Pick Up The Phone Podcast
Episode 22··1h 26m

From 9-5 to RE Empire

With Derek Kelley

From clocking in at a 9–5 to building a real estate empire. Derek Kelley’s story is about work ethic, confidence, and refusing to stay stuck.

About this episode

From clocking in at a 9–5 to building a real estate empire. Derek Kelley’s story is about work ethic, confidence, and refusing to stay stuck. Derek has completed 400+ real estate transactions in just 4 years, currently runs 30 active house flips, and owns 300+ doors — all while starting this journey with a W-2 job. He didn’t wait for the “perfect time.” He worked nights, weekends, and holidays. He did his own handyman work, bought foreclosure deals, and learned the game while still showing up to work every day at the plants in Baytown. In this episode, Derek breaks down what it really takes to scale while still working a job — and the mindset required to move from employee to empire builder.

🔑 In this episode, Derek breaks down: • 🏗️ How he scaled flips while working a full-time W-2 job • 🔨 Doing his own rehab work early to keep deals alive • 🤝 Building partnerships — and knowing when to simplify • 🧠 Why being the right partner matters • 📈 How he evaluates deals and adds value every time • 🏠 Running construction while managing multiple projects • 💥 Lessons learned from a $150,000 partnership loss • 🪞 Why your only real competition is the person in the mirror • 🔍 How he filters partners and structures JV deals before LLCs • 🔢 Running numbers confidently and performing as a closer • 🚀 How purpose changes as you grow — and why belief unlocks the next level Derek doesn’t sugarcoat the grind. Real estate is hard. Partnerships get tested. Mistakes cost money. But if there’s a problem, there’s always a solution. This episode is for anyone still working a job but knowing deep down they’re meant for more. Entrepreneurship is about making calls others won’t. That’s where we come in — combining AI, people, and relentless hustle to fill your pipeline with leads and scale your business. Click on the link below to see how Vancom can help! 🔗 https://vancom.io/calendar-page Connect with Us: Instagram / josuellanass Our guest: Contact Derek Call/Text 281-352-2632 Visit his Facebook page Derek Kelley

👉 Don’t forget to like, comment, and subscribe for more powerful stories of business, real estate, and scaling your business! 🔔 . . . . . #From9to5 #RealEstateEmpire #RealEstateInvesting #HouseFlipping #RealEstatePodcast #EntrepreneurMindset #InvestorLife #RentalProperties #ScalingBusiness #JointVentures #RealEstateDeals #ConstructionLife #BusinessOwnership #PickupThePhonePodcast #Vancom

Transcript

Auto-generated from the episode audio.

We just got a LOI on it. We'll probably if if it all pans out, we'll make >> two and a half million. >> Like $2.5 million just on that one deal. So >> 2 and a2 million sounds pretty good. >> I'll take that and run. You know what? I get excited about that. >> It doesn't matter how much I have going on. It doesn't matter the leverage I have. If it's a good deal, I'm going to

buy. >> Is there [music] something that is on your mind that maybe like a story or something that you can share to show people that you truly can accomplish anything you set your mind to? the partnership into a different direction. Um, and and I lost probably about $150,000 on that. >> What happens after you buy your first your first flip? Um, when you start scaling, what what happens like >> So, I had two options. I could

let it go and take the loss on it and just let it go, which would have went back to my lender, which was James, or I could dig deeper and go more into my pockets and get out of it. And that's what I chose to do. Welcome to another episode of Pick Up the Phone podcast. I'm your host, Jose. I'm the CEO of Vanccom.io. We help companies with marketing and AI. Today's guest is Derek Kelly. Derek

Kelly has done over 400 transactions in the last four years. He's got over 20 flips active on the board today and he owns over 300 active doors in real estate. So Derek, thank you so much for being here. >> Yes, thank you for having us. >> Absolutely. So, uh, man, let's get started. Dude, you have, uh, you've grown a lot, man. And uh I I you know just getting to know your story um prior to to

filming this. I think what is the most impactful for me is the fact that you had a W2 while you did all of this. That's nuts, bro. Congrats on doing that. >> Yeah, it's crazy. >> Yeah. [clears throat] So, um so let's talk about that, bro. How how did you you you were uh 19. You told me a little bit earlier you were 19. You started in the plants. Yeah. Started started in the uh plants uh

working a W2. Um I mean I was 19 years old. I broke my first 100 grand when I was 19. >> When you were 19? >> 19 years old. Uh whenever I got into the plant. So and I made was making good money. I've never made less than that. Uh ever. >> Yeah. >> And uh >> I was just working the W2, living the plant life, married, kids. >> Yeah. >> All that stuff. Um I had

a house. Uh kind of did like a house hacking. >> Mhm. and uh wound up paying that property off in in two and a half years of working. >> No kidding. >> And and I wound up buying the house directly across the street from me. >> So I had two of them which were in Baytown right right across the street from each other. Had one that had rental in there. Had no issues cuz it was a

newer home foreclosure that I bought was like 85,000 bucks at the time. >> And then bought the one across the street which was another foreclosure. This is an08. >> 2008. >> Yeah. This is 2008. >> The whole world is falling apart. >> Yeah. the whole whole world's falling apart. Uh 2008, 2009, had I known what I know today, oh man, it have been a buying frenzy. Uh I didn't know about hard money. I didn't know about

any of that stuff back then. All I knew is traditional buying >> and what it takes to get down and everything else. So, >> right. >> Um >> Were you born and raised in Baytown? >> I was born and raised in Baytown. >> Went to school out there and everything. >> Went to school out there, >> graduated. >> Yep. And um I mean it was very comfortable, uh part of my my life. I mean, I had

a family, was making, you know, good money, >> had a house that I had paid off. I had a house that was across the street, had a rental, >> everything was fine. But it it didn't really >> I always wanted more, right? >> Like out of out of life, right? It's like I was getting I don't want to say satisfied with mediocracy but it became normal to me just like wake up go to work >> like

a rat race just continuous but it didn't really like move the >> the needle >> the needle for me and like stocks and stuff like that I was doing 401k I was you know putting in my max amount of 401k every year I would see that go up I mean I had pension plan all that stuff like that uh good medical benefits uh so to leave something like that is extremely extremely hard, especially when I'm not

forced to do it, >> right? >> You know, so um but that that wasn't what I wanted out of life. Um like I was telling you earlier, I really wanted to be able to >> to wake up whenever I wanted to and decide what I wanted to do for the day. >> Yeah. >> And it was never a dollar figure or nothing like that. I don't know what amount of money would allow me to be able

to do that, but it's just to to be able to go on vacation and not come back if I don't want to. I'll come back whenever I feel like it. Like that's to me is the ultimate freedom, the unlock code to get to and and what path do I need to take to get there >> is through real estate. You know, 90 plus% of all millionaires become millionaires through real estate. There's no reason to revamp it,

>> right? >> So, that's kind of where I would focus on to um you know, early on that showed me success in real estate, which I only had a couple of houses at that time. >> Yeah. Um, and and I went off into a medical company for a little bit where I did some investment, lost my ass on it, and uh, about 2017 is whenever I sold those properties. Uh, whenever I sold them, >> your your

primary home. >> Yep. I sold th those two property. remember I sold them. So I wound up buying that one, paid it paid that one off, bought the house across the street, wound up paying that one off and I had two rentals that were there and the the two rental income that I had from that paid for my other house that I had. So I it was like these were paid and were paying for my other

house. It wasn't paid off yet. >> And I built one out in Barbersville ISD. That's where my kids went to school cuz I wanted them to go to school out there >> and in Barbersville ISD. It's my mom Belleview area. >> Okay, got it. So, um, in 2017, I I decided to sell them. I don't know why, but I just thought it was at the peak of the market that that the highest that that would go.

These houses more than doubled in value, and I'm like, there's no way these are going to get more than this. >> Yeah. >> I sold out. I got it got all my money from that and I was sitting on cash and I'm like, >> uh, Hurricane Harvey happened, uh, in August and those houses flooded. So, like I got lucky. I didn't have flood insurance on them. >> Wow. >> So, yeah, I had sold. I was good.

Uh, I was great. No problems. Yeah. >> And uh 2019 I kept watching uh Toller. I kept watching him online ticket post. You know, we ended with school >> uh with each other. Uh but we went to different schools. He went to Lee, I went to Sterling, >> and I've known him, you know, through baseball whenever we were playing uh at a at a way younger age, 8 years old, 9 years old. >> Um >> are

you guys similar in age? >> Yeah, we're same age. >> Oh, no kidding. >> Yeah, we we both graduated in '05. He just went to Lee, I went to Sterling. >> Got it. Um, so >> you guys are both from Baytown? >> Both from Baytown. I kept seeing him post stuff and I'm like, man, what's this dude doing now? Like >> these houses and stuff and >> I sold mine and I'm like, so I hit him

up. I talked to him and everything and he's like, "Well, come talk to me." So I came and talked to him and >> next thing I know that was like on a Friday. By Monday, he showed back up at my house. We both had cashier checks for $120,000 to go buy at the auction, >> foreclosure auction. We went to go try to buy a house >> and I found the property and I was like, we'll go

to the auction and we could buy it. I didn't have avenue to get I it didn't make sense to me. How are you finding these properties offline? People don't just call why do they call you, >> right? >> Like how does this make sense? >> Well, you know, I learned that later on how that made sense to me, but I didn't I couldn't grasp it at that time, you know, in the in the early ages of

finding offmarket properties like that. I just knew about horror >> going online and stuff. >> So, we go to the auction. and I go we go there and go try to buy it. Didn't work out. Um and but that showed me the path that I could take. Like, okay, well, I've got cash. I can go buy these at the foreclosure auction. So, I was buying off like auction.com, going to the county, and going to buy these

houses because they would come to me. And I learned how to do the vetting, >> right? >> So, I was vetting these properties, learning how to uh to get inside of them before I bought them in auction. So, I had upper hand because I knew how much the rehab was. And I used to do all those rehabs myself. Every time I buy them, I'd go in there. I'd be painting them. I'd be doing the flooring, the

baseboards. >> Yeah. >> You know, uh doing the backsplash, tile work. I I would be the one that was in there doing all the plumbing, the electrical stuff, >> you know, something that didn't require a master. Changing electrical plugs, stuff like that. Shut the main breaker off. I can do what I wanted to, >> right? >> So, just basic stuff like that that I was able to do. Just handyman stuff, putting ceiling fans and all that.

So, >> but but let's back out here for a second. I mean, you you uh you go to the foreclosure with James. When did you buy your first flip? >> About two months after that month. It was either the next It was either the following month right after that because you know it's on the first Tuesday of every month. >> It was either that next month or the following month after that. It was very fast. >>

Right. And so how did you find that deal? >> It was at the auction. >> It was at the auction. So you guys kept going back to the auction. >> I went back to the auction. You [laughter] >> Yeah. So I I tried to buy that one with him first and then I saw that. Then I went back to the auction myself >> and I bought a house at auction. It's likeund >> It's like 125,000 bucks.

>> And you bought that by yourself at that point? >> Yep. >> Got it. >> And then uh that house I think I w up selling it at like 167. It needed like five grand. It was very easy in and out. >> Yeah. >> I think I w up making I w up finding the buyer for it offmarket and I w up making probably 30,000 bucks out of it. Yeah. Something like that. >> So it worked.

>> Yeah. >> And then I did it again. Yeah. And then I was buying off uh Auction.com, Hubzoo, Hudson and Marshall. Um and >> but mostly foreclosure properties. >> It was foreclosure properties. >> And this was back in when 2018. >> Uh no, this was 2019 to 2020. >> 2019. Got it. >> Yeah. 2019. I was buying houses directly into my name at first. I didn't have an LLC or nothing like that. I didn't actually get

an LLC >> that I put into an actual property until like uh May of 2020. That's whenever I started buying >> into an L an LLC. >> Yeah. Right. >> So, 20 I like I like looking at timelines kind of how everything kind of develops here. Uh 2017 you sell your houses and then you're kind of looking around or what do I do with this money and then 2019 is when you actually start jumping in and

start buying properties. The whole time you have a full-time job, right? Yeah. >> So, you go to the foreclosures. What do you do with your job when you go to? >> I'd tell them I'm I'm not going to be there on that day and I would take vacation day. >> You take a vacation day. >> I'd go there in the morning. I' I'd be set up at the evening. I would leave and I would Well, yeah.

No, I was on straight days at that time. So, I was on day shift. Uh I wasn't on night crew uh night shift anymore doing shift work. >> Um and I would go to the uh the bank the night before. I go get a bunch of cashier checks and I'd go to the auction the following day. >> Yeah. >> So, I was using I knew I had like you know throughout the year I had take eight

hour days, but I had like 240 hours of vacation. >> So, it gave me a lot of days but I was using all of those days almost for real estate. M. >> So that's what was allowing me to do that. And then I wound up going on to a a 980 schedule which gave me every other Friday off. >> 980 schedule. >> A 980 schedule. So it's like nine days, 80 hours a week or 80 hours

every two weeks. >> So that gave me a day off that I could focus on trying to get caught up with the real estate stuff that I did have. >> And then I was leaving work at, you know, 2 or 3:00 every day just going to do real estate. >> Got it. So it was it was literally like burning the candle on both ends, >> right? >> Um I was fine doing, you know, the auctions whenever

I was buying them. I could do about, you know, three to four houses at a time myself, GCing them myself. I had a a big pool of contractors that I had that, you know, my painter, my AC guys, my roofers. A lot of those guys I still work with today. >> Yeah. >> Uh but they, you know, they they got my cleaner uh that was there. She got to see all this stuff. >> Yeah. you know,

from back when I was just in the plant, just a plant worker to where I'm I met today. She goes and cleans all these properties and stuff and they're just like, "Oh my god, this is unbelievable." You know, so >> I bet her she's very shocked that the growth that you have. >> Absolutely. Um, >> but, you know, that goes to show a lot of those subs been with me for that long, you know, they've, you

know, one year I paid my painter like like 70 or 80,000 bucks that year and I was like, that is just crazy. I pay I could pay a person that much. >> Yeah. you know, on on painting houses, >> right? >> Um >> full salary for some people. >> Yeah. So, um which he still, like I said, he still paints for me today that that he does a new constructions that we do. Yeah. So, >> amazing.

So, uh 2017, you're uh you started buying houses in 2019 and then um you do your first uh foreclosure in 2019. Um what happens after you buy your first your first flip? When do you start scaling? what what happens like walk me through the uh the first couple of deals. >> Yeah. So, well, I mean the first deals I was just doing at the auction, right? And I was doing all those by myself. I was just

buying them. >> And you could only do one at a time probably, right? >> Uh no, I could do I could do I got up to I could do about three or four at a time houses. Now, some they're in different stages, right? So, some might be listed the MLS waiting for a closing. >> The other one was, you know, they're not all bought the same day construction. It wasn't that. different phases that they were in,

you know, I'm at the end of this one, whatever. So, >> um, getting to that point, I could handle three or four at a time myself. >> Uh, anything past that, I couldn't do. And also, I wanted more deals so I could bring in more income. I couldn't do that with my job and the auction. I had to have another source. >> So, that's whenever I started getting into partnerships. >> And that that's where I started

to partner with like Robert Herald. >> Uh, Robert still business partner of mine today. I still do flips with him. Uh we have a portfolio together with me and him and I was able to uh uh to build that. He was a wholesaler and he he had access to find deals. He knew the leg work, but I had the construction and and the money and so that's kind of what started that relationship right there with me

and him. >> Yeah. >> Uh and that's been going on for four years. I mean, it's been solid. >> Yeah. >> Um with that and then that started getting my name out that I was buying a lot, >> right? And whenever I started buying, then I started getting the offmarket properties. >> Well, when I was getting a lot of the offmarket properties, that's whenever I really really started to uh to to catch some momentum and I

started bringing in like I started doing wholesales. I started getting access to deals. Basically, what James was doing before that I couldn't figure out it started happening. >> I started being the closer. I started getting all these deals come my way >> after how long? >> Probably about a year and a half. It was about a year and a half of of of that that I started buying in the auctions, started seeing that, started getting my

name out there that I was buying stuff and I started getting deals, people calling me, sending me stuff. >> Yeah. >> And and uh posting online, things like that. People were start reaching out foreclosures, problems they were having. >> And that's whenever I started to catch some some volume uh in that, >> right? >> And then uh that overloaded me. >> The volume did. So >> that overloaded you way uh mentally. >> Yeah. >> Yeah. Uh,

I'm not sleeping at night. I had so much stuff going on. I can't keep track of all that stuff. >> Yeah. >> I used to keep everything nice and tight in Manila folders, like receipts, everything that was good. Like all that stuff went out the window. Like I had the only thing I was trying to do was keep from drowning, >> right? >> And uh just trying to keep up with everything that we had going on.

You know, I had rentals that I was trying to put people into. Um then I met Shone. >> Mhm. Um, I did that commercial deal with him, which was the uh which was the RV park. That kind of started our relationship there. And then he wanted to buy more and more stuff. So, I started doing volume with him. Had volume with Robert. >> Uh, bought two Airbnbs with a guy named Curtis or Curtis Warden. I bought

two Airbnbs with him. Um, and I got with a guy named Chase McKenna. Uh, me and Chase started doing volume with the new constructions. like we just started been like buying in Houston, doing conversions from single families to duplexes, doing new constructions, and uh I just had so much stuff going on at one time and I was talking to James about it and I was like, "Man, I I I can't I can't handle all this and

getting all these deals." He said, "Well, well, don't pass up on them. Just throw them over here and I'll take care of them." >> Mhm. >> I was like, "What do you mean?" He's like, "Just put them over here. Just assign them to me and I'll handle everything and we'll just do a split on the backside." >> Yeah. >> I was like, "Okay, cool. So, I don't have to provide none of my money. I don't have

to do the construction and all I have to do is bring the deal and you're going to take care of everything >> done. >> I'm gonna buy everything I can. And I started finding them like crazy. >> Yeah. >> And after about the 10th deal that I brought to him at fast, he was just like, >> "Okay, you're you're not going to sit there and let you bring value and me not pour back to you as

well." So, >> he started putting in way we created an LLC and he started putting his houses into the LLC. So I would still do some on my side. I would go into our LLC and then he would still do some in NASA and then it got to a point where we were just like, man, what are we doing? Let's just shut this stuff off. Focus on this one LLC and this is what we'll do from

now on. >> Yeah. >> And uh it just kind of happened like that. >> Yeah. >> And then that that's when it it ramped like big time. >> Yeah. >> Like I said, I was looking at the board today. I was counting through. I mean, there's literally 28 active flips on the board right now. all different stages. Some are listed, some are um you know in in construction. Some are just getting started construction, but these are

closed and funded deals that are in our LLC was at 28 today. And I have I have another one that I'm doing with Robert and another one I'm doing with Chase. There's there's 30 active flips. >> Yeah. >> That are right now like that I'm financially responsible for whether it's with a partner or not. >> Right. >> These notes got to get paid, >> right? >> So >> it's uh it's a lot of stress on your

back. >> Yeah. Yeah. I mean, but we we're filtering through them, too. I mean, like you I've got three or four closing out next week, uh, that are going to be cleared off. We got other ones that are being added, turning some of, you know, different ones into rentals. Just >> just a lot of moving parts, man, of all different pieces. So, >> absolutely. >> Um, I would never ever be able to do this myself without

having good people around me. >> Absolutely. Yeah. >> And and that that is what helped me finding good people, which is the hardest part >> in real estate. Uh >> I would say in business in general, Brian, in life in general. >> Absolutely. >> Yeah. Good people are literally the number one thing that will catapult you into success or into failure. Yeah. >> You know, cuz people can bring you down also. >> And you've you've had

it too. You've had successful partnerships and relationships that you've had with people over a long time. And you've had bad ones too, >> you know. So >> they make the bad ones make me appreciate the good ones that much more. >> Absolutely. And when you find those, man, you you nourish those relationships like that. Yeah. >> And u uh I will say and I have a saying that I say I'm I'm >> um I'm the partner

that I want. >> Right. So be the partner that you want. >> Right? >> So if if then what that means is doesn't mean that your partner is not good enough. Be I'm going to so much value and I'm going to do everything the right way >> so much that this is what I want back in return. >> Right. >> Right. Like that's that's what you really want to receive that. So, you want to be the

partner that you want. Yeah, >> that that's what you >> It's what you should in relationship. >> And I think that's what makes a partner partnership work, man. Because, you know, James was just in here and he was speaking the exact same thing you were saying. >> Yeah. >> And so, it's kind of it's very eerily similar what you guys are both saying. And uh he wasn't really focused on you, he was focused on himself just

like you're focused on yourself. >> Yeah. >> You know what I And that's what brings the cohesiveness and uh this energy that really portrays and the amount of volume that you guys are doing in real estate. Yeah. >> You know, I think it's pretty astonishing. Matt, >> you you really, you know, James tried to get me to build a rental portfolio with him back in like really like 2020 2021 and I I didn't I told him

no. >> Mhm. >> And the reason was is I didn't think I would be enough to add value. I would thought he would be bringing 30 houses to one. >> That's what I thought would happen. And it probably would have. >> Yeah. >> I wouldn't have thought I'd been able to bring enough value and I just didn't think that that would work like that, >> right? >> Um now today I could tell I'm equally yolked. >>

Yeah. >> So, you know, I bring just as much value uh if not more. Like I try to strive for that and and encourage that. >> And um and he does too. You know, it's the same way like we both >> uh we're both competitive people. Uh and we like that edge >> and we don't like to lose, you know, I mean, no matter what we do. So, >> um we're aligned a lot like that. Even

how we deal transactions and stuff. I mean, >> that partnership was not intentional, but it was uh it was done intentionally. >> Uh it was it was it wasn't intentional, but it was done intentionally. >> Whenever you guys both saw the opportunity, you guys, I think, both probably realized it and then went right into it. Well, I had LLC's and partners with other people that were successful, right? And I also had bad partners, too. But I

had I had successful partners, and I I >> I'd already known what it was like to have that and what it provided for me, >> right? >> Um he had never done that before. >> No, >> he had never had a partner besides his wife. That was it. >> Really? >> Yeah. I mean, he he holds no other LLC with anybody else but me. >> Wow. And uh it it's hard to break through when you don't

need that. Like you don't have to have that. I don't have to have >> uh you know he doesn't have to have me. I don't have to have him. >> Yeah. >> It's a difference and a point where you have a relationship that you say you want to do this. >> Yeah. >> Like we can grow so much further together than we would if we go alone. >> So much further together. >> Yeah. >> If we

go alone. Yeah. Yeah, >> I mean I he's had to borrow, you know, confidence from me to going into the commercial space, right? I had to borrow that confidence from Jonathan >> to be able to do that. Like you're where you are, you're through your proximity, you are around people, >> right? >> Right. Like the the the people that you're around on a daily basis, you are the sum of them. >> Absolutely. >> So, >> and

I think you just proved it based on what you just said, right? The right people gave you the right confidence to be able to do the right deals. It's it's I have a saying you borrowing their nuts, right? Like you got you got to you have to borrow some of that stuff because it it's a it's a territory of of unknown. It's very uncomfortable >> uh to be at that. I mean these >> these notes are

heavy, you know, when they come the first of the month. I mean whether it's a a a property that I own >> outright or uh you know or I've got a heavy note on it. I mean when it comes the first man it's heavy with these notes. So you have to make sure that your rentals are full, that you're offsetting that, you know, I have to be in tune with all that stuff and my partners uh

completely about what we're doing. Yeah. >> So, >> how do you manage um you know like I think something a thought just came to mind. You have different partners, right, in different LLC's. How do you manage like if a deal comes your way, you know, like how do you decide who to do business with? Right. >> Yeah. So, that that's probably been the toughest part. Uh, I would say that that I had to navigate through and

I basically just had to look, if I find a deal, it it's me and James are doing so much volume together, it it makes so much sense for us to continue that. >> Right. >> Right. So, if my other partners find something and they want to do a deal, I'm going to I'm not going to create an LLC with anybody else. I don't need to. Everybody that I have around me right now >> has excelled me

to a level that uh is f way further than I thought I could ever go to. M >> uh and and I know I could continue to grow with those people, all of them that are there, >> right? >> So, um I'll continue to do deals with all those people. I'm doing active deals with all of them as well. >> Yeah. >> Just they may find them, you know, they may Robert like Robert found that one

that George Foreman house. >> He was the one that found it. Now, I'm going to add I'll bring value. I'm paying for that out of my pocket, you know, uh for rehab, cash, no note, you know. I mean, it's just you're doing deals like that that um that that I'm providing value back to them still, >> right? >> You know, and we we have to talk with each other on a daily basis. I talked with Chone

every single morning. I talked with Chase right before I walked in here. I talked with Robert today. >> Uh I talked with Curtis. I mean, I literally all my partners today I've talked to every single one of them. >> You talk to them every day? >> Almost on a daily basis. >> Yeah. >> Yeah. [snorts] And it might be bullshitting, just nothing. >> Yeah. But it's still we're staying in touch within you know one to two

to three days every you know it's it's a constant that we're in tune of what we're doing. >> Who was the first person that you started partnering with? >> Um >> Robert >> uh that I created another LLC with was with Robert. >> Yeah. And that was after you started doing the foreclosures 2019. You started I think you set that like a year and a half later when you started scaling and everything. >> Yes. >> Yeah.

Yeah. >> So, you started an LLC with Robert, started buying a bunch. >> Um, when did you decide to get that second partner? Who was your second partner? >> Um, I think Chris Hadley. >> Yeah. >> Was >> nice. >> And that's a partner that I don't have no more, >> right? >> You know, so um that's who you're being aligned with, right, is what matters, >> right? >> Um and and he went down a hole

that he thought he was going to be able to get out of it. um ego got in the way, allowed him not to be humble enough to be able to say he was in a problem. >> Uh and I probably could have been able to get him out of it. >> Yeah. >> At that time, yeah, I know I would have I would have adjusted or whatever uh and got him out of it, but >> uh

that basically caused uh you know, the bad partnership that we did have >> uh to to fail. Uh so >> uh that failed. I got into partnership with Curtis uh which we we still own the Airbnbs in Galveston together. Mhm. >> Uh me and Chicone and then the last uh Chicone uh Chase and then and then uh James. >> Yeah. Uh I'm curious about this. You just mentioned this uh you could have helped with uh that

partnership that that failed. I don't want you to go into specifics. It's not important, but what I do want to know is how do you know that you could have helped? Is it more of a financial thing or more of a mindset thing? >> All all different ways from it. So, if if you have a problem that's in real estate, I promise you want me on your side. Like, I I I'm the most valuable person you

can have in in any and all of my partners will vouch for this. >> If if [ __ ] goes wrong, I promise you, you want me there. I will fix it. >> If I can't fix it, it is unfixable. >> You will not find a solution for it. >> So, and and it's happened before. is has happened one time that there was no fix to that >> and and so uh which there we still got

an out we still had an out to it but we had to come to a resolution on how to do that. So, >> um, but I've had problems with all of them, all of my partners, >> right? >> And, uh, and it's just problems with real estate that we've gotten past. >> But, >> yeah, cuz just about any problem in real estate, I mean, that you can definitely find a solution for >> conflict or conflict resolution

is what I mean, I was a trainer in the chemical plant, so that's uh I'm very very good at at at knowing how to fix problems. That's what I did. Troubleshooting and stuff like that. Like I'm just >> I will figure it out. Yeah. >> It doesn't matter what it is, I'll figure it out. >> Well, just I think it goes to show I mean even just your level of communication, just the way that you speak

and it it clearly shows your ability to be able to analyze a situation and then look at it objectively and be able to find a solution, you know. >> Yeah. So, >> there's a problem, there's always a solution to it. >> Always. Always. >> You just got to find out what that is. And so what I've noticed is just talking with people, being able to talk through it, whether it's permitting office, >> uh it could be

government stuff that you're dealing with. It could be zoning. >> Uh whatever it is, there's a solution to that. And it's all about how you approach people, how you talk to them, >> you know, and um >> and and being a being a problem solver. That's that's really what it is. >> I agree. Yeah. That's awesome, man. So, um, so you s you have all these different partners and then, um, when did you decide to go

full in with, uh, with James? >> So, um, I went through a divorce in the middle of all this in 2022. 2022 was like whenever it was being finalized, right? I lost half my stuff that I had, half my 401k, uh, house and all that stuff. >> Was tough. >> So, yeah, it was very, very tough. >> What about the kids? Uh kids were still there. I mean, I still have my kids, but you know, uh

the kids, that was the toughest part. You know, I'm not used to to uh not being able to fix a problem, right? I'm always being able to fix a problem. That's why I'm >> and I could not fix that one. I I just didn't have a solution to it. >> Yeah. >> And uh wind up going into a divorce over it. And and that almost derailed me uh completely. Uh, it mentally just took me into a

place that people shouldn't go. Got on anti-depressants, um, anti-depressant medications. I was at max loads. Uh, it I mean I lost a crap ton of weight like extremely fast. I wasn't eating just I mean it really took me down to a dark dark area that that people it made me understand suicide. >> Yeah. >> I mean it literally did. >> Yeah. >> And and something you shouldn't understand. And I used to think it was a huge

copout like people shouldn't, you know, you're you're a shitty person. You're transferring your your problems over to somebody else and all that stuff. I get it now. I understand. Right. >> Uh they're not in a mental state that >> uh they're not themselves at that time when that happens. And so you should never get to a point that you have to understand that that that >> So I went through that and I I did make it

out of it. Luckily, I made it out of that state. Yeah, >> I had a good people that were around me and stuff like that. Even the guys at work that I did work with, that's probably helped me a lot >> was I had I had a good group that was around people all the time. >> So, uh, >> kept your mind kind of focused on the future. Eventually, everything's going to be okay. >> Yeah. >>

Yeah. Get on the right side of it. >> And that really, you know, I used to say, I'm being held back because of her. I can't do this because of my wife. I can't do this or whatever. And that kind of really took me uh uh to a point where I lost all excuses. So like I can't do this because of this. I couldn't do this because of this. And I literally ran out. All these excuses

got done to where it came to like, okay, I'm finally I'm released. >> There's nothing holding me back at this point. >> Yeah. >> So everything that you said you could do >> now you're here. It's time to prove >> what are you going to do? Right. you know, so I had nothing to prove to anybody else but myself, >> right? >> But that's whenever I got to that point like I'm going to I'm going to

sc I'm going to do everything that I wanted to do. >> And I just didn't care. I just had zero uh my risk tolerance is very very high. >> Yeah. >> I'm not scared to buy things. I'll figure it out as I go. >> I'm just gonna make it happen. >> Yeah. >> And that's what I did. >> Yeah. I mean, it it it's almost like you they say that every human being has the the darkest

night of the soul, right? When all hope seems lost, when everything is just as dark as it could be. And it it almost feels like at this point coming out of that, you're able to see what darkness is and then see more importantly now what light is, right? And would you say that that's something that kind of just unleashed and kind of broke away any sort of mental chains that you had to like really exceed at

real estate now? >> Um I I really at that time that I was doing that it wasn't really anything but personal growth or personal development like it was just it was almost like having a chip on my shoulder >> at that point >> of like I can do this watch me. >> Yeah. you know, like that. That's kind of how it was. Like I I'm going to do all this stuff. >> And I did. I didn't

even think about what I was doing and the debt that I was getting into and all that stuff like that. Like I just I did so much and next thing I know I'm like, "Oh man, I'm at 10 10 $10 million in debt. Now I've got $12 million in debt." And it's like I'm not even thinking about that >> point that I'm getting to. It's just scale scale scale scale scale. Bye bye bye bye bye. stabilize,

stabilize, stabilize. >> Right. >> And and that's that's where I got to the point of, but I still wanted to watch my myself to make sure I wasn't getting into a bind I couldn't get out of. >> Mhm. >> Right. So, I'm trying to stay flushed with cash. I'm trying to make sure that I'm moving, make sure that this partnership's good. Now, I'm trying to go back into my accounts and keep them uh, you know, full

with uh with with monies to where, hey, we all got, you know, time. We got a couple years left if something goes wrong right here, >> right? and just trying to keep it in there and keep growing, growing, growing, growing, growing, just leverage, leverage, leverage. >> Yeah. >> And you know what helped me with having a W2 is as I was keeping my investment stuff separate. >> So my investment money that I would make would grow

and I would just continuously going back into it. I wasn't using that money to live on. >> So that was another thing that helped me scale was having that W2 like that, >> right? >> So um and then also having the true support system, >> you know, having the partners that's there, my wife that I have now. Mhm. >> is a a true support system. She's never worried about me being overleveraged. She's never worried about me

uh, you know, getting into something I can't get out of because she watched all of that stuff over and over and over and watched me go through that and go through pains and lack of sleep and, you know, uh, uh, just, you know, the worry, the anxieties that you go through in this stuff, especially when you get into volume like this. Like people really don't understand the lack of uh or how much it is on you

on a mental state when you do that. >> Like my brain doesn't shut off. People just just shut it off and it there's no such thing as shut off. >> Yeah. I speak to Ton all the time about this also and he uh he mentions how like he he wakes up in the middle of the night and he's like damn like got to get back to work, right? And it's something it's a burden that very few

people are able to withstand. >> Yeah. >> You know, um what would you say is sort of that the the the I would say maybe like the is there like something specific that you did to be able to withstand it or just happened too fast that you didn't even realize it that oh crap I have all this volume now? Um, it just happened. I I don't even know how to explain it. Like I didn't so fast,

huh? >> It happened so fast that I didn't even slow down enough. I didn't even follow my my tax stuff till 2020 from 20 or 20. I didn't even do 2023s till then. Like I was literally so much into scale scale scale scale scale that I couldn't slow down to focus on this other stuff. Like I was literally doing so much so fast, >> right? >> And it was it it was >> um it was very

very high stress. I mean I literally stayed into a high stress, but I got to a point >> where now I'm comfortable with being uncomfortable, >> right? >> Uh which >> it kind of just becomes your norm now. >> It it is normal to go through that. I have a great team that's around me >> uh uh people, you know. I like I said, I cannot do any of this stuff by myself at all. >> Yeah.

But I have a great team of people that's around me. I got great partners that are with me >> uh that help and I can call any of them right now. If I was to call, they would answer first. They will answer immediately. >> Yeah. >> Like they they they will they're always there. Uh and and my team, the girls that we got now with with me and James, uh Josh, um Andrew, um our GC's that

we have like that those guys are what help build me. If if I didn't have them there, I would be nothing. >> Who's your core kind of group of people on your team right now? [snorts] >> So, our core group of t uh people, we have uh basically with me uh me, James, uh me, James, Jess, Janette, >> what are they? >> Josh. So, Jess does all of our accounting stuff. Uh she handles like the back

office stuff like that. You got uh I mean, when you're I'm not I'm not even exaggerating. This is this is like you're doing over 5,000 you know uh uh >> transactions >> transa it's 5,000 uh payables payables uh inbound outbound or whatever. I mean that we're doing that it's it's a ton of of work being able to keep in line with that stuff. >> 5 5,000 transactions a month. >> No no not a month just a

year but you you're looking at No. [laughter] >> I'm trying to understand what you're saying. >> No like it's 5,000 like payables uh in inbound outbound whatever checks. I mean, so you're you're you have a a team that there. James' wife, Maggie, she's a uh a CPA. >> So, she was able to help build that team uh that was there with those those girls. Janette. Janette came on later on. We actually hired Janette as a transaction

coordinator. Never done transaction before, but she had good work e ethics. >> Yeah. >> So, and she messed with meshed meshed good with the other girls that was there in the office. So, was like, "Okay, let's let's go off of you've worked with them before. Let's hire that. Even though we weren't ready, bilingual as well. Yeah. >> And whenever we bought our apartment complex at 74 unit in Houston, >> it was 100% Hispanic owned. Guess who's

my property manager now? >> Janette. >> She was able to take over and she's able to handle with a property manager that's on site >> and she was able to transfer. Had we not believed in that and that had no intentions of doing that, right? But how United believed in that in that manner and hired before when we weren't ready for it, but we did with intentions of growth >> and getting into it. And that's that's

where we that's that's what uh we've done. >> Yeah. >> Uh we've continued to run a lean operation like that. Josh being our project manager. Um you know, he handles new constructions that we do and also all the uh the rehabs. >> So all those people I talk to every single day. >> Yeah. every single day that do that's like our core uh that's there. Trevor runs our wholesale operation that we have. Jeff runs our uh

KDK flooring and cabinets because we do flooring and cabinetry. >> Um we have our GCs u that that we have multiple GCs. Josh basically handles those two. I'm highly involved in the construction of what we're doing. >> Yeah. So, I pretty much know everything that's going on with all of our jobs, um, at all times, what we're doing with them, how we're, you know, where we're at, uh, the budgets and everything like that. So, >> so

Josh basically handles the GC's that are actively going and doing the work and every single job that you have. >> Yep. >> Got it. >> Y >> and what is your role whenever you say that you're actively involved in the construction? What do you do? So, running through the numbers with them, exactly what we're doing, the the uh the design of what we're doing, what I'm doing, the walls, we're opening up and everything like that. >>

But this one you have like a standardized kind of maybe colors, different the same kind of LVP, everything, right? >> Yeah. We will do our standard uh stuff that we do. They know when we do a flip or what we're doing uh with rehab, you know, or um a rental grade. >> Yeah. >> Uh what we're looking to do, >> rental grade and flip grade, right? So, >> this kind of flooring for rentals, this kind of

flooring for flips, >> the floor, the flooring really ain't much of a difference. The countertop will be a different of what we'll use. We're going to use 2CM, 3CM. Like, I took a phone call earlier today. Hey, we're doing this one in uh in the Woodlands area, uh, Hills Parkway. >> Yeah. >> And, uh, we're >> we're actually going to be using 3CM. Well, that's $1,300 a slab and need six slabs. That's that's a lot. That's

a lot more than what we were expecting, but it's necessary for that type of, you know, million-dollar purchase price >> that you're trying to get to. >> You said, you said it's 3 cm. >> Yeah, 3 cm, which is the thickness of the countertop. And so 2CM was um a 3/4 inch. 3 cm is an inch and a half. >> So it's a little bit thicker. >> It's a thickerness. It's Yeah, it's more thick. >> Yeah.

And it looks a lot nicer. >> Oh, yeah. >> Yeah. Yeah. I've seen them, too. Oh, sometimes they um some of these guys like they put it right here and they just do the edges like really kind of wide. You know what I mean? Yeah. >> Yeah. Little trick they they do. [laughter] >> Yeah. >> But you probably don't want to do that in some of these uh nicer homes. Huh. >> No, the higherend ones we

don't. So, and I I hate seeing some of the same stuff all the time. So, we'll switch it up. You know, I don't want to look at a house and be able to tell this is a flip. You know, uh that's that standard gray that they use, that marble looked that's in the showers, like you got to switch it up. You can't do that on everyone. >> Yeah, >> you could do that on a low purchase

price, a resale $200,000 or less, but when you go higher than that, you need to do something that's going to separate you from those type of people, >> right? >> So, what we've noticed is going >> um rehabbing more, you rehab more and then going less on the market. >> So, undercutting the market, but the only way you're going to be able to do that is if you're buying them deep. And that that's what you you

you have to be able to buy these deep. >> Yeah. Yeah, James was saying that you guys had one in Galveastston. There were 75 active listings there on the market. >> Yep. That was in Omega Bay on Flamingo. >> Yeah. Y >> So 75 active listings on the market. You guys came in, kicked their own ass, >> gave the best product in the market, and you guys came in $40,000 on the market. Everything else was what,

selling 320? You guys sold for put it on the market for 280? >> No. Uh four. It was Everything else was selling at 420. I think we w up selling at 380 or something like that is where we settled at. >> But still $40,000 on the market. >> Yeah. It was we went under the market uh from there. Uh now our price per square foot though we hit we we set a record in there. >> Oh

yeah. >> Yeah. So cuz our houses were a lot smaller than those, but we set a >> we were still top tier on that, but we were less in value than what everybody else was. But uh price per square foot, we we >> blew it out the water. >> We blew it out the water on that one. >> But uh yeah, that one sold extremely fast. I think it was less than a couple of weeks. uh

got a contract on it. And whenever we get buyers now, >> like we make that work. Like if you if I got a buyer on the hook that's looking to get that house, man, I'm making it work. >> Yeah. >> Like buyers cannot be picky right now. >> You you can't be picky with that. You got to make a move. You got to >> you know, that's what you got to do to stay stay alive in

this market. Yeah. >> Um it'll [clears throat] eat you alive if you don't. >> Yeah. for anyone that's listening, if you're a flipper, a buyer, I think this is a really good feedback to learn right now is because I I personally have talked to flippers where, you know, I've seen it where they're like, "Oh man, well, I had this like offer and I didn't take it and now my house has been sitting on the market for

30 more days and well, you could have taken that buyer initially, you know." >> Yeah. Now you're paying an extra interest payment. You got higher in in taxes and all that stuff. It just adds up. >> Yep. And it's a more chance for things to go wrong as houses sit like that. You know, these houses are vacant. Uh I mean, anything can happen with them. >> You know, you got to freeze. We got to go through

there and we got to go block in the water, drain everything so we don't have any popped, you know, popped lines. Just there's all kinds of stuff you have to worry about in there. >> Yeah. >> Uh it's better just to move those uh product. That's why when you go to volume, I'm not looking to hit a home run on every single one of them. I'll take a 30 pop on 30 of these and and and

still rip the same amount as if I would have just 10 and just squeezed them all. >> Right >> now you're doing less volume like that. I mean, you're doing more volume like that, but also all your guys are staying busy. >> I'm able to you're having a team of people that everybody's been able to feed off of you, you know? I mean, you're you're creating a >> an ecosystem. >> Uh yes. Yeah. You're creating that

and that that's kind of what >> you know what we have done. Yeah. uh is created that >> yeah it's kind of um also very important to note how fast you also did it right you said like you were doing 150 transactions last year again this year what would you say is the main cost of success to do 150 transactions from nothing to 150 >> um >> maybe not from nothing but that quickly >> well obviously

being the closer right so uh if if you're buying in a specific area like if you go pull pull our LLC. And as I was telling you this earlier, >> if you go pull our LLC and you go see that we're buying, you know, if you pull the cash buyers list in Galveastston County and you keep seeing >> the same LLC up there number one all the time closing, closing, closing, that's your buyer, right? >> Like

that's who you get those phone calls to, >> right? >> I mean, you know how to find these people. You pull our LLC, you're going to see it. Like we're buying that much. >> So a lot of the deals are getting funneled to us like that. They're looking for the closure. They're looking to they want to be done. Right now, even buyers for investors right now are not the same as they used to be. It's a

little bit tougher to find that >> you're even having a hard time selling some 70% deals. >> Yeah. >> You know, and and those deals that you would think you typically make 15 20,000 bucks, you're squeezing down making less than five on. >> I mean, you you see that in the market. uh and and you're having to uh you're having to to to take deals like that that you typically would make those. You can't go back

to the sellers because they're not always going to take a price reduction and you're having to make these work, >> right? >> Uh and that's what we we have done in this just continuous is over and over and over. Yeah. >> And that's what has is has caused us to to scale more and more and more. The more we buy, the more deals we get. >> Yeah. It's it's almost like it's it's funny, you know, because

anyone that's starting like maybe just starting off like how do how do they get to the point where they're competing with you, right? It it's almost like you you've almost have like some sort of grip on the market, right, at some point. But there's still deals out there for anyone that's, you know, brand new and they're uh they're really getting started into real estate. Hey, listen. I mean, you can't get to all the properties in Houston.

There's over a million single family homes in Houston. >> Yeah. There's plenty to go around for everybody. Yeah. >> Um, you know, my job as as as being a closer and flipping and all that stuff like that >> is to make sure that that there's no way to beat me. You know, if if we go into an appointment, if I you go into an appointment, I go into an appointment, how do I win? What separates me?

>> Right. And for >> what do you do to stand yourself apart? >> What? Just just standard. Well, be first off, be genuine. Yeah. You know, be genuine. Be the actual closure. that's there. I'm not looking to go there and wholesale your property. I'm looking to purchase it to actually buy it. >> Yeah. >> You know, I'm explaining to people about what an affidavit of memorandum is and I'm explaining to them what wholesalers do. I'm explaining

to them what uh a a buyer is. I don't even go in there and make offers. >> I go in there and go talk to the homeowner and find out what do you actually need out of this property. >> Right. >> And I'm listening to them, you know, how can I help them? >> Yeah. >> And and sometimes a number is right where I need to be at and I'll give it to them. I don't try

to go lower on it. I just I just give them the number that they need to be at if I'm able to. Right. So, it's all it is is numbers. As long as my numbers are good, that's all I care about. >> Right. >> And and also being able to do lease backs. A lot of people won't do those. Uh doing lease backs to people. We took possession of a house today. Uh that was done done

on a lease back. >> Um and being able to solve problems like that. A lot of people don't have cash to be able to move to another place. >> Yeah. Well, how do you wholesale something like that if they don't let you to have access to them? You're having to do a showing and bring a bunch of people in there. Well, I'll just close on the property, get them out of it, get everything out of it.

Now, I can dispo it and sell it how I need to if that's a route I want to take, >> right? >> You know, or I want to buy it and hold on to as a rental. Just depends. And a lot of wholesalers run up into that situation as well. You know, they just I got a deal we got under contract in Pasadena. >> Um, it's a good deal. Uh, they're not letting us go in the

house. I got photos of what it looks like. I'm having to close on a property without seeing the inside. A lot of people won't do that. I will. >> Yeah. >> But it's going to be at a price. It's got to make sense, right? That the numbers have to work. Now, I'm going to go look at the outside, try to do as much due diligence as I can, >> but I'm going to I'm going to try

to protect myself um you know, just as much as I can, but I will close on stuff like that if I need to. >> Yeah. And I think what's really important here is that you probably didn't weren't able to do that at some point in time, right? I mean, years down the years back, you probably weren't able to do that. I think that over time, doing deals gives you confidence, and that confidence is portrayed now through

being able to analyze a deal without even having to walk it. >> Yeah. Right. >> I was never prepared for the Yes. So when somebody would send me a deal, like if you sent me a deal and and I looked at the numbers from it, yes, I I'll buy that. It was always, oh, let me look at this. Let me analyze this. By the time I did that, you already got it. James done bought it. >>

Yeah. >> And I'm like, dude, you don't let me have one. Like, >> you know, how do I beat you? Yeah. >> You know, and for his job is to say, there's no way, >> right? >> You know, and but that's your job, too. my my job is to find out how can I how do I get that edge over that? >> So that that's what you got to get to a point to say that you

can't beat me. >> There's no way you're going to win. Like that's where you want to get to in a mindset frame. Yeah. >> Right. When you go talk to a seller like that, you have to have that. Be genuine. Be real. Be able to close and perform. They will feel that confidence. Yeah. >> Right. Like you have to go in there with that confidence level >> that that they are dealing with the right person >>

and they are >> like that's that's what they have to know >> and they will feel that when I go talk to a seller like that they know I'm I'm here to help you. I'll help you in whatever situation I can. I'll pay for movers for you. I can give lease back. I got all these options >> that I can help to you subject to whatever I can do to do it. If the numbers can work

for me to make it help you, I will do it, >> right? >> You know, whatever it is. >> Yeah. So that's that's where you know it goes back to uh now I can slow down enough to get into a personal development right to where I I've I've basically given up enough um which it cost money to do this but I've given up enough load to other people to where they can handle a lot of the

day-to-day routines to where I could come do things like this >> right yeah >> you know and the operations still go >> right and I think I think what's really important right here Derek is is your that mindset that you have, right? The mindset to say, "Hey, I'm gonna show up to this appointment and I'm gonna leave without with a contract and I'm not going to lose no matter what." I think that a lot of people

that are listening that are maybe brand new or, you know, they're they're doing deals like you just you just said one very important thing because at the beginning at some point you were competing against James, right? >> Yeah. >> And there's other people that may be watching this that are now thinking about competing with you, right? But you can't you cannot put yourself in their shoes or compare yourself to anyone. It's almost just going back to

yourself and saying, "How can I do this better than anyone else?" Yes. >> Right. And so I think that's that's a really important mindset to share for everyone is just be the best you can be. Improve on yourself and your skills. And I think that'll take you a lot further than anything else will. >> Absolutely. >> Right. >> You're in competition with a person in the mirror. >> Yep. >> That that's the way that should be.

Yeah. Uh and how do you get better? How do you scale? Yeah. You know, uh from all avenues, uh business, personal development, uh you know, coaching, financials, uh emotionally. >> Yeah. >> I mean, this stuff is is extremely extremely hard. >> Yeah. >> It's not easy at all. Like >> I >> real estate has has changed my life in a positive direction. >> Mhm. >> But has also taught me the the worst things as well. >>

I mean, I've wanted to give up so many times. Like, man, if I can just I'll let this foreclose, let this foreclose, and I'll just hold on to these couple of properties and be be chill. Like, I don't I don't have to worry about my credit or nothing. Just >> like, I don't want to deal with this no more. This is not worth it, you know, like the emotional stuff that you deal with on a daily

basis. >> Yeah. >> And it it's >> uh >> So, how do you come overcome all that adversity, Derek? >> And just honestly, by by recognizing it, number one. And that's whenever I developed into partners, right? Like how >> recognizing what >> recognizing that you're in those types of situations like that that you know before you get to a point where you want to give up >> like have somebody else you can lean on. >> You

know it it's hard to take two people down. >> Yeah. >> And you could take one but take two of them. Like it's it's tough. >> Yeah. >> To do that. You know you you got to have people that are going to go ride the ship up and ride the ship down with you as well. >> Right. >> Right. And then those are people like that that I I I look to find. >> Yeah. >> And

quality people like that and those are the people that I'm around on a daily basis. >> You know, it's kind of like one of those things where um I don't know where I hear this from, but you know, protect your be your brother's keeper, you know. Yeah. >> Yeah. And uh >> and there's so many examples that come to mind, right? Like the Spartans, right? Whenever they're like side by side and they they have that same

philosophy. Um, I think that's a beautiful philosophy to have. I don't think I've heard that uh often or maybe even from any any guest, Derek. Um, I think that's really important to share. Um, personally, you know, another question that comes to mind, Derek, is how do you know when someone's the right partner? Because there's so many opportunities that come a lot. You know, you know what I'm talking about, man. You like we go out >> to

these networking events and there's all these like youthful and like really excited people and you you see all this potential in people, right? Right. And I think, you know, like from a positive person, I think you're a positive person, too. You want you always want to see you always want to find the best in people, right? But how do you filter out through everything and decide, okay, this person is the right person to partner up with?

>> You ever heard uh uh high or slow, fire fast? >> Yeah. >> It same thing with a partnership. You you're you're going to go into that as as in a slow manner >> before you go into it quick. >> Yeah. >> But because a partnership is a marriage. >> Yeah. some it it's what it is. It takes it takes for you to leave that partnership, it's going to take a divorce, you know, that's going to

go through that which is going to end up extremely extremely nasty. >> Yeah. >> Uh so you you have to be aligned with them and and I would have highly highly advised to watch how they have navigated in business for a long time before you get into a partnership with somebody. >> Yeah. >> You can do JV agreements. >> Yeah. >> You don't have to get into an LLC with somebody, >> right? But whenever you go

in through a through a partnership like that, like you have to be fully aligned 100%. The only way you're going to see that is through time. Only way you're going to see that is through time. >> Yeah. >> You need to see how they navigate with deals, their morals, their ethics, >> what they do, how they handle adversities. >> Yeah. >> You know, you ever want to see what kind of partner you have, lose money with

them. >> You It'll all come out. >> Yeah. >> Anything that's positive or negative. >> Yeah. >> I promise you, lose money with them and you'll see what kind of partner you really have. Yeah, >> that that's where you'll find out, >> right? >> And so, um, you know, those are things like that that I look for in partners. And like I said, right now, I'm at a point that I don't I've already got everyone that

I need on my team that's been around me long enough that I know how they work. I know how they operate. I know they want what's best for me. I want what best for them. And I have no desire to get outside of that. I'll do JV agreements with people. >> Mhm. But as far as an LLC with somebody, there's no there's no reason I need to grow any more than what I've gotten. >> Yeah. >>

With these people right here, these people that I have right here could take me to 100 million. >> Absolutely. >> But Derek, let's give advice to someone that doesn't have a partner right now. Someone is in your someone's in your shoes maybe six years ago, 2019, you know, just bought their first flip. How can they find a partner? So well obviously going into to networking events. Yeah. Right. Um I would highly advise to to do research

on these people, right? So anything that I have said, you can go pull records and you can go see that. I can teach people how to do that. I can show you how to do that, >> right? >> It's not hard, you know, to go into deed records and go see and you can pull LLC's and see all that. It's not >> it's not that difficult uh to do that. So, I would highly advise that um

on anybody that you're getting into a rel, you know, a partnership with. >> Yeah. >> A lot of the times partnerships, they start off with your two guys that just, hey, we want to do this and start it. The chance of those those partnerships lasting, >> it's they're not going to like it's just it's just not going to. >> Yeah. >> You need to be equally yolked. >> Mhm. >> Uh in a partnership. So, it doesn't

mean that you won't bring more value at one time that I don't, but it it's you have to be able to both be on, you know, on on the same level of what you can provide. Yeah. >> Right. >> Yeah. >> And and one could be providing the deals, the other one could be doing the construction. It just depends on what that is that you're that you're getting into. >> Um, >> but you got to be

aligned. You have to be aligned. And I think the only way you truly see that is over time, >> right? >> So, I would I would advise using JV agreements. uh until until you get to a point where you can, you know, you actually get into an LLC with somebody. Yeah. >> I I would just one person goes into a JV agreement, you go on the backside. Yeah. >> And do a profit split at the end.

>> What kind of situations or you know earlier you said something like you see how your partners are when you lose money with them. Can you talk about a situation when you lost money with a partner? You don't have to say the partner if you want. >> Yeah. Uh but can you talk about a situation when you lost money with a partner and then how they handled it and how you handled it? >> So um specific

property this was a 4unit that was in Houston uh and I had a partner uh he was he was supposed to do the construction. I was basically the money side um misallocation of funds uh you know taking draws and using them for personal. Uh that's what wound up, you know, taking the uh uh the partnership into a different direction. Um >> and and I lost probably about $150,000 on that of uh of cash and the project

didn't get completed. >> Dang. >> And um so I had two options. >> So So the partner took 150 grand. It >> was about it was about 120 uh at the time. But you look at uh >> And they didn't do the job of >> Well, you look at how much the interest payments cost me. how much the taxes were the it just it racked up so much. Even for me to get out of it, >>

even for me to get out of it, I had at least $60,000 in the deal at the very very end. >> So, um yeah, I lost a lot of sleep over that, you know, that that that deal that happened. >> So, I had two options. I could let it go and take the loss on it >> and just let it go, which would have went back to my lender, which was James, >> or I could dig

deeper. Mhm. >> and go more into my pockets and get out of it. >> And that's what I chose to do. >> So, I went deeper into the hole to get back to a positive state. So, um >> what happened with that partner? >> It's no longer a partnership. >> Yeah. >> Yeah. I mean, just non-existent, >> right? >> So, uh >> is there anything they could have done there? Maybe like sued or something? Take it

to a small claims court. >> Uh yeah, I mean we I could have done all that stuff. Uh >> not worth it. It's not worth your bandwidth. Well, I mean, I would have went that much further deep into it at the end. And what are you going to what are you going to sue somebody that don't have no money? >> Yeah. >> Like what's what are you doing? >> Yeah. >> Like what? Am I going to

get a judgment? >> Yeah. >> I mean, it's just >> they don't have nothing. Yeah. >> There's nothing to to to get at at that point. But I will say he he has tried to make it right. Um, you know, he he he has sent some money back. He knows he did wrong. >> Uh he's tried to make it right. Uh maybe not as fast as he's able to uh but uh he's tried to at least

try to make it right by sending some of the money back. >> Yeah. >> Um not been a whole lot, but he has he's tried at least something. >> Yeah. >> Um >> there's something to be said for that at least. >> Yeah. I mean, I just wish you would have been told me there was a problem, what was going on. I could have helped him get out of it. I would have helped him get out

of the situation. So wind up to leaning on my other partner, Chase. He came in there and he just ramroed the ramroded the the the project. Finished it real quick, got it up. I owner financed or I uh I uh refinanced out of it. I left about $60,000 in the deal and then I did an owner financed to somebody else, which they still have it today. >> Nice. >> So, I kind of had to get out

of that at that point. Uh I don't even want to see that street ever again. [laughter] Like I just, >> you know, it was a big learning lesson is what that was. I paid for that. I paid for that learning lesson. Yeah. Prior to um starting the podcast, you spoke about, you know, wanting to show people that they can accomplish anything. I think just by your story, you've been able to share that, but more specifically, is

there something that is on your mind that maybe like a story or something that you can share to show people that you truly can accomplish anything if you set your mind to it? >> Yeah. Yeah, I mean uh in particular, I mean I could go to deal to deal to deal uh on something, but you know, the biggest part that I would say about this is is is if you truly believe into yourself, and that's what

I you know, I I had a lack of belief in myself >> that I wasn't being truthful to myself about. >> How so? >> Because I used to be if I had the same opportunity as as you or if I didn't have this job, I would do I would do X, Y, and Z. >> Like a victim mindset. Um, I don't want to say it was a victim mindset, but it was like if if if I

had the same, you know, uh, opportunity that you had, like where I didn't have a full-time job, I would do X, Y, and Z. I would be where you I could do this or I could do that or whatever. >> If I truly believe that, I would leave. If you truly believe that what you said, then you would leave. But you don't, right? >> What is holding you back? It's lack of belief. >> It's a lack

of belief within yourself that's restricting you from doing that. >> And I do not advise people to do that. Do not leave your W2 to go full-time into real estate. >> No, >> but that is what it is. It's lack of belief in yourself. If you truly believed in yourself, you would leave what you're doing and go all in. >> But that's what's restricting you from doing that. >> So lack of belief, you think, is something

>> 100%. >> So another question then, how do you get more belief? How do you gain belief? >> Through performance. >> Yeah. >> Yeah. Performing to yourself over and over and over and you'll build that confidence up to it. Right? So >> there's no such thing as a overnight success. That's not what that is. >> That success was built up to a point through knowledge, through trial and error and things like that that will propel you

to the next level. >> Yeah. >> Right. So you are the only thing that restricts yourself to when you're ready to go to the next level. >> Right. >> Right. And being laser focused into that. >> Now I was working 100 hours a week for like two years straight. Yeah. I mean, I literally was just nothing but work, work, work, work, sleep, wake up, work, sleeping about I mean, I was thinking about work. Just >> that's

all I did was focused on that. >> Yeah. >> And uh I don't do that now. I mean, but I still actively searching for deals. I locked up another one today. I mean, I've I'm I'm constantly looking for deals. Yeah. >> All the time. Yeah. So, deals, opportunities, uh things like that I can capitalize on. So in short, if you want to gain to get success, you need to believe in yourself. And to believe in yourself,

you have to perform. And to perform, you have to take action. >> Yep. >> So in short, >> a thought I just wanted to say this when you said that >> a thought without action is just that. >> It's just a dream. >> It's just a thought. >> Yeah. >> So you have to be able to take you have to be able to take action on this stuff. >> Yeah. And I think at the beginning, you

know, like maybe someone wants to buy like a 100 flips, right? That's the goal, you know, like someone's goal. >> It it starts with one, right? And it maybe not even starts with one. It may start with just like taking the right step >> into real estate. It could be something as simple as picking up the phone, right? Pick up the phone, call someone, right? Make an offer, analyze a deal. Whatever that small first initial step

is, that alone will start proving in itself that you're taking action towards your dream. Yeah. >> Right. >> And I don't I don't ever want uh uh you know, people to ever think or look at me and say, well, you know, you're boasting of this or that or whatever. It's no, you can do this, too. >> I'm human. Yeah. >> I make mistakes. >> Yeah. >> You know, but I believed in myself and I took action.

>> Yeah. You know, you should be proud of that. Create your own success story. If you don't like it, create your own. >> You should want to level up. That's what you should want to do in life. Yeah. >> If you're not wanting to do that or you have a a victim mentality or you have that loser mentality, you're not thinking of that. >> Yeah. >> If you're looking at somebody else's winnings as a as a

as a downfall to you, >> you're looking at it the wrong way. You already lost. >> You can't speak winnings to losers. >> Yep. So you you have to be able to get around people that motivate you that cheer for you or happy for you on those wins, >> right? >> And those people that it could be somebody going through foreclosure and and they're still cheering you on. >> Yeah. >> You know, happy for you, >>

right? >> You know, that's a good thing about the business is you get to choose who you want to do work with and who you don't, >> right? >> Who you're around and who you're not. >> Yeah. >> Right. You've been doing that for a long time. >> You get to choose who you want to bring on here, you talk to or whatever. >> Yeah. All your people that you interact with on a daily basis is

who you choose to be around, not who you have to be around. >> And you know, when you choose great people, man, you know, I think your quality of life just goes up tremendously. You know, [snorts] I just feel like you have deeper conversations, more impactful uh more impactful even like, you know, I love talking to my friends and being able to like just look back at like, you know, years from that that happened ago. And

then more more importantly, like, hey, let's look at the future. I think, you know, I was even talking to Jacone. I think you should come. We're like planning on doing maybe like a little mastermind or something at the end of the year, but just like, you know, like just looking forward towards 2026 and getting around these right people and saying, "Hey, man, like this is what happened this year. Let's talk about, you know, the wins, the

losses, and then let's talk about what to look forward in 2026. What where are the opportunities at? What can we accomplish? What can we capitalize on?" Because there will be a lot of opportunities, I think. Um, and so I think what's really important about what you said is it it always boils down to the people, right? It always boils down to the people. Um, so for anyone that's listening to this and watching this, I think what's

most important about anything in life is getting into the right circles that are going to uplift you up. I'm from South Texas where there's a lot of uh crap mentality, you know? Yeah. >> Crab in the bucket. >> Mhm. >> And growing up, man, I mean, I would always like grow up and everyone would always say the same thing. Oh, well, it's because they're a drug dealer. Oh, because of, you know, they have wealthy parents. Oh,

because, uh, they're connected to someone and blah, blah, blah. You know, and it's like that kind of mindset. I would always listen to them. I'm like, man, there's something wrong about that, you know. And I I went out of there and I came over here and I'm like exposed to different cultures. I go to Europe. I go to uh I'm traveling around the world and I start seeing how everyone's living life and I start kind of

understanding the world and it's like, no, I mean, it's life is just what you make of it, right? It's not what >> the beliefs are on others and their projections onto you. It's about what you want out of it. So, what do I want? Right. And that's when things started changing. >> Yeah. >> It's it's impactful, man. >> And and having that mentality that takes it takes time to get there. It's not It doesn't happen overnight.

>> Yeah. >> And and that is from, you know, even you look at that story like that for you to be able to go to those places. What does it take? >> Yeah. A lot. you know, so it it's it's it takes action that created money, which is the tool for you to be able to go places and do things. >> You know, even even going down to uh uh being able to rent people, I'm able

to rent for people at a lower amount. I mean, there's some rentals that I have that I've gotten family in there. I'm losing, you know, $150 a month or whatever just to put them in there >> just cuz they needed a place to stay at. You I'm doing that. I mean, right now, >> just just to be able to help them out. It's not hurting me. It's not that big of a deal, but it's a big

huge deal to them. Right. >> Right. >> And and how can I be that impact on somebody if I don't have control over my life like that? Like you you really need to >> to uh aspire to want to be like that as fast as you can. So you can make those options and you can, you know, navigate through life like that. >> Yeah. whenever people like I remember like growing up with all these people and

like they would look at rich people and blame them, you know? It's it's I think one of the like society's biggest problems is that some of the people look at people with money and then they they bash on them. Oh, they're bad because they're hoarding all the wealth blah blah blah. But what that you don't understand is that wealth is a byproduct of value that you provide to society. Mhm. >> And so the people that have

the most wealth in the world are the people that are providing the most value. Every dollar that you have right now to your name, Derek, is a an indication of value that you've provided to someone at some point in time. And that's the mindset shift that people need to make, right? In order to start building wealth is, oh, I'm going to give someone so much value. And I was talking to James earlier about this, like you

know, some of the the clients that have paid uh paid me for marketing, like one of the I have a client in in uh California, she's paid me 28 grand, she's made 170,000 from it. I have another client, he paid me 45,000 this year, and he gave he's made 600,000 from it. >> And so the amount of value that every dollar that comes to you is an indication of how much value you're providing someone else. Yeah.

>> Right. And so then you should aspire to build more wealth so you can provide more value, right? And it's just like kind like a overcurring theme that just it's like the more value, more wealth, more value, more wealth. And it just, >> you know, I I had something that uh [clears throat] you know, somebody asked me what was my purpose and I and I said, well, as you as you grow, your purpose changes, >> right?

>> You know, your goals will change. Your purposes and what you're doing and what you're doing it for will change. >> Um, >> how has it changed for you? Man, it's it used to be money. >> It was it was all money driven 100% towards that. And it was that money was the tool that was going to provide me the life that I wanted to live, >> right? >> And then you get to a point where

like the money doesn't even move the ticker on stuff. It it it's >> the money's cool. I I like it. I like to see it on a HUD and all that stuff like that, but that's not the movement. that doesn't it the deal structuring the creating of that getting to that point and getting it to the closing table >> that is more exciting to me than the money itself >> and and people don't they don't they

don't understand that unless you're doing it. >> Yeah. Yeah. I always say like to me the win that happens whenever I do a real estate deal is whenever I spend an hour, two, two hours, three hours on the phone with someone and I negotiate the the price all the way down to the price that I need to. That win whenever they say yes, send me the contract whenever they sign the contract, that win feels 100 times

better than whenever the cash actually hits the bank account. Like I don't even count the bill. That's just the byproduct. >> Yeah. Yeah. But what I love seeing is like being able to get a deal done. Whenever I send a contract and they sign it, boom. I love that feeling, dude. >> Yep. It's great. >> Yeah. >> And and that's that's the um you know, doing the deals and creating them, having the good story at the

end of it. >> Yeah. >> That is uh >> that's I mean I enjoy that. >> Yeah. >> I really like that. I like the deal structuring. >> Yeah. It's fun. >> I also like uh seeing our guys get paid. >> Yeah. >> I mean I actually like them being paid more than I do. M >> I don't even know how to I don't even know how to explain that. Just I like to see others win.

>> Yeah. >> If they win, >> if they win more, >> if they win, I will win more. >> Yeah. >> So if if I can let them win >> as much as I can, I will win more in return. Yeah. >> From that. >> Yeah. And being able to build build up people within your organization, I think brings a lot more value and joy to your life than just, you know, stacking up another dollar bill

on your wealth, you know? >> Yeah. >> Like I have I have a I have a great teammate and she does like everything for my business right now. And just being able to see her growth in my organization has been more joyful than, you know, all the money that I've made. It's it's very rewarding to see people win and to see people develop, you know what I mean? >> Yeah. >> I mean, >> I think you

have the same thing, right? >> That that that's the uh that's the ultimate point and probably used to be about money to you. >> Yeah, it was. Yeah. >> So, your purpose changed. >> It does change. Yeah. You know, >> it's a it's a beautiful thing, man. I think it makes >> I think it brings more joy to life whenever you're in a leadership position and you have people that work under you. I think it brings

a lot more value >> and and and like I've I've said this a couple of times and I'll say it again, you know, >> uh everything that I do, I would not be capable without the good people around me. I mean, and it's it's it's from down from my wife >> to my partners >> uh to our team that we have. I mean, uh all the way down, you know, Josh, Jess, Janette, uh even even with

Courtney. >> Yeah. >> Uh handling the loan stuff. uh all those people that are around us. Um >> just great people. >> It just Yeah, just a really really it's an enjoyable thing to show up somewhere. Yeah. >> And and >> everybody there >> wants to be there. They're all good people. >> Yeah. >> Um and it just makes makes them makes I want them to win. Like that's that's what I want them to do. I

want them to win. >> Yeah. >> Just as much as I do. >> Yeah. Love that, dude. I love that. if um if people you say you get a lot from like teaching people. Is there is there maybe any plans or any anything in the works for you to maybe have like some sort of like mentorship opportunity for you? >> Yeah. So, we've talked about that a couple a couple of times, me and James have. Uh

I think that's probably the next phase that we'll go into. >> Yeah. >> Um but you know, like with anything that I do, I don't want to halfass it, >> right? So, you know, one thing that I see with mentors and stuff, I I want to say a saying to it, but the reason they become coaches because they couldn't hack it doing what they were doing. They had no other option. No one else is doing that

type of volume like that >> and doing the coaching. And it might be because >> you can't do that volume and do coaching. Like it might be tough to do. I don't know, you know, to to to get into that. But I know that I have a a ton of value that is that is, you know, locked up into my brain that I can provide to other people that I have not capitalized on. Um, I mean,

just dealing with the foreclosure stuff, the airship affidavit, sub twos, uh, I mean just your regular transactions, wholesales, doing passroughs, uh, double closing, when to do them, all that stuff like that. like I I know that I have a ton of knowledge. >> Yeah. >> Uh even on the construction standpoint uh as well to being able to provide to people. I just >> um that is something that we will get into >> and that's probably the

next stage. I'm just I don't want to say uh I'm I'm I'm nervous about it, but I I have a feeling if we go into something like that, it will explode. >> Yeah. >> Like I I have a very very strong feeling if we go into something like that it would it would take off. Well, I think you already have enough like social proof to, you know, bring on a lot of people and and actually show

them the real ways to do business, you know. Um, so I think >> just from even the people that you've probably bought deals from, you know, I mean, I'm sure like any wholesaler would be happy to learn from you, you know. >> Well, they know if we, you know, if we're contracting, it's it's closing. They don't have to worry about it. Yeah. You know, so that's a that's a confidence they have. They, you know, with a

seller, whatever. So, um that's that's something we provide. >> Yeah, absolutely. Um if someone wants to uh sell you a deal, Derek, what's the best way to get in get in touch with me? >> Uh I mean, really reach through my phone uh on my cell phone. Number's 21 >> 352 or hit me up on Facebook. That's usually the the easiest ways to get me on Facebook. Instagram. I haven't really kicked off into Instagram. Facebook's more

of the uh uh probably older group. Those are usually the people that own the houses that are needing to sell. That's probably why we get a lot of deals from that. >> Yeah. Um >> from Facebook. >> Yeah. I get I get a ton of deals from Facebook. >> Yeah. >> Are you running ads or >> No, no, not running ads. Never never run ads. >> So, wait, what do you how do you get deals from

Facebook? >> Inbox. People are sending the inbox. Those posting stuff that I make like that. It's just a lot of people get into my inbox. >> But how do they find you? >> They're connected. However, I mean, whether it's posting into to groups, >> um, however, they're seeing stuff. >> Whenever I tag people, it expands to their their people as well. >> And it just it gets your name out there. >> Yeah. >> Now, a lot

of they know that I buy. Like, people know that I buy. They know to call. So, I'm getting phone calls. I mean, you look at my phone. >> You look at my phone right now. I mean, it's it's it's it's lit up. >> Yeah. This is all I mean and you probably got 30 to 40 different messages right now >> that I need to get back to >> every day. >> It's just constant like that. And

so I probably get on average probably 10 deals sent to me a day. >> A day just deals that come through. >> Some of them are are good, some of them aren't, you know, and and usually if if I see the numbers and see where they're at. Um >> see this is a this is the one that the guy that sold me the 74 unit in Houston's calling me right now. >> Oh yeah. So that that

that's a good that's a good call right there. That's a good one to >> answer to take that. >> No, >> take it live on the podcast. >> That'd be good, wouldn't it? >> That'd be good. >> I don't want him to hear that address. >> Yeah, I know, right? >> I guarantee you that's a good one. Let me let me uh >> let me see. I'm going to tell I'm going to call him later. >>

But uh no, we're I mean, we're actively looking for stuff like that. People know uh that we're looking for that. I will buy anything anywhere if it's cheap enough. >> Yeah. So, it doesn't matter where it's at. And also, again, I had somebody that that uh that that messaged I didn't even have his phone number saved, gave me a number that he needed to be at on a house in Cleveland. I told him where I was

like, "Man, I'm going to be like half of that." >> Mhm. >> And I guess no one showed up at his deal he tried to show up to and was like, "Hey, uh, I see you buy. Would you what if I just let you go direct? Will you just give me a fee if you close it?" And I was like, "Yeah." I didn't know who he was. >> Yeah. >> So, I got I went out there,

got him on a contract. That's the one I posted. I got under contract for 15,500 bucks the other day. >> You got it for 15K. >> 15K. >> That's >> And uh I'm I'm cutting him a check for 2500 bucks. >> Nice. >> So he he asked he asked for it. I told him, "Yeah, I'll do it. No problem." >> Went out there, got his hand signed right then. Uh and it I mean it's a deal

that's going to close. We'll buy cash. I'll probably clean the outside up, paint it, and get it owner financed to somebody. >> Yeah. >> So >> quick and easy. >> Quick and easy. In and out. I get all my capital back out of it to it and turn it into a note. >> Love it. So >> that's good. Man, that's awesome, dude. So, um, if anyone wants to connect with you, reach you out on the phone,

text you, call you, and, uh, and you'll be able to close. Uh, you mentioned something earlier, um, being a closer, you know. What does it mean to be a closer for you? >> Being able to perform, you know, uh, you have to be able to perform. Um, know it, mean it, believe it. You've got to be able to do those things. So, that that is a uh, a confidence that I have. I'm ready to say yes

before I get that phone call. Yeah. >> So, I can't say no to a good deal. >> It's just it's just not going to happen. It doesn't matter how much I have going on. It doesn't matter the leverage I have. >> If it's a good deal, I'm going to buy. And a lot of the deals that we have >> right now, I'm telling you, are are probably 60% or below allin. I It's just >> it's stupid

numbers on some of these that we have. >> Huge huge spreads onto them. And when these >> and we've loaded up to get into next year, when these pops start coming, it's going to be violent. >> Yeah. It's there's there's no other way around it. It's going to be violent. I mean, like I said, I just the the 74 unit, we just got a LOI on it. We'll probably if if it all pans out, we'll make

>> two and a half million >> like $2.5 million just on that one deal. So, >> we'll see how that goes. If it works out. If it doesn't, we'll rip back about $800 to a million dollars out of it, do cost seg onto it, and work it as taxes. >> So, >> two and a half million sounds pretty good, bro. >> I'll take that and run. You know what I get excited about that? [laughter] If it's

not even the money from that, it's the leverage that I can create with that. >> Yeah. >> So, getting more capital like that and what can I do with that? >> How many more deals could you buy with two and a half million? >> I don't know. A lot. >> A ton. >> A lot. >> You can you can control a lot of things that, you know, moving forward like that. So, >> it's good to have

liquidity >> and and it and it gives you uh security too, you know, so things go wrong or they don't sell as quick as they do and you continue to go down. Like our wholesales that we do, like our wholesales just pays for the basic operation. the wholesales is was not created for us to generate our income. Uh, you know, our our income was generated from flips that we did, >> you know, giving these big pops,

but the wholesale was just a let's just pay for our bills. Let's pay for payroll, pay for our lights, pay for everything that we got going on that sustains it, and then these big pops that you get continue to go. >> Yeah. >> And um that's that's kind of what we have we have created right now. >> Yeah. But a lot of people think, you know, oh, they call themselves, oh, I'm just a wholesaler. Oh, I'm

just a fix and flipper. Do both. Do everything. >> I'm an opportunist. >> Yeah. >> Opportunity is I'm ready to strike. And it doesn't matter what it is. >> When you do everything, I feel like that's when you're able to scale, right? You do the wholesales, it pays for the operation, the flips, stack up the cash, and then you have these big pops. Those are the the really big home runs, >> and then you build the

the the rental portfolio for long-term wealth, right? you know, I mean, you don't stack up 300 paying plus doors uh like that without, you know, taking risk and holding on to those properties like that, >> right? >> You know, so you got an RV park, uh you 74 unit, got a 26 unit, >> um you know, we got a storage facility, uh I mean, I've got a bunch of single family properties that we've got that are

very, very good properties that are stabilized. And those are things like that that I knew you had to hold on to long term to build wealth, long-term wealth. >> Right. Right? That's what sustains it. Right. >> Right. You're only as good as your last wholesale, your last flip. >> Right. >> That's it. >> The rental sort of the wealth maintainer. >> The wealth maintainer over a long time. And if something goes wrong, I can always dig

off into that and sell something. We also have me and James own about 30 lots. Free and clear. Just >> Yeah. Just uh lots. So now if if anything happens with the market, we can shift over to that. Like the offmarket stuff has taken over, but um you know, if we need to, we can go into that. We have Josh that can build new constructions and we can build it at cost. >> Right. So we can

take that and build at cost and we can basically build the rent. >> Yeah. >> If need to. >> A lot of different options you have. >> Absolutely. >> Yeah. Yeah. >> Well, man, I really enjoyed this time. Um I think you shared a ton of value and I I'm really grateful that you're here and you're able to share your story. I think a lot of people will be able to take a lot from it. more

import more importantly, you know, overcoming adversity, you know, um building the right mindset to have success. Uh and I think you did wonderfully in sharing your your story and showing how that's possible. >> Yeah. >> Yeah. So, >> it's not easy. >> No, >> I I I'm telling you it it's not easy on the road up. I I I promise you. >> And it's always a road up is what it feels like. >> Yeah. >> So,

uh you you have to >> never be satisfied with mediocracy, right? >> You have to always continue to go. And I told you that earlier. >> Yeah. >> If I get a big pop, it it the next day I go to work like I never received it. >> Right. >> And and James does that same thing, too. >> It's You go to work the next day like it never happened. >> Yeah. Never happened. >> It never

happened. You never received it. It's just another deal, >> right? >> So, >> love that, man. I love that. Um, share your number again for anyone that didn't catch. >> 281 352 2632. That's my sale. Uh, I'm always available. >> That's one thing I've done is I've always made myself be available >> um as much as I can, you know. Uh, >> so getting back to 40 messages can be tough after this. >> Yeah, I know.

But >> when I called you, I mean, you you answered right away and um and you know, you agreed to come on the podcast, so uh thanks again for that, man. I know you're busy, so >> absolutely. >> I think this is really good. >> Yeah. Thanks again. >> Yep. Appreciate Yes, sir.