Brandon Turner & Tarl Yarber LIVE Real Estate Investing Q&A!

Brandon Turner & Tarl Yarber LIVE Real Estate Investing Q&A!



we decided hi everybody whats up hey everybody I'm Carla Yarborough but fixator will stay there's my wife Heather this is my wife Heather she is five months pregnant without a new little baby boy that's awesome so we're here once again we're to talked about last week we're doing a live show every Wednesday here on BiggerPockets you can watch it on Facebook you watch it on BP and you can also watch it on YouTube as well this week just so happens that I'm actually in Maui with this man right here mr. Brandon Turner that you guys all know and love and we wanted to be able to have answer any questions that you guys have we're gonna be monitoring Facebook we're gonna be monitoring you tube we also want to get no brand a little bit better and we want to talk about real estate and do what we can we got 30 minutes to knock this thing out we're in Maui one of the best things about this business is meeting cool cool people and being able to do business with them so Brandon I never talked about how we met each other before but we met at a meet-up right do we I'm gonna ignore it I think we met out of me I think I've always known you know I feel like that too so in this business you meet so many cool people and the fact that you can do business with them have four hang out with them learn from them grow with them it's so huge your surrounding circle of the top five people you hang out with it's probably one of the most important things that unless ins I've ever learned what about you Brandon I don't really like people so I prefer like not hanging out with people mostly yeah no idea there's this like this uh Joe can actually get a video on this for bigger pockets but there's this like joke where this guy goes in a waiting room and you're like he's sitting there he's like rubbing his arm cuz it hurts and then some guy sits next to him on the way to a doctor's office right the guy sits down next to him Roberto eat and then now that guy's rubbing his arm and he's rubbing his near the st. you say ahh and then the guy who sits down gets up and walks away but he'll another person comes in sneezing and sits down next to him and all the sudden the guy with things now arm and knee hurt and he says sneezing and arm and leg and they sneeze guys heel gets up and another person why he doesn't like five times he's a great little skin sketch thing anyway finally a pregnant woman walks in and the guy just like honey runs out right so the idea is you yeah you become like those you associate with like osmosis right so by hanging out with smart people like this guy or these people on both sides of me you become a little bit smarter so I'm a huge believer in meetups and connecting people and just getting together people especially in cool locations like to have just high-level talks about business so so I would I want to actually turn the tables for a second before we really get going so Brandon turnarounds BiggerPockets podcast as you guys know how many episodes that you guys done 300 and a lot 300 and a lot right I was on 189 it's the number one episode that they ever had I think so at least in my opinion so that said what what I wanted to go over those that Brandon and Turner is always interviewing everybody else so why don't we interview Brandon for a second and get a chance to do that so what my first question there's much caffeine have you had Brandon I have not had any caffeine however I'm coming off of a hour and a half I had a 90-minute live webinar with BiggerPockets on multifamily and if you don't have you know me like nothing fires me up like multifamily real estate like yet that fires me up so that's why well that said we're gonna buy multifamily in the second we're also going to talk about mobile home parks and cuz I'm very curious about what Brandon's got going on with that but I also want to ask Brandon like out of all the episodes that he is actually done in bigger pockets or the 300 and something webinars and not webinars sorry podcasts what is the best advice that you've heard from all the different podcast guests and we're gonna let somebody else monitor this so Brandon doesn't keep looking at styling idea Thanks oh that's advice best advice from any podcast guest so you've ever had and let's talk about specifically it has to be real estate really okay ah okay I'm gonna I'm gonna summarize hey I can't tell you like one person said this but it's more of what I've seen the best of the best do and that is they treat their business like a funnel I mean you got to probably heard me talk about this before and and people say it all the time but like I can't think of like the first person totally basically the best investors I know they treat their business like they have a system for getting leads that come in some kind of system and usually it's an automated process or a person for example in your business you have Nate Nate brings you leads in your business then you analyze those leads you run the number right sometimes it's as quick as oh yeah we don't buy in that area throw it away and sometimes is this quick yet you know it's actually let's go through it 20 minute long analysis and find out exactly how much we should pay it and do a walk-through right but you have to run the numbers then you get the number of how much you can pay and you make an offer and if you make it offer like every property has a number that could make it a good deal so you find that number you go after it and then sometimes you get a deal accept it and sometimes you get rejected and you get rejected a lot more yeah then you get accepted but I mean it's like that process like yeah having that strategy and everybody does it now some people get thousands of leads some people get you know two leads but no matter how many like every good investor does the same thing they get leads somehow they somehow run the numbers they make offers and then they sometimes get deals and if you're consistent about that if you're trying to buy your first deal or you're talking about five thousand properties this year it doesn't matter the same process and that's what I really learned is like to treat it like that it's a business just like only McDonald's and I would totally agree with that like what I've seen over the years with investors myself and others a lot of people treat it like a hobby and not like a real business yeah and we've had people I've had people ask me is like hey what do you think about my business and like well you don't really have a business like ah B so and whether it's you're doing thousands of multifamily units or whether you're doing one single family it's some sort of strategy some sort of pipeline that brings a deal all the way into where for yo from acquisitions in this position and having each step of the line done and I've seen people for like I don't have if you the worst investor that I've seen oh they can't explain how they got what they got right at all they're just doing right so if you can take a step back and go how did I acquire this how did we actually disposition this what did we do for rehab what do we do for exit strategy and like and start systemising each step eventually you have a real business as you start growing and being all to scale that's one of the only ways to do it so good now this guy is getting into mobile home parks right now and I'm very curious about that I also think you're hiring people right now to but the yeah so you know if you want to send your guy what's your what's your cell phone number yeah for uh so I have actually job application on my Instagram go check out my Instagram yep so I'm curious though what are you doing as far as your strategy now to acquire a mobile home parks it's speaking about that we just answered how you have to have some sort of a conditional strategy and go in what's your right guys is acquisition strategy without spilling all the beans too much sure yeah it's really really complex we talked to a lot of brokers and the brokers give us leads and then we analyze the numbers and then we make offers and we get some accepted it's funny like we started this three months ago like hardcore like it was like all right we're in we're doing it and we started like this this business the funnel right and so we started reaching out to brokers and I'm working with a number of people actually a bunch of individuals from bigger pockets we met through bigger pockets and there's a team if I make 12 of us right now then I've that I'm working with and they're my basic aliy my acquisition team they're out there look looking for talking to brokers building network connections bringing in leads and then I have another couple people or a few people that are analyzing those deals figuring out what we can pay for them run the numbers because I'm doing this hit at scale I needed to bring in other people so we're doing that and yeah I mean like we made a toppers and we got two of them accepted out of that and we might have a third that we're gonna go chignon so we've had really good I mean you know three hundred under contract right now another seven hundred that we should have under contract as soon as I sign the piece of paper that's in my email so I'm sure some people might have the question how are you gonna fund all that I have to hope we knew were yeah BiggerPockets pays him a lot of way ya know I I'm gonna be I started a fund so I have a real estate fund that I'm starting uh waiting for the paperwork should be here any day and once that's done I'm gonna raise money and we're gonna buy it that way what's cool about that is like it takes it's the same thing I've been teaching for years on a small level and applies it to a larger level so like I always talk about the idea of using partners and private money it's exactly what we're doing I'm just finding partners but in find it instead of finding one partner I'm gonna bring in a hundred partners who are accredited investors who are going to be funding the deal and they're gonna get the bulk majority of it you know what I would rather have thirty percent of an amazing thousand unit portfolio than a hundred percent of a single-family house right and I'm okay with that and so that's why I'm getting larger I mean either use the team effort to be able to do that yeah there you just and grow and grow that's great yeah so one of the things we can do on this through you guys is we have two people monitoring one person my lovely and sexy wife raised over here yeah yeah please thank lovely and sexy friend mr. Steve Rosenberg he's about to be interviewed on the podcast with the brow manager which who knows that might be form us for now before you hear it but it's gonna be really really good but about a month tune in for Steve Rosenberg cuz he's up next so if you guys have questions on YouTube or Facebook we can answer anything and real estate related at all we're also good just talk about Maui cuz it's kind of cool here there there's someone asking do you prefer certain states for the mobile home parks certain states with mobile home parks not necessarily um ideally Hawaii I'm just kidding there's actually Hawaii the only state with no mobile home parks uh certain states are better for them services are worse most of the ones I'm buying are like Midwest that we're looking right now is Midwest and the southeast though honestly if something came up in Nevada something Kevin Cal okay I wouldn't buy in California I don't like the landlord tenant laws in California I don't understand them and I don't like them I don't like the direction that's headed I love California I just don't like to landlord-tenant laws there but I've been washing zettabyte permits wherever it's it's the thing about going larger that's cool is that when you go larger you're not necessarily relying on the your local team like you can build a team around a single property like I mean I'm not gonna buy like a duplex in the middle of Connecticut if I don't know anybody in Connecticut that would be a tremendous amount of work to have to build a team around one property in Connecticut but if I'm gonna buy a 500 park or a 300 unit park or 50 unit park fine I can build a team around that in whatever area that I buy so that's one buying long distance you got to have a team you got to have people on the ground there what's the David Green talk about the famous for the I don't know there's up for people the core for core for it's like your agent if they have a good real estate agent a lender a property manager and a contractor and then there's all their CPAs lawyers all that but like you can build that with large properties anywhere yeah and I want to piggyback on that because most of my back in the back in the day which isn't that long ago we were we were houses in seven different states and speaking from experience when you still up in one house in one state it's a pain in the ass when you're flipping ten in one state or twenty and 1/2 days really not that big of a deal because you built that team and so yeah when I've never really thought about so much if you have a 500 unit then you actually get higher just for that 500 unit and so forth versus that one house that one rental that one flip you had to find a contractor everything you need boots on the ground is way more important than anything else yeah but especially when you're not in that ground yeah what I found what we started investing in our backyard and going back into Seattle area I worked actually harder investing in Seattle and I because I lived there than I did one because we got started investing out state when we invested out of state I didn't work as hard because I had to set on people and teams and they had to do all the work I couldn't drive the house all the time but as soon as I started investing in Seattle all the time I hat I I worked harder because I could go to have all the time so it's got a it's kind of interesting how that works did you have a question done so there's a question from a wholesaler that you should hundred fifty cash buyers and next-door email might use to my buyers do you agree with that strategy we talked about that one so I wouldn't have so the question is we doesn't hear that is that as a wholesaler said that on a podcast that you should have at least 150 cash buyers and that you should email them out to any deal that you get email it out to that that whether we agree to that or not speaking as a cash buyer right I know from my perspective is that I don't want to be one of those 150 right and also speaking from perspectives of people that I know really really really well that are solid some of the best wholesalers in the United States they prefer to have a short list most of the time because you might have a hundred and fifty two hundred three hundred cash buyers quote quote or risk a fire especially right now and what if they don't close if you have a relationship with that person and you're dealing with somebody that's gonna you you know stressful situation when they're selling their house and they got two weeks to close because maybe they're getting kicked out or maybe they're having some sort of domestic domestic issue or something's happening to them financially and they have to close in two weeks and then you go send it out to your 300 person mailing list and some random person says I'll buy it they because they're going to pay a higher assignment fee and they go to close and they don't close because you have no idea what their track record is in the relationship with is it so you should always have you can have that bigger list when you have like plenty of time to kill and you know that you can make a deal happen but you should also have that short list of three to five investors that you know will close every time all the time no matter what in my opinion so I got with me how that looks exactly what I said I got one guy and his wife salvador ramirez they want to start with rentals so much information where do they start what's the words the first step what's the first step to get it investing into rentals yeah I like to say like the world of rental property investing is super like big right like you get when you say want to be rentals it's kind of like saying like I don't know I want to buy a car like there's a lot of different types out there a million – oh I wanna I want to have a vehicle okay well what kind of vehicle right so I guess I would I would something we get a broad view like my favorite thing is listen to a bunch of podcasts find out something that's just like oh that feels good to me that like I get that I like it understand it for example I want to buy cheap lower end c-class you know cheap properties in Tacoma Washington right if you live near there great that's so that's an avenue we goes alone I buy those yeah you could do that DOMA sucks don't you could do that right that's it that's an avenue or you could be like you know I'm gonna buy an a-class properties in Seattle I'm gonna rent those out or I'm gonna buy a vacation rental properties on the coast of Florida that's fine I mean I own a triplex here in Maui that like rent is like two to three thousand dollars a month for a single like apartments crazy here right but I also own properties that rent for $400 a month for the same size properties over another area so it's really why the number of stuff you can do so start wide and then as quickly as possible narrow down to what feels good and what works with your personality with your location the area you want to invest in with nobody now to put it yeah how much money you have yeah if you're gonna go buy triplex than Maui you're gonna need some money more than buying a c-class in Tacoma so what's your down payment what's your finance ability all that you might need a partner or somebody you have zero money and you have no credit and you have no job it's gonna be a little hard not to say that you can't do it we've got the part for somebody and if you are somebody that hey you in our area and see how there you have plenty people that work in Microsoft Boeing they got great jobs great income but they want to invest in real estate so that they're very bankable but they don't have the time to go find and finance so maybe they'll partner with somebody that has the time you need three things in real estate in my opinion time experience and money right and if you don't have to have all three you can be the person with the money and somebody else can have the time to experience or vice versa in any combination that you need and so discover that for yourself next question yes so when flipping long-distance how do you decide on the interior of the home is that your own set or do you outsource it to local experts and let them tell you so the question is when flipping out of state how do you decide on the interior I'm assuming the finishes is probably the the question they're like how far you take the remodel that's a great question the answer it doesn't matter what state it is or where it's at ever the answer is what are the comparables in that market look at your cops your comparables it could be you could be a downtown Manhattan's you can be in podunk wherever it's what's the comparables in that market that's the most important thing if your house if that entire neighborhood the house is at your copy to that four market counter tops sheet vinyl carpet and everything and like just crappy whatever then that's fine do that don't go put granite tile and all that kind of stuff into it cuz that's a waste of money just because the market just because you can make the house nicer doesn't mean it's gonna get more money you can throw away money at that point so what we do is we try to keep things systemize as much as possible by our good buddy Jay Scott does that stuff all the time we were doing that for a long time too we just didn't write a book about it and we loved it yeah very uh but that said like it's just pick what's right for your market right and look at the comps and don't go farther than you needed no go below that happens a lot of the first strategy a time that we've seen a lot of people sit there and they comp their houses against flips for furs and then they do rent ready finishes and because like oh it's a rental so we'll do rent ready it appraises then for like 50 grand less than what they thought or whatever because they did lower great finishes because they were copying to a higher-grade house so always remember like what's your comps that's it that's the only thing you got to know great answer there's a question from Carson at he has discovered bigger pockets two days ago and he's learning so much about it he's so stoked about it and kids like I realized my age and maybe limitations I have what do you suggest for me to do despite my age what do you go to you as what is he sick always 16 yeah we got a listener that discovered us two days ago 16 years old what do you do despite that age yeah this guy can actually answer that question for you and why he can is because his son who is how old 14 14 just bought his first house Steve Rosenberg so you know thanks Carson Carson you know my son learned through a lot of education and a lot of things that he was learning through podcasts and shows and really just listening to what I was listening to he started learning and you know I don't call through osmosis or what but one day he actually approached me and said I want to buy rental property and then we actually went through the the gym at the mental gymnastics has to what are you looking for the rental property what are you looking for cash flow are you looking for you know equity what what is it that you want and what is it you want as a result and more importantly the question I had for him was what's the exit strategy on this property so a lot of people when they get into real estate they never think of how they're gonna exit the deal which no one ever does because they think they're gonna keep it forever and that is an exit strategy and I would say just like everyone else on here says you just gotta educate yourself you got to continually go above and beyond to get with people that are doing it and have done it and see what they're doing because it's not magic it's just it's just consistency of learning and putting yourself in an uncomfortable position I've crashed a question on that did your son go to the bank at that to get the to buy it or dish so it's a funny question so he came to me and said I'd like to buy a rental property and I said well how much money you got and he said I've got $10,000 and my first question was how did you get $10,000 knowing yeah how did that happen but he did he said I've been saving my money okay cool I said well that's not enough yeah they said well how much do I need I said well if you're gonna do standard 20% down blah blah blah I said you're probably looking at twenty thirty thousand he says well I don't have that I said yeah you got a problem how do I get that I said well you got two options you can save the money or you you can try to be creative and he says well if I save it I'll be 28 I said yeah you go there's what's the other option I said we could partner with someone they said what do you mean I said well you can go with someone else you can think and split it 50/50 and then they can do the deal with you and so then he comes and he thinks about it because that couple days later he says well would you be willing to partner with me and I said well what are the terms yeah and he said what do you mean I said we got to learn go go find out what terms are on the deal and come back and we'll talk so then we did it we did the gymnastics of it and then we ended up then when he had to before he found the deal tell me what a good deal looks like to you so run run it through your head first so that when we see the deal you already know what's going on so it's like you're not looking at it for the first time so we were running scenarios of is this a good deal is this a bad deal and then you would have to explain to me why is this a bad deal tell me tell me why this doesn't make sense is it the bad area is it appreciation so it was really more of a learning process and so the deal we found you know we did not get a lot of equity in the deal but it was rent ready we leased it four days after we bought it and I have not heard from that property since and it's been about a year and a half and he gets his cash flow every month and he reinvest some of it he gets I let me keep some so that he can do what he wants to do so he sees the cash flow coming from it great lessons that's awesome and that doesn't matter if you're 16 14 or 48 or 60 those it was actually great advice for all that kind of stuff yeah any other questions no good one while you're looking at else add one more thing to that if you want a real tangible thing to do get really good at analyzing deals you get really good at helping investors if you're 16 yes like learn how to install carpet or learn how to run the home depot for investors or learn how to you know do something to paint a house or I don't know it's a physical if you like that if it's if it's more of a admin tasks like being like the right-hand man or right-hand woman I mean assuming Carson your dude be a right-hand man of a investor would be an awesome way to learn basically an internship so to speak next three four or five years maybe through college and then yeah you're gonna be well on your way far above every age we had a we had an intern last summer seventeen-year-old kid who was a buddy of ours son who's just like I want my son to he really loves real estate wants to learn it I'm like with how am I gonna do with this kid and so you know he basically he sat on every meeting right he would drive her properties when we didn't want to even gave him like a weed whacker sometimes to say hey go cut the grass so and he just helped out is wherever he could but he was just there and he was just a sponge and didn't hurt us to have him around it was actually kind of like when he went back to school or like who's gonna go drive the properties you would own his house but it's a it's a big deal so crazy do you have any suggestions how to get into rental markets that I've becoming very expensive like Dallas Texas San Diego suggestions I gained it too expensive right don't do it just sit on your butt watch TV there's some really good TV shows on right now Netflix have a lot do that and let everyone you know like let me and taro go after those markets no you wanna go first I would so if uh I would ask why do you even want to go to those markets for one right cuz there's a big big thing called the United States but also the fur and I don't try to just joke around about it by I'm serious like there's some markets that maybe you shouldn't be in like to begin with just because maybe they're local or so forth that's a good spot everything's math no matter what at the end of the day it's math math math like how can you acquire the deal where's the peak of the market in that market I know in my neighborhood Seattle and I love San Diego we've been like trying to cheat in here for a while like so in Seattle stuff right now I'm not gonna buy a $700,000 single-family at home that after I put 300 grand into it's gonna be worth 1.3 million which would be a great flip and then rent it out for $8,000 a month so it's not gonna work out that way it's gonna end up being that I'm running it out for three or four grand a month and it's not gonna cash flow even if I leave a couple hundred thousand dollars into it's not going to cash flow multifamily same thing I don't want to buy something on a four and a half cap right now in my neighborhood or five cap and stuff like that in in our neck of the woods when we can go to other areas that's gonna be a better cat because cap rate compression stuff is just so right so that's my opinion on it so ask yourself why you want to be in those markets but guess what there's other people that are actually still winning those markets so find out what they're doing they're doing right and wrong it might have to be that you have to go to tertiary market first which is just outside that area that's why I like yeah I don't like saying it online but I like to come and watch it in Seattle because it's just south but we also look at Eastern Washington and we like we've done other states and stuff so but that's why why do you want to be there and then figure out what the others are doing it might have to be that you have to buy a grade paper stuff maybe at the 10:31 into it maybe there's all sorts of stuff that you might have to do to get those higher in areas but why do you want to be there I always say you have three options if you're trying to buy its exact what you just said you have three options if you want to buy an inexpensive area it's a competitive market any of those markets right a you can do nothing you can sit around just wait for the market to crash and miss out on years of real estate education and experience I don't recommend that too you can find what works in that market because I can guarantee you like every single market in the country something is working right now in that market right maybe it's vacation rentals maybe it's flipping maybe it's high-end if it's building new construction something works there and somebody's making a lot of money in real estate in that market you can find what they're doing now if you're in downtown Seattle if you can see how to like I don't want to do what's working in Seattle right now because that's not free yeah and so then the third option is you can go elsewhere and that means that either tertiary market go around your area drive two hours away or it means going across the country and learn how to do else I choose 12% is what I always say because it was about double what the stock market produces which is between six and seven I said 12 sounds good and it's proven to be alright for me but everyone has their own number how'd you come up with the cash or why they view like so it's everything else so you can come with cash and cash in so many different ways like you can say on the entire project you can say like that is it based on the actual cash that you put into the feel like there's so many different ways to slice it up on a fixins flip specifically the best way that I think to slice up in cash on cash is not how much money you actually put in to deal but actually like what the entire project return is if you bought in cash so that's how we always Allies every single deal we do on a flip as well as a burr or anything like that is what's the if we bought it cash and we rehabbed in cash because that's the real out of pocket between the two you could finance all that stuff all you want but then after you pay after you go to resell it after paying closing cause commissions all that kind of stuff whatever cook like profits leftover your net what's that go into the actual money you invested so if you take one hundred thousand dollar purchase $50,000 rehab so that one hundred fifty thousand dollars out and your net and you sell it for 200 grand or something like that and after expenses your next 30 grand in that example maybe I picked bad math because I have to be this on the spot right now so hopeless I wasn't here to help me search there you go into one hundred fifty five twenty wait so what's that any percentage that twenty percent twenty percent so there you go that's the twenty percent cash on cash return is 30 grand net profit after all expenses into $150,000 cash outlay is a twenty percent cash on cash return on that foot that said that's my number I want 20 percent cash on cash on my flips or higher based something right I'm gonna flip out a lot more in depth into uh on a project right on the project a so I used to buy 15 percent plus and plus cash on cash all the time but then I wanted to change my lifestyle in one of these many projects and you know the way the market is right now I'd rather be picky but that's how we always determined that on our end and I also knew if it was 20% cash on cash then I can add my financing cost in there I can add likely way I can add buffer zones and we're still it's gonna take a long time before we got into the negative and lost money on that project on rentals would be totally different right and that has to do more with your actual like capex and stuff and that that's what you're talking about like you leave ten grand into a rental and you get three grand a year in it that's a that's a thirty percent cash on cash return for a rental when a lot of investors might be okay with a thousand bucks you know net and Hawaii at the end of the early that's way and that's why you get so hard to with when you talk about cash on cash return I mean what if I told you you know what I'm getting a ten thousand percent cash on cash return ten thousand percent because I have a penny invested in I'm making ten dollars a year like that's a crap and like who wants make ten dollars a year on that ten thousand percent probably somewhere on there right it the idea right I'll just like yeah we're not math people oh like the idea of like cash on cash return is super important I have 12 percent for rental properties and I don't want to get lesson to us if I have a thousand dollars invested I want to get at least twelve hundred twenty dollars a year in cash flow on that thousand dollars for every thousand dollars put in I want 120 in cash flow and I'm talking real cash flow and I like like mortgage you know not right – more some talk about actual after all the expenses been paid out I want 12 percent I chose that number but yeah like that also means I have like I have to get at least a hundred dollars per month per unit minimum for me to buy a c-class property so I have both those numbers and that we go real deep I out we don't time for gonna leave here in couple minutes all you like there's people I know that thank their for whatever stupid sorry for whatever reason they're happy with you in one percent because like oh I put it I let I'm like I'm getting $300 a month cash so I'm like cool like how much do you leave it at 150 yeah I have a million dollars invested I'm making $12 a month okay good for you like and now the flip side flip side on flips but even so even though my thrust was 20% I'll still buy a 15 if the constructions like easy and there's some other stuff but then at the end of the day I also look at what the actual cash in that return is after putting my finance cost in because what's my time worth right I it just because it might be a 20% if it's a hundred thousand dollar deal right and you know all the stuff and all the financing maybe I'm only 19 20 grand on the deal for me right now I don't want anything less than 30k net after all expenses but there also could be that you can look at a million dollar plus acquisition here where you put in a million dollars into an in a San Diego Seattle market right and your might be netting a hundred thousand dollar net you're going like I'm making a hundred grand on this deal I was like yeah but that's only a 10 percent cash on cash right that's a really risky deal because it's very easy for a million to go to 950 like that right it's very easy for a two hundred thousand dollar you have to go to two fifty like that if you are you doing so then I got nothing so keep that in mind tune with those numbers of question how would you offer a mentor value how would you offer a mentor value so it well want those mentors out there that you pay but that's up to you so there's my idea but for I would say for value wise it's like find out what they want and what they need in some capacity something I know for us we get hit up all the time for people wanting us to mentor them and though I can tell you what not to do all right that's probably the best way of so can you say hey can I take you at the copy so that you can tell me everything you ever knew about business whatsoever and teach me how to do everything that you do and then why promise you the first deal I get that'll split it with you 8020 right it's like you're like what so that's a lot of work but that's don't do that right and I'd say become friends that's one for sure huge so become friends like don't overthink it become friends yeah become principal bring the deal that also would do absolutely sure that you go to work like I can tell you all the other thing too like there's a guy that was on the podcast to 20 to 50 hour Elliott Smith look him up great great guy and he came to me when he was starting out in Portland and he was one of those first people that like I've said okay cool here and I met him on BiggerPockets here's what I would do if I was in your position a VC he's like cool week later calls me up I did a PC I didn't know it right yeah he was Anna and I'm like oh that's a breath of fresh air cuz here they've met they're telling you to do something yeah and then you go do it and you come back and you say here's what I did and here's what I learned and here's where I yeah I thought it sucked and here's this from my perspective I know other mentors to that I've done that we love that we're like oh my god you're not as you don't get to go meet me again and be like oh yeah I haven't done that yet right or you know I didn't really like it alright because then you're not taking the advice and stuff to in the first place and maybe it's not for you to begin with but don't do that there you go yeah Brandon talk about your experience stacking from single family to multi sure um that phrase the stack so he's like what is it like how I stacked the stack is this new way of exponentially growing to explain what that means essentially some people grow linearly which means they buy a house than another how than another house in another house in another house and they just go in a straight line and you know that's not nothing wrong with that you could buy one house per year for ten years and you have ten houses that's linear growth the stack is more like where you grow exponentially which is I bought a house buy a cup-like and I kind of did I bought a house then I bought a duplex then later about a four-plex and I've got some other singles in there and then I bought a 24 unit and then I bought some smaller stuff and then I bought a 50 unit mobile home park and then now I've got 300 units and then another 700 units that I'm trying to get now what I should have do we have that yet a sign some papers right yes I gotta sign some papers a lot of over with yeah couple autographs away from the 700 so like that's like what what that means as you're consistently outside your comfort zone I just taught this on the webinar earlier like the reason people tend to grow linearly is because they like being in their comfort zone right they like oh I feel good buying a single-family house I feel good in the duplex level and that's easy for me so I'm gonna do that I said this earlier if you're not a little bit scared of every deal you're doing you're not investing outside your comfort zone and so like yeah it's convicting right like we oftentimes like because for years I've and maybe that's fine maybe your goal is not to go scale to a massive portfolio in which case invest in your comfort zone all day long but if you want to scale quickly and large you've got to start asking yourself am i investing outside my comfort and not like crazy I'm not saying go like go from one unit to 500 units but going from one single duplex I do want to challenge one thing I like is there's a there's another P number of people that like the reason why they lose everything though is because they keep going to the next level okay like where they might all of a sudden like go from bite off more than they could chew so there's a limit yeah you gotta let go you got to get good at that level before you go to the next level like take this up once you like if you're solid on single-family houses and you feel like you can just buy a single family rental all day long yeah that's probably yeah go to the next level but if you're like I had no idea Jess those phony mistakes a 40-unit yes did it go from there's a lot of people right now in my market that are going from flips to new builds right oh yeah and so and that's that could be a very easy transition and so forth but like you know from going from you know you did one flip to I'm gonna go do a thirty lot subdivision you know raw land right that's a huge we have yours right to go through it might be a problem or I've seen people where they go from like they did a bunch of low-end fix and flips and then all of a sudden they go straight to the luxury spec building or luxury spec flips and they lose their ass on like and so and then you made all this money and then you lost it all on one deal right so that happens to people so I'm a proponent I've become an expert at whatever your niche is and as that plates spinning you can add another plate and you'd start spinning that one and get really good at that one then you get another one too many people try to do too many things at once in my opinion – they're like they're they flip they buy here they do this they do that then they and they don't pick one niche so just no way you're gonna go to the next level and if you jump too far to bite off too much more than you can chew you can imagine a space and I didn't I didn't jump to that next level of buying like a huge hundred unit you know properties and still Myers yeah you do it and now like my rental portfolio hundred units roughly 1996-97 like I maybe spend a couple hours a month like dealing with that like really like it's it's so automated and systematize and like just solid that like I have time and to expand other things and that's why like I wouldn't have jumped that if I wasn't ready yeah we all want to be a billionaire tomorrow or it so yeah that's there's a couple steps to it grace did you have let's do one more we gotta go nope we gotta go was Brandon's beard ever in danger during the fire that's an excellent question he's a fella yeah I did have to literally I had you guys may have seen some Instagram at beardy Brandon but I uh I literally had to get to the bank that day to do a wire transfer like it had to be in the next day and like I'm in Hawaii so you have to do it like today to go out tomorrow and like I had to get to the bank before closing time and there's a raging fire and so I'm like traffic was backed-up miles because of the fire and so I literally got out of the car and I ran two miles into the fire area like into like the sketchy like smoky hazy yeah crazy and I got to the bank right before they closed and like I mean like it was it was not something gotten some nice guy gave me a big mass to where I joined by it was like idiot was he running in this I was like I gotta get earnest money in it so like anyway wasn't got you don't understand you don't understand this is real estate there's a fire I'll risk my life anyway yeah it's awesome like Brandon thanks for doing this if you you know if you follow Brandon a beardy Brandon make sure you like subscribe everything on BiggerPockets like they're always awesome i'm on instagram at Tarly Yarber I'm new to Instagram so don't yo don't judge me by Kelly's pics and real estate you can check us out on Facebook we do a lot of videos a lot of stuff there too we do this every Wednesday now it's typically gonna be 12 p.m. Pacific Standard Time it's just because we're in Hawaii we didn't want to wake up so early and we hope that you guys have an awesome time Brandon's gonna jump on a podcast now this guy's a Content machine this guy right here look out for Steve Rosenberg's podcast coming out a little bit check out my sexy wife one more time okay she's also a great property manager in our area but she's not gonna use you or she only does ours and the reason for all of this right here I got to do one more shout out Ryan Murdock oh oh yeah Ryan's good right pretty much the one that makes all of this happen how I jump from a webinar to alive to a podcast yeah like over there like climbing like right all right David Green's waiting yes I will check you guys out next week we're gonna probably do a property walk with one of another investors out in Seattle area we're gonna do property walks a lot breakdown deals every single week with as much as we got but we'll see you guys there follow BiggerPockets and see you next time