How Vince Gethings GOT PAID $450K To Buy Fifty Four Rental Properties ( w/ Zero Money Out Of Pocket)

All right, we finally got 'em on. Vince Ings. How are you buddy? Good, how are you? I'm doing fantastic, man. It's a wonderful sun shiny day down here in Austin, Texas. I don't know if you could say the same for Michigan.

It's not. It's definitely gray and about 40 degrees. Beautiful. Which the beautiful, the 40 degrees is, that, is the gray the lack of sunshine is definitely what kills your your motivation.

I feel that man. But I wanna talk to you today about a bunch of stuff. You're absolute baller real estate investor. You're a baller entrepreneur. Couple different angles, different avenues. I wanna take you down. I actually wanna begin with a little teaser to people that are listening to stick around towards the end of the episode cuz Vince and I will dive a little bit more deep into the tactics and stuff. So I'm gonna read two Facebook posts of yours. One is gonna be the one that sparked the podcast. Because I immediately messaged you and I knew you were doing big things, but this was so punchy and the copywriting on this was so good that I was just like, this guy's gotta come on the show. , so here's Vince. And by the way, guys, on your Facebook unfriend, all the chumps, like defriend, all the chumps, just add people that are freaking cool because this is what my entire Facebook feed looks like. He says December. Last closing of the year. Santa Emoji. Nice touch. Gonna sell in a single family house outta the portfolio. I purchased last year, a cool $150,000 payday. It's been a phenomenal year. If you want to learn how I bought 54 houses this year with not only $0 out of pocket, but actually receiving $450,000 back at closing, dude. Holy crap. So you got paid $450,000 to buy 54 houses this year?

Correct. And that was, A combination of two transactions, and I'm about to pull off the third of that structure, making it the hat trick. So it's gonna be a pretty awesome if I can pull this off next week.

All right. Everyone's gotta start somewhere. So I understand that you started small. It's okay, man, but , no, dude, this is the coolest thing ever. But that's actually where I want to take us to. But where I want to begin is another post that I found just as equally interesting, and that's about your New Year's resolutions. So you have been working 12 to 16 hour days for as long as you can. and there are three things that you wanna focus on to improve, and that's discipline, delegation, and systems and process, because you wanna make the jump from seven figures to eight figures. So where are you at right now for net worth? And you're trying to jump up to eight this year?

Yeah, so we're right about little north of six right now. Okay. And that has been, I feel getting to my first the first million was way easier. then I thought actually like it's more of a mental block than actually getting there. But once you get over oh, a million dollars ain't that much to get net worth of getting to the million was actually pretty quick. Getting to one to five wasn't terribly difficult. It was just, having a set of principles and processes for business and what deals to look at. And then just doing it, like doing the process to get there. But then going from five to. Has definitely been the hardest thing I've ever done. It's definitely I think I had in that post or one of those, it's like whatever, everything that got me to 5 million is not gonna get me to 10. And like every single day that has been more clear that I have to go back and I can't keep riding the wave of everything I've been doing the last five years or six years to get to where I'm at. It's not going to, it's not gonna get me there. So all the habits I've had, the, that grind mentality, if I'm just gonna grind it out, Elon must style and work 18 hours a day that I can't, that's not working. The systems, everything, all the systems and processes I've built and not just documentation wise, but actual program wise, like that, actual sass is, they're not they're starting to crack at the seams. So it's, when I'm going back and looking, , my efficiencies and my effectiveness is starting to drop it. It's becoming clear that okay, I have to go back and restructure a lot of stuff in order to make that next level. So I dunno if that happens to a lot of entrepreneurs or business owners, but for me most, that is definitely something that that five to 10 jump or that seven to eight figure, Joan is, it's a game changer. You really have to transform who you are and how you're doing pretty much everything to get you. . Yeah, that was gonna

be my follow up question is what parts of you need to die? What do you think, what parts of you need to die for you to become that next

version? Yeah, so me as a, coming from a military background I'm a, I was enlisted for 15 years. I got out as a E seven, which is a master sergeant in the Air Force. So like my entire adult life has been, become the expert technical. On, my, my wheelhouse, nobody in the unit that I was in or whatever, just any senior nco like will know more about, aircraft generation than me, right? That's your entire life is just, getting planes in the air. And you're expected to be the technical expert and so who'd be very good at that. And then just getting it done. A lot of it, the. 12 years. My career has just been, grind that grinded out. It's up to me in order to grind it out. And getting that done. So it's served me well in the military. My first few companies or the first years of my companies that grind, grinded out mentality has been great. But now when you talk about things that need to die, That lack of delegation that I have is the first thing that needs to die. So I'm like rapidly hiring eight players around me that I can start delegating tasks to. So that is definitely the first thing you needs to die. Is that, do you want to, do

you wanna share the Costa

Rica story? Oh yeah. The one we were talking about? Yeah. So that one of the big things go abundance and everything like that so that the lifestyle freedom that we're all trying to. So we wanna do this thing called world schooling, where you just pick a country and go live there for a month or whatever, take the kids outta school and go do that. So we were doing like, like the trial run in Costa Rica this year over the holiday break. And the first couple days went pretty well. The first week went pretty well checked my email in the morning, things like that. But like the start of that second week, it was every single day there was like a fire, like my office manager. That was big. So I'm like trying to handle that and she's I'm sorry you're on vacation, but, I just had to, I had to take this other offer and the time, the click, the clock was ticking. So what, whatever that happens when you're a business owner, people quit. You don't just deal with it, you don't get mad about it or anything like that. But it just was frustrating that I was like, in another country that, with limited wifi, limited phone service, things like that. So I'm like trying to put up in d. , I'm trying to interview people. So that was like the one day, the next day my property manager hits me with a bill for $96,000 that I wasn't expecting, I was expecting like 30,000, 35,000 . It was like 96. And he was like, oh, yeah. There was, there was receipts that weren't put in the system. I was like, that's a lot of receipts that like, I was a big Kevin. That was a big And we hashed it out. He was right from his perspective. I was right from mine. But once we got on the phone and went through everything, it, it was right. I actually owed we ended up being like 67,000. But that was like a whole day, waking up to a near a hundred thousand dollars bill that you weren't planning on. That, that's never fun. So that was like the next day. And then, the next day it was something else. So it was like a, after that it was like four days of just really high stress and somebody that was , systems and processes oriented, like everything needs to be outlined and regimented and everything like that, that, so I thought I had my shit together. It became clear that I wasn't I wasn't as good as I thought I was in, in each of my companies. When it comes to, are they capable of running processes and systems without me being there and handling problems without me? . So that is something I had to come back and, beat again that awareness and honesty with myself and okay, I need to go back and fix there's a lot of gaps here that, when I'm here I don't see them, but take me out of the equation for, a couple weeks. And those become abundantly clear. So overall, the Costa Rica experiment did highlight, I, I guess it was successful in that point. , de definitely did highlight some issues that I had. I spend this quarter, Q1 of 23 fixing those gaps. And, the next trip we're planning on going for a month, maybe to Europe or maybe New Zealand or something like that. And we'll try it again. That is the Costa Rica trip. It was a lot of fun. Highly recommend if anybody hasn't gone there. . If you're a business owner and it's your first trip abroad or first trip out outside of the company, that's probably gonna be fun. . Yeah.

We'll go ahead and we'll go ahead and label that, hence fourth. We will call this the Action Academy Costa Rica experiment to where whenever an entrepreneur comes on and they're feeling high in might they feel like they've got it. I'm like, My brother in Christ. Have you gone for a month to Costa Rica with your family and young children away from the business? Yep. Dude, what a way to stress test this. There you go guys. If you're listening to this and you think you've got it together go give Costa Rica a shot and see how it works. And then that's how you'll know if the business is churning. Dude, that, that was a really cool way to start the show. Man. That was a really cool. example and punctuation of your goals for this new year. We talk a lot about fixing SOPs and fixing systems and operations, and here's somebody that was already very regimented. So if I were to peg you on a disc profile, I'd probably peg you as a high like sc because of just how operating you are. But how do you go about, like what pivots are you trying to. With your systems to be able to allow for that because you were already really

regimented. True and I, I, I've used a lot of the popul, so I use a sauna s religiously. Everybody's connected. Google Calendar sync up. You do eos I follow eo. Yeah. EOS traction and those things. So we do our level tens, we do our pulse checks. . The problem is that I'm still the key person in all of those things. . So when it come, I'm not necessarily changing a lot of, there, there's a couple, like actual, like softwares I'm changing. But for the most part I'm going the who not how route, where it's like I need to find somebody that is more diligent than me to start running these things and making sure they're running smooth and going back and checking every week, every quarter to make. Going through those workflows, going through those processes and somebody that is chairing those level tens and those post checks, that, that isn't me. I can see. So that route, that's the big route I'm going through. So I immediately high, I put a job at out for the new office manager. I did things like the disk profile. I use Culture Index to really find somebody that had that personality trait that I'm looking for to have that that personal accountability. and that diligence trait. And then also hired virtual assistant. So I hired one executive assistant. They're actually interviewing one while we're shooting this, the office manager's interviewing the second one. So I'm going the who not how route of getting the highly qualified people to help shore up my systems and processes rather than me just, keep forcing. . brian: Nice. Let's hit on those a little bit for people that may be unfamiliar and for guys listening, don't worry, we're gonna get into the investing, but this stuff that we're talking about right now is actually significantly more beneficial for you as somebody that is either running a business or starting a business. This conversation that Vince and I are having right now is going to help you substantially more on your wealth building. So you said the culture index. I'm not familiar with that one. What's that most? So a culture index it's a program like the like disk and inter metrics and a lot of other popular ones. And what it does is it, you take, the survey takes about five to 10 minutes. And the way you take it is, so if I was gonna hire a executive assistant, for example, or like a sales manager, office manager I first take the. As what I think the ideal office manager, executive assistant or so on is, and that creates like the ideal profile. And then the once that is done you get a link and you send that link to all your applicants, all the people you think will be good for this. And they take it and it has the two areas that grades them on. What their natural predisposition is, and then what they think they need to do in order to be successful at the job you're asking 'em to do. And then it, so it compares those two things as well as against your ideal profile. So once you get that picture together, you'll be able to clearly see that either A, this person just doesn't understand the job that's expected of 'em, because there's too much of a difference between their natural state and the state that they think they need to. In order to be successful at the job, like those two profiles are really different and the difference between their natural predisposition versus your ideal candidate. You don't want somebody to have to adapt too far in order to fit out of their own. A genius you can only adapt for so long. Yeah. So that's what we're trying to do and cut through that. And it's very there are ones that are a lot more robust. I like this one. It's four pages, one graph, and it's very clear. So now when I'm hiring now, I put the job out on Indeed. I don't even look at the resumes. As soon as somebody hires, I'll get maybe 10 people hire a day for a job. I just send them the link to that survey and say, Hey, please, thanks for applying. Please fill out this survey. And then I'm looking at who completed the survey and I only call. If they match like 80% or higher on my ideal candidate, then I will go back disqualify everybody that was 80% or less. And then I'm only talking to the people that are like 80 or 90% or higher on that that survey. And then I'm looking at those and give you context of how much time that saves for anybody that has employees or is looking to get employees. One of the biggest time sucks you have is like that HR recruiting cuz you'll waste so much time. Reading resumes or doing interviews. And it's just mind numbing. Onboarding. Yeah. Onboarding all this stuff. And then the worst part is when you waste so many hours training, then yeah. Just not even training, so you'd waste so many hours just doing interviews or just setting up interviews, just have people flake on you and things like that. And then you hire somebody and then you do so many hours onboard. And then just to have them, not work out two, three weeks later or months later. And it's wow, that was a huge waste of time. So as a business owner, that is one of the most painful things. So that's what this is supposed to do. So it's for example, my office manager position that I had to hire in Costa Rica, I put that job out, out over a hundred people applied. I interviewed. . So that's how much time I saved. Like the top three people that matched. I interviewed them, picked one of 'em, and she's crushing it her third week on the job.

Yeah. And hiring, especially when you're, what's the size of your companies right now?

Kuala head count headcount. So Kuala is the biggest one at 14 employees in that one?

Yeah. So especially when you're early on in your hiring process, like those first couple key hires, if you mess that up, like that could be the life or death of your. Yeah. Honestly, absolutely. So that's huge. Hit a little bit about disk because I love disk, so I'm a high, I

don't know, I don't know much about disk. I think we have to rely on your expertise on that. So this one, so

I forgot what the, I forgot where they stood. Save me, man. . Oh no. So the

I don't, so the culture index, it grades you in. it's 1, 2, 3, 4, 5, 6 different areas. So it grades on like how good you are at problem solving, how good you are at like, people solving, how good you are on either multitasking or patience and how good you are at like finishing task or delegation, things like that. And holding people accountable and yourself accountable. And then it also will grade on your they call 'em energy units, but it's essentially a cow. How good you are at like adapt. And

then, yeah, I've got it in front of me now. I've got it in front of me now. So disk, here's what it stands for. So D I C S D is for dominant, I is influential. C is compliant, S is steady. So the it's almost the C things. Yeah. Yeah. The theory behind it and the hypothesis behind it is there, there's a book in the Geno Wickman series. So you get traction, which is eos, and you've got Rocket Fuel, which is visionary integrator. So the visionary's, like the guy or the girl that's the person with all the vision. And that's normally like a high id. So that's the person that's just here's where we're going, here's what we're. . And then you need an SC person who's a very operations systems process. They love scheduling, they love organizing. , they're the ones that clear the calendars balance the books like, so that's where the disc code comes in. Because if you have two people that are working together and they're both high DS and or high IDs, , you're just gonna implode because you're the same person. There's no complimentary skillsets there. So that's where disc profile comes in. Man, you're

supposed to save me. This is very similar. This is, no, this is very similar. The culture index is very similar to that. And I don't know. I like it. works. It's not overly complicated. I have one that's like the inner metrics. It's, I've used before. It's good, but it's it's so much information. It's you get a report on somebody, it's overwhelming. 15 pages. Yeah. And I'm just like I don't need to , like for some people might geek out on that. No I just need to be cleaner. Gimme one graph that shows this is how this person is, like the disc is like that. . Anyway. Another good

one. Another good one I found ironically is I got this piece of advice. I didn't ever think of it, but I did that with one of my assistants before. And that's love languages. Okay. Yeah. Believe it or not, just to see how they really enjoy feedback. Yeah. Because you have the five love languages, so like physical touch would probably not be the one that's HR appropriate. But like you could be able to tell if it's like words of affirmation, if it's acts, access service, if it's quality. do do they want more of those one-on-one interactions with you? Do they want more of the, Hey, you did a fantastic job, let me spotlight you to the team. Kind of stuff like that and that's interesting. That's actually been a cool pivot. But for people listening like. All of the stuff that we're saying. I don't care if you're making 10,000, 50,000, a hundred thousand dollars a month, if you don't have these systems in place and you don't develop the skills that Vince and I are talking about, you are not gonna be able to go to Costa Rica for a month. And that's the Costa Rica experiment. So Vince, before we move forward, let's go back a little bit. I'm curious about your first million because you said that it was a lot easier than you anticipated. Walk me through that process going to your first. . vince: Yeah, absolutely. So I was in the military Air Force. I was stationed at tribes Air Force Base. It was like 2013 and I wanted to get into my first VA house hack. But that, the one I did was pretty much where you buy the crappiest house in the nicest neighborhood and the nicest neighborhood that you can afford that will still pass the VA inspection. So that's the difference cause it's not to pass the VA inspection, which is a little bit harder to do. We did that as 2013, bought a house, flipped it while I lived in it for a couple years. Sold it in 2016 and then that's where I got my seed capital to start my first company villain, otics. We cashed outta that. I think I, I netted 130,000 on that first house and then I was like hooked. So then it was just like, okay, how do I just go all in on real estate? Let's figure this stuff out. Cause I was doing I was pretty big on like stock investing. , for like the, whatever since 2006 to 2000 15, so around 10 years of stock investing. So I was like big in value investing. I read all like the Warren Buffet books and Benjamin Graham and all those guys. Mobile heads too. Yeah, all I had 'em all. So I read all those, so I was like big into that stuff. And then I was just like, it was just really hard to, I was getting. frustrated. Cause it was like, you learn the principles like value investing and it's then you look at a stock market the last 15 years and it's like trying to find any company that remotely will match. Those principles became harder and harder. Then I saw, discovered real estate brandon Turner, had his first two books just published around that time. So I read. Which is the book on rental property investing. And it's a very good beginner book. It'll definitely get you all the information you need to get into your first couple deals. Like you don't need anything else. So I read that book and I was like, all right, I'm gonna go buy, some rental properties. So I bought, I didn't buy 'em in California. I went and bought 'em back in Michigan cause that's where I had a competitive advantage. And I think that's key when you're buying your first couple deals and. the what'd I do? So I drained my 401k, I drained everything, my brokerage accounts and everything. So I had under 30 grand, drained all the money I saved up to that point. And I went to Michigan and my original goal was I wanted to buy 20 units in 10 years because that's how, that's where I was at my career. I was 10 years from retirement in my career. And I only wanted 20 units cuz I would augment my pension to where I. , me living comfortably with, the mindset I had at that time. And then I read the 10 X rule and I was like, this is, I was like, this is uhoh, this is weak . So I was like, alright, I'm gonna do 20 units, as fast as possible. So that was my 10 year goal that I was so focused on was 20 units and 10 years. So I was like, I have to duplex a year. That's, Now it's smart, it's all this stuff. And then Grand Card Owen's stopping you in a, you know what? And I was like, all right I gotta ramp this up. So I ended up doing 20 units in 18 months. So my 10 year goal in 18 months. And that was going from, California back to Michigan and finding duplex in fourplex again, that's all I knew was just like bigger pockets investing at that time. They were very much hack. Yeah. House hack vibes. Yeah. They like, they were big on like the Burr strategy and the duplexes, the fourplexes. They, commercial really wasn't in their ecosystem yet. So that's of all I knew. So I was going out, I was, a couple deals I found on the mls. That was my first couple, and then I was like, all right, then I couldn't find anything there. So then I started calling ads on like Facebook and Craigslist for like rentals. Oh, I. my duplex for rent. I would call them like, Hey, I'm not looking to rent, but I'm looking to buy. Do you wanna sell it? And then they'd be like, oh, yeah, actually, so that's how I bought my next couple. And then and then I hit a kind of roadblock there. So then I started pulling lists from like list source and doing, mail campaigns and things like that. And then that's how I bought my next couple. So my first 18 months, it was like a lot of hustling, but again, it was a 10 year goal. Hit it out in 18 months. And that's how I got started. And that was my first, so that was 2016, and I probably hit my million dollar net worth somewhere around 2018 ish, 2019 ish. Yeah, so after that, and it was a very basic, like I didn't do any kind of crazy mentoring programs. I didn't have to spend a lot of money. It was like literally Brandon Turner's two books maybe $300 on list source pulling, , owner lists and skip tracing and things like that. And, just calling people, calling landlords, Hey, you're looking to, you looking to retire, you looking to get outta this deal? Let's do it off market. Yeah, dude, I love that. Yeah. I remember back when I was like of doing the same thing, . I was like, oh yeah, I'll do a house, house hike a year. And ironically I was just looking at the math and I I haven't invested in real estate in two years, which is insane to think. And I'm not gonna invest in it this year, so that's gonna be three years of me not investing in real estate. Coming from somebody that talks about real estate investing 24 7. but it's just I found my niche, I found my zone, which we can get into with yours here shortly. But it's just yeah, in the beginning you go solo dolo and you're like, okay, I know what I know. I don't know what I don't know yet. And you're like, I'm gonna go slow and steady and build the confidence. And so you took the actions. Now I will say you probably had a bit of a heads up because of your military background and you were used to implementing and action taking and all of that. Yeah, because a lot of people will h and Hong get analysis paralysis. So now you just joined GoBundance. So I'm curious coming from somewhere that, started it off on your own, I don't think you've been in too long, but what have been some of the changes that you've seen just being in the mastermind group in general or increasing your exposure?

So I've been, oh, I've been in the GoBundance for, since July of 22. and I really didn't do much the first, like three months. Just poked around the different groups and everything like that. The, but I have been in another mastermind, so I'm I'm in the Wheelbarrow Profits Academy. I'm a coach for them, Jake and Gino. So I've been in that kinda mastermind type of world, for the last few years. And that's that way, when my growth from being a real estate investor that's how I found them was in 2018. I jumped on with them cause I wanted to learn multi-family. Cause I saw a lot of people doing these bigger deals and I wanted to learn how, and that's when I was like, okay. Now I to your point, I know what I know and I know there's stuff I don't know. . Yeah, I was aware that there's a whole nother world on commercial real estate that I don't know and other people do cause they're crushing it. So that's where I went out and I found the master. , and that was 2018. I'm still in now in that one. And that helped me really refine, my commercial real estate skills. And now I, I coach for them as well. GoBundance was, I, again you hit kind of levels, you hit ceilings and you have to go out and find different resources to take you to that next level. And that's how I felt last year in 22 was there was other things that I was. That didn't fit the current mastermind I was in starting businesses. Yeah, we're doing bigger things as far as my trust in estates and charities and life that, that life that life freedom, the lifestyle freedom that GoBundance is really big about, the pillars and all that, the health and everything. And that was just something I was I, again, I knew I was missing something else and I knew people had the. So I'm all about masterminds because they will shorten the curve time curve to anything you're looking to do.

Yeah, and that's been my experience too, because the only reason that I'm able to have these conversations and talk and have these perspectives that I do is because I have this show and people sometimes ask me, they don't anymore, just cuz my network's kind of gone bananas. But people would ask me at the beginning, what the hell dude? Where are these people coming from? And I'm just like, dude, I've been friends with 'em for two years. , I'm just have now interviewing them live on the podcast. And so it's been super fun and doing this is really cool. I want to go over, let's take that pivot to talk about how you knocked out this strategy this last year. And then also I want to, I want you to plug your event at the end as well, cuz we need to get people there as, as many that can go.

So I have two main, or three main companies. I have. So I tri-City Equity Group, which is essentially my syndicate. And it pretty much operates like all other syndicates do. We go out, find value add real estate in growing markets. Mainly sticking to the south, right? We're doing a lot in Dallas area right now. And that's pretty much, What that company does, we have about 50, 60 million in assets under management in that company, about 500 little over 500 doors and that one just plugging along pretty well oiled machine. When we find a high quality asset, will go down, syndicate it, and crush it. Then I have my personal rental portfolio, which I, right now I have about a hundred units in. And that's my company villain Otics. I own that one a hundred percent. And that's here, in here with me in Michigan. Me just taking advantage of opportunities that come up while I'm here. Michigan's not at least where I'm at in Michigan, is not that sexy of a market to like, bring in partners and syndicate with, but I still see good, like smaller deals like six units, 40 units, things like that. House flips. I flip a lot of houses still. So that's when I just do a hundred percent by. While I'm currently living here in Michigan, and then I have my franchise, which is Koal Insulation. It's a 12 territory franchise that does home and business insulation. We do spray foam and cellulose and things like that. And that has been crushing at the, these last this last two quarters. Really. It's only a year old, but these last six months has really been crazy and I'm looking to pour a lot of feel onto that. So my strategy. . Looking back at every year we do a a big kind of deep dive review of what worked, what didn't, what made us happy, what frustrated the most out of our business activities. Me and my team, and looking at 22, looking at where, know, we think the market's going and where we want to go personally as investors. We are going to be focusing a lot more on growing and developing businesses, either buying through m and a Activit. starting franchises or just starting our own concepts and focusing a lot on growing businesses cuz businesses throw off a ridiculous amount of cash flow. Correct. Compared to real estate. It's not even close.

That's what I'm doing with online business, man. Yeah it's ridiculous.

Yeah, like I thought cash flow and real estate was good and I just didn't know, , you don't know what you

don't know. That's why I'm focusing a hundred percent on action to cap because people don't realize my things are recurring. It's like an annual thing for the community. And I was like, I can get recurring cash flow on the treadmill.

Yeah. Yep. Exactly. Bus, growing businesses it's a lot of fun. It's a lot more work. to me it's a lot more risk too, cuz there's no like underlying value to it

or asset underneath it. You're creating

an asset. Yeah. Yeah. So that, there's a lot more risk, but a lot more reward. So I'm gonna be focusing on me and my partner focus on growing our franchises, growing our businesses, acquiring more businesses, get that cash flow up and then we take all that cash flow, that free cash flow, and we buy high quality value add real estate. We're mainly looking at like B class value add. In the hot markets in the North Carolina, south Carolina's, Texas markets. And that's cuz that's where all your tax benefits are, right? That's all your wealth preservation is all in that high quality commercial real estate. So we're taking the best, as we look back of when we really started ramping up in 20 19, 20 20, and looking back and I'm actually flying out to Hawaii again two weeks to do this again for 22. But looking back okay what really worked, like when we're looking at our net worth and we're looking at our cash flow statements, like, where did most of our net worth increases come from? Where did most of our cash flow come from and what was our biggest time? Sucks. , that didn't or low ROI activities and things like that. So we go through a pretty big deep dive last, about three to four days. And that's what we did last year. And then again, we're gonna do it here in a couple weeks. And then we just keep tuning and keep refining what our strategy is. And that's where we're going. We're going deeper into more businesses and more high quality real estate in the JV structure versus the syndication structure. We are still doing syndication. love 'em. It's a great tool to take a piece of real estate down. But looking at us where we wanna go and we, where we want our families to go and things like that, the JV structure just serves us better. So we're gonna be doing more JVs as those opportunities come around.

So I guess when you're doing the JV structure instead of the syndication, I guess that allows for your velocity to increase, right? Because you're not having, you're not beholden to investor capital as it's taking time and you don't have that five year balloon now you can just get in, get out

it, you both, right? So I can either have that when I have more control over the deal. So even though I'm the sponsor in kp I still, investors will always come first on a syndication or you have that fiduciary respons. Their interests will always come first. And usually, we're aligned, but the parts where we're not aligned is, maybe we find a high quality piece of real estate that we want, maybe wanna hold for 10 years. I, I don't want to ever sell this thing. But we end up syndicating it. And your investors normally want to have a return in that five year cycle, that three to five year cycle, they want their capital back. So that is the syndication life cycle. The JVs, if I wanna flip out of this thing in 18 months, or if I wanna hold this thing for 10 years with, two or three people, I have that that ability. And obviously with JV structure, you hold a lot more equity. All

right. I don't know if you wanna share, man, I don't know if you wanna share, but I'm still, I'm curious, how'd you get paid 450 K to buy

houses? ? Yes. Let's, so I'm gonna pull off the hat trick, like I said earlier. Of this strategy and it's worked out really well for me. And I'm gonna share this cuz somebody will make a million dollars off this. I'm turning on right now. It's fine. So what I did is so like I said before I have villain Otics, which is my personal company here in Michigan. And I have my personal rental portfolio as well as my house flip company. And I got approached with buying this was last year, a portfolio of houses that. I think it was 50 houses. The first batch, it was 50 houses. And these are like c class houses, 2% deal all day. Where, we're I was buying 'em at, I bought 'em at $34,000 a piece. Ooh. And the sounds like a headache. What's that? Sounds like a headache. Oh was a headache, but it was worth it. So the first deal that was the first one was 50. And it was somewhere north of $2 million. Something like that. It was 30, $34. I know it was 34,000 a units. So whatever that comes up to. And these are, older homes, C class, definitely headaches. That's why I have property manager. But they make great flips for your FHA type clients. Where they just, they're looking for their first starter home. Three, two starter homes, 1200 square feet. That's, that's what this house was like, nothing extravagant. We're not putting granite countertops saying the seal appliances and all this stuff in just clean, safe, habitable, affordable housing. So that first deal, it was like 54 houses. I didn't have all the capital to take it down. So what I did is I found a partner to come. We split it up. So we split the portfolio. I think the first one I took about a 24 houses and he took the 30. I marked his because we had such a good deal on it. Like the 34,000 was like, we're like basement wholesale prices on these, like they were just looking to offload 'em. I marked his his house is up like a wholesale fee, like two to $3,000. And then at closing I took that fee and used that as my downstroke on my 24 houses. So the first transaction, 24 houses. Once my fee got applied, I only had to come to the table with $16. So I bought my first 24 houses in this strategy. For $16, right? And then that kind of filled the, my, the coffers for the, we'll call it inventory that got filled the inventory for my house flipping company. So now my house flipping company's just stacked up for flipping houses for the next whatever year or two. So that's great. Fast forward three months later, another broker comes to me saying, Hey, I heard you bought, this package of houses I have another one. Are you interested in? And it was it was 30 houses. Same exact houses. You know that the older, probably around 1950s, 1960s, bills, three twos things like that. Low lower end homes. And I said, yep, I want it this time. I want, I wanna try to do without having the partner. I was like, I wanna do this one all on my own, because the first one worked out so well. And gi give you a context of how well the first one worked out. I went to the table with $16, so I bought 24 hours for 16. , but my equity, when we got the appraisal back, I bought my house was there's $34,000 average price. The average appraised value across the portfolio was 78,000. This is this pre reno? What's that? This is pre Reno or this is at clo, like the appraiser, the appraisal closing. The bank did the appraisal that the bank did. So at closing, the value on my house is the average was 78,000, and my cost basis was 34. So I. 40 grand times. 24 houses day, like at closing. That was my equity. So

what's it like to have, what's it like to be God's favorite man? . So it's because I've never had a house over appraised. All of my homes have only under appraised. Yeah. Every time. So it, Yeah, I don't know. That's 906. That's $960,000 of equity. Yeah. For $16.

At closing. Yeah. So that was at closing before renovations. Before as. As is and to show those aren't those show, those aren't fluffy numbers. I'm actually, cause I sell those houses. So when a tenant moves out I list them. So I have a house right now that I just got a, we listed it pretty much as is, know, we went and cleaned it up a little bit. And, but I did not do a renovation on it. Just cleaned it up. And that just got a offer on it at 77 9. So at 78,000 right at where the appraiser. It was worth, it just got off FHA offer on it and that was like, it's sitting in my inbox. I got assigned today. So I guess

What was the motivation behind, behind the person that was the

seller? So they had a partnership that they wanted to dissolve. They didn't want to damage the partnership. So the, their choice was just to sell the assets to preserve the relationship. . brian: So it was basically your that was able to yield this? Yes. Then they send it to your desk? Yes. And I also knew the owner too. Got it. I, I know the owner too, and I was just like, Hey, Vince is a great guy. So playing your sandbox competitive advantage. Yep. I, like I said before, I had a competitive advantage here because of those relationships. So that was the first deal. Fast forward a couple months, broker said, yeah, I heard you bought that portfolio. I have another one. Same thing out-of-state. Guy bought a bunch of these houses in the 2008, 2009 crash when they were just like, they're buying 'em for $10,000 foreclosures that were just everywhere, at the courthouse steps and stuff like that kind of story. And he was doing like land contracts and everything that, and he was just done with 'em. So I was like, look, I'll do the same thing. I'll buy them. No, no contingencies. I'll take 'em and no issue. So that one, my cost basis was a little higher. It was I think it was like maybe closer to 40, maybe 38,000 a door, 36, 30 7,000. So somewhere around there. A little bit higher than the first patch. I remember they, but they also were a little bit nicer. He's replaced a lot of the roofs, a lot of the windows, things like that. But they were the. quality and demographic account. 30,

$38,000 with a new

roof . Yeah. It was, isn't it? So this is the one. So that was the one I was like, all right, I'm gonna do the same thing. So I went, talked to my lender, talked to was like, this is the plan. You guys listen cuz this is the million dollar mic drop. So you wanna go and you wanna find a lender. You wanna develop those relationships with your credit unions are better for this than banks. Credit unions have a lot more flexibility. So you wanna meet all your credit unions in the area and you say, I have a great deal and I want to do 80% or 85%, or whatever the 75% of the appraised value at closing and not the purchase price. If the app, if there's a delta there, I want the difference at closing. Because I'm in the market and I'm doing. . I go around, I talk to people and say, who can do this? And I found a lender that could do this. So cuz I already know I, I'm the comps cuz I just bought the first portfolio so I know the comps cuz I am the comps. I bought the first portfolio three months ago, so I, you go to the bank.

I am the

bank , right? Yeah. Like I already know in my head I'm like, I am the cops. Like when the appraiser. And gets comps to appraise this second batch, he's gonna be looking at the properties I just bought. And it's the same, ended up being the same appraiser. And like I said, he appraised them at $78,000 a door. So I already know doing the math of my head, $36,000 cost basis, it's gonna be worth, $78,000 a door. Cause it's the same product. And I'm like, so I know there's like a $40,000 delta in there. The difference this time is I know that the delta is gonna be above their 80% or 85. Ltv. Ltv. So what I want is I want that difference at closing. And so I found a lender that would approve that and they're like, yep, I will. They didn't know how much, they didn't know what I know. They didn't know how much over it was gonna be, but they were like, yeah, if it, we'll give you 85% LTV based off of appraise value. And if there's a difference you can get that at closing. At closing it. Like my 20 or my 30 house is appraised. It was like two point, whatever, 4 million or something like that. 2.2 million. And my cost base was like one point something. And so they, they ended up writing a check at closing for $459,000. And they had to go get, she called me, she's we weren't expecting that. I had to go up all the way to the bank president or the president. Everything got to. And I was like, Hey, that was the deal, right? You said you were gonna and they ended up approving it. So the second batch of homes I did, I got, I bought 30 houses, got back at closing 400 in $59,000 and turned around and bought a badass Airbnb with it in Hawaii. Just completely just reinvested it, boom, , and so that's making more money for me. So that was the second thing. And then now I have the. Deal like that. This one's actually apartments personal relationship. And going into the reinforcing the importance of building relationships in your current market, like you said, your sandbox, I said, competitive advantage. The very first property I bought was a four unit in this town in 2016. That guy ended up calling me. , what are we, five years later? 2016. Was that seven years later? Almost? , six years later saying, Hey, are you still looking at property to buy? I'm like, yep. He's oh, my dad's having health problems and blah, blah, blah. And he's getting up there in years looking to retire. He's got this 40 unit. Do you wanna buy it? I'm like, yep. And now we got a great deal on that. I already, as soon as you said the price, I was like, done. I'll do no, no contingency. I'll buy it. and he's the original builder, so original builder of the property, owned it since 19, 75. As, and he, the idea was to keep it forever. And then, the kids obviously have other plans. So got that one off market. We're closing on that one next week. went back to the same lender, got this property,

No. This is coming back . vince: So that, does that deal still stand cost basis and the appraised value, can that difference we use as my downstroke and it looks like I'm gonna get it again. Like I said, we're gonna probably close by the time this airs all close. , but it looks like it does. I know the appraised value on that ended up being 1.7. My cost basis was 1.4, and they're looking to do a 85% LTV based off appraised value, which equals a 1.45. So at closing, I'm gonna be getting a 40 unit and 50 grand in my pocket. So Plug your mastermind.

Yeah. So that's the hat trick on there. That, and that's the stuff we do, and that's stuff we're gonna talk about in our mastermind is how to set those s. How to develop those relationships. So thank you for giving me the opportunity to plug it. But it's gonna be June 29th to July 2nd. In the big island of Hawaii, we have a five star resort. It's gonna be amazing. It's the Hawaii millionaires mindset, the blueprint, and this is all we talk about. It's gonna be two days to talk about starting businesses, scaling businesses either on the franchise side or your own concept. As well as multi-family commercial real estate, how those mixed together. How developing a strategy where your business and your real estate strategies compliment each other and grow. And then we're also gonna have our estate planner, our personal estate planners presenting, our personal CPAs, presenting. We're bringing our lenders that we use. Everybody will, you'll have access to just like we do. And it's in Hawaii, so I'm bringing my family out there. We're gonna be out there for a week. So you wanna start mixing that, lifestyle freedom that we were talking about early in the. You wanna start mixing your business with your family, and do these working vacations. It's a lot of fun.

Awesome, man. And where can people find out about this and find

you? Yeah, so I'm on Facebook. It's probably the easiest way to, to reach out to me. I'm on LinkedIn too, but I don't check it that as much. But you find me on Facebook, find me on Linked. Tri-city equity.com is the website we use the most. But Facebook's probably the easiest. And then the the whiner Hawaii Millionaires mindset the blueprint. You want to Google that and you'll go to that website to check out more about the event. And if you have any questions about that, reach out to me on that as well. You got it,

brother, man. Appreciate you coming on, brother. You just, that was even cooler than I. That was a super fun one, man. Hopefully it has million. Yeah, so everyone go check out the mastermind, check out the event, check out Vince shoot 'em a friend request on Facebook if you feel like making money and being around people that are so that you could be like me and have really cool Facebook posts. That's why I'm on there all day. My screen time is so high, . So with that, this has been Vince O'Brien with the Action Academy Podcast signing off,