$40M Net Worth | Boris Sanchez Commercial Real Estate Power

You look at your bank account or your financial statement and you're at $40 million net worth. How did this happen, Boris? I wasn't born with any kind of silver spoon in my mouth. I had like a 400 credit score. I had nothing to my name. I had to basically just move back in with my parents in order to make it happen. I remember sitting in a chicken shack holding on to that check, $250,000, and I'm like,

"Wow, what did I just do?" You know what I mean? >> First deal. How old are you at this time? >> I was 28. >> What did you do with that money? >> I retired my dad. That's the most important thing. Got him a car. Here's your car. Paid off. Insurance. Whatever you want. No more headache. You know, that's the very first thing I said is like, "Dad, you don't have to worry about it anymore. I

got it. This money is not a freedom. This money is a responsibility, which means I'm responsible to myself now in order to make this grow." But I'm a very contrarian type of guy and a lot of the gurus, experienced investors push now, I don't agree with most people that do that kind of strategy end up making $200 on average in a property per month. That is not making anybody any money. I've realized that appreciation is a

wealth maker. Cash flow is a wealth maintainer. I get a call from Russell one day and he's like, "Hey man, I got this guy that has a bunch of classy apartment complexes and we want to see if you can list it." >> And I'm like, "Okay, well tell me more about it." And he told me he's like 167 units. So he's looking for a broker that's really knows about that kind of space. I'm like, "That's great,

Russell. You didn't call the broker though." I'm like, "You called the buyer. I'm buying it." >> So 160 units. What did he offer it to you? We settled on 5.5 million, held them for 6 months, and then turned around and sold them for $10.7 million. >> You made over $5 million in profit. >> After paying the fees, taxes, and everything like that, it was like $4.6 million. >> I I still remember when you closed this deal,

and I think I was like, "Dude, you're you're full of shit." I said, "Show me your bank account." You pulled up your bank account. He showed me and I was like, "Holy shit." [Music] >> Welcome to another episode of Pick Up the Phone Podcast. I'm your host, Jose. I help people scale their businesses with people, software, and AI. Today, I have the good pleasure of having Boris Sanchez here uh with me. He's a good friend of

mine. Uh been really good friends for a long time. Uh we talk about business all the time, but uh one of his major accomplishments is uh he's finished his first commercial deal at a very young age uh in 2013, and he retired his dad from that deal. uh he did his first million at 32 years young and uh just recently well like in 2022 you reached a $40 million net worth. So >> hell of a hell

of an intro there I'd say. >> Hell of an intro. Thank you man. Appreciate that. Can better myself. >> Absolutely bro. Absolutely. So thank you so much for being here. I think we need to we have a lot to talk about bro. >> Yeah >> because >> as usual >> as usual. uh someone doesn't just stand up or or get up in the morning and boom, you look at your bank account or your financial statement and

you're at $40 million net worth, right? So, like this obviously happens over time. How did this happen, Boris? >> I mean, honestly, a lot of ups and downs, you know, I took a lot of licks, you know, it's one thing that I do want to uh kind of remain constant is that like I wasn't born with any kind of silver spoon in my mouth. >> Yeah. uh matter of fact you know at some point at various

points in my life I didn't have anything at all right >> you know and so uh I what I want to talk about today is having the mentality to go through it all ups and downs you know >> uh especially you know uh us guys that hustle and you know we don't like the 9 to5 we're just not built for that we go through a lot of up and down you know and so it's just uh

the having the stability to uh maintain yourself and maintain your mindset through all this, you know? >> Right. Yeah. I love that. I love that. So, let's talk real quick, man. How did you uh how did you get started in real estate? How what was that like? >> Sure. Uh so, I got started um you know, about 15 years ago. I had been a uh um a serial entrepreneur uh up until that point. I got started

my first business was 7 years old. um kidding you know and yeah u you know immigrant from South America I came here at 11 um I still own businesses while I was in kind of transition um I have I've had it all I had an e-commerce business I had consulting businesses I had a car dealership I had a car dealership consulting business >> what >> um yeah and so I got started in real estate about 15

years ago after I sold uh my car dealership and after I had uh gone and gotten a master's degree abroad in London and I came back and um yeah, I kind of just uh started fall falling for real estate as I made more money, you know what I mean? >> Yeah. I love that. So, you got started about 15 years ago. What was your first introduction in real estate? What was that like? >> Uh it was

to be uh an L. So, I worked for my brother's company uh Gold Quest uh for >> And for the people that are that are watching or listening to this, uh what's an L? >> Oh, I'm sorry. It's a mortgage loan officer. Okay. Um, so I was a mortgage broker pretty much, right? >> I've gotten people, you know, home loans and that's what my job was. >> Um, I didn't really like it. Uh, but I did

get to learn a lot about real estate from it. Um, >> uh, I started investing in home flips and flipping houses right alongside when I was, uh, also a mortgage loan officer. >> Um, and then I started uh, brokering loans for commercial real estate. And that's when really it all came together for me. Uh because I I you know I said okay I really like these two type of assets but they're really not the same. They

are alike. They're not the same. >> Um and so I did not like a lot about uh just house flipping where I was just you know kind of leaving it up to God to actually get somebody to buy this house and then I can make my profit and then I can pay my rent and all that stuff. I didn't really uh like that. Yeah, >> I wanted an asset that I could uh invest in and make

cash flow while it was sitting in the market, you know, >> and so I wanted the best of both worlds and I found that in commercial real estate. >> Nice. Nice. I love that. So, obviously you didn't get started with commercial real estate. You got started first with doing the L. Uh, how did you transition then into going into commercial real estate? >> Yeah. Um, so I bought I found actually uh an Apex in the very

hood part in East Houston close to Channel View. >> Um, and uh, yeah, I just said, you know, I'm going to apply the same hard money loan, the same kind of loan that home flippers use where you get, you know, up to 100% of the purchase and 100% of the rehab. And I was probably the first one in Houston to use that product on commercial real estate. Nice. And the only way I was able to convince

my lender to do it is because it was actually two forplexes side by side. >> Forplexes, as people know, are qualified as like one SFH or single family home. And so that same product can apply to a forplex. >> Uh and especially two forplexes, >> right? >> And so um yeah, I bought it for $140,000. I renovated for $60,000. And then um uh you know obviously went to you know to all the hoops of getting it

uh fully leased and everything. Um 12 months after I closed on that property, I had sold it for $450,000 uh making me around $250,000 uh net with including the rents that I had made for that year. >> That's insane. >> So it really opened my eyes. >> So your first deal you're How old are you at this time? >> I'm 40 now. You're 40. But when you're doing this first deal, how old are you at that

time? >> I was 32. 32. >> No, I'm I'm sorry. No, that's it. It was 10 years ago. So, I was 28. >> You're 28? >> I was 28. Yeah. >> So, you're 28 and you're an Elo. And I mean, what 28-year-old can you do you know that is making a $250,000 spread on a deal? >> Yeah. I mean, obviously back then it it had >> it's still a lot of money now. >> It It's a

lot of money now. And especially back then after the recession, you know, there wasn't a lot of people making it. I was used to making 10, 15, $20,000 on a home flip and waiting forever to actually get it done, >> right? >> And so this was, you know, I remember sitting in a uh in a puera in a chicken shack just thinking holding on to that check that I just received from uh the title company, you

know, for $250,000. And I'm like, uh, wow. Uh, what did I just do? You know what I mean? whatever I >> did what I do right what did I what did I do wrong you know um >> and and I started exploring it in you know after that I started scaling after that which is the most important thing >> right right so first deal you make 250 grand what did you do with that money >> I

retired my dad was the most important thing I I got him a car I you know I uh retired him in the sense of like dad you don't have to work anymore you know like you have your mortgage guaranteed out here's your car paid off insurance whatever you want no more headaches up until that point. It had been like every year. My dad was uh >> uh he was getting up there in age. He was a

retiring geoysicist. Um you know, so he was in the oil and gas business. >> So he was always uh kind of having trouble uh finding work because of his age, because there was young cats actually doing his job for much cheaper. >> And so I said, you know, that's the very first thing I said is like, "Dad, you don't have to worry about it anymore. I got it." >> Um even though, yeah, to be honest, $250,000

may not be enough to guarantee somebody retirement, >> right? I said it because I'm like, "Dad, from now on, this is what I'm going to do and and I'm going to commit myself to it." >> Yeah. And I think that that goes a lot to show where you're at mentally, right? Because not only, >> you know, it's great to make money, right? But why do we do it, right? We do it for the right reasons. And

so, you know, I think >> from that, from what you just said, it just shows that you're doing it for the right reasons. You're doing it for your family, right? Right. And so when you do it for something that's outside of you, I feel like it's just so much more fulfilling and you're able to make such an impact on someone as important as your father. I mean, I think that's incredible, dude. That's that's amazing. And you

coming from Colombia, uh, you know, you guys are are coming over here as immigrants. You know, you guys like at this point, dude, you're living the American dream at this point, right? >> Thank you. Yeah. I mean, that's at that day I really lived the American dream. It's like the first time I'm like, okay, great. you know, I don't have to freaking starve anymore. >> Yeah. >> Uh not that I was before, but I honestly, you

know, in in terms of like somebody who was always striving for the next level, >> felt like I was. Um and like I said, there has been several times in my life where I've been kind of, you know, as a serial entrepreneur, I've been screwed over, been down and out. After coming back from London and getting my degree, I had like a 400 credit score. I had nothing to my name, nothing. I had to basically just

move back in with my parents in order to make it happen. >> Yeah. And then, you know, it built it from there. So, I mean, I've been through the ringer. >> Yeah. >> That was the first moment where I'm like, "Wow, okay. I think I found my calling." >> I love that. I love that. Every single guest that I've had here uh to this date has always mentioned some sort of hardship, you know? Yeah. >> No

one has had it easy. >> No. >> And I I think that goes a lot to show that for anyone that's listening to this, right? You know, a lot of people are like, you know, they're maybe they're right there. They're going through the ringer. Uh they're going through that hardship. And and hey, it's uh it's okay, right? Because as long as you have air in your lungs, right, and a beat in your heart, you can keep

on going, you can get better, you can improve, and you can get the skills that are necessary to, you know, potentially get to your level, to other people's levels, and and uh if that's what people want, right? So, I think that's that's incredible, man. >> So, what happened after this, bro? You got your first deal, made 250,000. >> Yeah. So, I started, you know, um obviously I I didn't go out, you know, all, you know, and

buy myself a Lambo or anything like that. I retired my dad and I, you know, purchased that. But the majority of the money, that's what it meant to me back then, uh, is this is a responsibility. This money is not a freedom. This is a, especially if I'm building my career, >> this money is, um, a responsibility, which means I'm responsible to myself now in order to make this >> uh, grow, you know. And so I

started scaling and I bought another 8plex, I bought a 7plex and I kind of did the same thing. I started experimenting a lot with 1031 exchanges and what that meant. >> Um I uh using you know that that same kind of model where I'm buying, you know, very cheap kind of multif family and then uh putting nice ends and putting walls uh to separate, you know, um one bedrooms and making them into two bedrooms and stuff

like that. just building value and I just started experimenting with building value and one thing I did notice is that look if I build value for property it's going to mean a lot of profit in the end >> right >> now I realize I can build value on people and it means even more right but >> and we'll get into that >> we'll get into that in a second exactly so um in in um >> after

I sold that 8plex and I had you know was kind of experimenting with like all right what if I keep some and I keep them from cash flow what if I refinance and I and I uh cash out of this and I was able to buy a 46 unit apartment complex in 2017. Um and that's uh when it really started taking off for me. I'm like, "Okay, great." I got independent. I stopped working for my uh

brother's company at that point. Um and I just dedicated my full-time uh to this cause. >> Yeah. >> That's incredible. So your was your 46 unit. Was that like your fourth or fifth deal or was it >> It was probably my fourth deal. Yeah, >> your full deal. You just went ball. >> I just I just said, you know what? I it the numbers make sense. I got the money for it. Uh 1031 is waiting for

$150,000. I had developed some banking uh contacts that allowed me to do good things then. Yeah. >> You know, and so yeah, why not? Let's do it. >> And for the people that don't know what a 1031 exchange is, what can you explain that real quick? >> So, basically, in layman's terms, it's when you can take the profit off of one property and you can use it to buy a bigger property, you know, right? uh and

not pay any taxes on that profit, right? Which allows you to scale. >> And it's great because especially if you don't have a lot of real estate or a lot of uh expenses expenditures in that year to kill it is great. That's good. Good news for you. But now you're going to give half to Uncle Sam. Nobody wants that. Right. Right. >> And so, um yeah, that's a good way uh to kind of mitigate that tax.

>> Love that. Love that. So, you did the 1031. You're you're buying your 46 unit. You mentioned a lot of things like being creative, right? Like being adding different walls and, you know, doing extra things to these units, things that maybe a lot of people were not doing at the time. Where did you get these ideas to >> I just, you know, I just started experimenting with adding value, you know, I was like, okay, you know,

there's obviously space here. What can I do? It was more than >> um just, you know, make the kitchens pretty and the bathrooms pretty and lease it up for as much as I can. Like what value can I bring my tenants? Okay, they want security. I pulled in a fence. Uh maybe that raise the uh rents. They didn't have laundry and they had to walk two, three, four uh blocks to just do their laundry. I'm like,

I'm just going to build, you know, a laundry facility here and you know, a coin operated facility. And so I started I just kind of like, you know, throwing these little ideas that I had into the mix. And that actually proved to be very useful because if you know uh anything about commercial valuation, you know that any money that the property brings is multiplied when it comes to valuation. I means right >> uh sometimes and a

lot of times it can be up to you know uh 50 times that dollar can mean up to 50 times the on the value if you if you uh are not to get too advanced but if you know about cap rate valuation. >> Right. Right. Right. And where did you learn all of this? Right. Because at the time, I mean, I I don't know if that that was something that was like common. Now we have YouTube

and we have all these different resources online, but before, you know, it was just good old books, maybe some seminars, stuff like that. How did you how did you learn all of this? >> That's uh that's a good point. Yeah. Back then there it wasn't the knowledge wasn't as common. There were not a lot of uh YouTube videos. There was one resource that I really used was called Investopedia. For you listeners that you know, uh please

use Investopedia. It's great if you just kind of want to look it up. Now, I guess you can chat GBT it, right? I guess. Yeah, but back then there was no chat GBT. I had to look things up on my own, read appraisals. I don't know if anybody's actually ever read an appraisal, but appraisals are chalk full of information uh about how to value a property and plenty of them. >> You would read appraisals. >> I

would read an appraisal and then I would just be like and and that actually became my hobby for a little while is like I was addicted to information. >> Yeah. And so I was like okay I know that if I do this and I do this and on multiplies uh when it comes to valuation um and you know cap rate valuation means this and where I this is where I find a cap rate and so uh

I became addicted to information and that's one thing that I do want your listeners to take away >> today is become addicted to learning. >> Yes. >> Uh once you know something works >> then you become even more you know but >> you you kind of have to take my word for it. you like you kind of want to get there so you can actually earn more. But I just did it >> kind of foolishly into

it. And when I went in, I was just like, "Okay, maybe I'll make $1,000 in cash flow." And I ended up making a quart million dollars. >> That's incredible. >> Yeah. I mean, I think uh I think you definitely have the the status and and obviously the the reputation and the experience to be able to say things like, "Hey, you need to listen to me." You know what I mean? Uh, as someone that that has a

$40 million net worth, it's not something to take lightly. So, for anyone that's listening, get addicted to information. That's >> right. Let me just make sure I say that. Uh, and I think you you dropped the golden nugget, man, because I've I've gone through appraisers, appraisal reports, right? >> Yeah. >> But I haven't gone so much as to read it like fully like that. Right. So, now that you mentioned that, I'm like, dude, I I want

to get back home and read one now. Everyone just kind of wants to see the first few page. Especially in a commercial report, like you see the the third page says, okay, and this is the big value. Exactly. >> But you go into it, it's like, okay, why were those comparables picked? >> Why was this property like? >> And there's an explanation on there, right, on why it was picked. >> Yeah. Because obviously the comparables are

one thing, but then you get into the cash flow. It's like, okay, what does the income of the property have to do with the valuation, right? Right. >> And it has a lot to do with it. Just like if you were to buy a restaurant and you you wanted it to sell more stakes that after it sells more stakes, it's going to be valued more. How exactly does that happen? >> Right. Right. That's incredible. So from

reading these appraisers and you're you're going through it, you realize, oh [ __ ] there's a lot of information here. So now now you get creative. >> Yeah, exactly. Now now I get really creative because I now I'm kind of learning what you know what I can rent things for. I'm learning what people like. the more I'm doing it, the more I'm owning property, the the more I can get a handle of like, okay, this is

how I can make more money, right? >> Right. Um, and so, yeah, I started experimenting with cash outs. And that year, um, I cashed out and, uh, and I made my first million dollars, you know, I cashed out $800,000 alone on one property and I had made, uh, some other, uh, sales that that year. So, yeah. >> And this is you at at 32 years old. >> At 32 years old. >> Yeah. That's that's insane. Incredible.

>> Uh let's talk real quick about your your most creative deal. >> Sure. >> Can you can you share maybe uh just some the first one that comes to mind? Something that you saw something that no one else saw. >> Absolutely. >> Yeah. >> Yeah. I mean, you know, I have plenty of experience and plenty I'm sorry, plenty of examples when it comes to creativity. Um one that always kind of jumps to my mind is something

that everybody can relate to. Uh and and I'm sure your listeners are asking themselves, okay, great, man, but this guy probably has access now to the best deals. Yeah, you know, he's got the Illuminati of deals on there and then I can't get that is not true. So, uh in this example, I I was looking through the MLS, just my local MLS, right? >> Um and I had found a sixplex that was that had been on

the market for 172 days. >> Yeah. >> And I'm like, okay, great. Um let me go check it out. I'm curious, you know, cuz it it really was falling apart in the pictures, but I really wanted to go see it. And so I I I went there and sure enough, it was so old, the listing was so old that the the the realtor sign was already like on the ground. It had roots growing on it. I

don't think the realtor cared very much. >> Yeah. >> And so, um, >> how many days on market was it was it at that point? >> It was Well, it was 172 when I remember like looking at it. I I went a couple of days later, but >> um so yeah, it it uh >> I saw it. I walked it and yeah, sure enough, the one of the buildings, it was three buildings. One of them was

falling to the side. It was completely vacant. Uh it, you know, it was obviously being sold as a sixplex, but honestly, it was barebones. It was just a building. It probably wasn't worth that much, right? >> But I walked it and I'm like, "Okay, this building, I think it was on sale for like $270,000. I put in an offer for $250,000 and I got it >> for $250. Yeah. >> What was it on the market for?

>> Uh 270 275 something like that. >> It was on the market for 270 >> and it was on the MLS for 172 days for everyone to see >> for 275,000. But I walked in and I said, >> "This is not a sixplex. I can actually build an eightplex from this and get a lot, you know, I got a lot a lot more value from it. Yeah. And I can actually build two bedrooms, two baths, and

even one threebedroom, two bath to like push the rents as most as they can. >> I had to get really creative >> on the rehab because um the spaces weren't that big. >> Yeah. >> So, I had to kind of sacrifice some living space. Come to find out really that people really don't rent for living rooms anymore as they did in the 60s and 70s when people sat around and they had the fire chat and everybody

listened to the radio. >> Yeah. >> They don't work like that anymore. It's all about bedrooms and bathrooms, >> right? >> And so I built a lot of two bedrooms, two baths uh uh built one threebedroom, two bath and then uh yeah, made eight units out of it. So I I I bought it for$ 250. I spent $260,000 on it. So all in I was like maybe around 550. Um, and 6 months down the road, I

had already filled it up full of happy tenants. They were all nice. It was beautiful complex now, completely uh almost brand new cuz I had replaced everything. >> Mhm. >> Um, and yeah, I put it on the market for 1.25 million. >> And one week after I put it on the market, I got full price offer on it and closed 30 days later. >> For how much? >> 1.25. >> So, yeah. >> So, and you're all

in at 550. >> 550. Yeah. After all the fees and everything like that, I I cleared $600,000. >> 600,000 from one deal. >> From one deal. One little sixplex. >> One little sixlex that was on the market, Bob. >> That was on the market. >> That was on the market that everyone just looked over. >> Everybody picked over and everybody saw it and, you know, it it's I didn't get it from a secret place where people

were like, you know, looking at me because I'm the apartment guy. It wasn't like that. It was in the open market. I just had to add a little creativity to it. >> Yeah. and and yeah, I killed it on that one. >> That is a hell of a story. >> 600,000 from one real estate transaction is insane. Um, and I think it goes to show, you know, the the level of creativity that you had. And not

only that, but I think let's talk a little bit more about your guts, bro. I mean, that's uh that takes a that takes a lot of guts to say, "Hey, man. everyone everyone in the world right now is not seeing what I'm seeing and I'm going to trust myself and I'm going to go and do it and I'm going to kill it. >> Yeah. Um you know obviously there was a lot of dupes a lot of

dupes a lot of hoops that I had to jump over. >> Yeah. >> Uh including the city, including like parking and all that, but yeah. I'm like, you know what? >> F it. I'm just going to do it. You know what I mean? >> Yeah. >> And and because I had known that I could probably >> and this is going back to mindset what we're talking about. I if I'm ready if I know I'm ready to

tackle any problem, >> it's the mentality behind it that I know I will get to it and you probably will, right? >> But if I had been like very riskaverse and I'm like, man, I'm a super smart guy. Like I know a lot of uh a lot of my clients and friends are, uh they uh they probably would not take a deal on like this because they know the risk of not being able to do it,

>> right? >> You know, but so it's like you kind of need that readiness. You need that confidence in yourself to actually go get it, >> right? >> But like I said, all it takes from then is just a little creativity. >> Yeah, that's amazing. Where is this property at? >> Uh this is at 2514 GO Street if anybody wants to look it up. It's in uh North Side Houston. >> North Side Houston. Okay, got it.

>> Wow. What a great story, bro. >> Thank you, bro. Appreciate it. >> A lot of creativity there. >> Yeah. >> Yeah. Oh yeah. >> I mean, there's so much that I can go into there, but um but you know, just for the sake of uh staying on track with with the podcast here, it's uh >> absolutely. >> Uh I I think you also have are doing something that is definitely against the grain, right? And you

I I see all the content that you're pushing out. I see you have a commercial real estate university where you teach other people how to do all of this. Uh but one one main thing that is pushed I guess to the masses is >> buy rehab >> rent refinance repeat other known as burr. Right. Right. >> And and you have a different strategy. >> I do. >> And I mean you care to share share it with

us? >> Sure. Of course. So uh let me preface this by saying that I'm a very contrarian type of guy. >> Yeah. I um when I started, like you guys can probably tell, I kind of taught myself, you know, I was going back to Investopedia and stuff like that and and just kind of being creative and coming up ideas all on my own. Don't get me wrong, there's a lot of other uh deals that I can

tell you that went south, but you know, I took my licks and I learned my lessons. Yeah. >> Um, but that has all kind of uh contributed to the fact that I am a contrarian and and a lot of the things that gurus and and uh experienced investors push now I don't agree with. >> Uh I believe right now people think that after you flip so many houses you can immediately go into what's called syndication or

crowdfunding of a big deal. It's when you put a bunch of investors together and you're like let's take on this 400 unit apartment complex. there is a middle there where you're like okay you can own you know small to mediumsiz commercial real estate including multif family um all yourself and then I don't think anybody really talks about it like you know that openly uh where you can create some wealth you can create some you know some

generational wealth and so um I've been in a lot of panels uh where I'm invited to like these huge syndication seminars and I'm the only one talking about it I'm like hey this is the wealth conference right for multif I'm like, "Let's talk about active ownership where you can own 100%." >> Yeah. >> It's like, you know, >> somebody on stage or something like, you know, this is good this guy. >> And I'm like, okay, well,

you know, I >> think they they invite you to the >> P. They invite you. Yeah. They still Well, they know what I'm about now. So, um, so they they know ahead of time. They're warned. Uh, but yeah, so that by nature, I'm very contrarian. And so, I've just looked at, you know, and studied all of the strategies that are pushed out there uh for real estate. Um and one of them being the burr method B

R like you said buy uh renovate uh rent finance repeat or something. Yeah. >> Um >> that is a very onetrack mind that does not allow for creativity. And if you know by now I'm very big on creativity. Right. >> Right. And so it's just like you know putting it reminds me of that video from uh from Pink Floyd where everybody's just kind of walking into the walking into the sausage maker. >> Yeah. Um it's like

it's it is like that because it's like mentality. Yeah. It's exactly it's her mentality where people just kind of follow and they're just supposed to like buy a property, rent, refinance. I'll go get another one, rent, refinance. It doesn't allow for scalability. It doesn't allow for sales, which is huge. And I get it. Tax mitigation is big, but that's when you have to get creative with things. >> Um I actually came up with my own strategy

called the KISS method. >> Keep some, sell some, scale. Mhm. >> Um, which actually allows you like like you know obviously like I just said allows you to keep some property obviously for tax mitigation reasons. So you can actually do some cost segregation and you can do um you know rapid accelerated depreciation that allows you to cover the sales that you have sell some scale. Right. Right. >> Uh and so because that in in essence it

allows you to actually okay I'm going to keep some here. I'm going to sell some in order to scale. Maybe get you know forplex 8lex. this time I'll get a 20plex and keep scaling because that actually is what forms wealth. Not the I'll get one property, buy one property and I'll make $200 a month. It, you know, it it just it just doesn't work. Most uh most burrers, most people that do uh that kind of uh

of strategy end up making $200 on average in a property per month. That is not making anybody any money. Imagine how many properties that you have to have in order to actually start making it mean something. That's five >> five of them before you actually make a thousand dollars. >> And $1,000 nowadays is like a dude doesn't pay the water. >> No, not at all. Yeah. >> You know, so so you need something else. You need

you need what is called uh forced appreciation in your life, >> right? Forced appreciation is a form of of of of a strategy in commercial real estate where you're forcing the appreciation up of an asset because it brings in more money, >> right? As opposed to a house that you know, if you have a $150,000 house that you that you bought and it's great and you rent it for somebody that's paying $30,000 a month, it's still

$150,000 house, right? That that's that hasn't changed. That's why people should learn the valuation method between residential and commercial, >> right? If it was commercial, then obviously it would mean a lot more and that's called forced appreciation. So, um the KISS method allows you to get into forced appreciation so you can make wealth. >> Right. Right. >> And you mentioned a whole lot of advanced things like cost segregation, right? Depreciation. >> All these things are like

maybe things that a lot of the listeners do not know about, but hey, there's Chad GPT. Now, we're not going to go into it all that much right now. >> Look it up. >> Look it up, please. Uh get obsessed with with learning, please. Yes. Uh that's incredible. So in terms of let's look at burn, let's look at the KISS method. Sure. >> What do you think uh what do you think is the reason the main

reason why this one can scale so fast is because you're selling all these different properties versus just keeping them and keeping them in your portfolio? I mean, you're limited by liquidity, right? You're limited by >> how many properties you can go and buy, right? You'd have to have some sort of active income to be able to continue scaling, right? So, if people don't have an active income, that's where, you know, I feel like people or or

a lot of people that are teaching the Burr method, it's like, hey, you need to make a [ __ ] ton of cash to be able to scale if you're just doing this method versus on this side. Hey, you're able to buy some force appreciation, cash out, like you said. I mean, if if you're selling a property for $250,000, now you can take that money and go and put it into like three different projects instead of

just having it have your equity just tied into one, right? >> Yes. Exactly. And so I mean that's why I think the burn method is very very limiting because even for tax mitigation it doesn't allow for uh depreciation or cost segregation which is uh it's basically you're telling the government that look I've had quote unquote losses throughout the year and so uh those losses are going to cover some of the gains that I've had from the

sales of other property. Right? Uh I'm proud to say that I haven't had a tax liability in eight years. you know. Mhm. >> Just because of that method because I'm actually keeping some which actually uh you know they get uh depreciated in my taxes and I'm selling some because I need the cash. I need the liquidity like you just stated to go buy some more and buy bigger ones, you know, >> right? >> Uh it's actually

gotten to the point that I'm actually buying all cash now. I don't have to depend on lenders. Uh because obviously it's expensive right now. It's no it's no secret, you know, the rates are have haven't been higher in like 10 something years, you know. >> Yeah. >> Uh and so yeah, you you definitely need to consider these things when you're uh when you're strategizing. Yeah. Real estate. >> Yeah. And so for anyone that's listening to this,

you know, if they have a commercial, maybe a lead or a commercial opportunity. I mean, you're buying properties all cash. I mean, I think you're going to be more than qualified buyer than probably, you know, 95% of people out there, >> right? >> If not like 99%. Well, right now liquidity is king, too. So that yeah, I realize that. And so I'm able to just go and just buy stuff cash. Um am I keeping it cash?

Yeah, absolutely. Sometimes if you know, just to make me cash flow, but I'm also kind of, you know, building it up and rehabing it with cash and then selling it later. >> Yeah. >> Um you know, to keep my cost down to maximize my profit on the other end. >> Yeah. uh through our conversations. Another thing that like really stuck with me on on one of the things that that you you know we're hanging out with

the boys, you know, we're we're having a couple of drinks, but we're still talking business, right? Right. >> But one of the main things that really stuck with me and that kind of opened my eyes is you mentioned a lot of people are always talking about cash flow. Cash flow. Cash flow. Right. >> And uh let's let's talk about how cash flow is not really the the end in mind really. It's it's more of a wealth

maintainer. >> That's right. That's right. That's right. But to really build wealth >> is in in your method of keep some uh sell some scale. Right. Right. Can you talk a little bit about that? >> Sure. So obviously there's two type of of of wealth, right? There's a or investments. There's two types of investments. There's the active and there's the passive. Active is when you're actually going out there, you're hustling, you're pulling a Johnny where you're

always going out there, always doing it. >> Shout out Johnny. >> Shout out to Johnny. Um and uh um there is the passive where you kind of just put your money uh in an asset or in a group or something and you just kind of let let it make a return. >> Mhm. >> Um and so uh you have cash flow and you have appreciation. That's how you are able to kind of differentiate. If you're active,

you're probably going to be an appreciation type investor, right? >> If you're passive, you're going to be a cash flow type investor, right? And so um you because I again I said you know you should invest in forced appreciation. It really means that forced appreciation is the one that you know is going to allow you to sell and nowadays uh cash out as well if you can uh of the equity that you've built up. Right? So

you're getting these 500,000 you're getting these $250,000 checks. You know that those are lifechanging. Those are again going back to my first example, my first ever deal. I forced appreciated um a deal without even knowing that I did. And that's what, you know, was a I was able to retire my dad because of it. >> And so I invested in appreciation. Um and then uh that allowed me to, you know, make $250,000, which changed my mindset,

changed my life. That is what people want. That is true wealth building when you're able to do that. Now, I'm here to tell you that obviously don't just do one. You want to do more than one deal, right? >> So, in essence, you're going to have to uh start covering those taxes um by buying other property that you can cash flow from and you can keep it so you can depreciate that against the wins that you've

had on the other side and the sales side. >> And so, you know, through doing it all these years, I've realized that, you know, now I can say that appreciation is a wealth maker. Right? >> And cash flow is a wealth maintainer. Burr method is great, but it only maintains your current level of wealth. Anybody out there listening, $200 a month on one deal, it's going to maintain your current level of wealth. I'm sorry. It's just

not going to build any wealth, you know. Yeah. >> And uh I'm sure that's a surprise to nobody, >> but uh but it is when you get $200,000 check and that you say, "Okay, now now I'm somewhere >> right >> now. I can go buy my Lambo." I'm just kidding, you know. No, now I can I can invest. Exactly. Yeah. Now now you can uh invest in the rest and invest and do it all over again

to build that and get to that million dollar payday, that, you know, $10 million payday. Um that's what you want and that's how people really make money in real estate, not through cash flow. >> Yeah, I agree. Now, I I know there's probably people at home and they're probably, you know, thinking to themselves, well, Boris, you know, you did this deal in 2013 and uh you know, that was a different market, different interest rates. you know,

you don't know in 2025, you know, obviously, you know, we we have the naysayers. So, what can you say or maybe talk about maybe some of the recent deals that you've done or how you're making money today in today's market, in today's environment in 2025? >> Yeah, sure. So, I mean, I've been doing this uh for a while now. So, folks have asked me, hey, how can I buy deals? Uh let me buy deals uh you

know that that you're buying and all that. So, I had to start a brokerage. And so my brokerage, you know, we we specialize in finding deals like that. And then we actually started finding loans for these deals for my clients. And so now we package deals up loan and property together and kind of teach people. And you know, the education times is is huge because we we teach people how how they can also own their own

property. Don't just, you know, put your money and invest in it. Obviously, you'll need time, which you have to kind of figure out. So, um, yeah, but you know, I'm here to say that, uh, yes, uh, for a while we didn't see cheap prices and I was able to pull that off, but now I'm getting, you know, prices where I haven't seen in like 13 years. >> Really? >> Yeah. I I just bought a complex the

other day for the same price that I bought my very first deal, >> you know, in Houston in the city. Really? It it Yeah. just obviously you know now different different costs but I'm sure um you know with some creativity people can make a lot from it. So don't give yourself those excuses. Um enjoy the moment now and take care take advantage of the moment right now where prices uh haven't been cheaper in at least at

the very least 10 to 12 years. >> Um and so yeah ob obviously you're going to have the really really high deals, the $100,000 per unit deals. >> Keep digging. keep making offers, you know, keep looking at deals. Train your mind to actually look at deals and differentiate between a good and a bad deal and you will get that golden nugget. >> Yeah. Yeah. Yeah. I agree. Agree 100%. >> So, uh, where do you I mean,

if if you're buying a property at the same price that you did, you know, years ago, then there's definitely some sort of correction then, right? Would you say that? >> Yeah, I mean, there has been a price correction. Um, and I hear it. Uh, just just before the the podcast started, somebody came by and I asked them about their business and they were like, "Well, you know what what buyers are are paying and what sellers are

selling is is there's a really big difference there." I'm like, "That is true." That is the worst thing that can happen in real estate is when the both sides don't see each other. Right. Right. >> And then nothing happens. >> And then nothing happens. You have a big delta, what I call a delta, you know, what what sellers think their propertyy's worth and what buyers are willing to buy. Uh, and so now we're seeing that difference

start to shrink, >> right? Uh, and so now is a great time to get in and buy. >> Yeah, definitely a buyer market right now. For sure. Yeah. Yeah. So, leads me to the next question. Where do you where do you see I mean, you you definitely have a lot of experience. You're tied into the market. Where do you see the market going in the next year, the next two years? >> I mean, I've seen somewhat

conflicting reports of housing. I think if you were to able to believe uh the housing reports that housing is down um that sales are down year over year, month over month and so some people are calling for a recession >> which I think is it's great. You know that that means great things for for commercial and residential real estate. If you've always wanted to buy a house now is it you know it's probably going to get

more expensive from here. Let's let's you know let's be realistic about it. And so you know what they say like you know yeah of course >> you know the the the two best times to buy real estate was 20 years ago and the other one is today. >> That's never been more true >> right >> because you are nearing 20 year old prices. >> Yeah. >> And so uh I would definitely definitely take advantage of that.

>> Yeah. So buy today is >> buy today. Of course you can. Right. Buy don't wait to buy tomorrow and don't don't have analysis paralysis. Right. >> If a deal pencils out and and you know worst case scenario that the numbers still make sense, then go for it. >> Yeah. And one thing that I love about what you do, bro, is that you actually help people put the whole deal together. Not only do you find people

the deal, you broker the deal. You uh you offer the financing to actually buy the deal. And you even offer now you even have a commercial real estate university where you even teach people how to make money on the back end of the deal. So, one-stop shop to make a lot of money with Boris. >> That's that's that's it. One-stop shop. >> Yeah. Yeah. >> Um Yeah. So, Crew uh was started about year ago. I launched

it and it's an online university. Um >> I used to teach these classes live and it was 7 days of like fivehour courses. >> Yeah. >> The it was good. I I've never had anybody complain about the um the the the knowledge that I passed on, but I did have complaints on like, hey man, it's just a lot of information. It's information overload. And so what we did is we created something online where it it was

actually filmed in one of the classes and we have over 30 hours of content where you can stop and go as much as you want. >> Yeah. >> There's quizzes, there's stuff like that so you can kind of test yourself. But, uh, yeah, it's it it's great, you know, and, uh, and, uh, yeah, like I said, I've never gotten a complaint. Um, u, and the commercial real estate, uh, investment information is all there, packaged on all

in one. >> Yeah. I mean, as someone that actually went through your your course, your life course. I mean, I had the good pleasure of like seeing it all in person. >> And even me myself that, you know, I've been in real estate and I've done transactions and whatnot. Uh I even I was like dude this is a lot like I need to take I wish I could show you the notes that I took. I mean

I had a bunch of notes and then you know some some videos some recordings and everything. Um but it is a lot. It is a lot. So I'm glad that there's a resource now out there for people to be able to just hey Boris I want to be able to just go in and like learn everything from you. But dude I I know I'm going to get overwhelmed. So let me let me just watch it at

home whenever I'm you know cooking or whatever. >> Exactly. Yeah. It's perfect. >> Yeah. Yeah. Yeah. >> Dude that's uh that's pretty incredible. Let me let me ask you a question, dude. Um, what has been your worst deal so far? >> Uh, worst deal probably I mean it was a 12-unit complex that uh really went ary. Um, had everything go wrong on it that this, you know, under the sun that could ever go wrong. >> This

is the one that had a fire and a flooding. >> Yes. Yes. It was honestly the complex from hell. Uh, that's what it was. And so, yeah, it's it was a complex that I bought for 350,000. It was me doing my same old thing. I was going to add a lot of value. I was going to uh flip it and make a bunch of money. But then all everything started going wrong. Um I hired the wrong

contractor first cuz I went and I found, you know, the cheapest contractor I could and uh yeah, he really messed up and and he just took off. Um, and then, uh, while I had another contractor, I had breakins and, uh, you know, materials were being stolen on the daily. >> Um, there was at one point they, uh, the crew started finding cash machines being dug out of the ground >> because somebody Yeah. Apparently, somebody had been

burying cash machines full of cash. >> Cash machines. >> Cash machines. Like, you know, stolen cash machines from stores. >> Yeah. >> And then talking about like the cash counters. >> Yeah. Like the C, you know, when you had the whole cash thing. Not not the flip thing anymore. Okay. Right. When you actually had cash and you you know >> uh I guess people had been stealing them and burying them in the ground and then they

started coming out because of the rain. >> Uh >> um at one point we uh this is probably as as well actually right before that. Uh uh it hurricane um what was it? The one happened in 2017 I believe. Uh there's hurricane Ike uh or some No, no, that was Ike was 20 2007. Either way, they had a hurricane uh a flood happened and all of uh the city was under uh is underwater. >> Uh so

I had all the first four flood. >> Mhm. >> Um come to find out that uh after claiming insurance, the insurance company only covers >> uh the the physical aspect of it, right? it. But in the city of Houston, if you remove a bunch of sheetrock, you're going to be held to new standards, which means that you have to re remove and replace all the plumbing, all the electrical, and stuff like that. The insurance doesn't cover

that. >> Yeah. >> Come to find out, they just they just replace the sheetrock. They don't replace everything, you know, underneath it. >> Yeah. >> Um and so I had to, you know, have that out of pocket. After everything had been fully built, uh this crack had uh broke into one of the uh buildings. I fell asleep in the crack pipe uh lit the whole place on fire >> and um >> that would be great if

I had like insurance but I didn't. >> You didn't have insurance. >> I had I it had lapsed. It had lapsed after I had asked the insurance company to renew it. They didn't. And so yeah, that was a whole big mess. Now I had to get into it with the insurance and sue them. It was a nightmare, man. And I had to I ended up just kind of rebuilding it out of pocket. Um and so it

was a complete nightmare. You know, it taught me a lot about double-checking and security and having the right contractor and double-checking your insurance and everything like that. >> Yeah. Yeah. Yeah. It it just everything happened. >> So, you bought it for 350. >> I bought it for 350. >> What was your initial budget on? >> My initial budget was 250,000. 250k tops. >> It wasn't going to be it. I was going to kill it deal. >>

Yeah. Yeah. >> Um but it ended up ballooning to over a million dollars actually. >> A million dollars total. >> Total. >> Okay. So then you spent $750. >> I spent Yeah. $750,000. >> 750,000 >> on the on the renovation. >> Holy cow. >> Uh but you know, it really came to pass where even my friends were like, um, we've heard everything that's happening over here at uh Brewster Street. And so we've hired a priest to

come and bless the place. >> And uh and it was like, you know what? At this point, it can't hurt unless he falls and trips and stuff like that. You know what I mean? >> Please don't sue him. >> Please don't. You know what I mean? Yeah. >> And so yeah, he came actually literally blessed the place. >> Wow. >> And right after that, uh we had just gotten started leasing up the whole property. >> And

uh this one sober clinic called me and they were like, "We want to lease up the entire space. Master lease." And I'm like, "Really? You'll do that?" And they're like, "Yeah, yeah, we'll lease up the entire space. You don't have to worry about management. Don't have to worry about collections. We'll pay you on the first every month." And that's called a master lease, right? And I'm like, "Master lease." And yeah. So they came, >> they leased

up the place >> and I had a master lease where I wasn't, you know, I wasn't paying any utilities. I wasn't paying any management. I was just collecting >> triple net. >> It was I was still paying uh taxes. So it was a double net. >> Double net. Uh still very solid lease. >> Very solid. I didn't have to have insurance u because even canceled my insurance because they had insurance in there and the lender was

okay with it too. >> Call it timing or anything, but hey. >> Yeah. So I'm like, hey, divine intervention, right? >> Yeah. So, if anyone that's listening to this, if you're going through a diff difficult project, call a priest. >> Call a priest and have them come bless your property. >> That's right. A little bit later than that, I was able to sell it for 1.1 something and I was barely I barely made it out, man.

After all the fees and stuff like that, >> but at least you broke even. >> At least I broke even. >> Yeah, >> at least I broke. >> That's That's a hell of a story, man. >> Thank you. >> Yeah, that's a hell of a story. But yeah, I mean, definitely had some some real divine intervention there. So, >> exactly. Shout out to the man above, man. This game came in and saved your ass. >> It

could have been It could have been ugly. >> It could have been very ugly. I could have lost hundreds of thousands of dollars, you know, and uh I Yeah, probably >> I wouldn't have been able to afford it. Who knows? You know, who knows what happened. I probably would have gotten back up like always, but >> but still the fact that that that was a huge lesson >> uh where it taught me a lot of things

just in one sitting. >> What was your what was your top three lessons from that deal? >> So, top three is obviously double check your numbers. Double check. Don't always go for the cheapest contractor. >> Mh. >> Uh don't always go for the most expensive contractor. Go for a contractor that actually is going to work on site >> and is going to give you reports every day because he works on site, doesn't just send somebody. >>

Mh. >> Um and uh and obviously make sure double check that you have insurance. >> Um another one would be flood insurance doesn't pay for it all. It's kind of a scam. >> Um and >> yeah, can you tell me more about that? >> Uh yeah. Um, so flood insurance is mandated when you have when you're in a flood plane, right? And by a lot of lenders, you have to have it. >> But like I said,

it uh it only covers the aesthetics of it, you know, and then when when a sheet of sheet when a sheet of sheetrock gets wet, it soaks it in like a sponge and you have to cut a certain amount of feet. >> Yeah. >> Well, uh, like I said, in the city of Houston, you have to kind of replace everything behind it if you're past four feet, I believe. >> Yeah. Uh, and so that >> she

had to replace uh plumbing. >> They gave me every Yeah, they gave me about $60,000 in that deal from the insurance. And it ended up costing me double that. >> Wow. Because of everything else you had to replace >> cuz everything else >> What did you have to replace? Electrical. >> Electrical, plumbing, uh, all the studs, the installation. >> You had to replace the studs also? >> Oh, yeah. Oh, yeah. Some was nasty. Yeah. So, >>

yeah, it wasn't supposed to be done. It was It was a nice place before. We weren't going to do it because obviously didn't really need it. We were grandfathered in the city and everything was safe, but now it was absolutely needed. >> Wow. That is nuts. And so flood insurance only covers aesthetic. >> Aesthetics. >> That is such a scam. >> Mhm. >> Yeah. Exactly. >> You would think like, hey, this makes sense, right? Like everything

flooded. So Mr. Insurance, you have to replace everything, right? Like everything. It's not just the the sheetrock that >> Yeah, it's not the sheetrock. And obviously like just because it gets wet doesn't necessarily mean that you have to replace the electrical, the plumbing, but in the in the city of Houston it does. >> I see. >> But the insurance doesn't recognize that, you know. >> I see. Right. Right. So it's like they're they have different qualifications

basically. Yeah. >> Correct. Obviously their their main goal is to not pay as much. >> Yeah. >> That's how they stay in business. >> Of course. Right. >> Yeah. >> Uh get a public adjuster. Whoever who if you have losses, please do yourself a favor. Get a public adjuster. >> Yeah, that definitely helps out a lot. Yeah. I learned that a lot through talking with Cody. Uh he owns a roofing company and I mean they they

fight with insurance companies all day long. Yeah. All day long. And so >> they bring in these public adjusters and they really do a number for them and they help him out a lot. So they overturn a lot of uh you know deny claims, stuff like that for Absolutely. for uh my boy Cody. >> Cool. So uh earlier earlier when we were talking um you mentioned something you mentioned uh forcing appreciation in properties but you also

mentioned building value into people >> right >> so let's talk about that what do you mean by that >> absolutely so the more I teach um you know because I've been doing this now for a while and people come to me when I speak you know I'm so grateful that I get to do these things and people get to uh come up to me and and you know ask me these things and I'm more than glad

to speak with people and makes me happy. I'm usually one of the last to leave whenever I go to speak. Uh I've been able to give a lot of free information and to anybody out there. I'm like, "Hey, you guys, if you want me to analyze this deal, I'll analyze it with you. Yeah, no problem. I'll teach you how it goes." I don't hold a lot of information close to my chest. I'm actually kind of an

open book. You know what I mean? Like, I'll do this and that and and I've experimented with this. And what I found out is that, you know, when I put that value into people, I'm like, "Look, I I'm not expecting for you to actually come pay me. A lot of people want to come pay me, look, just just come." And and all I ask is bring me your next deal, you know? >> And people do. Um,

and it's not just them that they'll tell their friends and sometimes they'll tell their friends and before you know it, you've created this community of people that believe and like, "Hey, I I gotta send him a deal because he's the guy that knows it." And yeah, I've made a ton of money just from educating people where I didn't have to. >> Yeah. You know. >> Yeah. Yeah. I mean, there there is a lot of people out

there that purposely withhold information, right? And they I think it has, you know, it's like this scarcity mindset. Oh my god. You know, if I share, then they're going to take away from my pie. >> When they don't realize that we live in a market that's constantly expanding, you know, like the universe is expanding. The stock market is constantly expanding. Although we have our dips and our downturns, I mean it doesn't matter. The stock market will

always continue to expand. So scarcity mindset I don't understand it, you know, but I think you are, you know, living and breathing the abundance mindset where you share all this information and then it always comes back to you. You know, I've seen it with my own eyes. I mean, you get a ton of deals and it's always like word of mouth. Um, actually, when you came in here, uh, we're in Russell Simmons building at the Texas

Real Estate Investment Center. Yeah. >> So, uh, you mentioned you did a deal with him. >> I did. My biggest deal I've ever done. >> Your biggest deal? Biggest deal. >> All right, we we need to talk about this. >> All right, let's talk let's talk about stuff. >> Yeah, >> we like the sexy stuff. So, tell me what happened. >> Okay, so um I I get a call from Russell one day and he's like, "Hey,

man. Uh I know you've you know been doing this apartment thing for a while. I got this guy that uh has a bunch of classy apartment complexes and we want to see if you can list it." >> And I'm like, "Okay, well, tell me more about it." and he told me it was like 167 units and um and yeah, so he's looking for a broker that's that's really knows about that uh about that kind of space

and you own them. So I couldn't think of anybody better than you. I'm like that's great, Russell. You didn't call the broker though. He's like, what do you mean? I'm like you call the buyer, you know, I'm buying it. I'll I'll I'll buy that. >> So 160 units. What did he offer it to you yet? >> Uh I I I think at we we settled on 5.5 million. >> 5.5? Yeah, that front door. >> Oh, man.

You'll have to do the I think it's in the 30s. >> Yeah. >> Um, >> it was a good deal. >> Yeah, it was a it was a really good deal. Um, and so I turn around, I'm like, "Okay, great. I know that I up to this point I can, you know, I've learned a lot of things. I can probably, you know, own them, turn them around and sell them for a market, you know, market price."

>> Yeah. >> And sure enough, I bought it for 5.5 million, held them for >> 6 months. >> Yeah. and then turned around and sold them for 10 uh $10.7 million. >> You made over five million in profit. >> I've made over Well, yeah. At the end of it, I after paying the fees, taxes, and everything like that, it was like $4.6 million. >> $4.6. But who's counting? >> Who's counting? Yeah. >> Right. >> Yeah. I

uh it was a really nice pay. >> I I still remember when you closed this deal and I think I was like, "Dude, you're you're full of shit." >> Yeah. >> And I was like, "Show me your bank." >> I thought I was full of [ __ ] >> Yeah. Yeah. Yeah. I I said, "Show me your bank account." You pulled up your bank account. and he showed me and I was like, "Holy [ __ ]

>> this is bananas." >> But if you remember, uh, and this is a really good point. Uh, >> if you remember, we didn't celebrate the sale. >> Mhm. >> What do we celebrate? >> We bought We celebrate the win. >> We celebrate the buy. >> The buy. >> Because in real estate, you make money when you buy. You know, you know, if you know the uh real estate market enough, >> you know, you're going to make

money when you buy, right? >> And that's where people say that. That doesn't make sense to a lot of people, but it makes sense to real estate people, right? >> So, you make money when you buy you not not when you sell, right? >> When I bought, I was like, shoot, man. I'm gonna take my friends out when we went out to Bassu and did did a big and it was >> it was awesome, you know?

It was like definitely a a step up in my in my career. Very memorable event. >> And so, but now when I sold when I sold I rece, you know, it was very eventless. Uh, I kind of like received the money in my wire in an account and I went to work at 9:00 a.m. the next day. I'm just like, "All right, let's look at the next one." >> Yeah, you're right. I I do remember that

now. Yeah, I looking back at it. Uh, we we did go out pretty hard on the when you bought it. When I bought it? Yeah. When you bought it, you closed on it and it was a grand celebration and then afterwards I remember you got the wire and it was just like, "Okay, cool. Back to work." >> Yeah, it was back to work. Honestly, because by that point, I was already like under contract with Muller stuff

and I was like, "Okay, I'm going to buy that." It was already invested >> being deployed already. >> It was already kind of being deployed. It was already like going to work. It just wasn't official until it was in my account. >> Yeah. >> And so that's kind of like the way my mind went. Um and yeah, that allowed me to kind of boost the the growth of the company. >> Yeah. Yeah. Yeah. >> What what

how far along was this already into your your career? I mean, this happened a couple of years ago, right? I mean, but it took how many years to be able to get to the point where you're like, "Dude, I'm closing on a $5 million asset and then I'm selling it for 10 million." You know, you're making making, you know, close to $5 million in profit. How long did that take from the beginning of your career until

that point? >> Uh, so it was 2022 and I got started around 2010. >> 12 years. >> So, yeah, 12 years. Um, there was a lot of stuff that I could have skipped. >> Yeah. Had I had a um a mentor, >> had I had somebody who had to actually tell me do this, don't do this. Yeah. >> I probably could have skipped a lot of those years and actually learned a lot of lessons from somebody

else. >> Yeah. >> But, you know, I'm I'm stubborn, man. I actually just wanted to do it on my own and >> and I did. Uh so, I'm here to tell you it doesn't take 12 years. Yeah. >> If you're just like, "Oh, man, that's too long." >> That's fine. Um, you know, you just gota you got to make sure that you're a sponge and you're taking in all of these lessons and and you're working with

people you look up to and you're providing them with value, right? >> So they can actually turn around and give you value, you know. >> Um, I think we're a very valued driven society and we give each other value. Um, >> sometimes we label it money, but sometimes, a lot of times it's not like that. Sometimes you just got to bring a deal and then you got to do things. >> Sometimes it's information. >> Sometimes, a

lot of times it's information. Yeah. Um that's why I mean I kind of believe in school but I believe in specialized school like if if you know you want to do something you actually have to train yourself on it not just kind of halfass it. >> Yeah. Yeah. I agree. Uh I think it goes to show again like going back to to mindset right like it took you 12 years to to get to that point. I

mean and to be honest like I've never seen anyone that reach massive amounts of success you know in a year or two. You know it just doesn't happen. And we need you need the time to go through the lessons to understand some values to understand some skill sets and most of the people that I've seen that are really crushing it in business I mean it takes minimum five seven years for for all of this to keep

going >> right >> so which leads me to the next point let's talk about mindset right now and and how important it is to be successful right because everyone wants to get rich overnight right yeah they they want to skip all the years they want to skip all the hardships they want to skip all the lessons. >> But I think there's something to say about going through these lessons and and being in the fire and having

those sleepless nights. It makes you appreciate everything that you have whenever you do reach success. >> Absolutely. >> It makes you it makes you appreciate everything so much more. So let's talk about that, man. What what what would you say about mindset when it comes to your success? Yeah, mindset is something that I believe uh you kind of have to choose to have and experience also brings. >> So, both of those things you have to choose

to have it, you have to choose to get in that mentality, but it also comes easier when you've had some experience, you know what I mean? >> Um, now looking back through 15 years of anxiety, you know what I mean? >> Of anxiety. That's what it is. 15 years of anxiety in real estate. Yep. I'm like um you know up so many sleepless nights just tossing and turning thinking about that deal, man. What happens if I

don't close it? What happens if this guy doesn't come through? What happens if this guy says this? What happens if this deal falls apart? Um and looking back at it uh now is like, hey man, a lot of those times it it didn't end up, you know, you you imagine the worst, but it didn't end up happening. >> Yeah. Um, you know, a lot of good things happen, a lot of bad things happen, but like you

just said, I think the bad times help you appreciate the good times. If it was just just good and you know you were going to win all the time, there were it would just kind of be mindbending, right? I mean, like at what point are you just bored? >> Mhm. >> Uh, and luckily it's not like that. You have to learn to appreciate the lows. And when you're there, when you're deep down in that hole, and

everybody knows what I'm talking about. when you're deep down in there, you kind of have to you have nobody but yourself to actually let you out. You know, obviously to speak with friends, get a therapist and everything like that, but also believe in experience. Sometimes it doesn't it's not going to be as bad as you think. Anxiety is a killer, especially in men. You know what I mean? Like we don't talk to anybody and stuff like

that, man. >> U big proponent of of of going to therapy. Have have been for a long time. But, uh, we talk about this all the time with my therapist. It's like, "Hey, um, you know, uh, look at your experience and look at those similar problems that you've had through the 15 years that you've had. It doesn't end up always being that bad." >> And sometimes you have to believe in yourself and say, "Look, you know,

of a way out. You know, if the worst happens, all right, let's just get up, dust ourselves off, try it a different way, or maybe get uh a creative mind um that is not in the funk like yours. get a creative mind and help you think of of a solution to this, you know, >> and and so it's a it's something that you choose to get into and you're choosing not to get defeated, you know, >>

when a bad things happen >> to you, just allow yourself to be okay with the fact that you're not there 100%. >> But then limit that you have to put a stop to it. All right, cool. I've already kind of molted around long enough, >> you know, now it's time to get into action. What else can I do? What, you know, what can I keep doing? uh and then execute. You know, it's those people that get

lost in the sauce >> and and they just don't get up and it's like, man, I'm sorry you're just not cut out for it. You know what I mean? >> Yeah. >> Um just go get a job or something more stable because obviously this business can be really jarring and if you're not willing to uh get up, dust yourself off it, you're just not going to get there. It's a choice. >> Yep. >> Yeah. >> Yeah.

And it doesn't get easier either. You know, a lot of times it's like, you know, I I was under the impression when I just started. I'm like, "Oh, yeah. I'm going to go out there and kill it." And I had a lot of success when I first started in real estate. I mean, I, you know, within like couple of months, I had like 150,000 in my account within probably 6 months or something like that. And so,

I thought I was on top of the world, you know, and then, >> uh, I'm I'm doing business, I get kicked in the ass, you know, some bad deals. And, >> uh, it it it happens in different ways in business, right? First, maybe it's about deals, then it's about maybe people, maybe, you know, you mentioned like being [ __ ] over in the past like by by people. >> I mean, so it comes in different ways.

It's not just always about maybe even money. It's always sometimes also about like maybe people or experiences or transactions. >> So, it doesn't get any easier. So, you just have to learn the skill of constantly, like you said, choosing to get up and say, "Hey, you know what? I got my ass kicked. This was a bad situation. I got into this bad deal. I got into this bad person, bad relationship, blah blah blah, bad partnership. But

hey, you know what? I'm going to keep going and just keep keeping on being relentless. Right. I think that's really sets people apart that really make something for themselves. >> Yeah. >> Um >> they they say that >> we experience >> the worst things in life in our head, right? You mentioned it. Like you you're at home and you're thinking all these things. I remember, you know, doing doing a lot of real estate transaction and thinking

the same thing. man, what if what if the buyer doesn't fall through? What am I going to tell the seller? You know, there's a foreclosure happening next week. What am I going to do? You know what I mean? And just being worried out of control. Um, but if if you can control your mind and and be able to just silence it and say, "Hey, it's going to be okay and just talk to yourself and be able

to coach yourself through it, I think you get through anything, man." >> Yeah, absolutely. I mean, humans are very emotional beings and so we have to learn that and accept that about us, you know? we we make a lot of emotional decisions and that's where a lot of stress starts happening. If we're somehow making like some somebody did a a study where it's like a a robot was put to invest and people were made to invest

and you know the robot killed it because it was emotionless you know >> there was losses it just cut them you know not you know us humans were like oh we're hoping and praying now we're gambling I mean >> and so if if if you can learn to accept emotion and that it happens um you know notice yourself when you have a win you're like oh heck yeah you're on top of the world and then when

you're down you're like, "Oh man, I'm like this sucks and I can't really do this and blah blah blah." >> Those are those are all okay, but just realize that you're doing it >> and get up and try it again. >> What are what are the top three qualities that you would say or or skills regarding mindset that you would say has gotten you to the level of success that you're at today? the top three qualities.

Um, I would say obviously that it gets easier the more I do it because I I fight my demons with experience, >> you know. Um, >> so you get easier over long periods of time. Of >> course, you've been doing this for 15 years. >> I've been doing this for 15 years. So now it's like, okay, now any any I I'm so uh confident in the way that I'm going to tackle a problem that I become

uh creative, you know? Okay, what if I pull in this and this and this and what if I tell this guy this and blah. What if I offer this guy this? So, I'm like it, you know, I pull in negotiation. I pull in technique. I pull in knowledge. I put in, you know, other people that are smarter than me. I put things together. You know, I'm not saying I'm the most smartest guy in the room. Never

said that. Right. >> I just said, you know, like I I just think about ways I can actually get this done. It's like, okay, this didn't work, but maybe this will and this will. Maybe I'll talk to this guy and maybe he'll bring this guy in. >> Yeah. >> Um and deal the Yeah. the other the art of the deal. It's like you know what what what is uh the other side uh what is important to

them and maybe I can provide some more of that. Um maybe this wholesaler is bringing me this deal but is also thinking about selling to somebody else. What is really important to this wholesaler? >> It's getting this transaction again. What if I tell him I'm going to teach him um how to value commercial real estate because you know in instead of actually um not doing it or maybe he's not getting that offer from the other side,

he's going to come my way 10 times out of 10. I'm like, "Bro, I'm going to teach you how to actually value this so you know exactly what to do next time and you can bring me more deals." I'm like, "And and then we can do more and grow together." >> That's exactly what I was talking about, you know, adding value. >> Uh use that as a as a tool for negotiation as well. So because I'm

able to do that and because I'm I'm I'm more experienced now, it becomes easier. >> Yeah. >> Um it but you know um it's not so easy when you don't know things. That's why I'm a big proponent of education and actually um you know educating your mind and and learning from others. >> Get obsessed with learning. >> Yeah. >> So three qualities of mindset. You mentioned one. >> Sorry. Yeah. So one obvious back to it. Yeah.

>> Yeah. Um Yeah. Yeah. So, I would say obviously experience, uh, creativity, again, to not not beat a dead horse, creativity, uh, make sure that, you know, when you're walking a property, does it have to be the same thing? Can you add more bedrooms? Can you add more units? Can you split it and maybe one bedroom becomes two bedrooms? I maybe two studios. Or I would even say, I mean, just creativity. I mean, just being creative

in in everything. I mean, you because we're talking about mindsets here, you know, you're able to be creative even in doing a transaction, right? So I think just to your point being creative in everything that you do, right? If you're able to be creative in all aspects of your life, whether it's in real estate or in doing a transaction or real estate deal, >> uh if you're able or even if it's maybe dealing with your, you

know, with your spouse or others, you know, like being creative, making them happy, everything, >> being creative, I feel like has has led you to a lot of success. >> Yeah. That that is just not just career advice, that's life advice for sure. >> Yeah. Uh being creative actually has led me to a lot of cool places, man. Uh where I'm like I'm not looking at it like this, but I'm looking at it threedimensionally. I'm I'm,

you know, thinking about it in a different way. >> I love that, dude. That's amazing. What's the third thing? The third quality for for mindset. >> The third quality for mindset is think outside of the box, you know, um which also kind of is creativity, but but thinking outside of the box um actually has uh has allowed me to um expand my horizon. So I'm like, okay, if somebody tells you that you can only go so

far >> and I do push the envelope, I would say that that's kind of like another another thing. It's like, okay, >> maybe a third pushing the envelope, maybe also pushing the envelope, right? >> It's like, okay, but uh >> what if I do this, you know, what if I push it a little farther? What if like what uh to not you know this is going to be kind of controversial but like maybe sometimes it's it's

better to say sorry than please you know sometimes >> ask for forgiveness >> instead forg exactly instead of uh permission >> permission and so um you know it's true when it comes to kind of rehabbing um and so um you know obviously I'm it's not going to help you much in your personal life but uh in in business it means a lot sometimes uh just thinking like okay I'll just do and then later on I'll try

to make it up some other way because I'm more confident that I can solve that problem instead of this problem, right? >> You know what I mean? I can get that much farther. And usually when you get there and you're like, "Okay, cool. It wasn't as bad as I thought, right?" >> You know, right? >> Um and so yeah, kind of pushing the envelope kind of um just kind of being a little controversial there, but that

has allowed me to um uh be different than everybody else. >> Yeah, I would agree with that. And I even see it like in our friend group, you know, like for the most part I I feel like and we do this really well with each other is where we like kind of challenge each other and really push each other and in a very nice friendly way. Yeah. Uh I I think that helps out a lot >>

uh to to challenge the status quo, right? To challenge what we're saying and to challenge uh even our our own mindsets or our own thought at whatever conversation we're having. So I dude, I I love that. I think that's helped me out a lot too. So, I I really appreciate that. >> Yeah, man. Yeah. >> Um, man, we've uh we've talked a lot about a lot of things here today. Um >> Yeah, man. It's been good.

>> Yeah, I'm so happy to have you and we've been talking about this for a long time and I'm I'm glad that we're uh finally getting a chance to do it. Um but, uh you know, pleasure, bro. >> Before Yeah, bro. Thank you. For before we before we ended today, um where can people find more about you? Where can people find out about I mean we mentioned you know Crew University, we mentioned um you know maybe

like even selling you a deal. How can people reach you? >> So um on Crew uh if you want to uh reach out to that uh you know go to that domain is it's cru.online >> and you can find out more about the online university. If you want to do a business deal together, uh, and you kind of are looking to, or maybe you have a deal in mind and you're looking to learn, I'm usually willing

to offer that you, uh, if we do a deal together, um, and you want to be enrolled in that online school, I'll do it for free. I'll give it to you for free. It's usually $3,000, but I'll give it to you for free. Um, all you got to do is bring me a deal. >> Um, and so, email me, borisanmore.com. I email me deals. I love seeing deals, looking at deals. I'm addicted to it. I make

at least 10 offers a day. >> Nice. >> You know, and so, uh, yeah, please do that. Uh, other than that, yeah. Um, just by being, you know, your dear listener, I'm willing to extend a $200 coupon. >> You know, if uh if you just kind of wanted to go out and purchase it. >> Yeah. >> Um, yeah. I just got to mention the keyword host way. >> There you go. So, for any anyone that's listening,

if you want, uh, get obsessed with learning, right? So, this is uh I don't I can't think of anyone better to learn commercial real estate from than Boris Sanchez. So, if you want to learn about commercial real estate, go to do yourself a favor. Go to crew.online. $200 off if you're listening to this podcast. Just >> uh mention Jose and you're going to get it. So, yeah. >> Dude, thank you so much for being here, man.

I had I had a blast. >> Cool, man. Thank you so much, man. Absolutely. So did I. Appreciate it. >> Thank you, bro. All right.