. That's the key. That would be funny. the laser treatments on the hair and like the follicles like every [laughter] morning if someone come in? Individually placing each hair. Yeah. And by 9:00 a.m. it's ready. Well, like to your point of the hair, you know, my Discord community was making all these hair memes. Alex, you know, right when I came in he's like, "Dude, I love the hair memes. These guys are They they take my hair to a whole 'nother level I didn't even think was possible. I'm like, "You guys have too much time on your hands, but I love it." Let's talk about the real estate market. Yeah, what are you doing? We're talking We're talking a lot about hair and Botox and stuff. You are the expert of real estate here. I thought you were going to say Botox. No, not quite. [laughter] were an expert of cosmetic surgery now. Just kidding. So, everyone wants to know what's going on with the real estate market because we've seen a lot of fear in the market. Some YouTubers are talking about like price reductions and stuff like that that's going on. What's your opinion of all this? Look, we we've had the same conversation since the very first ice coffee every time, you know, we come on. Like, look, I'm buying as much as humanly possible because this thing is going to keep going. And then um you know, now it's kind of an interesting time because the Fed's been raising rates and so, you know, people are getting scared and whatever, right? I'll say in January um I made a YouTube video with like my predictions for 2022 and I said, "This is what I predict's going to happen. Um I think they're going to raise rates in like March, April. It's going to cause a negative effect in the stock market. People are going to start panicking and doing all this stuff and then they're going to reverse course and lower rates again, you know, Q3, Q4. Like, that's still today what I predict will happen. And even if that doesn't happen, let's just say they keep rates where they are. I don't see them continuing to raise rates. The market still is just so hot. It doesn't matter like you if you compare it to 2 months ago or whatever, sure, like it's slowing down in comparison to that, but like here in Vegas, there's still less than a month of inventory, you know, like if if you were to go into like a pure like the market is tanking, you would need four five months of inventory to do that. So, unless you believe you know, five times the amount of houses are going to flood the market, nothing's going to happen like as far as prices declining or anything like that. So, my opinion is I think that yeah, it won't keep you know, moving at the speed of lightning like it's been for the last 2 years. It's going to definitely grow slower, but I still think it's going up. Do you think that there's a chance that now maybe affordability is kind of tapped out? Rates are going up. Sellers might have to now begin to lower their asking prices because they're competing with other people. If they need to sell, they're going to sell. If rates go up, affordability goes down, lower prices, and that could start a trend. Well, let's talk about lowering prices because we lower prices on our flips, too. Um for the last 2 years, we've been pricing things like stupid asking prices, you know, we don't price it at market value and try to get a bidding war. Like these houses we're buying, you know, we originally thought let's just say it was going to get 450 grand, and then by the time we list, we're looking at it and we're like, "Oh man, one just sold for you know, 480, right? Like that's great." But we're still like, "Let's list it at freaking 525." Cuz we just know people have been paying it the last 2 years. So, will we still take that kind of strategy as it slows down? No, we're not going to price as aggressive, right? And currently, if we've priced this thing at 525 and we thought we were going to sell it for 450, you know, it yeah, we drop it to 500 and it it still goes over and sets a new comp. Like that's what we're seeing. Um So, yeah, I think price reductions are a bit of a myth because people are over pricing them so high compared to comps that like oh, you got to price it closer to comps now like big thing that's happening that didn't happen in you know, 2008 is that you have all these hedge funds buying houses now, right? Like single-family homes weren't an asset class before this. And you know, when these hedge funds are buying these homes, what people don't realize is they're taking them off the market completely. Like that home is gone the moment you sell it to them cuz they're not re-listing it trying to go flip it or anything. They're holding it for the next 5 10 years, who knows, right? And when they hold it you know, they're building up their portfolio. They're not going to go sell it on the MLS when they're ready to sell. They're going to go sell it to another fund. Like so that that house just never comes back on the market. And that's why these funds are still buying so heavily because they just know every single day houses are being picked off the market for like good. And we're not being we're not able to build quick enough or cheap enough to replace that house. And so right now, you're just seeing this weird dynamic that's never existed in the history of housing where they're literally being removed from the market completely because they're not owned by normal people anymore. Yeah, but how many how many hedge funds and institutions are really out there buying these single-family homes? From all the research I could find everything points to that being mostly a myth. Institutional investors for single-family homes are like 0.01% of the market and they're buying up single-family homes, but in communities or in bulk in certain areas that were specifically designed or made to be rentals. So they're not like you know Yeah, so you're Jack lists his house and BlackRock isn't going and like looking at Jack's house. But they are. So I mean, we've sold a bunch to hedge funds like just normal flips. We already flipped them and you know, like renovated them and they paid over every normal buyer. What sort of hedge funds are you saying? They're just like normal hedge funds that like are keeping as rentals. Like I don't know the exact hedge funds by name, but like we've sold a bunch to hedge funds. And so like we'll also wholesale to hedge funds where we don't even fix it up, right? They're like we want to buy this right now before you ever let it hit the market. And so we just sell it direct to them. Um what you're referring to is build for rent, which is a very small niche thing. Like when they do these build for rent communities, um those are really cool, but yeah, they they are very niche. But um I would say also too, it depends on the market you're in. Most hedge funds are looking in places like Vegas and Phoenix and really nice markets and climates and newer homes. They love that. So like Vegas is a very heavily impacted market by hedge funds. I just have not seen and again, you're in it, so you see like where these offers come. I have not seen anything that indicates that hedge funds are buying up single family homes uh like one by one because even from my perspective, going in and like negotiating cuz to buy one house doesn't make sense for a hedge fund. Right. They would have to buy probably 50 to 100 houses. Yeah. Going through and negotiating 50 different homes, 50 different inspections, 50 different um uh uh rentals. It it's just it doesn't make sense on like when they're scattered around the city if they're just if their objective is to buy as much as possible. Yeah, so I'll I'll send you This is an email yesterday from um one of the largest hedge funds. And um you know, basically they're just outlining what it is they really want in their portfolio. Mhm. Yeah, but but these are this seems like more like a wealthy individual who's like going out and trying to build a portfolio. No, that's what he wants you to think. Because you're more likely to sell to a small investor than you are to a hedge fund as like a mom and pop person. Like even for us, we we try to do it more personable um like with our postcards. It's it's me and my family. And so it's like me and my we want to buy your house. And they're like, oh, that's cute, you know, this guy wants to support his family and buy the house. And it's like, I'm not even big, right? But if I had a big corporate thing of like, you know, HomeRun Offers buying houses, it would perform worse than if it was a more personal [clears throat] thing with my kids, my wife, and all that. So, um what you saw is exactly what they're doing. Um that company I showed you is, like you said, the biggest buyer in Vegas. I mean, they're buying so many houses. It's nuts. But I'm curious what company that is. And it's it's to me it seems like it's a local company who's going and buying these, and not like some big institution who's Now, what these publicly traded on the market or anything like that. Well, what these institution do is um they partner with local brokers like that guy, and they just do this in every single state. Um I'll show you after this. Sure. But um yeah, I think not even if you take out the hedge funds, which is a big portion of this, the other side of it is just homeowners in general right now. So, you know, it's like, man, if you sell your house, the big question is not how much you're going to make, like, you're going to make a ton. Everyone's got equity. But where you going to move? That's the problem. And so, when you have this issue of affordability, like you said, um somebody who maybe bought a house 5 years ago would love to sell, but they can't because they can't buy anything after the fact. They'll have all this money, but they either can't qualify for a mortgage, or they don't want to deal with the headache of moving. And so, now, that con- constrains supply because these people can't move cuz they can't buy. And so, like, if you have you take out these people now, you you take out these hedge fund buyers, you take out um you know, like, just where where's the inventory going to come from? Like, I don't know. And that's why when I look at it, I'm saying, okay, maybe even if demand goes down because people are like, I can't afford this, right? Still, where's the supply going to come from? It's not only just where you're going to move to, but it's also now you're getting a higher interest rate than you were probably locked into now. So like Jack, you got like a 2.8. If you sold and you bought another house, just an equivalent house or even something a little bit more, that monthly payment's going to be so much higher. So a lot of people in that position are just going to say, "Ah, you know, it's probably better I just stay." Jack, would you ever sell right now? Would I ever? Well, no, like right now, this very moment. No. Why? Because I know I got a fantastic rate and plus I want to acquire more real estate rather than offload what I currently have. Right. So, another point, right? It's like you can't buy something else cuz it's too expensive, the rates are higher, whatever, right? You're locked into this great deal of an interest rate, so people are less likely to sell cuz they got a great rate. Mhm. Something that was interesting that we discussed with Jeremy when we had him on is like people in my age group that are looking to buy real estate, they've never seen higher rates like maybe you or Graham have seen. And for me to see, you know, I locked in 2.874 back in October and now it's almost double that now and it's just like, you know, half a year later. It's just like I'm I can't even process it. I'm like, "Oh my gosh, like I do not want to get anywhere near buying another piece of property because it just seems like it the rates are so high, but historically not not necessarily." Yeah, I when I got in 2010, the rates were around 5% at that time and um I know that back in before that, you know, seeing rates at 6, 7, you know, 8% wasn't crazy. And then I remember my mom telling me like, "Yeah, 5% is really cheap. It's a great rate. Like get on it." And um yeah, I've watched it over the years go to four and then when they did all this stuff, to see things in the twos blew my mind. I'm like, "I can't believe people are getting 2% rates. Like this is nuts." Um so yeah, I mean for me, I don't mind paying 5%. Like I'm still buying rental properties and um I'm fine with those rates and if rates go back down like I think they will, um if it makes sense, I'll just refi and you know, do that. But I want to acquire rentals. Why don't you go into developing properties instead of flipping? Yeah, so um, development is very lucrative um, as of today, right? These developers who started projects 2 years ago, they're getting way more than anticipated. Um, I had one of my students actually just text me. He's doing a development of like 10 lake houses in um, hang where is he at? He's like somewhere in the south. Um, and he was like, "Dude, we already got two offers on these houses that aren't even done. Like 200 grand down, non-refundable. Like they want them." And um, he's like, "We're going to make like 400k more than we projected on these million-dollar houses in the span of like, you know, a year." So, it's crazy just what's happening in development on that side. And then you see all the development with, you know, commercial real estate. You know, you look at Las Vegas, commercial real estate's going around everywhere. You know, people are not stopping. I would say for me, the reason I'm not doing development other than um, my personal home, which I'm doing development on, is I mean, you can only do so much in real estate, right? Like so my focus is on um, obviously it's been flipping and wholesaling these last bunch of years and now it's, you know, on the fund and buying apartments across the country and um, we could certainly do development, but um, I don't know. It's just like I it's super lucrative, but I just don't have the capacity to worry about it right now. One thing that I was telling uh, Jack when we had Shelby on the podcast, was that um, I stayed in Yosemite at this Airstream park. Um, it was insane. So, they have this huge plot of land right outside of Yosemite and there are 85 of these like mobile home, you know, Airstreams. Yeah, exactly. And each one rents for about 300 to 400 a night. There's 85 of them. Yeah, they're crushing it. And plus, plus they got like a little central clubhouse where they sell like food and snacks and coffees and stuff like that. I was estimating this place is probably pulling in about 8 to 10 million dollars a year and net they they're probably at like 5 million bucks a year doing something like that. Yeah, so um I had this girl on my podcast, her name's Heather Blankenship and um she's actually a part of Future Flipper and stuff now doing some really cool things. But she has these glamping resorts um across the country and when she was first telling me about it on the podcast, this was like over a year ago. She's like, "Yeah, you know, we have these tents and stuff and um you know, we get like 300 bucks a night." I'm like, "Who's paying $300 for a tent? Like what do you mean?" And she was like, "It's not a tent like you think. Like it's a it's a house, you know, that you know, it's really nice. It's got a bedroom. It's got a living room." And the whole [clears throat] glamping thing is nuts because it's so cheap to do. It's an experience people want. They're willing to pay a lot, you know, to get it. And all you really need is land and some utilities. Like it's not you don't even need airstreams. You know, people are doing this with tents and stuff. Yeah, the tents they had were actually really nice. Exactly. Yeah. What's your opinion on like modular homes? Because I've been also looking into that. For me it sounds really cool to be able to just buy a plot of land that's owned residential and then just throw in like, you know, a prefab home or something like that. Or Five of them next to each other. what I'm saying and create like a little commune. I know that they also sell in Home Depot or in Home Depot like basically you know, sheds that can be livable and they're like 30 30 grand. Yeah. So I've learned so much about modular homes over the years like way more than I ever thought to imagine. So we've been flipping mobile homes um here in Vegas for a long time. And so I remember I I used to be able to buy a mobile home with land for like 50k. We'd try and go flip it for like 80k. It was great. I mean, dude, these same mobile homes now in Vegas are selling for like 300 grand. Like it's nuts. And so, um your plan of like buying land and putting a mobile home on it in Vegas is going to cost you like 300 grand. Um um um That's just where prices are. So, I mean, maybe you buy it out there. [clears throat] But, um we ended up getting our mobile home dealer's license, my partner and I, because we were buying so many mobile homes and I was getting a bunch that were just terrible. And I was like, you know what? Like, let's scrap them and throw a new mobile home on there. We don't have to do any renovation. We don't have to We'll just throw the mobile home on there. And um at the time when we got it, it was going to be like around 100 grand to like do a legit like 1,500 square foot double wide, brand new everything. You know, the shipping, the foundation, all the things you needed to do. Um we ended up never doing it because it just was a lot of work and like that same 50 grand mobile home, um we were able to just go flip it for like 80. And so, we were like, "Ah, why even deal with all this? It's just not really worth the headache or the risk." But, like that's what mobile homes are today as far as like owning the land with them in these places in Vegas. You know, like what um our friend Brandon Turner is doing is he's buying mobile home parks across the country where one. Oh, nice. Yeah. Nice. So, Yeah, so I'm I'm actually a 1/10 owner now of a mobile home park. his mobile home park. Yeah. you that, Jack? No. Yeah. [laughter] I have no idea. Yeah. Yeah, he had an allocation and asked me if I wanted to go in. I was like, you know what? Why not? He sent me the deal. And I really liked it a lot. Can you walk us through the numbers? Uh yeah, I I'd have to pull it up. Yeah, while you pull it up, I'll explain. So, like the mobile home parks are cool because you don't own the mobile homes themselves. I mean, you can, but all you do is you own the land, and then people pay you lot rent on all of these mobile homes on there. And so, um And they move their mobile homes onto that land? Yeah. Or you might already have one there because it it came with the land or somebody left it or whatever. Um and then you can charge more because you've already got a mobile home for them. Is mobile home zoning different than like actual like, you know, Yeah, you can't just go throw a mobile home wherever you want. Yeah, so it still has to be zoned for the same amount of capacity of like residential, you know, houses or whatever. Yeah, and I mean it's just you have to be able to, um, you know, if if you got a plot of land, you know, in the middle of this nice neighborhood in Summerlin or something, you know, you can't [laughter] just go throw a mobile home there. They're not going to let you. Um, I actually thought, the reason I know that is because I thought about it. I was like, "What would [laughter] happen if I just did this?" But no, they won't let you. Mobile homes are interesting in that way, but like even today, you you won't believe this, but there are luxury homes that are built modularly. And so Yeah, yeah, I've seen those. My house that, um, I'm actually moving into now, not the house I'm building, um, on the mountain, but this other house that I bought as a flip, I paid 1.8 million dollars for it. And, you know, it's worth over 3 million once we get it fixed up and stuff. But, you know, it looks like a normal modern house. It's super cool. And all of a sudden, like the guy starts telling me, he's like, "Yeah, you know, this is a modular home." I was like, What? "Modular home? Like, what do you mean? Like, how is a, you know, 3 million dollar home a modular home?" He's like, "Well, you know, half of the house is built, um, you know, as a normal stick build, and then there's this half of the house that is, you know, they brought in, they imported these different modulars." And so there's like five pieces that came, you know, in these modular. And you would never know, like there's no way you would ever know unless he told you. But I realized it, um, by actually looking at the walls. And so, like the door frame, if you look at the door frame right out here, right? You know, it's like 6 inches. Well, these door frames were like this big, and I was like, "Why is the door frame and wall so big?" That doesn't make any sense. Well, the reason was they were attached. That was where the seam was for the modular. And so, it has to be thicker to support it and do all that. So, I was like, "Oh, that makes sense." Huh. Yeah. Yeah, those luxury modular homes are really cool. And they make ones with like big glass sliding doors and stuff like that. And it's still like relatively cheap for what you're getting. Yeah, I don't know why the guy did that, but you know, I got a good deal on it for a reason, I guess. I don't know. [snorts] Yeah. Here's the the deal. Maybe don't give too much detail out. Just I cuz I don't know how much of it is public. Yeah. Uh but basically, for 3.2 million, uh they're expecting overall, I think the the total return over the next 10 years is going to be somewhere around like almost 20% a year. Mhm. It's pretty high. Yep. Uh the advantage of this is that you could do some mass depreciation up front, Yep. which is really good. So, let's say if you for every dollar you invest, you're able to write off like a dollar to a dollar 40. Yep. Uh in depreciation, which is really attractive. And then also, um their plan was to um not only fix up the uh the the area and just make it more inviting. I mean, it it it was not run properly. So, a lot of things were just degrading and not properly taken care of. So, with his team, he's going to go in there and make sure everything is properly taken care of. And then also, what what I really liked about Brandon Turner was that he really wants his tenants to grow their wealth and invest in where they live. And so, oftentimes with his tenants, instead of him trying to like raise rents, he'll host these events that teach about financial literacy and ways for them to eventually buy the place that they're living. And so, long term, they'll be the owner. Very cool. And so, part of that was he intends to sell those units if if they could afford them or if they want to buy them. So, instead of them renting, they could own them. And then, that works out for them and it works out for Brandon and his fund because now it's one less thing that they have to manage for upkeep. Well, and also, too, it makes that tenant more sticky because now that they own that mobile home, they're not leaving. Yeah. I really like not having to to worry about it. Like, I trust Brandon explicitly. And it's just like, "Here's my money. [laughter] I trust you, man." much did you give him? Uh $300,000. So, you should be getting like 60 grand a year from that, effectively? Uh over eight years, but that also includes the sale. Right. So, up until the sale, I'll be getting anywhere between like 7% to 10% a year. Mhm. Yeah. Which I don't care I don't care. I mean, just I see the long-term vision. you're going to get the big payday at the end. Like, that's how all syndications work. Like, you know, you're going to cash flow a little bit throughout the play, and then the hope is that you have a big exit or a big refi where you get your money back, and then, um you know, you've got this property that you own with no money in the deal. Yeah. And that's actually what we've what what Ryan and I have done, which is which is odd because it's uh I've wanted to uh when we had Alex Hormozi on here, he was telling me you got to do like a real estate fund. Yep. And I told him I didn't want to do the work on that because it's I I've just seen how much work is involved behind the scenes of like managing a I just I couldn't possibly do that. So, when you reached out to me, it was actually really cool because I I talked to Brandon Turner about potentially partnering with him on a fund uh cuz I really like Brandon Turner a lot. I know he has a good eye for things. And we we had a good talk, and you know, he is just so inundated, and he just like, I I can't do anything. Like, so, when you called me and said, "Hey, I think we could work together," I was really excited about it. Yeah, dude, I was, too. So, it's funny because I've talked to Hormozi quite a bit, um him being here in Vegas and stuff. And, you know, somebody had sent me the podcast you did with him. They're like, "Dude, Hormozi's telling Graham he needs to start a fund, you know, you should reach out to Graham." And I was like, "All right, let me go watch this." And so, you know, I watched it and I'm like, "All right, Graham, dude, are you ready?" Like, and then you're like, "Yeah." It was just like a very quick thing. Yeah, I said, "Give me 24 hours." Yeah, because I had told Brandon Turner that he had priority. Yep. And I wasn't going to do anything without Brandon Turner's permission on that, cuz I didn't want to feel like, you know, I'm ever like going around someone. So, I called him. Yeah. And uh he spoke very highly of you, by the way. Yeah, Brandon's the man. Yeah. I love Brandon, dude. We um I mean, I I've said this on BiggerPockets and you know, just with him, like, he's the reason I've been able to have success in real estate. Like, it was his book I read. Um it was his podcast I listened to that gave me the start. And so, you know, I'm forever grateful to him. And then being able to, you know, I've been to Hawaii multiple times and hung out with him. And he's always like, "Dude, if you ever want to come, the basement's open." Like, His place is so cool. Yeah, he's just nice. He's the man. And um Yeah, so it's funny because uh he, you know, we all share the same lawyer. We we were just talking to our lawyer um Monday, right? And he had been telling me to start a fund at some point. And then my other friend told me. And I'm like, "All right, fine, we're going to do this." And so, last year we did it. And um you know, we bought 460 units um there. And then, you know, when I saw Hermosi's podcast with you, you know, I reached out and I'm like, "Look, I think there's a way that we can do this even bigger, you know, if we work together. Um we've already got all these relationships with all these operators and guys finding deals across the country." And um in fact, you know, we turn down a lot of deals that I think would be great for a different fund because um you know, for us, we we want the pieces of crap that are just so beat up and like, you know, the last thing we bought was 126 units. It's literally zero vacant. Or it's um zero occupied. Zero vacant, yeah. Yeah, no, zero occupied. There's no one there. Like, we like it. We want to fix that up and make a lot. But um there's a ton of great deals that, you know, are doing well and there are ways to add value to them. But, like we just were like, "Man, our our thing is we want to go with these home run type deals, but there's so many doubles out there, doubles, triples that could become home runs, too, if we just took them down." And so, that's when I reached out to you. I'm like, "I think if we partnered, your audience would eat up these deals that we're just turning down that are great." And so, um dude, I think we're going to do a lot of good stuff. Cuz I was telling Ryan, too, I would much rather a safe, predictable return than something that's a home run 10 years from now. I would just rather just feel better about consistency. I agree. Yeah. And I mean, that's why I'm so excited about it because we are getting sent those all the time and there's I mean, right when we, you know, we're like, "Let's do this." And we started doing the paperwork. fast. I was blown away. Within 24 hours, you're like, "All right, we're going to get all this done." And by the end of the week, you're like, "Here's the paperwork." Yeah. Like not like that, obviously not that tone, but like, "Here you go, Graham. Sign it now." Here's our logo, here's our website. was shocked at fast you moved on all of this. I mean, I wouldn't expect anything else, but like it was faster than I thought was possible. Yeah. Um but then you brought us the deal in St. Louis. Can you tell us about that? I was telling Jack there's like a brewery in the bottom that I was really excited about. Yeah, so this deal and this is the beauty of having um you know, a coaching program and a big mastermind. So, like my students are nationwide, right? And they're always hunting for deals everywhere. And so, with them, um you know, they have a harder time raising capital than you or I would have. And so, this deal actually came from one of my students in St. Louis. Um he's flipping a lot of houses. He's a GC on commercial real estate projects and stuff. And he was like, "Dude, Ryan, you need to look at this deal. Like it's um it's around like 80 units or something in St. Louis and um there's this really hip bar um at the bottom that, you know, everyone, all the locals love going to. It's like renovated and it's super cool. And there's um like this other space that's empty that we could, you know, do whatever we want with that's also cool. And we started looking at the numbers and, you know, I was like, all right, this is a really cool deal. Like it's already occupied, it's stable, it's good, and you know, there's some other things we can do to add value. Um and you and I were talking, and we had just, you know, finalized our our deal, and I was like, dude, this would be a great first one for Creator Properties. So, I'm excited about that one. Yeah. Oh, that's the name of it. It's called Creator Properties. Yeah? That's cool. Yeah. Yeah, guys, if you want a hot take, I didn't like [clears throat] the name. I'm going to be honest. No. It sounded a little gimmicky. No, really? Yeah. I'm just going to be honest. Because it's like because it could have a dual meaning. Like a creator is in a creator on on YouTube or wherever, but it can also be like creator as in like you're creating these opportunities. Yeah. Well, Alex, can't win them [laughter] all. Well, you can't invest, Alex. You know what, guys? You know what, Alex? I can't I can't even invest in it, so Yeah, you got to be an accredited investor. Is that the requirement is being an accredited investor? Yeah, you have to be accredited investor. And for those that don't know, what is an accredited investor? Um so, you can have a million-dollar net worth or um income of $200,000 for the last 2 years. Yep. Or if you're married, I think it's $300,000 the last 2 years as a as a joint couple. And are there other ins potentially for those that don't meet those requirements cuz I may know someone. [laughter] So, [clears throat] there's actually house's worth $2 million, right? Yeah, it's worth $2 million. they verify that? I mean So, we use third party. Oh, oh, okay. So, we don't, you know, if you guys apply at Creator Properties, we are not going to verify. We're going to send you to a third-party accreditation. They're going to be the ones who decide. Got it. Do you guys have a Do you guys have a minimum like an investment amount? Um typically, we do about 50K. Just because, you know, at the end of the day, you don't want to have so many investors in one deal. Like it's just more paperwork. It's Right. It's a If you're an accredited investor, like you should have more capital anyway. Right. What do you think about the name, Jack? Be Be honest. Creator Properties? Creator Properties. Okay. So, I will be honest. I thought it was a touch gimmicky. Because Creator Properties is just like it's kind of a little bit easy of a name. And I'm not going to say but here's the thing. Yeah. There is a little bit of a double entendre, which you know I like. I do like that. And overall, I think realistically, that's a great way to market. Especially like if you're marketing on YouTube predominantly, Creator Properties, it just goes in line with that. What was the first name that we thought of that we both really liked? It was So, when I was just randomly telling Graham like, "Okay, so here's the deal, you know, we're going to start this Creator Capital." And um Oh, was that it? Yeah, it was just Graham said, "I really like that name." He's like, "Where did you come up with that?" And I was like, "It's just like the placeholder name until Creator Capital honestly sounds like something Coffeezilla would Coffeezilla would make a video on. [laughter] It just sounds like that. Does it not? You know what? I think Jack summarized my thoughts like pretty much perfectly. I I agree with everything Jack said. Um I think it's great for branding. And I I think it's a good move. Just a tad Alex, what did you think of the logo? The logo I actually liked. Uh it I mean, because it made sense with the name. Uh and I thought that it it was great for branding. So, the logo I think you guys nailed it. Uh just not sure if I like Creator Properties, but you know, it's growing it's growing on me a little bit. to change the name? [laughter] We stuck with this now. We're We're already doing a name change. line. [laughter] Yeah, I um it's always fun coming up with names. Like that's my favorite part of business. It's like you know, coming up with them and the logos and the branding and all that stuff. And uh when I was trying to think of names, I'm trying to think like, how does this relate to Graham and what like has made Graham who he is and successful? It's like, man, if you think of Graham, you're like, this guy is the best creator. Like Yeah, cheap property. [laughter] Frugal investments. Yeah. That's funny. Yeah. That's a good one. [laughter] You know what's funny? Uh when I set up my first LLC, thank thankfully Jason uh Oppenheim talked me out of this, but uh I was sitting at the first one. I think it was like Yeah, this is like 2014. [snorts] And I uh came up with the name real estate cash flow LLC. [laughter] Jason like, "Graham, you're not doing that." I was like, "Why? It's real estate cash flow." He's like, "That that is the worst name. Stupidest [laughter] name. Do not do that." That's so funny. like so against it. I thought like, "Wow, real estate cash flow, that's cool." It's cool. [laughter] Looking back at it, it's it's so cringey that like I even thought like Yeah, the reason we didn't go with Creator Capital too was obviously the domains were taken and stuff, but the more I thought, I'm like, how would they know it's real estate, right? Cuz like to me it'd be like, "Oh, Creator Capital, we're going to go fund other creators and like buy you know, their their brands and stuff like that." Yeah. And so I'm like, how do we add real estate to you know, being a creator? And so that was the mindset. Can you go over some of the specifics on the uh St. Louis deal? Oh man, I don't have the numbers off the top of my head. Um yeah, I don't want to butcher what what we're doing with it, but I do know we got a million dollar um credit for the roof, so we got a million dollars off since we got it, too. So let's say I am an accredited investor. Why would I go and do this instead of just go and buy a property on my own and have all of that control? Um multiple reasons. So, you know, if you go and buy a house yourself, I mean obviously you own it 100% and you're the one who has to deal with everything. You've got to find the deal, you've got to deal with the tenants, the maintenance, etc., right? Mhm. Um when you invest in something like this, um, we're going to find the deal, which we have, right? Here's the deal. You can choose whether or not you want to invest in it. Um, we're going to manage it. We're going to, you know, renovate it, stabilize it, all this stuff. And it's really passive for you. Like, you don't have to do anything. And so, that's the benefit for most people like Graham. What, you know, the reason he invested with Brandon in that deal is that, you know, he's not doing anything. Like, it's just like, "Take my money, multiply it, and um, I trust you." And so, that's the benefit of a fund. Like, a lot of accredited investors, um, that invest with us on these deals, most of them aren't always real estate guys. Most of them are doctors and, you know, even influencers or, uh, you know, e-commerce people, people who are not in the real estate field, but have made a lot of money. And they don't know how to invest because they haven't made their money investing. They've made it like doing a job. And so, for them, they're they just don't even they don't even know what to buy in real estate. And so, they would rather just, um, go with the experts and not do anything and focus on their their job that actually makes them money. And how do the finances work out for you? Like, i- in the syndication, like, how would how would it So, obviously, you collect all of these people's money, you put it into a property, the property sells at a premium. How do you distribute the money after you sell the property? Different percentage-wise? I'm sure you guys have some sort of, you know, bonus or something that you guys take from the work. Yeah, so, um, we can break down just kind of how a typical, um, syndication works. So, you have GPs and LPs. GPs are your general partners. These are the people who are, you know, me and Graham. We're finding the deals. We are underwriting them. We're getting everything prepared, you know, once we buy it, we're going to be the ones managing it, doing everything. Then you have the LPs, which are the limited partners. Those are the investors, right? Like, they're they're not in charge of doing any of that. They just are in charge of putting their money up and then just kind of waiting and collecting checks on the meantime. So, um, typically what happens is your GPs and LPs will split the deal in a certain percentage. I mean, it it varies, man, just depending on how big the deal is. I mean, you might see deals that are 50/50, you might see deals that are 70/30, 80/20, like it really just depends on how good the deal is and how it's structured. Um, but along with that, the LPs will also get, um, a preferred return. And so, you know, a typical preferred return is anywhere from 6 to 8% and, um, essentially before anyone takes their profit split, the LPs need to be paid that preferred return first. Mhm. And anything above that preferred return then gets split up depending on how that split goes. So, for easy sake, let's just say it's a 50/50 split and the property is returning, you know, 12% every month right now. Well, if you have a preferred return, what will happen is the LP will get 8% first and foremost before anybody. Then the remaining 4% gets split up 50/50 between the GPs and the LPs. And so, what would happen is the LPs would make 10%, GPs would make 2%. So, as the GPs on that side were making 2%. But, we also make money is in other ways with GPs. I mean, we have an acquisition fee, um, you know, a yearly management fee. But, you know, at the end of the day, honestly, as a GP, the big payday is at the end. Mhm. You know, like the 2% every month ain't doing much for us. Right. But, at the end, [clears throat] you know, let's just say this uh St. Louis deal, I don't know, you know, it around $10 million. Um, if it sells for $15 million in however many years, um, you know, as long as the LPs got paid their, um, you know, their their 8% all those years and stuff, um, basically we'd end up splitting the profit from that. And so, that's how we make a bigger payday. So, the GPs would take, let's say, 2 and 1/2 million, split that amongst themselves, and then the remaining two and a half million would just go to every LP investor. Yep. And then the LPs have been making that 8% that whole time as well. But of course this is always subject to change if it's a different structure of a syndication. Yeah, yeah. So like what what would typically happen is like if a deal's um more thin, we always want to make sure the LPs get like the desired return, right? So it's like, "Man, Grant Grant is looking at like that 15% return on Brandon's deal, right? 15 to 20%. That's what he's looking at." He's not necessarily super concerned about "Well, how much is Brandon making?" You know, he's like, "Oh, I'm making 15, 20%. Like cool." And so like to structure a deal like that, you know, you might have to give the LPs a big chunk of the deal. You might have to give them 80% um to achieve that return that you're trying to get for them. But maybe you got like a super crazy deal and you don't need to give up that much because the deal is so good, you know, you can split it up differently because everybody wants to invest in it, you know? So it's just like anything else. It's kind of supply and demand and you just kind of take it on a deal-by-deal basis and say like, "Okay, first and foremost, what's my LPs desired return, you know, on this?" And so how do we structure it to get them that? And do the GPs put up any capital in the beginning to like own a certain percentage or whatever of the Yeah. So um obviously we have all of our startup costs with this and um everything we're doing on the legal side and everything. So we front all of that. We front earnest money deposits. In fact, I didn't even tell you this, Graham, but um on the Arizona deal that we're doing, I just sent a hundred grand um for the earnest money deposit. So, you know, we have those upfront cost. Um and then typically what happens is a lot of the banks that we're doing these deals with want to see skin in the game from the GPs. And so like in Graham and I's partnership, essentially we're going to put in whatever they want us to put in, you know, equally. And so, you know, on this deal the banks might say, "Hey, Graham and Ryan, we want you guys to put in 100 grand each into this deal, you know, for us to fund it." And so, you know, we'll do whatever we got to do. And then we'll actually make you know, the preferred return on that 8% as if we were just investors on it, too. Yeah. And when you do buy these big properties, you buy them with debt, right? So, let's say you accept like $2 million and it's like a $5 million property or whatever. Like you take out a loan. Yeah, like let's just, you know, this ain't real estate. Like let's just say it's around $10 million total. You know, we'll go and take a loan out for probably 70% ish of it. So, we'll get a $7 million loan. We'll go raise $3 million bucks. And so, that's kind of how it goes. And all of the tax benefits and everything, is that dispersed amongst all LPs? Or is that How does that go about? So, this is where you can get creative with it. You can totally just change how you want the depreciation and the taxes to go on a deal-by-deal basis. So, you know, let's just say Graham and I buy so many deals this year cuz we're just crushing it and everybody's happy. What might happen is like we're like, "Dude, we don't even need any more depreciation. Like we're you know, we've got our taxes down to zero." Which would be fantastic for Graham. Well, then we can just start saying, "Hey, you know what? We're going to start giving all of our depreciation to the LPs because we don't really need it. Like it would be a waste for us." So, we can totally manipulate deals that way. Or if like you know, let's just say we want to make a juicier deal for LPs. Right. Then you'd include that in the terms and everything. Yeah, we would just manipulate it to give them more depreciation and tax advantages and structure the deal that way. How do people that make syndications like screw over LPs? Because I know that some to some people there could be kind of like a bad idea, you know, bad connotation towards syndications. Why do you think that's there? And what is done in those situations that like can negatively, you know, affect the LPs? Well, you know, with um the type of fund we're doing, you know, it's a 506C, so it's accredited investors only. So, basically, the reason that they do that is because like accredited investors are, you know, big boys. Like they they know what they're doing and like they know that they're investing their own money at their own risk and if they lose it, it's not going to be catastrophic. Like they're obviously [clears throat] doing pretty well. Um the reason they make it so strict on 506Bs where they're they allow anyone and everyone invest is because those people, you know, might not be as savvy or educated. And so, you know, they hear Graham like, "Dude, I want to put my life savings with Graham. I got $10,000." Mhm. And then all of a sudden, they're just like, "Dude, how's the steel doing?" Like cuz it's their whole life savings. And so that's why you see most funds not I don't even want to say most don't go that route, but like that's where you see a lot of the flak is when you deal with that side of it. Because most accredited investors are busy like running their businesses and their lives. Like they don't have time to Have you checked in like to worry about the mobile home park? Yeah. Like and that's what most investors That's why they're investing. Um but I would say to protect them, um I mean, first and foremost, like they're getting the preferred return. So, like they're getting that interest before anybody. Mhm. So, whatever cash flow is coming in, making sure that they get paid first on it. Mhm. Um but, you know, as far as like protection, it's just like any other normal real estate deal you do. Like I mean, if things go south, there is the, you know, threat of a foreclosure and things. But, I will say with what Graham and I are doing, on a lot of the initial purchases, right, we are having to personally guarantee them. And so, by us personally guaranteeing them, like We're on the hook. If If anything goes bad, it's like Ryan and I. Coffeezilla, boom. Yeah. Well, I mean, you know, honestly, like if anything goes bad, [laughter] Yeah. If anything goes bad, it's it's obviously then we step in. Mhm. And so, just like with anything. But I I think the biggest risk, Jack, honestly, is the lack of liquidity. And I think that's hard for some people to overcome, just knowing that if they invest in a deal like this, the money is tied up for anywhere from 5 to 10 years. sell their portion of unless if they negotiate out some other like discounted deal or like How does that work, Ryan? Yeah. Yeah, so I don't want to go off topic, but um so okay, just on the way it works today on a normal fund, if Jack all of a sudden you were accredited and you invest 100k with us and you're like, "Ryan, dude, I really need the 100k because um you know, I'm going through something or there's a big opportunity for me." What would happen is you'd come to us and we would say, "Okay, Jack, like we'll try our best to see if there's any other investors in the deal that want to take your place and buy your shares, right?" That would be first thing we try and do. Second thing we would try to do is um go put it like to our contacts of like people that we know weren't in on that deal and like, "Hey, do you want to get in on this deal now cuz Jack's doesn't want to." So we try to get you out that way. You might have to take a loss, you know, as far as like you know, just a get liquidity. Like that those are all scenarios. Or, you know, potentially, you know, you've been in this fund for 2 years, it's gone up a lot and it's getting ready to exit, but you're like, "I need to exit early." And so maybe, you know, you make a little bit of money, right? That's what would happen today. Um what I've been making a lot of YouTube videos about and like something that you know, I'm working on heavily is my NFT project called Tykes, which is basically getting ready for this digital real estate revolution. Um because what's going to happen eventually is they're going to NFT funds like this. Um and it's already happening. There are companies that do it, but they're going to NFT funds to solve that very issue of liquidity. Because if everybody's share was an NFT say for $100,000, right? Um instead of relying on me to try and cash you out and be out of luck, you'd be able to sell that share like whenever you felt like it. Right, but maybe not to an accredited investor or something like that. Well, what will happen on for the accredited investor funds is there's going to be intermediaries where you can list it, right? You can list it on a marketplace and the intermediary will verify that the new buyer is accredited. You know, they'll get their information and do the transaction. Mhm. But just being able to make shares liquid is going to be huge in the future and there's no reason like that shouldn't be the way things happen, right? Because for us as GPs if you go share your sell your shares on the open market, it doesn't matter to us like we still have the property. Nothing has changed on our end. You've just decided to either exit for liquidity or you know, maybe you think the market's going to crash next year, but you know, you know, we're not selling anytime soon. We're still getting it stabilized and ready and um you're like, dude, you know, my 100,000 I could probably go sell it for 120 right now. I'm just going to sell it and bounce and let somebody else take the risk. So, that's going to happen in the future for sure. But why can't that be done in the current way not including the NFTs? I mean, it would be done the way I'm talking about where um we would just go try to sell your shares. Like I don't can't be sold on the open market. It's the same reason like when I invest in a startup company Mhm. I can't just go and sell my shares Mhm. even if I want to even if it's worth more. It's against the paperwork that you've signed. a long process and they would have to It would be contingent on them basically finding a replacement who wants to buy it under the terms of whatever the board has set. So, it's it's the same as invest Well, similar as investing in a startup company that's illiquid or a privatized company where shares are not trading back and forth. Mhm. But in a way I think it it could work to people's favor because I remember uh in Grant Cardone's fund in 2020 right as the COVID shut down, people were panicking and wanting to get rid of whatever they had with Grant Cardone. And I remember him making these videos telling people now we're holding, you know, we need to we need to see this through. Don't worry about it. And there were all these rumors about him like selling his jet to going bankrupt. But those people that didn't sell they probably more than doubled their money. Yeah, they did. Just by not selling. And so in a way locking it up ensures that you're able to hold on to it long enough to increase the chances of coming out ahead. Yeah. profitable. Well, and I saw an article from Goldman Sachs about a week ago where they talked about how they're super bullish on digital real estate. Like essentially they're looking at real estate being, you know, tokenized and traded just like stocks for this very reason, right? You know, imagine instead of me hunting for deals, you know, to buy the whole house, I could hunt for people, you know, who are trying to sell their shares right now on great projects. Mhm. has this great deal. Why does this guy want to sell his stuff right now? Like for whatever reason you're listing it for sale and they're going to be buying up these, you know, things. And so that will become more efficient as time goes on, 100% and that's going to be a full-on industry of trading you know, shares in these real estate projects. That makes sense. Yeah, it sounds like something very interesting. I wonder if you could be accredited. I can't. You need that extra year? Yeah. So Graham, what we can do though, okay, for all of our friends is you know, we could do um a 506b, but we just can't market it. And so what, you know, we could do with Jack is like let's just say we get a deal where, you know, we're going to raise million, 2 million bucks. And we already know Jack's in. We're going to we might let Alex in if he changes his tone about Creator Properties. [laughter] Burn. We might let him in. Um but you know, we'll have Jeremy and Kevin and all these guys. Like they're Andre, they're all like, "Yeah, we want in. We don't even need to advertise it, right?" Well, that In that case, you can do, you know, like a friends and family fund where you can invest with us. What if cuz this St. Louis one, man, it sounds pretty tempting to me. Can Graham invest in that and then after I file my next, you know, return and then I become an accredited hopefully after that then he can sell his portion to me. It's going to be a hefty profit. Jack There's a premium for that. My gut tells me that you can, but I'm not the lawyer, so I'm not going to say that you can do that and [clears throat] do anything to jeopardize us. How about How about Jack and I just pass our Series 65 and then you guys drop that requirement for us you know, the [laughter] the 50 the 50k a little bit, you know, and then uh Can you and Jack just make more money? Can we like let's just do that. Here I am, yeah. Can I co-can can I co-sign for Jack as like he's an accredited [laughter] like a sponsor and be like, "I'm sponsoring Jack as the accredited investor." Like I'll back him up. [laughter] Can I do that? I would do it cuz Jack, I would I would I would gladly cuz I was planning all of my money this year is is well, almost all of it is probably going to go in in real estate funds this year. So, like that's my goal is like everything I make and save goes right back into the fund. So, like I would I don't know if I'd even legal say like, "Oh, I'll put money in and if you want to buy my portion later." Maybe. Yeah. [laughter] Contingent if that is legal, of course. If it is illegal, I will not do it. But, either way, I will invest. And maybe if I feel like it and it's legal and you can buy those funds as an accredited investor And at a premium. At a premium. [laughter] At a significant premium, then maybe I will possibly consider it. Thank you, Graham. I really appreciate it. You're welcome. you know what's funny, too, about that, Graham, is so in most these deals, I imagine we're going to do a cost segregation to get, um, you know, the big tax benefits on these deals. So, if we did do that, you would get the depreciation that year you bought it. [laughter] So, you would actually not even need to sell it for a premium cuz you already took the huge bonus. for discount. That's a good idea, yeah. Discount. You know that word, discount. Like, you know the, um, the last podcast I was on, you were actually telling Jack, and Jack hadn't bought his first house yet. And he was like, "Ryan, should I buy a house?" I'm like, "Yes." And you're like, "The market's so high right now." I'm like, "Buy the house, Jack." You played a big role in me buying that property because someone, I'm not going to say who, didn't want me to buy very, very much so. I said he could save so much money by not buying. Yeah. And then by the time he's ready to buy something, he's going to be in a different price point. And I guarantee, had you waited probably another year, your price point would be maybe double. I agree with that. Yeah, but your price would have gone up. Yeah, and also I I wanted to have a place of my own, and since I moved in my own place, I have been able to use the space and the people I've moved in to then do contract work through, and then increase my income, and then I am doing networking barbecues. Yes. Beef is a write-off. Yeah. Beef is a write-off. He basically uses his entire house as an office because everyone that lives there, they all we all work together. Oh, I love that. got just like everyone in one house, and they all just like work together. It's so nice to be able to just knock on, you know, my my brand manager's door. "Hey, man, how's this sponsorship deal going?" That's how I felt with Jack living here. It's just [laughter] Jack, Jack, Jack. Yeah, it's got a podcast. I That was something different. [laughter] But, yeah, it's super nice. And my editor, I just knock on his door. "Hey, man, how's the video going?" It's great. Jack hated when I knocked on his door. He he would always lock it. lock it, and I would have to I would send a text, which I'm fine with. always lock it. Did you ever try it? Did you ever try it? [laughter] It was so annoying. He would always lock his door to his bedroom and his bathroom. The guest house though, I would basically just like I would startle them. That was the thing. I just all of a sudden like 7:00 p.m. I'd knock the door. The reason I brought it up was because I remember during that time Graham was like, "Hey, I will I'll I'll spot you on it. Like I'll I'll fund your down payment whatever and you'll pay me interest." And so he's offered to do that again for you, dude. What a good boss. He really is. Yeah, he really is. If it's legal. If [snorts] it's legal. Yeah, maybe. [laughter] For a premium. I would do it. For a for a premium. You can't forget the premium. All right. Cool. Deal. Yeah, what questions do you have on a Alex? I feel like honestly we addressed most of it. I know, yeah. I was like Jack was over there like power housing through all the questions that were going through my head, Jack. Great Yeah, great job, man. wanted to make sure that you actually just did a great webinar. Good. Yeah, I thought that was honestly helped you guys out a lot. Like the pitch was Yeah, I know. very good, dude. [laughter] Give me a percentage. Yeah, you get it for a less of a premium now. Cool. Thank you. But now the other thing I really liked about this is I think this was late 2020. I started looking around for myself because I wanted to not do a syndicate. I wanted to do something on my own. And I I spoke with a lender and the lender basically told me you could you could buy something in between six and 12. And I'm like, "Maybe if I if I wait a little bit longer, I can maybe push that to like 15." And I started looking around and calling. There was nothing. And every single deal it's I was in this weird price point where like by myself either I was getting something that was needing a ton of work. Like you were talking about these home run deals. These are deals that like this is a year of my life that I'd have to spend renovating trying to rent it out. It's a full-time job for a year that I'd be buying myself. And then the really expensive places, you're competing with these deals that you know, sure I could afford it, but I'm competing with people who buy them all cash. Yeah. And there's no way that I can compete with like some, you know, conglomerate or some really rich guy who's like, "Here's $15 million cash, 7-day close." And I'm sitting there like sweating being like, "This is this is everything. Like, what if it goes wrong? We need a 30-day inspection on it." And so, this was I at least felt for myself a good mix in between that I could get in that price point with partnering with other people who've done it before. Yeah. Uh in terms of the management side of things. Cuz I've never managed anything beyond a triplex. Yeah. Yeah, I'm excited for it, dude. I think um obviously and we've just started, you know, it's only been a month of really, you know, going through everything, but already having two deals and there's going to be many more like we're going to buy a lot of real estate here in the coming in the I I don't want to put a projection on how much real estate we're going to buy, but I think we're going to buy a lot. Well, Jack, you got to be accredited now. It's a nice milestone. save one deal though for Jack and everyone else. We'll we'll keep that one with the friends and family. We'll link to all the info down below in the description for Creator Properties, but beyond that, how much money are you making, Ryan? How much I was just about Oh, I love that question. guesses. Okay. And we're talking net to you. So, this is like your portion at the end of the day after splits, but before taxes. And I'd also like to know when you say how much you're making, how much is from each different business cuz I know you have like several different businesses. I have too much firm to count. Yeah. You've probably got more businesses than fingers and toes. Yeah, there's no way I could um [laughter] just break them all off. I'd have to look at P&Ls from every single business and, you know, with partners and stuff, I don't want to, you know, jump on their toes. But, um man, my projection um this year has been that I think we can do around 40 million in gross profit. And that's not counting like all the deals we buy. Like that's not really profit. That's just acquiring units and different things like that. I would guess on that revenue after all my partners and everything else, um hopefully I could net around 15 million. No. What has it been the last 12 months? Cuz we have projections. What do you put on your taxes? Yeah, what's on your taxes, man? How much is on there? Well, we're we're in the extension period. Of course, yeah. So, yeah. We haven't filed taxes yet. But, um I would say last year net wise, you know, I think I probably made 5 to 6 mil. Now, I'm not going to pay tax on 5 to 6 mil. Like we have all these apartments we've bought, all these rentals, like we're still working through all that, but And you just depreciate that and cost segregate and stuff like that. now what's taking that from 5 to 6 to 15? Where is that How does it double? Um well, all the companies are growing, you know, pretty rapidly. Um you know, education's growing. We're we're flipping more and more houses. Um e-commerce is going well. And then if this whole NFT thing and um Tykes, I mean, that could blow it out of the water, really. So, really just having like multiple ways to make money, um that I wasn't making revenue in before, right? I I I didn't make money, you know, with NFTs and digital real estate, but I think that's like a huge I mean, that's a trillion-dollar like industry that is going to happen, right? Like there's no doubt about it. And so, whoever creates the businesses around that first is going to capitalize. Like there's no Zillow for what we're talking about with these um shares of funds for NFTs. There's no one like doing that at high level. Um whoever does is going to make a lot of money, as well as a whole bunch of other services. But, so I would say it's coming from all the existing businesses continuing to grow, plus new streams of income like NFTs, creator properties, um buying more apartments, that type of stuff. And what's interesting to me is that you have so many businesses under like the umbrella of like Ryan Pineda. Mhm. How do you build such an effective team underneath you? And also, last time we spoke you said you only work, what was it like 7 hours a day? 6 hours a day? Mhm. How are you able to accomplish so much in such little time? You know, I think it just comes down to building an organization like the right way. Um you know, I I I know I've watched a bunch of guys' podcasts. Like I've seen um Hermosi speak and Ryan Serhant speak and you know, all these guys. Like it's true. The moment you start scaling and building out the organization to kind of function without you, like you don't necessarily have to do all this stuff, you know? So it's like I used to go on all the seller appointments myself and close deals. You know, I haven't done that in years, right? Um if I want to raise money, I used to be the one calling the investors, trying to raise money. It's like I don't do that anymore, right? We have people who do that. Um I used to go to the houses and manage the construction and the projects. I don't do that. You know, like even in the education space, um you know, that was something Graham was um we were talking about maybe months back when I first um we first met. Like that company, you know, I think last month we did like 600 grand, pretty much organic. And you know, e-learn like info has really high margins. Like you don't Mhm. you know? It's super high margins. But like even in um coaching, you know, it's like how do I build this so that's not me always having to coach? How can I empower other coaches and teach them what I know and like have them coach and hold people accountable and you know, all this stuff. So, um I think all the businesses are built in that same way where it's like I'll be there initially like really building it out the way it needs to be. You know, the same way like when we did Creator Properties, I was with Graham, you know, every day. Like, "Hey, what do you think of this logo? What do you think of this name? Here's the website. What How are we going to change the wording and all this stuff? Okay, great. Here's these first initial deals. Like, here's the lawyers." Like, really laying the groundwork. But, once we do that, we don't have to do that again. Like, it's done. At that point, you know, now the machine is built, and now you just plug deals into it, you know, and it's just a process. We get a deal, we talk about it, we send it to investors, they invest, you know, then we manage, and then you just keep doing it over and over again. So, whatever product or service we're selling, um if you just build the process and you have really good people that can execute that process over and over again and adapt as markets and, you know, things change, it it doesn't really require you too much, you know? Like, I said this from the beginning with content. Um for me, I've still have yet to edit a video. I don't post them anymore. I don't make my thumbnails or anything else. Could I do better if I like put all my my time and focus into doing that? Absolutely. Like, it we could do better, but for one, I don't want to do that. And two, um by not doing it allows me to do all these other things. And when there are random fires in the different businesses that you own, do you still find yourself having to step in and put them out sometimes or do you have people that are able to solve any issue that may come up? Because I've noticed with me, you know, I do have an editor and I do have an assistant, but when things when they're struggling and they can't find a solution to something, I constantly have to find myself to still step in, review certain things, and I can't fully detach myself from the stuff that they're doing, which I feel like would ease my mind a lot. It doesn't save that much time, but for me not having to think about these certain little things that happen on the day on a daily basis would really I feel like spur my creativity. What's been What's your experience been like with that? So, this is also why I'm like a big advocate of delegating and building this out the right way because it does give you the ability to have like free time and actually be creative like you just said. So, um you know, right now my schedule for the last, you know, I don't even know, year plus has been Monday to Thursday, 10:00 to 5:00 at the office, Friday I go off, weekends are with the family. Like it hasn't changed, right? You know, tomorrow I'm actually I I told you guys this like we had to film today cuz I'm taking the family to Malibu for the next 5 days. And I was in the Dominican last week. And it's just like the business is still churning along. Like we still got Creator Properties up and going. We still flipped houses and did things. And so it's like you gain freedom by creating systems and hiring great people. And it costs you money to do that. You know, I've paid millions and millions of dollars in salaries, but it's well worth it to to gain my time freedom. And for me, it's not about making the most money. It's really just about doing what I want to do every day. And, you know, doing the things I love. And then also building, at least as far as business goes, sustainable things that don't need me. You know, so if I were to die tomorrow, you know, I would hope that you know, my tax company would still function without me, which it does. Like I don't do taxes. Like they're good without me. Um I would hope that you know, my education company, which um most people is is tied to them. And it still is. Like I'm the face for sure. But as far as like training people and like executing, it doesn't need me. Like it will run just fine without me. We might suffer on sales because, you know, I'm not now talking about it and uh whatever. But I have faith that the the leadership in place would figure out a way to go generate leads without me, you know, have a different face. Promote one of our students who is, you know, a good marketer, a good leader, and you know, one of our coaches, whoever. And you found all these different businesses that you've built out to be 100% automated. You don't ever have to dip into them, and like I said, put out fires. Well, no, I don't want to say I don't ever have to dip into them. Um what I do is like really from the sidelines. Like I see myself more like a I guess general once it's established. Once it's starting, like when I first started business, I'm like all in building that out. But once it's built out, and the right people are in place, then I kind of become like a general where, you know, every week, you know, my sister, she sends me the report on every single company. She's like, here's how much revenue they did, you know, we have different KPIs that I'm tracking. Like I want to know how many deals did we get this week, right? Um how close are we to raising the money on this, you know, fund deal that we're doing. Um you know, how many students signed up, how many whatever. And so, I get all these metrics every single week from her, and then I'm able to look at them and say, "Okay, that's like on par. Like we're close to hitting our quarterly goal. Um okay, what's up with this? Why is this so far behind?" And um you know, I'll get the story, and then I'll be like, "Okay, well, what are we going to do to fix it?" And you know, from there, she kind of executes that. And so, the way we're structured now is like each individual company has its own COO, and it has its own organizational chart, right? And so, that COO's job is to strictly run that specific company. And with that, they get a percentage of net profit, whether they're a prop whether they're a partner or not, because I want them equally incentivized. Like if we win as a whole, I want them to win. Like I don't want them just be on salary. Like doesn't matter what the company [clears throat] does. So, I always have a net profit split um with all my COOs. But from there, what I started to realize as we grew was that these companies weren't communicating good enough together. Because if we learned something that worked well um for sales or marketing in one company, they weren't communicating it to the other company, right? Cuz they're kind of just worried about their own thing. Um and I started to think like, man, dude, you know, every time we need a website made or an ad or like hiring a new sales person or some tech, like each one has to individually go figure this out. And I was like, dude, it's time to like create this parent company or this shared resource company. And you just like it wasn't any new revolutionary idea I had. It was just something that I've seen from big companies, right? Like, you know, Google has Alphabet and Alphabet feeds YouTube, it feeds every other company that they have. And um it's kind of like this shared resource where YouTube can communicate with Google Drive and all their other things. So, at this parent company level or shared resource level, you know, we hired all of the people that um all the companies need but don't really need like on a full-time individual basis. So, um we got legal, finance, um sales trainer, our media buyer, our graphic designer for the websites, our um tech development team for any softwares or you know, CRM stuff, whatever we need. Um and then just like operations for that company. And so like on that shared resource company, you know, I pay over 100 grand a month in salaries because it's just so strong. And so like when we wanted to go create um all the stuff for Creator Properties, I told Graham this, I go, all right, you know, we'll get it set up and you know, it's going to be way cheaper than if we were to go hire out all these people initially because we already have it all in place. And so immediately logo was made, website was made, copy was written. as fast. everything was so quick because the parent company already has all those people. But they're all [clears throat] That's not a salaried employee. That's like more contract work. No, they're all salaried employees full-time. Wow. Yeah, because think about it. All my companies need this stuff on a daily basis. Yeah. Hmm. Wow, that's incredible. instead of hiring someone um or hiring an outside company, Ryan's just like like uh he just basically creates his own company to do it. Yeah, because someone to clean the toilet, he's like, "I'm going to make a toilet cleaning company. We need a toilet cleaning company. We need that." Well, like I was telling Graham, you know, Car wash company. we're going to need an investor relations person um for Creator because there's going to be so many people that want to invest, right? And we're going to have to talk to all these leads. And so instead of being like, "Graham, do you know anybody who wants to work for us as investor relations?" Um first thing we do is uh I forgot to mention, we have HR at the parent company level. So HR has a process for posting a job, you know, like if you guys watch my Instagram stories, you'll see whenever we post jobs. Constantly hiring. I don't post that, right? There's a process for a job posting, and then there's the interview, and then there's everything else. And then what happens like for a sales position is um the final check would be interviewing with our sales manager in the parent company because he knows like what we need. And the beauty is maybe that sales person doesn't fit good for Creator, you know, they're not savvy enough for funds or whatever else. But they might be a good sales person for you know, Home Run Offer, Future Flipper, whatever, right? And so he has all of these candidates of sales people, and we're able to place them if we really like them for something else. And so, you know, it it just kind of merges this whole ecosystem together, but then it also allows us to really um you know, do cross sales and other things because people don't realize like oh well, if you invest with us, you need tax, you know, do you want to talk to one of our accountants and see if we're a good fit for you? And you know, it doesn't cost you anything. And it's like, yeah, sure. And then, you know, it could be revenue if they end up signing up with us. So, that parent company will end up paying for itself like easily just from Mhm. just being better. So, you see a lot of crossover from your clients amongst businesses? 100%. I I would say most people um who are our client are a client in multiple companies. Interesting. Yeah. I saw you're looking for a personal assistant, right? Yeah. Posted that on Instagram. So, how does this work? So, if someone applies, they go through your HR. What if someone comes to you and is like, "Ryan, I'm going to be the perfect person." Everything goes through HR? Yeah. I don't have time to interview people, dude. Like What if it's someone you know? I mean, if a of a buddy comes to you and is like, "Hey, you know, I want to I'll be your assistant." Well, if I already know them, I'll be like, yeah or no, you know, like I know whether I want them or not. Um so, yeah. I mean, no, everything goes through HR and she goes through a rigorous process of you know, having them send their resume. They got to do a personality test. Um how do you do that? Personality Do you have them do like a like a quiz online? Yeah. Are you serious? Myers-Briggs. Yeah. But um it's called Predictive Index. Um I think it cost us like 8 grand a year. So, like once again, parent company expense. So, like when you think about these other expenses, too, you know, the tech, the CRM we've created to be the same across all companies now. So, like if somebody gets taxed from us, everyone can see like, oh, this is a tax client. And then, you know, you have them fill out a survey saying like, what else are you interested in out of all these things we offer. And so then there's other offers that we can make them. But um you know, with uh the personality test and all these other softwares and things we have to buy to run the parent company, most companies can't buy it by themselves as a single company. It just doesn't make sense financially. But when it's spread across all these companies, it makes a lot of sense, you know. So, like the personality test, we we do that. We, you know, obviously read the resume. If If everything looks good on the personality and the resume, you know, she'll hop on a virtual interview, whatever. If that goes good, you know, in person and um she'll meet either, you know, typically that that person will meet the COO of the company that they're hiring for to see if there's a good fit. That way the COO is not wasting their time. Like if you think you think about this, other companies who have COOs, like they're hiring people themselves. They're creating the job posting. They are um interviewing all these people and that takes away from them actually running the company and doing things that make money. And so, when you think about our competitive advantage, it's like, "Dude, our COOs don't have to worry about any of this crap, like running ads, training sales people, hiring." All they have to focus on is just the day-to-day operations of what they have in front of them. You know, how do we get more deals? How do we get these houses fixed up? You know, how do we get these apartments stabilized? Like they're super focused on just like the product and service itself instead of all the organizational stuff that most companies lack. Wow. Wow. That's pretty awesome. Yeah, man. Wow. That's incredible. Thank you. You've built out an amazing structure for a business. Yeah. Dude, I think you're Jack's idol at this point. He's like, Yeah. All the assistants, all the people. [laughter] How many assistants can I have? Jack's like, "You're going to Malibu for 5 days? That sounds lovely. Sounds very lovely. Um I really only have one other question. I know that you're building one of the nicest homes Las Vegas has ever seen and the finances on that house are ridiculous. Can you walk us through the process of building that home and some some of the numbers on it? So, um you know, I bought this you know, what I'm calling a mountain. It was 2 acres um you know, in McDonald Highlands, which is you know, one of the top areas here in Vegas. I think uh last year they had the highest sales, like $25 million um for a house that sold in there. And the year before we actually sold the most expensive house in there for $11 million. Wow. Um, so yeah, I found this lot that was just such a great deal. I bought it for 620 grand for 2 acres. No. Yeah, it's an entire thing. Um, I don't know what it's worth today. I mean, if I had to ballpark, it could be anywhere from 5 to 10 million. Um, just because, you know, lots in McDonald Highlands right now with strip views are selling at like $4 million an acre. So, yeah, whatever. I'm not looking to sell it. But, uh, you know, I I bought 3 million dollars right now. A million? Right now. No, I'm all right. You'd almost double your money. I know. I know. Almost. [laughter] We'll roll it into the fund. So, um, you know, I bought this land and I immediately hired an architect and, um, got to work. And so, you know, we spent about, man, at least like 7, 8 months doing this plan. And all of a sudden, like my architect, um, starts to have family problems. And I'll just kind of leave it at that. And, um, he wasn't able to complete them. And so, you know, we had to let him go and, um, find a new architect, right? But, the problem is, on something like that, a new architect doesn't want to take the old plans. Like, they want to do their own deal. And so, we pretty much had the whole decision of like, well, we just pretty much wasted a year. We're We have to start over. And so, yeah, I ended up, um, it's it actually worked great because the the new guy, um, is amazing. He's actually one of my students. He does developments in Beverly Hills and stuff, like sick homes. Um, I did a YouTube video with him, too. Like, he's doing a $100 million development in LA right now, or Beverly Hills. And, um, he was like, first time I ever met him, he just joined the mastermind. He was like, hey, you know, I saw your house, um, you know, I'll do it for free. And I was like, dude, that's such a nice offer, but I don't know you. Like, you're you're you're my student, right? Like, you're not doing that much. I didn't know anything about him. And we already had our architect. Well, you know, as I got to know this guy more, his name's Omar. He you know, I start learning what he's doing. I'm like, holy crap, like the houses you're building are insane. And you asked about development earlier, a lot of our students have actually partnered with him on development, you know, across the country. Like, he's building sick houses. So, you know, long story short, um I go back to him and I'm like, hey, like, let's do this. He's done, you know, we'll build this. And so, we hired him um I don't know, late last year, January or something, and so, he's already finished his renderings of this new house, which we haven't revealed. And um we had to we had to tame it down because it was so big and crazy. I was like, Omar, how big is this? Like, what what are we talking about here? And he's like, it's, you know, looking at it from the basketball court and the house, it's 30,000 square feet. Oh, come on. This guy This guy's like building his dream house online and just like, well, we need a room They come on, man. Yeah, so No. Well, Did you not give him any like parameters? Did you not [laughter] tell him like, don't Not anything over 15,000 square feet. No, no, no. So, um yeah, obviously we give him the you know, like, hey, you know, we're thinking like 12,000 square feet for this type of home is pretty much like right, you know, and I also wanted like a basketball court and a gym and stuff too outside of the house. And so, um you know, he he built his thing. So, really like his was like 20,000 house, 10,000 like auxiliary recreational rooms and stuff. And um yeah, I'm like, dude, this is just like, I don't even need this. This is like crazy. And yeah, he's basically like, well, you know, in the end, you can always downsize, but you you upsize like once it's done. So, like, my job is to show you like the full potential of what it could be and then, you know, you take out what you don't want, right? And what's not necessary. And so, yeah, we're getting those revisions back now where it's like, "Yeah, you know, this is tight. This is super sick, don't get me wrong, but we just don't need it." Sounds like you're using the same guy who built Nile Niami's house. Yeah. [laughter] Who's that? I don't even know. Oh, the guy who built the the one. 100,000 square feet. The guy's like, "Yep, no, go more square footage. You could always build more or you can't you can't build more or you can build I'm losing it." I don't [laughter] know. Something like that. Something like that. I don't know. Yeah, so anyways, I don't know. always downsize. That's it. You could always downsize. Right. So, yeah, I don't know um what it's going to be. I mean, dude, I mean, when I started this back in the end of 2020, you know, labor, material, everything was so much cheaper than it is today. And so, like the cost of building has just skyrocketed in the last year and a half since buying the land. So, I don't know what it's going to end up being um I mean, if I had to guess, it could be a you know, 7 to 10 million dollar home, just depending on what it is like cost-wise, which is crazy considering the land itself, you know, would be a 5 to 10 million dollar piece of land on its own. And then you would build the house. So, if we were all into the house for say, you know, just even call it 10 million dollars, like that house is worth 25, 30 million dollars cuz it's better than the house that's over 25, like way better. And um you know, so I don't know. I Who knows? I might flip it by then. I don't know. [snorts] Would you Okay, so if you built this incredible home, would that be your forever home or do you think you'd move on to something else? Or wholesale it? [laughter] You could do a fund it Just fund it out. I'm going to NFT the home and, you know, we're going to flip it out. Yeah, um dude, I don't know, man. I'm I'm so like always open to anything and everything that I don't ever like, this is it my life's done at this point like I don't know dude um I was telling you about the the modular home that I bought recently right that is where I'm going to go live now cuz I wasn't looking I was going to build this house but then this flip just came up and I'm like oh this house is sick like it's 6,000 square feet it's you know on a half an acre it's in a super nice community you know I'm a golf member at this community and so I'm like dude this would be great I freaking golf cart to the course like it's going to be epic and so I just bought the house and I'm like I'm just going to keep it instead of flipping it and um the house is way over budget now because I'm keeping it but uh I don't know like I'm kind of also at the point now where that house is so nice and like it's totally fine like I don't need anything more than that you know but I also own this prime piece of real estate that's like already being developed and so there there could be a chance that I just go flip this thing and like build it out or even like another exit strategy is sell it with these plans to somebody and like look you know you got these legit plans you've got this house and you know 10 mil for everything and you go build it yourself and you know whatever you want to do so I don't know but uh I'm not too worried about that anymore as far as like getting it done and moving in cuz I'm moving into this and I'm like really excited about this Final question what is your net worth and you can't like count the estimation of value of your businesses I don't even know dude um if I had to guess it's probably close to 20 mil as far as like real estate and um you know cash and just like those types of things but I mean honestly the real value is in my businesses you know like I I wouldn't sell my businesses for 20 million Mhm you know like they they make way more cash than that and I know how hard it was to build up those businesses to where they are today, and they're only going to keep getting bigger and better, you know? So, like um that was something I actually I I listening to Hormozi talk about a lot was really um interesting. It's like, man, I mean, it's true. The wealthiest people will get wealthy from owning businesses. It's not from like buying real estate. Buying real estate's great for like normal everyday people, but, you know, the true wealth is made in owning these businesses. And then, you know, seeing like what these rich guys do, they just borrow against their business value, and they never pay tax, and they just buy stuff that way, and it's just like yeah, that's the way to go. But, it's also by uh not buying Starbucks and avocado toast. That helps. That's true. That's significant. It starts there, and then it builds eventually to $20 million over time. Over time. In the long run. In the long run. No, and look, I mean, that stuff will work like anyone can become a millionaire today just being frugal and buying real estate. Like, you'll get there. Um but like the businesses are what my focus is on. Like, I would rather go dump a million dollars into my business, and like it's technically not in my net worth anymore, cuz it's now, you know, stuff that we've done for the business. Maybe we're building out software, technology. Like, we've spent a lot of money developing software. It's like, yeah, obviously that doesn't It's not on my net worth sheet, the software we spent all this money on, but it's making the business more valuable, and in the years to come, it's going to allow us to, you know, make a lot more money. So, I don't even care, honestly, like what my net worth is. Like, I've I've I have more money than I ever thought I would, and um I'm really passionate just about building businesses, and helping people grow businesses, and partnering up with people like Graham, and like, you know, just new opportunities. And like, it's fun doing this stuff. So, I enjoy that. Well, perfect. Well, Ryan, thank you so much. I really appreciate it. We'll link to all the information down below in the description and create a properties is probably going to fill up fast. So, you better act now before it's before it fills up. So, anyway, oh, also make sure to hit the like button. Subscribe. Mentorship group link down below. Get your free stock on Public. public.com/graham Thank you, Ryan, so much for coming on. It's great seeing you as per usual and [laughter] until next time. Until next time. time. Thanks for having me, guys. You got it. Cool. That was awesome. I really