He Built a $10M Portfolio — Using $7M of Debt

If you accumulated x amount of wealth, that means you can live x amount of days without working. >> It's almost like you're buying your days off, right? >> Yeah. >> I don't really care more about the numbers as far as how many houses I have is how long can I do this for that I can still maintain my freedom. >> What was your mindset like whenever like as soon as you understood that there's DSTR loans and

now you don't have to use all these credit cards to buy properties? So now I need to make sure that I am I have a six month and a year plan to for the business. If I was to stop business today, how many months do I have? >> You've compacted your entire work schedule into 3 days only. >> Yes. >> So you only work 3 days out of the week, >> correct? >> That's pretty great. >>

I started buying a bunch. I think at some point I was like five properties uh in tip-top shape uh because it gives you a lot of accessibility to funds um whether it's to buy a home and have a good rate or whether it's to buy a car and have a good rate and have the best option for yourself like lines of credit loans home equity line credit. >> Oh that is nuts. >> That was it. That

was it dude. >> Welcome to another episode of Pick Up the Phone podcast. I am your host, Jose. I'm the CEO of Bangcom.io. I specialize in helping companies out with marketing, sales, and AI. Today's guest is Richard Marquez. Uh, Richard has a portfolio of $10 million worth of real estate. He was able to buy that by leveraging $7 million worth of debt. Um, and we can get on into that right now. Uh, and you own, so

there are 39 units that you own. Half are single family, um, half for multifamily. And I think probably the most important thing about everything that you just shared right now, Richard, is your ability to have financial freedom with your family and be able to split up your your week like you did. And I love to get into all that, man. So, um, so Richard, thank you for being here, bro. >> Yeah. No, thank you. Thank you

for having me on this podcast. Uh, it's it's a great thing you're doing for the community and be able to share different, uh, perspectives and different entrepreneurships that people are doing here in Houston. Uh, so I, you know, appreciate you allowing me to speak and hopefully share and, uh, resonate with some people that are trying to start and and do something for themselves to hopefully, you know, give them that financial freedom as well and enjoy their

time with their family. >> Yeah, man. I think I think one of the biggest things that you said was like anytime when you're in business, like we're all in different levels, right? And there's people that are always at the top. There's people that are like starting off. And there's all these like a wide spectrum in between. >> But you can always at whatever level that you're at, you could always take a pause and help someone that's

coming up, right? And I think that's something that you mentioned that you've done. Um I heard you telling a story to Noah here before we got started. >> You helped someone out and you taught someone and then they quit their job after 3 weeks. >> Yeah. Yeah. Yeah. [laughter] Yeah. Yeah, man. uh this person uh he wanted to join real estate and he told me well we've been knowing each other for a couple of years now

and uh he was my barber 10 years ago before that >> and uh was seeing me that I was buying real estate and so on. He asked me if I could help him. Went through this process so he couldn't you know learn it and he's like but I'm trying to quit my job. I'm like you sure you want to quit your job? I've been at my job for 10 years and I'm still doing it >> both

times and no he was pretty serious. He just wanted to go all in and that's what he did. Uh he quit his job two weeks. Uh he had a degree and everything and um he was a project manager. >> Mhm. >> Quit two weeks. Uh bought his first property. Uh he ended up buying the property halfway done. I guess somebody ran out of money and he took it over. >> He completed it. He sold it to

one of his buddies. >> Um and yeah, he made it a good amount of profit >> and basically continue that. He then he bought another property. Then from there he branched off to being a contractor. He liked that uh that idea better and now he's three years in and you know he's still doing that. Uh never never went back, never clocked in. So great story and um uh so one story that I always remember just because

he was bold enough to quit his job and say and and believe in himself and honestly put his family first cuz that's really what he told me. It's like I want to spend more time with my kid. Yeah. you know, so to me that was pretty resounding uh just information that I was like, "Wow, it's it's anybody could do it. It's just how bad you want it." >> I think that's that's what it boils down to,

man. You know, I I think this whole industry, especially being in the US and, you know, like you said earlier, um talking about debt and leverage, there's so many options here, you know, so really the door is wide open. It's just for who really has the courage enough to walk through the door. >> You know what I mean? >> Yeah. >> So, but let's let's talk about you, bro. Um, where are you from? Were you born

here in Houston? >> Yeah, so I was born here in Houston. Um, I did live in Mexico uh when I was like um four or three. I lived over there for about a year and a half, then I came back. Uh, so Spanish was my first um uh language. >> Yeah. >> Went to school here. And then from here, you know, I just, you know, lived here in Houston. Um, lived with a single mom, apartment, and

then basically um started working in sales jobs. First I worked at a at a warehouse with my uncle and then from there I ended up uh working at Foot Locker, worked from Foot Locker, >> then I jumped to Chase, became a teller, and then after teller I became I worked at T-Mobile, and then from T-Mobile, I left. And I've been a car salesman for one month. It was not a great job for me. I left within

a month. >> Then I went back to banking but as a personal banker and then from there I transitioned to assistant manager then branch manager did that overall for 10 years in banking. >> Um and basically from there just jumped into real estate. >> Nice man. Nice. >> So you you were a what was the last job that you had before you went into real estate? >> Uh branch manager. I was a branch manager at a

bank. >> At a bank. Okay. Do you think that that last job helped you understand all all of the loan options that are available for investors out there? Um so so just because the options we have as an investors the those particular loans the standard banks do not offer those type of loans right uh your banks your traditional banks they are just conventional or FHA which is you know your income uh you know your pay stuff

you know two years bank or you know two bank statements and so on just a traditional process uh but the other type of banks which is for investor friendly uh it's just a lot smoother for that type of process to invest in real estate. So, what helped me in banking was just the relationships that I uh was able to get with people. Uh your day-to-day clients and what do they do? How do they operate their money?

I would see people that, you know, that make half a million dollars and they have nothing to their name. Or I have people that, you know, that make a decent wage and basically have $50,000 in their bank account. >> And you you'll just meet sometimes blue collar jobs. I remember one particular one, he was a mechanic uh for United. >> Um and he made a decent salary, but had 10 rental properties. And then I will meet

another uh um I think he was uh he worked for a big uh construction company and same thing he had five to 10 properties. And it was just with those conversations that I understood that you could work you could work at a you know your professional job or any type of job and then have a side business that can maybe someday grow. >> Um and then from there also learn the credits right making sure that your

credit is on point uh when you need it. Um, one of the things about credit is that you want to have credit uh and accessible when you don't need it. >> Right. >> Because when you need it, most likely your credit is already shot. [laughter] >> Right. >> Right. So, I think that was one thing that I really did learn is making sure that your credit is always uh in tip-top shape. Uh because it gives you

a lot of accessibility to funds. um whether it's to buy a home and have a good rate or whether it's to buy a car and have a good rate and have the best option for yourself or again maybe take opportunity and make an investment for yourself and that's how I really started uh because my credit was always there uh my income again it was a standard W2 job so it was always accessible to me and pretty

much I use it as a leverage that's when I continue my my uh my first investment I uh put out from a home I good line of credit and a line of credit and a personal loan Um, what I do want to add, when I first started the credit mentality, I remember that I I got uh I think it was like $3,000 loans for no reason. >> Literally just borrowed it and used that same money to

pay back the debt, >> pay the interest, whatever it took, just so that way I could have something on credit. >> And that way I had that responsibility or that experience of this loan. And then little by little, I would grab that 3,000, then I would grab five. And same thing, I never needed at that time when I first was into banking. I wasn't really thinking about real estate. It was just I just knew that >>

build it up. >> I just wanted to build it up. I wanted to I remember with this one client I remember this one time he came to the bank and said I want a $20,000 loan. >> Went in there, applied for it, and for the most part some clients wouldn't get approved easily. So I always kind of always thought, okay, well I guess I'll let you know tomorrow. Dude, the loans were ready to go. So that

he came in there, $20,000 loan, he got approved instantly. >> Wow. >> And that's when I learned I'm like, "Wow, I want to get there." >> Yeah. >> When When did you So I know that you probably saw all these different people that were in different fields and then they owned real estate also. Is that kind of what sparked your interest in it or where did that desire to start buying real estate come from? >> Yeah.

Well, one, um, since all my life, uh, with my mom, we always lived in an apartment. >> Uh, and I felt like most of my family had a home. Um, I guess I felt a little bit left out. And I I felt that it was something that was important that would um I guess mentally uh make you stronger in some way or I don't know something about it of having a home >> and having stability uh

was something that was engraved in my in me. And then when I started working at a bank, I remember I think uh I think I was like I started working at a bank like at 20 21 >> and I remember like oh I want to buy a house. >> And somebody were looking at me like you want to buy a house? You're you're barely 21. >> I like well yeah I do want to buy a house.

And then yeah, sure enough, two years later, I bought a house. And then from there, it was just more of keep building off of that of, hey, if I buy another house, >> you know, I guess it's just that stability of >> again to me at that point, it was I was just glorifying having a house, >> right? >> It was just a status symbol for me in a way like, oh, I own another house. Mhm.

>> And then that's kind of how I guess it became instilled that having home ownership was uh pretty important uh for me growing up and next thing you know I was just buying one house at a time each year and sometimes it was just lots and or one lot and uh but yeah it was just the foundation of having that asset. >> Yeah. No, that makes sense. >> When did you decide that it was time to

quit your job and go full-time into real estate? >> Uh that was about 3 years ago. Mhm. >> Um I felt that uh I remember I was trying to apply for a bigger branch >> and I didn't get it and um that's when I realized I'm like well thing is real estate is kind of it has already grown. I never had cashed out of my real estate. Um so I never really seen the value of it.

It was just more most of the properties that I was buying during that time. I think three years ago when I when I when I saw when I when I left the bank, I think I already had I don't know maybe like 20 properties. I can't really recall >> when you left the bank. Yeah. >> When I left the bank, I think I already had 20 or 15 or 20, something like that. >> Yeah. >> Um

>> and then I didn't realize what I really had. I wasn't thinking of >> how much I bought them for and what are they worth now? For me, those houses were just piggy banks that when I retire, it's what's going to end up paying me. And then I ended up uh buying one. I remember that halfway through that process. Uh halfway I was like, man, I don't think I I want to continue with this project cuz

I ended finding I was in a flood zone. So, I got scared >> and I was like, shoot, I want out. And I thought about it. you know, like if I put in the market, obviously these investors, they're not going to pay me what I I bought it or whatever. >> And I decided to just keep going, >> finished it, ended up making 40 grand. And that's when I realized like, wow, >> this is a lot

of money. >> Yeah. >> This is half easily from what I made in a whole year. Yeah. >> And that's when I realized that I have something going on here. >> And that's when I realized that I what I already had, right? Again, I already had 15 20 properties. >> The issue is that I never collected on them. So, I didn't really realize that I had all this equity built up and right, >> that's how I

kind of figured out that, >> okay, maybe maybe I don't need my job, >> right? >> Yeah. >> And then at that point, did you decide to go all in and start flipping or what happened next? >> No, I continued to just buying and and uh you know the DSCR loans, right? So, I'll buy them, I'll rehab them, and then basically do a DSR loan to to just keep them. Um, >> when were you were you

buying with cash initially or with hard money? >> It's a good question. I I'll kind of step back maybe I guess 10 years ago. So 10 years when I first started buying. The first uh five years of buying properties, it was mostly with just credit, lines of credit, loans, credit cards, all maxed out. Uh buying them retail prices I was mentioning to you. Uh I think my first property I bought was 30 grand in Fifth Word.

I actually still own that property today. >> Bought it for 30 grand. Put 30 grand in. I think all my debts with loans and credit cards was like 12,300 bucks and I think uh my rent was 12,300 bucks. So it was just break even. Um I did that for again three four five years. >> Wait, wait, wait. But like how would you DSCR into a long-term loan for you? Because you just mentioned like your your credit

lines and your credit cards and everything equal 1300 and then the rent was 1300. So that means you didn't refinance right away. >> So correct. So my first five years My so 10 years I've been in real estate. My first five years I had no clue of DSR loans. >> It was just all just credit like lines of credit loans, home equity line credit. >> Oh, that is nuts. >> That was it. That was it, dude.

Max on everything. >> And obviously after 5 years, >> well, guess what? My income can no longer support the debt, right? Technically speaking, because also even the income on the rental uh probably I was not reporting all of it. So the bank again, you know, the banks are strict by those black and white lines. They don't meet, right? So I was done with. So then that's when I realized, okay, well, I guess I guess that's good.

I'm I'm, you know, that's when I realized that >> I can no longer buy. I think in 5 years in I had just bought maybe one lot. I had owner finance, I think two, three rentals honestly. Mhm. >> And then uh after the 5 years, that's when I started meeting also at the bank more actually uh professional investors in real estate. >> Um I actually met during that time uh Mr. Wong, Luke Wong. Uh he was

a wholesaler as well here. >> Oh yeah. Yeah. I think I I think I know him. >> I Properties I think where he's how he started or something like that. But he was also a wholesaler here in Houston. Um, and that's when I understood the offmarket properties, the DSCR loans, the private lenders, >> the private banks, and how they operate. And I was like, "Wow, there's a whole strategy behind this >> actually buying a property." Right.

So then he ended up uh introducing me to several private lenders and ended up uh meeting one that was the perfect match for myself because he was a local private lender >> that uh we talked on the phone, right? Um I remember my first deal that I I I brought up to him, >> you know, he started asking me all these questions like the points and what is ARV and how much it rents for and all

this and that. And I was kind of just, well, what's an ARV? What about the points? What what are the points? And he was like, he even told me he's like, do you know what you're doing? >> And I was like, I do know what I'm doing. I just I'm not I'm not I'm not good with the verbiage you're talking. I'm not I'm not I never heard those words. I'm not familiar with it. >> And then

he's like, okay, well, regardless, the numbers do make sense. And that's when I uh we ended up doing our first deal was a a property in Fifth Word. It was a property. It was a lot and a house, 10,000 square foot lot and 77026 for 70,000. [clears throat] >> Um, and yeah, I think he loaned me 90,000 on it instead of buying it, rehabbing it, and then exiting out of it into a DSCR loan, DSR loan.

And that's from there when I seen the process. Okay, you buy them, you have enough room in them to rehab them and what it will appraise after and then get that one loan to exit out of your first investor or your first lender in this case being a private lender and then just keep repeating that same process over and over. >> Wow. What was your mindset like whenever like as soon as you understood that there's DSCR

loans and now you don't have to use all these credit cards to buy properties? Um, well, I got excited and and honestly around that time was around 2019. >> Yeah. >> So, prime time. >> Yes. I started buying a bunch. I think at some point I was like five properties. >> Yeah. >> And then, well, here's the catch. >> Next thing you know, I'm looking at them and I'm like, shoot, I got all these empty properties

because my guys, I was only focusing on one project at a time. And then I'm like, "Oh, shoot. I got these one, two, three, four properties that are vacant that I'm just paying interest on." And then that's when I end up realizing, "Okay, I need to hire another crew." And started kind of working on them. >> And then next thing you know, when the appraisals came back, >> there will be, you know, because of the time

that it took me, sometimes I will have to leave money in the table. >> And then that's when I realizing, okay, I need to make sure that all my numbers are in line. So that way when I do the DSTR loan, I'm able to get my cash back, able to continue doing this because at some point you can run out of money. >> Yeah, absolutely. >> It was really making sure that uh you position yourself with

uh the responsibility of making sure that you finish the projects, you keep your cash flow, you keep your cash management uh with the money that you're having >> to um sorry about that. um to just make sure that you know you continue the business. >> Yeah. Yeah. Yeah. So, and whenever you started like you you're buying these houses with just credit and you never like took a time maybe to say, "Hey, maybe like I should maybe

look into was there any ever any curiosity to find out any loan products or anything like that at the time?" >> Um before I started doing the ther? No, I just never had a clue because I guess >> it was working out for you at the end of the day. >> It was, but not necessar just because of the banking. I mean, we knew what our products were offered. So, I'm thinking I work at a bank,

so I would imagine >> Oh, I see. >> I know what all is out there. >> Yeah. >> Right. Because >> it kind of boils down to like you get so confident in something and then you're like you don't even question the the even the thought of anything existing outside of that world. >> Yeah. Yeah. And I only knew what I knew. >> Right. >> Right. So I only knew that, okay, you have good credit, your

income satisfies it, and that's it. I would have never thought that there's a different program for a different type. Well, I didn't later on. I remember uh the bank um I ended up going to a different branch. What I would say is that once I moved to a different branch, I started meeting different types of clients. And I remember this client uh introduced me to the word factoring. So there was these loans that the banks offer

that was a factor loan. Um I think that's what they're called actually. >> And basically >> if you have a uh an invoice as a company >> you sell that invoice to the bank. The bank buys that invoice but at an 80%. >> Mhm. >> Right. And then that way that uh company, let's just say myself, I get 80% of the income and then when the bank gets paid, they keep that 20%. >> Yeah. >> So

that was a different type of uh you know product. So uh but obviously I still didn't know that there was something accessible for the real estate, right? >> Um I remember one time I did talk to a client uh but again nothing >> didn't open up my eyes that there was other uh options. I just remember him talking about that he would send letters to people and try to buy their houses and he would try to

be very creative and in getting his people to sell their homes. Now that I think about it, they were wholesalers. >> But never knew I again in my world and the real estate and the banking, you know, it was just bank. It was just traditional, just nothing out of the ordinary. Everything just >> W2s and people that work and again maybe uh bought homes here and there. >> Yeah. Got it. Got it. So 2019 you went

uh you started buying a lot more. How many houses did you have at that point? And then I think you started going into flipping primarily, right? >> Yes. No. So I still continue to just buy and hold. >> Really? >> Yeah. I continued buying, holding. Uh so 2019 I think I was I would say again 15 or 20 I think is the number that I can think of right now. >> Uh I was just buying between

one or three properties per year, one or four properties a year. Um, and basically that's when I ended up understanding the construction side of thing. I ended up having uh my private lender ended up introducing me to my main guy that runs the operation now, which is like my construction business. >> Um, he came from another investor that I guess it went it went south so he needed somebody else to work with and this guy already

had experience in electrical, plumbing, uh, framing and all that. So that's really what catapulted into different areas of properties of what I could buy and what I could really manage whether it was a all the way down to the studs or it was just cosmetic work. Um so that's so from there I just kept buying properties again not really realizing what I was doing. It was just more of again just piggy banks for myself. Yeah. Um,

I flipped my first one. Uh, I think in 22 23, that's the one that I mentioned that I pretty much halfway I was going to just get rid of it or just try to sell it again. Uh, I ended up finishing it. Ended up making 40 grand. >> Um, and then from there, flipping was really not in my I guess in my area. I didn't really like to flip cuz since I had my W2 job, >>

I did I I got paid well, so there was really no reason to get that extra money, >> right? >> Um there was really no reason, not that I was getting paid >> like, you know, extremely well at the bank, but decent enough to still support myself, right? >> So those properties was really just to kind of just, you know, just piggy back off of and just keep adding them. >> Sure. So when did you start

flipping? I started flipping I think end of 23 and then 24, but it was just what I already had. So, I started getting rid of all my hood properties, I started getting rid of all those. The moment I started kind of seeing that there was bad tenants issues or just um honestly it was just the areas. I'm like, you know what, I don't want to deal with these areas no more. So, I started getting rid of

them. >> Yeah. Um, and then buying areas where there were more, I guess, just better neighborhoods. I think I could get a better tenants. Yeah. >> Um, so that was kind of really where I just started doing just started getting rid of those. Started positioning myself in better areas >> uh and hopefully better for appreciation and stuff like that. >> Yeah, got it. Um, man, that's that's pretty incredible. I think that uh it goes to show

how much information is out there still left untouched, you know. >> Yeah. >> And so I even thought about it just now. I was like, you know, I um I have like certain settings on my my chic tea. >> Mhm. >> And I think a really good one would be to uh point out things that you don't know, right? If I ever ask a question, make sure that you give me uh more information on what I

don't know about this subject, for example. >> Yeah, I think it' be a good prompt. >> Yeah. Yeah. Yeah. I think uh chat GBT I think even people I seen online where >> sometimes you could ask a question to chat chat chat GBT >> but then they're like hey you should add this to it so that can amplify that conversation and get better results from chat GBT. So I I have seen how to talk to it

better basically, right? How to spit out more information. It's all about the prompts. >> It's Yeah, exactly. So no, it's it's good. I think in real estate, you also start uncing covering different areas for yourself. >> Um, one of the things that I learn about myself now that I don't work for nobody, >> I apply pressure to myself of finishing the projects, making sure that the projects and the product is good for my tenants. M uh

so now I really think about it more as a business. >> Before it was just more again it was just >> ting up these properties for piggy banks for my future retirement and now I think about it more as a business and what I want to buy, what I want to deal with on an everyday basis. >> So right now I have properties ranging from single family to again small triplex and forplex and now an aplex.

Yeah. >> Um I also bought a property in Cleveland. That one is seven acres in a house. And that one taught me a little bit just different stuff like a a well, uh septic tank. Um like for example earlier I get a call that the water stop running and basically now the whale service guy has to go and do something to bring water cuz >> right >> the tenant doesn't have no water. No running water. >>

And it's a well it's a hole on the ground. >> Exactly. A year ago. Was it the pump that went wrong there? >> Yeah, I think the pump. Something like that. Sometimes I I already bought something to it. I don't even know what I'm buying, honestly. I I just called the dude, he does it and the water's working again. >> Perfect. >> Uh I'm like, cool. Uh I'm just really trying to just keep that property for

obviously future. I mean, 7 acres, so hopefully, you know, it's a good one in the future. >> Yeah. >> Um did you get a good deal on that one or why did you decide to buy that one? >> I bought that one for 190. >> Okay. >> 190. It's a 2,000 foot property. What was it worth? >> Uh 345. >> Okay. >> Yeah, 345. >> Wow. Yeah, good deal. >> And that was in 20. >> It

need a lot of rehab or >> No, minor. Very minor. I think I only put maybe like 10 grand in it. I literally just put light fixtures, paint, >> outside, inside. >> Uh a good deal, man. >> Honestly, I didn't I didn't really do nothing to it. >> Yeah. >> Uh couple of landscaping. I honestly just really just cut the yard. That was really it. >> Yeah. >> Uh but yeah, great property. Um matter of fact,

uh the other day when I went or the last time I went, >> I I heard a lot of commotion at the end of the street and I drive over there and next thing you know, I look and dude, they had cleared out I don't know. I can't 10 acres, 20 acres of just land just cleared out. >> Dang. >> And uh I still don't know what they're going to do. I'm assuming new homes. >> Yeah.

Yeah. >> But I was like, "Wow." I mean, >> so it's close to your property where it's at. >> Yeah. Yeah. Literally down the street, like where I was at. Maybe I don't know 2 minutes, 3 minute drive, just at the end of the street. >> That's promising. >> Yeah. So, who knows what what, you know, what what's going to happen. >> And you have seven acres out there. >> I have seven acres. Yeah. Yeah. >>

That might be worth a lot in the future. >> Yeah. Exactly. So, that's why I'm just keeping that one and just making sure that the tenants pay the bills and uh deal with that. I think the other day, too, I had to um The only thing is just the maintenance on that one. Like I said, the well, >> uh, I don't know if I'm gonna keep because apparently now there's already public water that I can tap

into. Yeah. But it's like eight grand. >> So, I don't know. I might just go that route because matter of fact, I just talked to the guy and he's like, "Oh, yeah. If you want to get a new pump, it's like three grand." >> So, I'm like, I don't want to keep dealing with this whale issue, >> right? >> Uh, so for sure in areas like that, uh, those are thoughts that you want to think of

um, what you're buying. Mhm. >> Um I also don't like driving all my properties. >> If I was to drive from my home to all of them, >> they're all 5 minutes apart. >> Really? All of them? >> All of them? All of them. I literally hit one, five minutes, 5 minutes, five, not obviously from one another, but as I jump to one, then becomes five minutes to the other and next thing you know, I'm doing

a circle and head back. >> No kidding. >> Yeah. [laughter] Yeah. Yeah. Yeah. >> Did you kind of plan it that way or >> uh I kind of did just because I don't like driving. I hate driving. Do I hate this traffic? Okay. >> What part of town you live in? >> Uh right here by Oak Forest. >> Oak Forest. >> Oak Forest. Yeah. Right there. 610 in Ella. >> Yeah. Yeah. Yeah. >> Yeah. So I'm

I'm right there. >> So all your properties are around this area. >> Yes. So they're primarily in in case you know whoever the listeners are watching, I primarily buy in 7709 >> 77018. Those are really the two zip codes that I'm really just focusing on. >> My flips um is in 77 Spring area. I guess you could say Spring Cypress. Um, I have a flip right now in uh right there in 77064. >> Um, and then

a couple of rentals in spring. I kept some of those. Uh, so I like spring uh to flip or anything north. Anything that's like slab and brick, those are my kind where what I like to flip. But anything that's inside of Houston, I like to keep. >> Okay. >> Uh, so I tear them all down all the way to the to the studs. I do new plumbing, new electrical, new drive, everything all the way to the

studs. You do it always on every every house you're going to keep and hold. >> Yes. All of them. Really? All of them. I go all the way to the studs. I don't want to worry about the tenant. I want the tenant. It It's all about what the market's going to pay you, right? If you give them a halfway done house, >> that's what the tenants going to pay you. I think most tenants are aware of

what they're buying, right? The market is pretty accessible to just anybody, right? >> So now it's really just what you offer, right? So if they walk in, they're going to know if it's brand new. they're going to know if it's hasn't been, you know, remodeled. Right. >> So, I like to every property that I buy, it's going to be all the way to the studs. Well, that I'm going to keep. >> Right. Right. Right. So, you're

saying on every single property that you're going to you're buying and holding. >> Sorry, correction. In Houston, >> right, >> because those are the ones that are needed in my spring properties that are rentals. Yeah, for sure. Those are just cosmetic, not just paint, carpet, tile, just cosmetic. >> Well, they're also probably newer properties, right? >> You said what? >> They're also probably newer properties. >> Uh '7s, 80s, 90s. you know. So, yeah, I guess you

could say, you know, somewhat new that maybe you don't have to do it immediately. >> What about the ones in 770 18? >> Oh, yeah. Those those all the way to the studs. >> Yeah. But what uh like what's the build age of those small ones? >> Oh, those are like 50s, 40s. >> So, that's why it makes more sense to break it all the way down to the studs, right? >> Yeah. There there's no uh

I tried it already where I went halfway into it. And honestly, I just I think about it. Okay, if I'm going to open up a wall and I'm already in the wall, why am I not going to replace all that's already there? And then if I want to go back to the next time, then I might have to break something and then I already spent money for this particular piece of >> It doesn't make sense. >>

It doesn't make sense. So, I just go all the way to the studs. >> Um, and actually, the reason I like that option is because it keeps my busy my my guys busy. So, again, as I was mentioning, I have an in-house crew. >> So, that allows me to keep them all year round. one property I'm there minimum three months. >> Yeah. >> So now I only have to buy four properties a year. So the reason

um I know you mentioning if I flip I don't I don't really flip just because then if I flip >> then I got to do more flips, right? >> Cuz flips like right now the the last flips I did I did three flips this year. One in 7091 >> that I bought it back in 2020 >> and got rid of it uh when I was trying to rent it. I think I was I was um mentioning

to y'all that it was vacant for six months. >> Couldn't find a tenant. Ended up spending 12 grand just on vacancy. So, I'm like, you know what? I can't rent it. Let me just flip it. >> Right. >> Then two flips. Uh one in there by Hardy and 45. >> That one, same thing. Cosmetics, two weeks in and out and it was gone. But, uh, for my guys to continue keeping them busy, it won't make sense

because then I have to buy a lot of properties, you know? So, at least now when my home's in Houston, I could buy four a year, five a year, and at least I don't got to worry about >> buying cuz having the pressure of having that debt outstanding, especially since they're one year loans, >> man, it's it's a lot of pressure because you got to exit, right? You got to exit. Um, so I rather be comfortable

in buying, you know, again, four to six properties a year. And that way I know that, okay, they're there. The guys could be there for 3 months. I keep my my uh pretty much my cost down because again, my guys work for me dayto-day. So they're uh they not day laborers, but you know, I guess they clock in, clock out, and I have a fixed rate >> on the price where I'm going to pay or what

I'm going to do. >> Yeah. Yeah. So that allows you to have your costs extremely low and be able to buy properties and then maybe even pay a little bit more than anyone else could or at least make sure that you're all in at that 70% rule, right? And be able to exit at that 75 80% on the refinance. >> Correct. Yeah. >> Yeah. Yeah. When did you uh decide to get your own crew? Uh so

it's I guess it became uh so the the guy my private lender in that time that he introduced me his name is Alex uh well I noticed that he could do everything. So from there he was like, "Oh, uh, I have another buddy that can work work with you." Got another guy. Got another guy. And pretty much the next thing you know, I was like, "Okay, cool. I have three guys." At that time it was three

guys. I'm like, "I think we could do with this." And um and then they just kept working because I always had, >> you know, work for them again for 3 months minimum. And obviously every time a month before I was about to finish all the product, I would buy another one and so on. So it it never allowed any days off for them to say, "Oh, I need to go look for somewhere else." So that's what

that's that's how it allowed me to keep them that long. >> Yeah. >> Um and >> but initially, I mean, when when it starts when you start a relationship with someone, right, they they charge you probably by the contract, like what the work needs to be done, right? When did you transition to, hey, we're going to start doing like more of a salary type situation? >> So great question. So in the beginning when I did start

it five years earlier into my actual kind of like when I really was I guess more experienced the first two to three years it was more contractors right hey you do this >> you said it was five years ago >> uh yeah five years before yeah five years ago is when I first was just using contractors >> then when I met the private lender and he introduced me to this guy >> then it was immediately I

already knew that I no longer wanted to pay contract like hey you brought to me in that kind of um um in that thought that because he already worked for another investor. So that was already same thing as like hey you're going to be work for me for the day this is how it's going to go. >> So the private lender brought you the contractor also or like the the guy that was going to work with

you. >> Yeah. >> Nice. >> Yeah. Yeah. And then from there was already set. The expectations was already set that he was going to work for me for the day >> because my private lender also knew that I was already buying properties you know again um I wouldn't say every other month but every 3 months therefore he knew that it made sense to keep them at a fixed rate and I could give him work for you

know years. >> Yeah. Yeah. Yeah. Wow. there with with that connection too. Dude, uh he man, this guy is loyal. He is a family to me now. Matter of fact, I took him to Disney. Uh >> yeah. >> A year ago. >> Uh took him, his wife, his daughter, the other worker. >> Uh I took him to Disney. I flew him out there. >> Yeah. >> Uh we went there for a day, rented a Tahoe, and

then we flew to Miami. I mean, drew drove to Miami, >> spent a night in Miami, and then flew back to Houston. >> Damn. >> Uh yeah. So, it was it was pretty cool to see. Unfortunately, now I can't do that. But um I was wanting to do it every year and take him somewhere. Yeah. Uh because that guy I owe it all to him in that um aspect because uh he's loyal. >> Um I don't

have to think about what is he doing. I know that he's going to be there. He's serving the the business. He knows that this business fits his family himself and and and just just a well-rounded person. He's uh very intentional with what he does every day. Um and again for sure I would think half of my business wouldn't be the way it is because if it wasn't for him. >> Yeah. Yeah. >> Yeah. >> Yeah. I

think uh you know in business you can't do it alone. Yeah. Right. And so you need to have the right people on you know in in the business with you and doing the right things that where maybe you're lacking or you need more time in in a certain area. So I think uh it allows you to scale a lot more effectively. For sure. >> Yeah. So, um, man, let's talk about, uh, let's talk about now, um,

the unit split. You said you have 39 half and then 39 multif family. >> When did you make this the decision to start buying more multifamily, these type of uh, unit mixes? What prompted you to start buying properties like that? >> Yeah, so I think it happened um, honestly not too long ago. It was maybe like two years ago, one year ago. Um, it was from a flip that I did. And this flip, I think I

was going to I think I was going to make like 70 grand or so. And I don't want to get hit with the taxes. I'm like, let me do a 1031. And around the same time this 1031 was going to happen. Obviously, I still didn't have a property on when to when I was going to find it. Next thing you know, lead comes says, "Hey, this is a forplex." So, I went for the forplex, bought the

property, moved those 70 grand into that forplex, and that's when I realized, wow, I bought my first multif family um or four unit, you know, and uh and then from there, I'm like, okay, I I got the first one. Um when I got the first one, >> when did you buy the first one? >> This was in 20 I think 23 probably. It was literally the the the end of the year, like this I I think

I closed like December 31st, something like that. Amber, even even to close was a was a challenge. I think when I was going to close my flip, the people that were going to signers on buying it were in Brazil >> and I needed to close December well before December 31st to actually make that 1031 effective. And uh there was a time where I was even debating whether I was going to fly to Brazil, get this document,

and bring it back to close on the day. >> Yeah. We're figuring out now that they can go to the embassy. >> Yeah. >> Get get that get FedEx to pick it up and then, you know, drop it back. I was shocked how >> that whole process literally took two three days. >> Yeah. >> And I was like, "Wow, this document was legit in Brazil." >> Yeah. >> And came back at the title office. >> Yeah.

>> By the time we needed it, like, wow, that was pretty impressive in the world where we live in now. >> This document was in Brazil and now it's here. >> It's here, >> you know? So, that was cool. Uh but yeah, ended up buying that one and then after that one uh basically they just started showing up showing up in my inbox, showing up in a text message and then I was like, "Yeah, I guess

this should be my maybe my next step to to buy these other little What I really like about the multi is that um I feel that I can I can sell it to the masses more uh easier, I would think. like I could put in a R and somebody that's wanting to maybe buy or live in one and rent the others, it's accessible. So, >> uh it puts it it places me in a position where if

I ever want to get rid of them, I can put it in this in the market where masses can be able to buy it with FHA loans. >> I think FHA loans now they can approve up to 7 $150,000 for one to four uh you know family uh one what do you call it? One one to four single family homes. Um so that's great. that that puts me in a position where like wow the government is

pretty much funding you. >> Yeah. >> You know, so that's that's pretty great. That's pretty awesome. U and then I really like the houses that like right now I have one in 7709 actually two of those where it's a you know standalone single family home and then basically a duplex in the back. >> So that's great for a family that you know wants to live in one and have an actual full-size home and then get to

rent the back units, right? Okay. And there's two units in the back. >> Two units in the back. One one at the bottom, one at the top. >> Very cool. Um, >> where's that house at? >> Uh, so both of them, they're in 7709. So, right there in north side. >> North side. >> Yeah. So, uh, those are great properties. >> Is that like Shady Acres or >> No, North side. So, that's like Irvington, Fton. >>

Okay. >> Cabalcade. >> Got it. Got it. Yeah. Yeah. >> Cool, man. That's awesome. You got some You got some good unit mixes then. >> Yeah. Yeah. Yeah. I feel like, you know, like from listening to what you're saying, it almost makes me feel like it's kind of the right way to weather any sort of call it like a recession. You know, if there's ever like a need or anything drastic that happens in the world minus

the entire economy collapsing, >> dude, you know, like people are always going to need houses. They're always going to need these multif family. I feel like it's such a safe investment. >> Yeah. You know, especially those unit mixes, you know, like small ones, right? Because once you start getting into like big or bigger multif family complexes, then you're talking about, you know, dealing with private equity and like, you know, syndicators and all these other, you know,

scenarios where people or capital may not be readily available to be deployed on the property that you have. >> Yes. >> So these these I mean, anyone can get a loan with from the government. >> Exactly. So, it's so easy to deploy and very easy, very liquid, I would say. >> Yeah. And you know, you'll be surprised how many people have money. >> Mhm. >> Uh they just don't know how to do it >> and they're

just questioning how to do it correctly, >> right? >> And sometimes just a little guidance or, you know, or or just thinking about it or or being like these podcasts that are out there and and people do listen. Um there are I I I I met a couple of people that have a lot of money in the bank. >> They just don't know what to do with it, >> right? >> Um so when I think especially

this new I think at least in my mind I'm thinking last five years I think it's where people really started thinking about housing and and house hacking and how can I not not work forever and not work till I die and have some extra cash uh one way or another. So these properties >> that's the way I look at them. I think about him as okay if I was to buy them based pretty much how can

I position myself if I was that buyer. >> Yeah. >> And honestly it works out well obviously like you said if they're you know I mean >> bigger units it's not accessible to anybody and then at that point then it really depends on the market what the market is paying. So now you really focus on the market of how that economy is doing as you mentioned. And as far as single family, obviously the the economy and

the market and the rates still uh play a factor into it, but at least you could dissolve that that particular position a bit faster just because it's it's uh anybody can really take it. Um especially with that um you know that particular type of family type of home, right? I think your standard or standard homes are just you know just single family. Well, there's going to be many of those, but maybe triplex and duplexes. >> I

wonder how many are they available that maybe at least it allows you to be that one different in in in the market. >> Yeah. Yeah, I agree. So, um I think you said something about a lot of people don't know about this. They may have money in it. I think you're a great person that some people might be able to come and learn from, right? >> You said you you've already taught a couple of people. Yeah.

>> How to do it. How did this happen? Did they just appear before you and they say, "Hey, I want to learn what you're doing." Richard, what what happened for you to start teaching some people about real estate and what it is that you do? >> Uh, one, I felt that it was uh it's pretty accessible to mostly everybody as long as your income is there um and you have some capital saved up. Um and then

willingness to to actually go for it and actually do a change for yourself. >> Yeah. >> Um and it was kind of that it was just, >> you know, are you willing to do it? Are you willing to, you know, move forward with this particular >> large investment, right? Uh whether it was a capital investment that you have to make in the beginning, right? The down payment to go through the process. And then second obviously is

take the loan go through the hoops of managing contractors making sure the budgets are precisely the best you could kind of you know make them to be right um >> and then exit correctly right whether you're going to rent it whether you're going to flip it or what exactly is your endterm goal. Uh most people that I talk to all of them have different goals. Some is like, "No, I I want something that could pay me,

you know, uh, you know, if I could do two, three flips a year, >> I'm fine with it." Some is just having an extra properties for, again, for, you know, I think that >> it's like a trophy, right? It's like, hey, I work >> hard. I work my 9-5. I want to have something on the side that can produce me income. they pay off the debt and then pretty much continue that kind of leave whether it's

to leave for your family for your kids u and just have something accessible to them that other than their nine-ive job. >> Yeah. Yeah. No, that makes sense. How are you finding deals right now? >> Uh mostly through uh wholesalers. I buy strictly I would say 90% has been from wholesalers. >> Yeah. one or two uh have been from either friends or a neighbor that I bought. I think I bought two from neighbors. One it was

uh given by one of my cousins. >> Uh but everything else been from wholesalers. So just everything online >> uh people that I you know whether they're I'm tied to their email or marketing campaign and they send them over to me. >> What's your process for finding deals? like whenever it's time to find another deal, do you start like going on Facebook groups or what do you do? >> Yeah, so Facebook groups is one. Um I

I really like to buy just per zip code and per square foot. >> I think those two things is one of the key components whenever I look at a zip code and I'm not familiar with it and especially if I'm already good in projects, then I just kind of pass it. But if it's a zip code and a square footage that I'm trying to be under, then that's when I really look into it and making sure

does it does it fit what I'm trying to buy. Yeah. >> So, but basically it's just Facebook online leads uh you know, emails and >> you just reach out to the >> just reach out and then try to >> take a look, >> take a look. >> Why why square footage? Do you set you try to stay underneath uh a particular square footage? >> Yes. >> How much? Uh, so I try to be under $100 a

square foot because uh basically I kind of I mean >> is that on the ARV or >> uh >> on purchase? >> On purchase. Okay. >> On purchase. Yeah. I try to be under 100 on purchase. And obviously from that 100 it also depends how deteriorated the property is, right? Cuz right how much I'm going to spend per square foot. So usually I spend about anywhere between 20 to 40 bucks a square foot depending on how

how um I guess how severe the property is. And then that's how I'm able to add that to the purchase square foot. Right? So if I'm buying at 100 and I'm going to spend $40 a square, I'm now I'm at 140 all in, right? >> And if the ARV is at 180, that means I have $40 worth of >> equity >> equity per square foot. So I try to make sure that I have the obviously the

biggest gap, you know, the the biggest equity there. >> Position myself, especially what we call sweat equity, right? So, if we know we're going to go all the way into the studs, then I want that number to be, you know, >> how did you land on that on that formula? 100 bucks a square foot all in >> just by I guess what's selling, right? When with all these appraisals, I know what uh especially especially certain zip

codes, right? >> Since I focus primarily on certain zip codes, I already know at least what is the standard ARV that's going to be in that zip code. So that's why I want to make sure that I'm well below that to kind of be able to total in my purchase and my rehab cost. >> Got it. >> Yeah. >> So it kind of just after doing a couple of deals for, you know, flipping and buying, you

kind of landed on that number. Okay. $100 a square foot is kind of where I need to be at. >> Yeah. Yeah. >> When you said square footage, I initially thought that you meant like the square footage, the total square footage of the house. >> No, that it is. >> That is too. Okay. So, what's the square the total square footage of the house that you >> like? Do you want to stay underneath 2,000 ft underneath,000

square feet? >> I'm sorry. Uh, so I guess it's yes and no to the same question. So, I want to be whether it's aund So, if it's 1,000 square feet, I still want to be at $100. If it's 1,000 square feet, I still want to be at $100 a square foot. >> Okay. >> Does that make sense? >> Yeah. Yeah. Yeah. Yeah. >> So, the size of the house doesn't matter is what is what you're saying.

>> Yes. Correct. I just want to make sure that when I'm buying it's under $100 square for the total of the house. So, >> oh, got it. Okay. >> Yeah. If even if it's a 2,000, I still want to make sure that the average square foot for the price of a home, it's under$100. Under $100. >> So, if it's a 2,000t house, you want to buy it for 200k or less. >> Exactly. >> Got it. Yes.

>> If it's 100,000 ft², 100K or less. >> Correct. >> Got it. Got it. >> Mhm. >> It's a pretty good formula. >> Yeah. Yeah. >> Another thing too that I uh So, that's one thing that I look at. And then the next is the lots. >> So, for example, I I bought recently one in um in um Oak Forest. >> Mh. which I that one, you know, as you transition from certain zip codes >> and

certain types of properties, the DSCR loans, >> uh, once you start meeting a certain square footage or I I guess you could say maybe luxury market, that 1% or those $100 a square starts going up. So, what I try to do on that one is making sure that I might add square footage to then end up averaging what I bought total in under that number that I'm trying to be at. >> Right. >> Yeah. >> So,

so then also too, if I have a bigger lot >> and I'm say, okay, I bought $100 a square foot for this house. If I add another building, whether an ADU or a small little complex now, >> what did you say? ADU. >> Yeah, ADU. >> Okay. ADU. >> Yeah. Yeah. Yeah. >> What What does that stand for? >> Uh additional unit. >> Okay. >> Yeah. >> So So you're talking about like adding maybe like a

little like a garage apartment or something. >> Little garage apartment or something. >> Okay. >> So now if I bought this building, for example, like you said, I bought a,000 foot home. >> Uhhuh. >> Right. And I bought it at $100 a square foot. >> Uhhuh. If I add another building and let's just say it cost me $75 a square foot. >> Yeah. >> Now I average out both of them and then overall now I can

keep uh lowering my per my purchase per square foot per square foot in the entire total building. >> Yeah. >> I like that. >> So um so yeah. So, for sure want to buy properties with larger lots where you can add more square footage and that way what you bought it per square foot now becomes cheaper because >> you already have the land. >> Yeah. >> Yeah, >> man. That's great. Sounds like you got it all

figured out, man. >> No, not not not entirely, but at least in my own zone, I I I at least, you know, been keeping up. I think in in this business is just making sure that um at least for me, I like to keep it slow. I like to just as long as again I I I get to wake up and >> Yeah. You talked about financial freedom earlier and what did um what does your week

look like now? You know, I think I don't think we've talked about that on camera. >> Yeah. So, for example, today right after this I'm going home. >> Yeah. [laughter] >> Uh most likely Oh, actually, no. I have a a party with one of my good friends. >> Oh. Um >> bummer. >> All right. >> Such a hard life. [laughter] >> I know, right? Um, so yeah, as far as today, yeah, that goes. Weekend pretty pretty

free. Uh, but Monday to Wednesdays for sure is grind. >> So now you have you have you've compacted your entire work schedule into three days only. >> Yes. >> So you only work three days out of the week, >> correct? >> That's pretty great. >> Yeah. Three days out of the week. And that really is honestly it's really just either So right now I'm actually dwindling down to finishing up these projects right now. So, right now,

dude, I have about $1.6 million worth of fix and flip loans that I'm about to finally close, bro. >> So, I bought this Apex uh beginning of the year around May. >> Yeah. >> Then I bought the triplex right around the same time. >> Bought a single Well, that one I already already exited out, so that one doesn't count. Uh bought a a flip one. That one's in the market right now. They already sent me an

offer, but too low, so I'm I'm I'mma wait on it. >> Yeah. >> Um >> and then I have the the new property that I was talking about in Oak Forest. That one I should start uh somewhere the end of December, but kind of chill already cuz most likely the guys will want a week off during Christmas and New Year. So, I'm perfectly fine. But right now, the Apex and the Triplex, we're about finishing up. Uh

we already started the We already the countertops. >> You're selling them? >> Uh no, I'm keeping them. >> You're keeping them. Okay. I'm keeping them. The Apex, I'm keeping them. The Triplex, I'm keeping them. Uh, again, mostly. >> So, when you say $1.6 million in loans, you're talking about on the refinance ending or >> No, on outstanding debt. So, what I would what I borrowed to buy them, fix them. >> Okay. On outstanding. So, what do

you mean by that? I'm confused. >> So, for example, so on my Apex, it's about $700,000 loan outstanding. So, that's 700. >> Okay. >> Right. That I have to at some point exit, refinance, and pay it off. So, the $700 $700,000 loan, did you buy it with hard money or how did Okay. >> Uh, yeah. Fix and flip loans. >> Yeah. Yeah. >> Yeah. Bridge loans. Yeah. >> Yeah. Yeah. Yeah. >> Who' you use for that?

>> Renovo. Shout out to Andrew. He's He's the best out there. >> Yeah. Yeah. He's the one that connected us. So, shout out. Shout out Renovo. Shout out Andrew. Andrew F. >> Yeah. >> Go look him up. Or if you ever need a loan like this for buying properties just like uh Richard here is, um, reach out to Richard and he can connect you to Andrew or reach out to me. I know Andrew fought also personally.

So, um, great guy. Great guy, dude. He's awesome. He's helped me out a lot also. Um, he really walked me through the process of doing an owner finance and I did an owner finance rap. >> Oh, nice. Nice. >> So, and he I wouldn't have been able to do it without him. So, yeah. Shout out to Andrew for sure. >> Yeah. Yeah. Yeah. Great guy. Great guy for sure. I think we've been doing business for I

think I want to say about two years now. >> Nice. >> Yeah, I think about two years now. >> Very cool. How'd you get connected to him? >> Facebook. Online. I mean, online, bro. >> Everything's online. >> Everything's on Facebook now. >> Everything's on Facebook and it's it's the wonders of Facebook. It's >> I I love marketing on Facebook and I think what Facebook offers. >> I remember one time, bro, >> it was so cool that

uh so you know how Facebook tracks you, right? Yeah. Like what are you shopping for, right? So, I love that because at there was times two, three years ago where I was shopping for loans and I was trying to find different loans or different type of and next thing you know I get one which was from PayPal >> really >> and I was like, "PayPal? They do loans? Okay, cool. Let me look into it." Dude, they

gave me like a $60,000 loan. >> 60,000. >> 60,000? >> No way. >> Yes. I was like from PayPal. >> That's nuts. >> Yes. And now I I did a $150,000 loan with them. >> With PayPal? >> With PayPal? [laughter] Yes, dude. So, it's it's you know, it's it's great um having Facebook because Facebook, I mean, dude, it it just has all this information. It does. >> It all works well. So, what you're looking It's like

even >> uh when you're buying a house or anything like that, you know, next thing you know, you start getting all these adverts. Great. Good. It all part of the game, you know? I'm quit. [clears throat] I don't really care that they're tracking me. I I want more feed to what I'm looking for. It makes it easier for you. >> Yeah. Absolutely. Absolutely. >> So, yeah. Um, so with uh with Renovo, you let's walk again to

this property in Apex. So you you bought it with Renovo >> on a fix and flip loan. >> Yeah. >> And now you're going to refinance on it, >> correct? >> Get some cash back. >> Yes. >> Got it. So that's what you're saying. You have $1.6 million. So you're about to refinance. >> So no, no. So what I'm saying is 1.6 adding my other one. So 700 [clears throat] is from this aplex. >> Okay. >>

Another 300 is from this triplex. It's a melon. >> Uh-huh. And then another four is from the oak forest. >> Okay. >> And then another two is from this flip. >> 1.6. >> 1.6. Yeah. >> Okay. >> So, all these are outstanding that I have to exit, right? So, the Apex refinance into, you know, cash out, triplex, refinance, cash out, right? >> And so on. And only one flip out of that. >> Okay. So, three you're

refinancing, one you're selling. >> One I'm selling. Yeah. >> Got it. Got it. Okay. I >> actually have another in the That's the 1.6 six outstanding with those fix and flip loans, bridge loans, and so on. And I have another refi that I'm working on. I bought that one 10 years ago. And yeah, >> what are what are like your monthly carrying costs on your properties? [sighs and gasps] >> A lot. >> A lot, >> man.

I remember >> 40 50 grand, >> dude. Like 80 to 100 grand. >> 80 to 100 grand >> a month. >> So that's how much you're paying every month? >> No. So mortgages, sorry. So mortgages is like maybe like 50 60 >> 50. Yeah. 50. >> Yeah. And then the and then other right. So then I got capital expenses for like either excess loans that I got at some point or payroll or material or expenses from

Home Depot like payments of you know loans or credit cards stuff like that. So overall it's about 100 grand a month. >> Wow. >> Yeah. That's a lot dude. I I Yeah. I remember, you know, sometimes this business just moves so fast that you don't really think back into like, oh shoot, like >> yeah, >> like this a lot of responsibilities. there's a lot of money that I'm moving >> responsibility >> and um >> yeah I

remember I remember again 80 years ago when I was I was moving a month maybe I don't know 5 to 10 grand a month or something like that and I was freaking out >> and now I'm like holy shoot like it's got to really like it already hit me probably about three years ago man I remember I woke up and it was a Friday and I think that day was payroll or the following week was payroll

>> and I look and I'm dude I got 10 All right. >> And payroll. >> No, 10 grand in my bank account. [laughter] >> I'm like, and I got payroll. I got still not only payroll, but then I got uh material expenses and the ongoing costs. Like sometimes, dude, sometimes like in that time, right, it was a $500 day. Now it could be a thousand. Yesterday was a $15,000 day. Yeah. >> Because I bought so many

AC units. Yeah. >> I bought four AC units uh for these apartment complexes. Yeah. >> So anyways, as you get bigger, like these numbers just starts getting larger and larger. >> Start getting bigger, >> dude. And it's it's uh it's for sure it's mentally challenging. But going back to again uh when I woke up uh this time, three years ago, I think, or four years ago, actually, because I was still worth the bank. Woke up and

I was like, "Holy crap." Like got 10 grand and next week I got payroll and I got all these other things. This is not good. Uh, luckily had a 401k, cashed out a 401k, got >> 60 grand, put it in business, and it just kept on rolling. Yeah. And then from there is when I understood >> that you got to know how many days you got to live in your business basically. Right. So now [clears throat]

I need to make sure that I am I have a six-mon and a year plan >> to for the business. If I was to stop business today, how many months do I have >> right with the cash that I have? And then also how much reserves do I have and so on. So now is really making sure that you're the most protected. As I mentioned before, >> one of the things that's the most important to me

is making sure that I can do this for a very long time and live off of this. So, I don't really care more about the numbers as far as how many houses I have is how long can I do this for that I can still maintain my freedom and waking up pretty much at whatever time I want. >> Mhm. Yeah. Yeah. I really like that. How many months do do you have without really without working is

kind of like a good time frame to kind of see or really it's like a good indicator to like the wealth that you've accumulated. If you accumulated x amount of wealth, that means you can live x amount of days without working. >> It's almost like you're buying your days off, right? >> Yeah. Exactly. Yeah. >> So, accumulate more wealth, bro. >> Yeah. Exactly. Accumulate more wealth. And uh and you know, the cool thing about this is

that it's really a pressure that you put on yourself. >> Mh. Uh because sometimes I think about okay I got I got six months with what I have or I got one year of what I have >> but in reality I got all this real estate that if I really want to extend that even more >> yeah you can just sell >> I just start selling right >> but it's that that pressure that I put on

myself that say no I'm not going to sell >> I'm going to keep pushing work what I got and keep pushing and adding more to it right because you don't want to end up just start selling everything and then you Yeah, you eventually get back to where you started. So, >> yeah, exactly. So, it's just kind of work what you got and then keep and then just keep adding to them. >> I think I think the

laws of the universe apply here very very effectively, you know. Um, anything in life is either growing or dying. >> Yeah. >> If you look at nature, you know, any everything. >> Yeah. >> We're either growing or we're dying. I think that goes the same with your bank account, you know, with your relationships. If you're not pouring into your relationships, >> it's going to die. relationships will die. Yeah. >> Your bank account will die if you're

not growing it. >> Yeah. >> There's no stagnant. You can't stay the same. No. >> So, you either get better or you get worse. Choose one. >> Yeah. >> Yeah. No. Yeah. It's a it's a it's something um I would say to take in it's it's work, right? And I think every day we got to work for it. Every day we must want it. Every day we must want to grow relationships, know different things. Um I

think also one of the things that I tried my best this last couple of years is really be emotionally intelligent uh to understand how to better myself, how to be a better communicator, how to be a business a better business person. Yeah. >> Um and really grow with that to just have just a better life. >> Um because like you said, if you're not growing, you're dying. Yep. And um that that that is a a great

point that that you bring out. >> Yeah, absolutely. If someone wants to sell you their property, Richard, um I think you've already established a really good your your criteria, the areas you're looking for. Um I think through this podcast, you've also been able to share your uh how competent you can be even in small multifamilies probably. Um how can someone reach out to you and give you a deal if they have one? >> Yeah. Uh, in

Facebook is Richard Marquez. Uh, just like, you know, Richard Marquez, M A R Q U EZ. Uh, that's really mostly where I kind of am active. I think I have an Instagram, but I don't even I don't even know the name of it, honestly. Yeah, I barely activated a few months ago, but yeah, for sure. Richard Marquez is where I'm really mostly active. Um, so yeah, uh, for the most part, I'm always buying, always looking to

see what what what's out there and just, um, I know sometimes people tell me like, "Oh, what is your, uh, I guess your buy box?" And again, it is that $100 per square foot, those particular zip codes, but I am always open to just look outside in case I don't have anything in my circle that I'm trying to buy. Yeah. >> And hey, let's let's see what what's what's out there. Um, so yeah, always always open

to >> Yeah. So you're not opposed to other areas if >> if you don't have any >> Yeah. >> anything in the pipeline right now. >> Unless they're really outside of Houston. >> Yeah. >> If it's outside of Houston, I would like acreage. It's inside of Houston. >> Um at least north of uh Houston. I haven't bought in south of Houston. Um so so yeah, I do like to >> What's outside of Houston is like uh

Pasadena outside or >> Yeah, I guess to me that I consider that outside. Yeah. Yeah. >> It's outside the loop. >> Yeah, exactly. So, so I do like to be uh I guess biased to certain areas mostly just because that's where I buy. I'm just more, you know, I think or I know I mean I do see some people really just branch out. >> Um at least some I don't know. I I don't know. I don't

know really what's everybody's game plan, but um but I I do like to to stay in the same zip code, same area just because >> I know what what happened already or I already bought already sold and I got a couple of comps or appraisals and just easier to manage that way. >> Awesome, man. Awesome. Well, thank you again for joining me for this podcast. I really appreciate it. I think everyone that um will listen to

this podcast and watching online on YouTube will will be able to get a lot of it. So, thank you so much for everything that you had to share. >> Uh do you do you have any other contact information? Maybe a website or anything like that or just Richard Marquez is the best way to reach you. >> Yeah, just Richard Marquez. My phone number is 832-6161719. So in case they want to call or text me, I'm again

I'm always open open to to buy or hear you out what what you have to >> maybe maybe any um any mentorship opportunities for you in the future. Maybe are >> Yeah, definitely definitely always reach out. Um I always do like to uh listen to that person and see what's what's their strategy and see if I could be that person to help them. There could be times where I'm not. I'm like, "Hey, you know what? Unfortunately,

>> not the right fit. Uh maybe you two university could start there and go from there." Um, so I do like to make sure that I position anybody that I'm helping at the best ability to what I could do for them and for themselves. So make sure that you know that. >> Yeah. Cool, man. Well, thanks again so much, man. I I had a lot of fun and uh, you know, until the next one. >> Cool,

man. Well, sounds good. And, uh, thank you for having me and it was a great podcast and great to learn about, I guess, ourselves and how we operate and stuff like that. So, um, it was good. >> Absolutely. Thank you, brother. Appreciate it. >> Cool, man. All right, that's it.