"The Power Of The Pivot" | From $35K on His First Cold Call to a $1,000,000 Wholesale Fee

So, first deal, 35 grand. What was that? Was it a wholesale? >> Yeah, it was a wholesale deal uh to an investor I already knew, so I sold it to him. >> What kind of ups and downs did you have in 2024? >> So, 2024. >> That's your plan is to sell the houses at 80% of ARV. I have uh so if someone invests from like >> during the construction phases again it's already fully filled like

I have one investor that has already committed to the whole thing >> but I have so many people that are constantly asking me hey do you have any opportunity for >> you know how hard wholesaling can be and it's a moving target like you said earlier >> once you figure out operation how difficult it is operationally then you very quickly decide >> it's not for everyone you So it was it was actually losing money. >> It

was losing money. Oh yeah, it was losing a lot of money because these guys would put someone owner financing became a new thing in our business. So we now we have kind of stabilized. We buy cash and creative equally because we are not going crazy with it because market have changed obviously. >> Welcome to another episode of pick up the phone podcast. I am your host Janas. I'm the CEO of Vancom. We help small real estate

businesses with CRM marketing and AI. Today's guest is Chai. Uh and I might butch this again. Fancy car. >> Yeah. Awesome. Uh Chai has done over 600 real estate transactions in his career with one of those uh being a wholesale deal that made over a million dollars in fees. Um I'm really excited to talk about this one, man. So, uh, and then you've, uh, you've done over 100 loans now in your newest, uh, lending company. >>

Yeah, in the in our formal lending company. Before that, we've been lending before, but it was more private. Yeah. >> Just one-on-one. Now, it's it's a company. Now, it's a business. >> Nice. Awesome, dude. Well, thank you so much for being here, man. I appreciate it. >> Thank you. Thank you for having me. >> Absolutely. >> Appreciate it. >> Um, Chai, let's let's start at the beginning, man. Where uh uh where are you from? you know

um when did you get started in real estate? Let's start from the beginning. >> Awesome. Uh so I mean I came to this country like any other uh Indian student uh who comes here. >> I'm from of course from India. I'm uh from uh Pune. It's a small city closer to Mumbai. It's like Austin of Mumbai. I like to tell people because it's a university town that turned into tech town just like what happened to Austin.

>> Awesome. >> So I'm from Pune. I came here around 2007 for my uh graduation for my masters. >> I have uh I have finished my uh bachelor's in engineering from India and then came here for industrial engineering uh masters. >> What school what school did you go to here? >> I went to UFH uh Kullan College. >> Okay, cool. So when you when you got here to Austin right away you uh you came straight to

Houston. Oh, well I mean I I was telling you Pune where I come from it is like Austin. So right back home it's more like Austin uh culture where I come from. But here I came to Houston obviously. >> Got it. >> Uh always I mean came to Houston and never left Houston. >> Uh many people have to travel because they get a job in other city. So I'm fortunate that I never had to leave Houston.

Houston's been amazing. I mean, I'm everything I could could I I could have dreamt or and then some I got here in Houston. >> Yeah, it's wonderful. >> So, very grateful to be here and um I don't think I'll ever leave. >> Yeah, same. Same, man. Man, that's awesome. So, then you um you you were born in India um and you went to school over there and then you came over here. You went to school here

in Houston, UFH, you did you did your master's degree here. >> Um where did you go after that? So after my masters again before I came here I always had this dream to start my own business. I actually attempted to start a business in India >> but then someone gave me this idea if you're doing it here why not go try it in America. >> Yeah. >> But then there was this hurdle to you know come

here get your immigration status and all that. So I had to come here for education >> uh and then see if I like it and then think of uh the next steps. >> So of course I went through that. I went to school. I got a job. I worked there almost 10 years. >> Uh I worked for Schlumbumberj. >> Oh, nice. >> Oil and gas. >> Yeah. I used to work for Hallebertton. >> Okay. Yeah. Awesome.

>> Yeah. Yeah. >> So, >> what did you what did you do with Slumber? >> So, Schlumbumberj I was a like last position I held was a supply chain manager but I went through manufacturing engineer then uh sourcing specialist then all these things >> but supply chain was my personal passion. I loved dealing with other companies, negotiating contracts. >> Uh so obviously I mean that gravitated me towards real estate because uh the same skill set you

can use here with negotiations and all these things. >> Yeah. >> But real estate was never in the plan as a business. >> Mh. >> It was more of an I mean at that time I thought of real estate as my way to invest money. >> Okay. >> Just like anybody else. >> Yeah. But I was trying different things while I was at Schlumbumberj. I have looked into buying this restaurant >> because back home one of

my best friends owned a restaurant and uh his family owned a restaurant and I always like thought of myself as owning a restaurant because I'm a foodie. I love to cook and I I that was my passion. >> I came here actually got a job in a restaurant. um worked there for two two and a half years >> and then I decided that okay this is not for me. I hate it. Yeah, >> I mean it's

a great business, don't get me wrong, but you have to scale it in order to make it otherwise you're in this I mean you don't have a business, you have a job, >> right? >> So got out of it even I mean after that job I still tried to own a restaurant >> didn't really work very well for me. >> Uh then around 2012 is when I first started my business in America which was in IT

servicing side of things. uh which didn't go very well because we ran into some legal issues and we didn't want to I mean we weren't comfortable getting further. Yeah. So we scaled back and then started looking for other opportunities. >> While that was going on I decided to invest in real estate parallelly >> just to invest some disposable income I I had at that time >> right >> because I I think I I graduated 2009 and

got a job right after. >> Mhm. Um so real estate is how I started investing but then I quickly found out oh my gosh like I can buy this. So backstory >> land is where I started looking. Okay >> so there is this area that they had newer houses and of course like many new investors I was not comfortable with like buying an older house. Right. >> So I was like, "Okay, maybe 5 years older or

10 years older. That's enough." >> So $200,000 houses were renting for what? 1650 or something roughly. >> And then I ran my numbers. I was like, "Okay, my monthly payment is going to be 1,700." >> So I only have to put 50 bucks out of my pocket and 30 years later this house will be mine. >> So I was so excited about that that I didn't even think of like wholesaling and other things. Of course, I

didn't know. Yeah, >> but the reason I thought it was a great plan was because at that time I had already owned one piece of asset >> that was in India. >> Okay. >> And I paid probably similar amount maybe like 150 grand >> and that was renting for $300. >> Wow. >> Okay. So the inflation in India is out of control >> but the rents can't catch up to that because the >> the income is

not >> not there. Right. So, compared to $300 rent, 7,650 was, >> I mean, a big jump for me. So, I was super excited about that and I was like, "Okay, I'm going to go for it." Until someone literally slapped my hand and told me, "Stop doing what you're doing and go attend this seminar." I was like, "Okay." >> So, you were buying assets and you were net negative 50 bucks a month. >> If No, I

didn't buy it. I was running numbers to buy it. >> Oh, I see. until someone I'm so thankful to that person. >> Yeah. Yeah. Cuz you were going to be losing 50 bucks a month. >> Yeah. But I was still okay with that because I had a job. I had an active income. >> But you saw it differently. I mean, you you weren't even considering all of the other uh external costs that are going to come

up with owning an asset like the AC breaking down the roof. Yeah. Yeah. You didn't consider any of that? >> None of that because again, I didn't know how to run number. >> Yeah. I mean I was always entrepreneurial but I never looked at real estate as a business until that point. So then they put me in touch with this person from Lifestyles Unlimited. >> Okay. >> It's a I mean you know Lifestyles it's a community

here in Houston. >> Yeah. >> So I went to Lifestyles paid $500 attended their two-day seminar >> and I was like oh my god this is crazy. >> You can buy houses discounted in America. So until that until that moment fun fact I had only bought a a car discounted. So after that day I started telling everybody that >> in America you cannot buy anything discounted except cars and houses >> and in India you can buy

everything discounted except cars and houses. So, uh, I bought, so of course I ended up buying a house from this wholesaler. And then at closing, I saw this fee that he made 10 grand. I was like, >> why am I paying you 10 grand? He's like, I'm the one who brought you this deal. >> I was like, oh my god, like you can make 10 grand just like that. >> Yeah. >> He was like, yeah, that's

called wholesaling. So then I learned about wholesaling and so on and so forth. Then I didn't look back. I just started a business in real estate. That was Yeah. >> When was your first deal? That was in 2015. >> 2015. Yeah. Okay. 2014 is when I started, but 2015 is when I made the purchase. >> Yeah. >> Awesome. So, you you went right into buying a property from the beginning. >> Yeah. So, 2012 my first business

that I think me I maybe I think I got out of it around 2013. 14 is when I started looking into real estate and then made my purchase in 2015. >> And the whole time you had a full-time job. >> Yeah. >> Were you still with with uh Schlumbumberj? >> I was. Yeah, I was with Schlumbumberj. >> Nice. Nice. Cool. And so, um, walk me through that. Like you you did your first deal in 2015. What

was next after that? >> So, in 2015, uh, I I I saw that and he he made wholesale assignment. So, I quickly started learning, oh, there is this business opportunity. I think I I want to get into that. >> So, I started talking to people and I met our famous Moon Kim. >> Yeah. >> From lifestyles. Everybody knows him. >> Yeah. Yeah. Um, so Moon was like a godscent like to me because I mean I uh

he is the one who showed me like ropes uh taught me how what wholesaling is like >> and at that time I I mean I had already paid 20 grand to join >> lifestyles and I had no like appetite >> to pay another mentorship to learn wholesaling. Yeah. >> So, I kept blowing up Moon's phone. I was like, "Hey, what is this thing?" Like, "What is wholesaling?" >> And he kept saying, I mean, I [ __

] you not like he kept saying, "Oh, my friend does this paper click." >> And I for 2 years, I never even tried to Google it. For 2 years, I thought it is paper click >> like paper. You thought it was a paper clip? >> No, paper click. I was like, I don't even know. I mean because I was so busy learning the mail marketing. So I was >> so after I learned that I mean I

I kept ignoring the that word pay-per-click. I was like I don't want to ask stupid questions constantly. I'm already asking. >> So >> you thought it was going to be another stupid question. >> Yeah. So he showed me how to do mail marketing because that was easy. I had to download the list, upload it on like go big yellow letters and they send the letters and everything. I can wait for the cost. >> Yeah. from my

computer at home or at work >> because I didn't want to go I didn't have time to go out do any of that. >> Yeah. >> So 20 16 I sent or 15 I sent 300 letters. >> 300 letters. >> 30 like >> and I got like seven or eight phone calls. >> That's really good. >> Yeah. And when was this actually two? This was 2015. >> 2015. Wow. Wow. >> And I got two or three

appointments from that. >> Oh my god. >> And then I I bought one house in Fresno. >> Wow. Those were phenomenal, dude. Now you have to send like a thousand letters and maybe you get five calls if you're lucky. >> So I sent um 300 letters. I got these phone calls. I bought a house in Fresno. Like 3 years later, I made 90 grand on that house. I ended up holding it. I I I was not

in the mindset of wholesaling and building active income at the time >> for different reasons. >> But then literally it took me 7 to 8 months to gather enough courage >> to send another 500 letters. Even though I knew I made so much money, >> I didn't have the balls to actually send like thousands of letters at that time, >> right? >> So I sent 500 letters. Sure. >> Yeah. Sure enough, like another deal I got

in Katy form >> if you would have just like doubled down from the beginning. >> Oh my god. Like crazy. >> Yeah. >> So I got that house in Katy for 60 grand. That's worth like 200 grand today. I still own it. >> And I still didn't have the like guts to send more letters. So I waited until 2018, >> which is when I um I actually built enough courage to send 4,000 letters. >> Okay. And

then like three phone calls. I was like, "What's wrong? Did I like what what just happened?" >> But you know what had changed? >> What's that? >> Facebook groups had happened >> and everybody knew everything and mail marketing was so saturated. I was like, "What am I doing wrong?" Like I barely got like two or three interviews, maybe like one deal from that. And I was like raving about my experience to my partner who >> who

started this new company with me because of my experience and he's like I don't think I believe you. >> So which partner? >> Uh Praash. >> So Praash and I started looking for other opportunities. >> When um which by the way I love Pash so shout out to him. >> Yeah. >> Um when did you guys meet and how did you guys meet? And let's talk a little bit about partnerships too because I think you guys

have a very successful partnership. >> And man, that is something that is so rare and so tough to find in in especially in today's >> society, you know, where there's like a lot of distrust, a lot of mistrust between people. It's it's tough to find like a good working relationship. So, I'd love to hear about how you guys met and then how you guys make it work long term cuz you guys have been in business together

for what over 10 close to 10 years now? Really? Okay. So, partners, how'd you guys meet? >> If you're a real estate investor in Houston, Texas, you need to listen up. Andrew F with Renovo is the number one lender with DSCR 30-year fixed loans. He can do one to four family. Um, he can do five units, plus he can do commercial, anything you need. Andrew Fot is your number one source for long-term financing. Right now, his

current rates are high fives to low sixes. uh he's got a one to two points in origination and he can fund up to 75% loan to value. So he can refinance you, cash you out right out of that hard money loan that you have, no problems. And he's a direct lender, which means that you don't have to go through any AMC BS, right? So what that means is they have an in-house appraiser. No need to chase

an appraiser to figure out how they do business. Renovo has it all inhouse. They also have a in-house uh servicing company. So, anytime you need uh any help with tax forms, um any help with servicing your loan, Andrew is one phone call or email away to help you out. I'm a testament of this. He has one of my long-term uh notes and it's always uh smooth as pie to get any sort of documents uh that I

need. So Andrew is a relationshipbased lender, meaning that if you're trying to figure out something with your loan, he can help you through it, guide you through it, and set you up for success. So if you're interested in a 30-year fixed rate loan, hit up my boy Andrew F with Renovo. His phone number is 21104252190. If you're a wholesaler in Houston, Texas, Kase Sullivan is the number one guy to getting your deal sold in as little

as 3 days. So, Kase Sullivan works for the number one buyer in all of Houston. Um, this is called New Western. It's a massive operation. Um, they have 20 to 30 dispo agents working around the clock to sell your deal as soon as you get it. All you need to do is, uh, if you have your deal, call up Kasein. Um, if you give him just two to three days, if you give him property access, he

can get you any number on any deal. Um, they have a full closing team, so you don't have to worry about escrow, transaction coordination, any legal. Uh, and that gives you less time selling the property and more time to source your own deals. And that's how you that's how you scale your company. Um, Casey Sullivan closed 72 deals last year. So, you know that this guy is the real deal and an actual operator. Um, you can

reach out to Kasein at 409-527115. >> And I mean, one thing I mean, shout out to Praash for being the most like emotionally intelligent >> person in my life. >> Yeah. >> Uh, I'm so grateful to be in this partnership. Of course, we fight behind closed doors. We argue like everyone does. >> But we have never let that affect our personal lives. We have both shown like enough maturity where our kids are still best friends, our

wives are still best friends and we are not just business partners. We are literally like >> family. >> Family. Yeah. >> Yeah. But going back uh 2012 is when I I think 2011 maybe is when I met Praash through my uh roommate at at the time uh I mean or my college roommate >> who is also one of our I mean >> core members of our family. >> Yeah. >> Uh so he and him and Praash

worked together Rohan. >> Um and Praash was introduced to me at a party and we spoke the same regional language back home. So we connected pretty quickly >> and we just started hanging out like you know uh as friends going to bars uh >> but then both of us were very entrepreneurial and um at the time Praash actually brought this first opportunity that we took down together in 2012. >> The business that didn't go really well

actually was introduced to me by him. >> Okay. So I'm I mean things go right and things go wrong all the time but opportunity is what it I mean what really counts because that's what built our relationship that was that is the foundation and we were always on the same page. We always played with the cards that were dealt. >> Mhm. >> So you kind of knew that like you had something special for >> Yeah. Even

Even though you had a business that maybe failed, you still saw an opportunity that to be able to build something together. 100% 100%. >> Nice. >> So, so and he was also doing real estate. So, I was doing something else in the wholesaling side. >> Yeah. He by that time he had um a realtor license and he was doing MLS scraping >> and while I was like doing sending these letters he was making offers on MLS

and he had I mean he had found a really good success with uh some of the houses he took down >> as a rental or as a flip. >> Yeah. >> Um >> so we were working towards the same goal. So 2018 I was like hey why don't we just work together because I think we need to build this wholesale company and at that time it was like I almost thought it was like a secret I

don't I have to keep it to myself this is so rare like >> oh my god like you call people and they sell you their house at a discount so I was very naive >> but it was funny but we when we started that uh it didn't go very well the marketing uh was a flop >> and then >> what kind of marketing did you the mail marketing because 2015 to 2018 a lot of things had

changed on the internet Facebook. >> Oh yeah. >> I mean Facebook groups had happened >> I came in like in 2018 and by that time everything was just already competitive but I was doing cold calling at the beginning >> and that worked out really well because a lot of people were not doing it. >> Oh I have a great story about cold calling. >> Yeah we'll >> cold calling. So again I called my mentor Moon Kim.

>> Yeah shout out Moon Kim. I always shout shout him out, but he's never nowhere on the internet to look at him. >> I know. Yeah. Yeah. >> You know, it's funny like I would get emails from Moon Kim all the time and I'm like, man, I wonder what this guy looks like. Like I I tried looking for him. There was no photos of him. No. >> Oh, you haven't met him? >> No. Well, I it

wasn't He became a client for my company for Vancom and Oh, yeah. Uh we were helping him with some VAS or whatever. And then uh like I think it was like a lead manager that we helped out uh with him and um I think I mentioned it to him like in one of the calls that I was having. I had a deal and I sent to him and he's like, "Yeah, we need blah blah blah. We

need someone. We need help." And I'm like, "Man, I got you. Let's jump on a Zoom meeting." And so like that was the first time that I met him on a Zoom call. I'm like, >> "I can't believe Moon has a Zoom meeting." >> Yeah, I know. His partner um Luciano Luciano. Yeah. Yeah. Met them both and super cool guys. Um shout out to them too, man. They they were uh really great. >> Fun fact about

Moon. Moon is always every year >> the top producer on lifestyles >> selling upwards of 200 deals per year >> as a lifestyles agent to investors. >> Wow. >> And with Luciano, who is another beast >> of a person. >> Yeah. >> With Luciano and Moon, they do upwards of 200 wholesale deals per year. >> Jeez. and with no presence on the internet. This is all old school style sending people an email. All their deals move

through New Western. >> Uh it's crazy. >> Yeah. >> If you ever as a wholesaler, if you ever want to sell deals, Moon is your guy with lifestyles at least. >> Or send it to me and I'll send it to Moon. >> Send it to Chai. >> No, but I mean uh he doesn't sell it for other people like you do. He only sells it through lifestyle. >> Oh, yeah. Yeah, I got you. Yeah. >> Yeah.

Of course, you are a bigger wholesale I mean dispo outlet. >> So I think it's best to work with someone like you. >> Yeah. >> Uh but if you ever want to work with lifestyles directly, that's for sure to connect. >> Yeah. Moonkim's amazing. I love Moonkim. >> Um but yeah, man. So uh what happened after you guys uh got started? Um all right, let's go back now to the the mouse. >> No. Yeah, the cold

calling. The males were a flop and I was like, "Okay, we are just burning this money. There is no point." >> Yeah. Um, so I called Moon. Moon is like, uh, I mean, we're trying cold calling. It's I mean, it's the new thing or whatever. >> I was like, okay. So now I have to ask him all these stupid questions all over again. Okay. How do you cold call? Like do you have where do you get

phone numbers? What is it called? >> Then we started like googling and finding >> what use Oh, no, not even that. Like so we just found out about skip tracing. >> Yeah. Then we had just learned how to hire a VA. So we looked into areas that we were comfortable in. We didn't even know Philippines is the best place to go. We started looking at India, Bangladesh, Pakistan because we can relate to those people. We are

from there. >> Yeah. >> So >> we found this VA from Bangladesh and we >> because in the interview he said, "Oh, he knows how to do cold calling." Mh. >> So we were literally relying on him to teach us cold calling. >> Yeah. >> So he's like, "Oh yeah, it's called uh skip tracing." I was like, "Okay, how do you skip trace?" >> So then we found these people that like you remember Lexus Nexus. >>

So people used to do that, right? >> So then someone got I mean we had a list then someone got us like phone numbers or whatever. >> We give it to this guy and I I was asking him like how are you going to call? He's like you have to buy a dialer for me. Okay. What is a dialer? like um okay just do uh Skype. >> So I I I had a Skype account. I used

to call my parents. So I was like okay I'll just buy a phone number and some minutes for you to call. >> Yeah. >> Literally that's how we started. No dial or nothing. >> Wow. >> And I kid you not like again another crazy story or crazy like that was a turning point for us. Mhm. >> The first I'm not even talking about like the first day or first month or I'm talking about first phone number

this guy calls >> first phone number not like >> made us 35 grand assignment fee >> the very first one >> phone number first >> the very first phone number >> picks up the calls calls someone and they want to sell the house because I think it had burnt down and then they had they had to rebuild and then they I mean the >> elderly person they re they built for died. >> Yeah. >> So they

just sold it to us. One of our friends bought it for 35 grand. And I was like this is real. We have to double down on this strategy. >> So that's how we ended up like looking into cold calling. We we wanted to learn more. By that time I was convinced that this business works. It took me four years which is >> shameful but uh >> no man I mean hey listen some people give up after

a month you Absolutely. >> So, uh, kudos to you cuz if you wouldn't have quit, you wouldn't be where you're at today. You know what I mean? You wouldn't have wholesaliled a million dollar deal. You know, you wouldn't have done a 100 loans today. So, >> yeah. You know, I think timelines, it's all in retrospect. Like, I I feel like it we all have >> a different timeline to get to where we want to go. Yeah.

Right. And >> also, I feel like the vision always changes, right? the the goal is like a moving target >> so even if you may set out to do something in business it might be like okay yeah I want to do that but maybe I want to do it a little bit differently >> right and I think you know you're proof of that and you're even doing new construction now >> so yeah and I'd love to

talk about that in a in a second but um >> so first deal 35 grand what was that was it a wholesale >> yeah it was a wholesale deal uh to an investor I already knew so I sold it to him was a great deal for him he's He owns it. >> Nice. >> Uh so after that we started like we really got serious. We wanted to look into what cold calling is like. So we found

>> uh Brent Daniels. >> Mhm. >> TTP. >> Yeah. TTP. At that time he was the first one who was actually teaching cold calling. >> Yeah. >> So we joined his community. >> He's a godfather. >> Amazing guy. Like one of the most genuine people in the industry. Yeah. >> Mojo and all these things, hired a bunch of cold callers, started calling. We ramped up at like our best time, we ramped up all the way to

like five or six callers at the most. And our goal has always been to hold our own real estate. It was never about wholesaling because the goal was always to build a portfolio. >> So the first year, I think 2018, we did maybe like 20ish deals. the next year onwards like 50 to 70 we were pretty consistent and then we were ramping up our portfolio so our we never really took the wholesaling company to the next

level. We thought about it I mean at least 100 times but >> it's just I mean you know how hard wholesaling can be and it's a moving target like you said earlier >> once you figure out operation how difficult it is operationally then you very quickly decide >> it's not for everyone you know >> but around 2019 like I think early 2019 is when um >> we got a phone call from this old lady. >> Yeah.

>> Okay. and he wants to sell this house in um uh Atasushita. >> Okay. >> And we went there looked at the house and she I the house was worth like 160. >> Mhm. >> And she was like I mean she was so adamant about making 130 and I I I mean I had to put at least 1520 to fix it. >> Mhm. >> With our cost like as a like fellow construction company owner >> our

costs are lower than other people. So with that, I mean, for any other investor, it would take them 30 grand and that her >> price would not make sense at all, right? >> But she was just very adamant about it. So we told her, "Okay, sure. Let's meet at the house. Okay, we go there. >> She rolls up in this uh Bentley." >> Mhm. >> And I was like, "Oh my god, like who are these people?"

>> Yeah. >> And then her re I mean she's old older lady. uh her husband like walks walks out like 85 years old or something at that time. >> Mhm. >> And then they I mean again we have the same argument. I want 130. Oh, I can't pay more than 110 blah blah blah. She's ready to leave and while walking out the door she's like ah we are from California. We have this 180 unit apartment complex

uh we are selling. uh and I just casually because remember I come from lifestyles unlimited who specializes in the multif family education. >> So I my whole like my entire reason why I joined because when I went there for my first training I found out about wholesaling. >> Yeah. >> But then they upsell you on this multif family and >> I knew I was going to do multif family at that time. I was so sure that's

why I paid for the highest membership. Mhm. >> But because of my immigration situation, I couldn't do all that. >> So I was very wellversed with multif family. And when she told me about that 180 unit apartment complex, my eyes, I asked, yeah, I mean my eyes lit up obviously. >> So I asked her, okay, how much do you want for it? She's like, uh, maybe like 5 million or something. >> I was like, and so

I ran the numbers. I was showing Praash. She wants like 40ome per door. >> Wow. >> And I was like, that's unreal. >> Yeah. And I didn't know until until then I didn't know what Bowmont looks like. Okay. >> So this was in Bmont. Yeah. And the like very rough part of Bmont. >> So uh >> and I was like 40 40 might be a little high. >> So then then walking like walking her to the

car, we asked her, "Okay, how much do you want for this house?" "11 130." "Okay, done deal." >> Yeah. >> So we were like, "So but give us an opportunity on this apartment complex." >> Yeah. >> So she's like, "Sure, let's do it." So, we signed the contract on the house. We knew we were going to lose money, which we actually did not. That was a miracle. Uh, we made like $2,000 on it. >> But, uh,

we went to her like we set up a our next meeting. We went to her house. >> We signed the contract for like 5.5 million. Uh, because she said like, "Okay, why would I sign up sign with you when someone is already offering me this?" We were like, "Okay, let's sign at a higher number that you are comfortable with." Mhm. >> So, we did and we put down 55 grand non-refundable earnest money on that deal >>

really. >> And we were like, it's all or nothing. >> So, we just went in with her and and then that deal went through so many negotiations. I had like by the time we actually >> uh >> got it >> got it, it was down to like >> uh like 4.7 or something. Yeah. Wow. >> So, we brought her down significantly. >> What caused all those negotiations? >> Uh because when we went there, we saw the

apartment was clean. Okay. Apartment complex was clean. >> Mhm. >> But these uh this like couple, they were uh like they were I mean black family from California. >> Amazing people. Like they've made a ton of money in their life. Literally when I went to their house, I saw exact Bentley in another color. >> I was like, "Oh my god, who are these people?" >> Like amazing like big house. >> Mhm. >> And they were like

missionaries. They used to do lot of charity in Africa and they just wanted to help people like so that's the kind of people they were. So they stood by their word and let us I mean they gave us a chance. So I'm so grateful for them that I mean I without them I wouldn't have been like >> have had that opportunity and I wouldn't be here. >> Yeah. >> So >> I go there, we look at

the apartment complex, it's clean and I mean in a very rough area. Okay. >> And uh I was like, "Oh my god, this looks amazing." And then so we started digging into their financials and of course the financials >> like Yeah. non-existent. Right. >> So I bring in my mentor from lifestyles to look at all these things >> not moons actually. So the guy uh his name is Lee >> Lee. >> So Lee was specializing in

that area like uh Bmont Port Arthur. >> So we went to the apartment complex again with Lee and then showed him the financials. His first words were like I have never seen an apartment complex that loses that much money and is still clean and no drug activity whatsoever. like it was clean clean like nothing. There was no trash outside, nothing. >> And uh so that led to our negotiations and then we came. >> So it was

it was actually losing money. >> It was losing money. Oh yeah. It was losing a lot of money because these guys would put someone like a good people in apartments and if they can't pay it's okay. Like they are that's how they were. >> Yeah. >> Uh and they were I mean they were the wife was like in ' 70s, husband was in ' 80s. They they were not doing that for money. >> Yeah. >> Okay.

So they wanted to sell that and just give that money to their kids. >> Yeah. >> Uh and just move on at that time. >> But >> so long story short, we had uh the the this apartment complex was split into like two campuses. >> One campus was like >> really tiny apartments 120 units. Yeah. and really big uh apartments style in another campus 60 units. >> So our mentor was excited about the 60unit apartment complex

because of the price tag we were we had it at. >> So we ended up selling that apartment complex like the one campus for 120 unit for >> to uh to another lifestyles buyer. >> Mhm. >> Uh who took it down and really did well. I mean did really well after uh and then we bought it ourselves. The other one we made a small assignment fee in that >> and then put that assignment fee back in

the deal and sat on it like 2 years. >> Okay. What was the reason that you guys sat on it? >> Because we saw a lot of upside happening on that. Uh again lot of things happened lot of drama. Our mentor became the lead on that apartment complex because we had other businesses to do. So we chose not to be the lead. >> He did a great job of like uh stabilizing the whole thing but made

silly mistakes like not buying insurance and then >> uh we had a storm. >> So we had a lot of expense from the storm. So >> lot of things went wrong. >> Yeah. >> Even in spite of having the mentor as the lead investor think about it. >> Yeah. So anyways, after that we ended up buying it back from the partnership >> uh for the same price. Nobody made any money but then we found this amazing

investor who came forward and we were able to wholesale it back to him. So we did a double wholesale on that one 60 unit and then one time wholesale fee on the 120 unit and >> combined it was almost a million dollar. >> Very cool. >> So it was one of the best deals of our career. Of course, Brent Daniels was excited like he put us on his podcast two times. So, a lot of people knew

knew about us. >> Then by the time we joined this other community, Subu Pace I mean us and Pace already knew of each other because of these podcasts. Pace put us uh gave us a lot of opportunity. So, I think that deal was the >> I mean game changer for my life at least, >> right? So I mean that million dollars went of course a long way in terms of investing >> but the opportunities that it

brought >> yeah just 10 times bigger. >> I mean we're talking about it right now here still you know like what is it like seven years later every podcast I mean sometimes I get invited on podcast just because they saw my podcast on million dollar assignment. >> The only other person I have seen making that kind of assignment is uh will the land land guy here. Yeah. >> He showed me one of his assignments closer to

800. >> Yeah. He was uh Yeah, I think 700 grand for a land deal. >> Yeah. So, it's pretty incredible. I mean, there's so much opportunity in real estate. >> Um and even like I think >> I think it was almost like unheard of for someone to have like >> make 700 grand from from land. I mean, actually, I take that back now that I just got back from California. Dude, I was just out there and

like these these landmen that sell big parcels of land. >> Oh yeah. >> I mean it is insane. Ranches that are thousands of acres >> and they make a lot of money. So like multi-million dollar deals there. >> But often times like these are the companies, right? they are actually buying it sometimes adding like entitling uh doing entitlements to the land and >> well the guy that I met dude so John Ricky he was one of

my uh he's a really good friend of mine and a guest here on the podcast but I flew out to California and his dad used to be uh is still a realtor that sells deals to like movie stars like uh I think he sold uh like a large parcel of land like some thousands thousands of acres to Stephen and Steven Seagal. >> Oh, >> yeah. So, not all of them. They're in California, right? So, a bunch

of like movie stars out there, a bunch of people that have money. So, >> they go out and they're like, they contact this guy. His name's Don. Don Ricky. Hey, Don. I want to buy a I want to buy a ranch. And so, he goes and he sells him a ranch. Hook up. >> Yeah. Yeah. He's a hookup with the land. And like uh I think he's like 85 years old now. >> Oh my gosh. >>

Still selling still selling properties out there to this day. >> It's uh it's pretty incredible. I interviewed him, too. I need to need to work on that podcast. I can put it out. Nice. >> Yeah. But uh anyway, um where were we? >> So, yeah, the million-doll deal was a game changer. I think it got us so much opportunity in terms of money and just word of mouth, >> everything. Um >> so, after that, we didn't

never look back. We doubled down on our marketing, did all everything a wholesaler should do. >> Mhm. >> Until we hit COVID. >> Yeah. By the time COVID hit, we I think we had already joined sub to community. By that time, we were in this like growth mode. >> We were joining a community every year. >> Okay. Because we wanted new opportunities to like network and uh I was still pretty camera shy, pretty uh social media

shy by that time. I I wish I wasn't, but it is what it is. >> Yeah. Yeah. >> Uh so I was finding my way through networking. >> Yeah. >> So I joined sub 2 community. I think I joined one more in between. But after I joined sub 2 community, I met a few people that actually helped me like uh set a podcast with them. Uh and then I took that podcast to pace one day and

told him hey I mean because we were experienced investors by that time and >> you know I mean every community is going to get a lot of newbies >> so we were telling people yeah we've done this we've done that and that million-doll deal had already put us on the map so a lot of people knew us so lot of these students of Pace Moby used to call us hey how do I do this I mean

how do you underwrite deals how do you what is underwriting >> mh >> I I don't think anybody ever spoke about this word underwriting in sub 2 community until I started teaching underwriting. >> Mhm. >> So one day I was at some event and I I was talking to Pace. I told him, "Hey, all your students like constantly I mean call me and I have to explain how to analyze a deal or underwrite a deal one-on-one.

uh is there any opportunity that and I mean I would love an opportunity to serve your community because I mean it's giving me so much >> and he's like oh my god like that is amazing like you know how Pace is like if he likes the idea he's going to go for it. >> Yeah. >> And then we showed him all these like videos we were doing um about underwriting and how much response we were getting.

So Pace is like >> 2 days later Pace calls me. Hey, I have a spot open on Saturday. someone uh decided to uh I mean walk away from this part. So do you want it now? Of course. So we start underwriting power I mean underwriting um whatever zoom in sub 2 community with pace. >> Mhm. >> Second zoom call we had 545 students attend. I still have a screenshot on my >> jeez. >> So pace was

blown away like how much people want this right. Mhm. >> So after that now there is underwriting call every day in the community. I still teach one or two days. >> Uh and of course I mean uh pace has grown tremendously since >> that time. >> Yeah. >> Uh but I mean again he's great friend amazing person. >> Yeah. Uh but that opportunity just took us from that million dollar I mean that milliondoll >> assignment started

to look like nothing with that opportunity >> because sub to community we never thought subu community is going to grow like this now we have what 20,000 paid students and then gator has another 10 15,000 paid students >> so with that much reach we started getting so many deals that we almost shut down our wholesaling operation at that time. >> Yeah. But before that 2020 when the COVID hit, we were like we were I mean we

everybody was scared. We scaled down. We fired all our callers. >> I mean we had like four agents going for appointments at that time. We fired all of them and literally just sit >> uh I mean closed down our business almost. >> Wow. >> And then we started seeing all these property values skyrocketing and going crazy. So we doubled down two months later and did the most wholesale volume we ever did and bought like ourselves bought

50 homes in that year. >> Wow. >> 2020 and 2021. >> Mhm. >> So and after that we completely closed our wholesale business because the opportunity with sub 2 community had like skyrocketed and we were doing really well just from word of mouth. >> What what was the uh what was the opportunity that came from the sub 2 community? I mean just by teaching students our name was out there and everybody wanted to work with us.

They were sell sending us deals and at that time uh I mean it was the tail end of COVID when interest rates went up >> like crazy and >> the whole uh the price like prices of homes that went up during COVID started to come down. >> So wholesaling started to I mean the future of wholesaling was not looking great. >> Yeah. But the future of creative finance was looking amazing because the creative finance homes were

still selling at 2% interest rate, 3% interest rate and we were getting a ton of them. >> Mhm. >> So we started wrapping h homes. So after those 40 50 homes in 2020 and 2021, we stopped buying cash and started buying creative >> because that opportunity started growing and every year we pivoted really well and that's I mean I attribute our success to pivoting. Every year we have been able to successfully pivot to the right strategy

until maybe last year when I think our lending is probably going to be a pivot for a while because it takes time one to build a lending company and second it's active income and it's not going to die even in >> like markets >> like higher or lower markets up or down uh up upturn or downturn >> right >> so lot of uh creative deals we bought a ton of them and wrapped a ton of them.

Um, owner financing became a new thing in our business. So, we >> now we have kind of stabilized. We buy cash and creative equally because we are not going crazy with it because markets have changed. Obviously, >> interest rates went up and uh with this immigration scene, the owner finance is also not looking really good. I don't know about like your business how it's looking. >> Mhm. But the next pivot like and that was always in

the plan. Our goal was to build our passive income first. >> Quit our jobs based on that and then start building active income businesses. >> Yeah. >> And we did just that. I mean around 2020 when COVID hit. >> I mean I was like this close to quitting my job but then COVID hit and I was home and I was like I'm getting free salary. Why am I quitting? >> Yeah. Why would you quit? >> Guys,

if you're doing business in Houston and you don't have a great title company, I highly recommend you guys to use Natalie Mario with Black Label Title. They were awarded the best title company in 2026 by Houston Latino Magazine. Um, but I think what's truly impactful of working with Natalie is that her title company can do pass through funding for A to B closings. If you're an investor, this is very important to you because it means that

you don't you don't need to have your own funds to be able to finance an A to B closing on a double close. You can use the funds from the C to B to fund A to B transaction. If you don't understand what that means, reach out to Natalie. She can explain it all to you. More importantly, you can make a very big assignment fee without your buyer or your seller finding out what that fee is.

So, it's a great opportunity to get with a investor-friendly auto company. They also do blind huts, assignments, novations, subject to wraps. Um, and so they close in all Texas counties, right? So, they they can do e- signing, you know, you don't even have to have a closing in the title company, right? They do CE classes. Um, listen guys, if you're wholesaling or you're investing in Texas, you need to call Natalie Marrio with Black Label Title. And

um the link for Natalie is going to be in the show notes. So the number for Natalie Mario is 9364428486. Make sure you mention Joseas with Pickup the Phone Podcast. If you're a real estate investor anywhere in the United States and need to listen up, get hardmoney.com is a free platform for real estate investors. You can find local hard money, connect with the lender directly, request term sheets, and chat all in one single place. What I

really like about the website is that they have free tools. They have built-in AI comping. They can they have flip property calculators. They have cash to close calculators. Everything's 100% free. You don't even need to sign up to be able to use their calculators, which I find extremely useful whenever I'm running numbers on a property. Um, so it's going to be free all the time, no cost ever. So if you're investing and you need a lender

connections or you need deal analysis tools, it's a it's a no-brainer, right? It's a no-brainer. Sign up. So the way to sign up is you go to get hardmoney.com and the link is going to be in the show notes. >> Uh, so I still went on for like few months and then I told my and my manager was very supportive. He knew of all this plan. >> Yeah. So I told him, hey, I think I don't

I mean I have a bigger fish to fry here. I mean the opportunity is growing every day, so I can't focus on my job. I'm sorry. >> Yeah. >> So I quit in the middle of 2020, I think. >> Very good. >> Uh and then lending company uh well 2023 is when we actually started talking about lending as a company, >> right? >> So until then we were focused on like owner financing all these homes that

we had purchased, stabilizing the portfolio. M >> and building active income through flipping. >> Got it. >> So our active income was only coming from flipping for the until 2023 and wholesaling. Some part of it was wholesaling but most of it was everything inhouse like we were either holding it or flipping it ourselves. >> Yeah. >> Um what else? So then that's when the lending company was born and uh >> and that was another turning point

in my career uh that I think I think >> I'm super excited about till today and I mean that's my main focus. >> Yeah. >> Since I mean 24 is when we really went through a lot of ups and downs. 25 is when we actually stabilized >> the lending company and I think 2026 is going to be our growth year. Yeah. What kind of uh what kind of ups and downs did you have in 2024? >>

So 2024 uh I mean you know some of our uh partners. So Javeed uh Kal uh so we I mean Kal is our CPA. Javeed is >> uh a very good friend of ours and a mentor who actually showed me the ropes of uh I mean I was already doing my own >> hard money lending with my own money from my IRA. But then he showed us what banks look like and how to get money from

the banks. >> Broker loans for banks. Yeah. >> So I mean brokering is one thing but now we have credit lines like a hard money lender. Proper hard money lender. So >> brokering I'll get to that next but >> he showed me how to do that. So 2024 is when we formed a company >> and Jawed uh he comes from a Muslim community where they have a very set like rule against >> interest rates >> interest

rates one but also lending within like family and friends. >> Yeah. >> So one of his closest friends wanted a loan and that he didn't want to do himself. >> So he just said okay I have this loan let's form a partnership. >> Mh. So I'm super grateful for Javeed bringing that loan in our partnership. Without that the partnership would not have happened >> really. >> So he brought it and then we started as a partnership.

But we quickly and Javeed was already a big hard money lender by that time with almost over 20 million in loan book. >> Yeah. >> So by the end of 2024 we just realized like our sources of like lead sources are completely different. Mhm. >> Javeed operates in like closed communities like close friends and family type communities and we operate in these national uh >> level communities >> national level communities. So we end of 2024 we

decided to part ways >> and still help each other uh grow. So 2025 last year is when Praash and I spun off into our own lending company >> which is now our main focus because we do the same activities Pash and I. Yeah. >> So, and along this along the way, I actually bought uh a lot like back in 2023 from uh Julio >> uh >> um what's Julio Granados? >> Yeah, >> Granados. Yeah, the right

way to say it. >> Yeah. >> So, I had bought this lot in Baytown. I just wanted to experiment like with new construction and I had not done anything >> and >> so when these things were slowing down our partnership, I started building a house just as an experiment. M >> so I finished I'm almost about to finish that but 2025 is when I finally found all the trades that were missing in my the list of

like contractors >> and then I decided okay I think this is my my contractors were already good but nobody was able to build new houses >> right >> until 2025 I met this guy amazing guy Carlos he helped me he he works for another builder He literally shared all his resources with me and he's going to partner up with me on this 16th house development. >> Wow. >> So amazing guy. Like >> that's incredible. >> Yeah,

>> man. People are always so willing to help, man. I think that's one, you know, I when I first way before when I was growing up, I thought like people were going to like >> be, you know, scarcity mindset and they're not going to want to share. And I'm like, "Oh my gosh, how am I going to do this?" this and you know I get out into the real world as soon as I uh soon as

I start my entrepreneurial journey and everyone has been willing from the very beginning. Yeah. >> Um so it's incredible to see that. So this guy Carlos, he just shared his entire rolodex of people. >> Oh yeah. And no, he never asked me anything in return. >> Yeah. >> And I mean I just I am so grateful for him >> because without like I I was literally I mean pushing that project further. I have a I have

another partner in that project. >> Yeah. >> And he kept telling me when are we going to start? because we had already spent like 10 grand on I mean different things like uh plants and permitting and all these things and I mean 10 grand is too much but >> someone literally took us for a ride >> and I was not very happy with that and I was like okay let's sell this land I don't want this

>> and was pushing it every day and he kept bugging me hey we have to build it why don't we start and I told him hey I mean I have this foundation guy who's who wants like 30 grand for foundation >> and I I don't think it's right. For some reason, like I I even asked some of my friends who build houses and they are like I think that's okay. >> Yeah. >> I ended up doing

that same foundation for $18,000 later. >> Wow. >> Because of Carlos. >> Yeah. >> So again, I I would have been fine even if I did it at 30 grand. And uh >> that would have been a lesson learned. >> But I'm happy that I was able to improve my cost on the first project. >> Yeah. So the cost I have is like any other builder, not like the first time >> investor anymore. So that's what

I'm happy about. >> That's awesome, man. So let's talk about the 16 units that you're building here in the Heights now. Um how'd you find that deal? Uh how did you get to the point where you're like this is this plot of land is perfect for 16 units? I mean walk me through that whole process. So some like slight backstory like when Pace put us on these podcasts and the community started growing we started getting like

100 200 people attending our zooms on a regular basis like weekly. >> Yeah. >> And of course like we we were >> popular >> but I was still not doing anything on social media. So there were no like I was not really able to convert all that to real followers like some other people did with pace. >> Um >> because I guess I was shy. >> But then 2024 is when I decided to do something about

it and I started my own community called underwriting power hour. >> It is a free community. I teach each underwriting for free. I go I mean in depth on any deal people bring like single family, multif family, all kinds of things. >> Yeah. >> So, >> and when you when you talk about underwriting, are you talking about from a financial standpoint or from a rehab standpoint? >> Uh I'm talking about it from like end to end.

I'm talking about like I talk about mindset. Is this a good deal for you? >> Yeah. >> And all the way up to like what kind of financing you need? >> Got it. >> So, I'm offering this as a free service to everybody. Yeah. But I spun it off. I mean, I still work with Pace a lot, but I'm saying >> I spun it off into my own community because I found my own strengths. >> Yeah.

>> By working with Pace, >> right? >> So that actually that power hour led to this deal, this 16 unit deal. Because one of the members of my power hour >> constantly brings these deals for like underwriting and because he's like a connector, he sells these deals outside. So he one day brought this deal to me >> and I have and of course I mean I've been in business long enough to have a lot of investors

by my side >> my inves one of my investors has been bugging me to do something with him >> uh one-on-one uh as a I mean not one-on-one I mean uh with him in a partnership. >> So I was like okay this deal so they already they had replattered it for 16 houses already. Yeah. >> Um and it was ready for construction. Well, I mean there are some things to be done but I went to see

that land after he brought it and there are three other developments in that area. That land is on the I mean on the last transit center, the Metro Rail Transit Center. >> And I mean you probably already know that all these investors are going after co-l livingiving properties. Yeah. They all want to like they all want land or properties on the public transport. >> So this works. I mean this serves everybody. >> Yeah. >> So that's

why I and then it was a wholesale deal. >> Uh I ended up paying like 30 grand per lot which is probably a slightly higher than I would like. >> Yeah. >> But land is expensive everywhere. >> Yeah. Yeah. Especially in the Heights. >> So it's sitting in 77009. No, it's uh so this is on in the north line area east of Independence Heights. >> Oh, got it. >> Across the U but this is on the

new uh metro line. >> Got it. Yeah. Yeah. >> So, >> yeah, they're building it up all the way up to >> Yeah, it's looking really good. >> Yeah, it's awesome. >> So, it's a 2-minute walk to the metro line. I mean, people can do Airbnb there or I mean, people who want to live start >> starter family homes. um people who want to do co-l livingiving for workforce housing. I mean all these possibilities are open

on that street >> and with the cost I have I mean I'm selling these houses to investors at 80%. >> Because I can build it >> so cheap. >> So cheap. >> Yeah. >> And I'm able to sell it to investors because I want to be in and out quickly. >> Yeah. >> So I have some >> So that's your that's your plan is to sell the houses at 80% of ARV. I have uh so if

someone invests from like during the construction phases again it's already fully filled like I have one investor that has already committed to the whole thing >> but I have so many people that are constantly asking me hey do you have any opportunity for me so I have already negotiated with my investor >> that hey if I bring someone in as an investor I want you to carve out some room for them >> and he's okay with

that but I'm still going to share profits with him. Yeah. >> Uh so that way I mean it's uh he's good for relationship going on. >> Yeah. >> Uh so he's okay with any strategy as long as we make profits, >> right? >> So but for someone to get it at 80%, they have to start investing in construction phases like they they put down they pay for I mean as we finish foundation their first draw is

due then as we finish framing and then so on and so forth. >> Yeah. Yeah. So that's how I'm going to give them 80%. But it's still a >> So the one thing I decided when I started is I don't want leverage on this property >> because in 2025 situation or 26 I mean going into 26 nothing >> like has changed significantly >> right. >> So the demand is still going to do like up and down.

>> Yeah. So we want to do this project without any leverage with with without any interest charged to the uh to the project. So whatever we are building the investor I have he's going to come out of pocket but he's getting profit sharing on >> so he's not charging interest to the project but he's >> I mean we are 50/50 partners in the deal. >> I'm bringing the full expertise and operations. bringing the money and of

course I'm showing skin in the game. >> Is he is he um did you guys have to buy the lot with uh with a loan or do you have any >> No, we don't have any loans on this. >> Okay. So, your investor brought all the cash to the deal. Okay. So, you don't have any banks involved in this deal? >> No. >> That's awesome. >> Even though I'm a lend So, I have a lot of

borrowers >> that are talking to me right now that are going to get a hard money loan from my lending company >> to buy a few projects. So, and then they will get it for 80%. >> Got it. >> That way. >> But of course, I mean, the reason I want to be like in >> all sides of the business. >> Yeah. >> Because that's smart and everybody that has ever come to me with one requirement

always needs this and then they need that. >> So, if I'm if I have a shop open, >> Yeah. >> then I'm the one making profit everywhere. Right. >> So, that is my ultimate goal. I want to be the onestop shop for investors. I want to serve the investment in community. >> But not only that, so I mean, you know, while it's important that you make money on each one, I think you're also able to provide

a a higher level of service, right? So, whenever they need, oh, you need the land, okay, I got the land. Oh, you need construction, I got construction. And because they have a relationship with you, they know you, they know you're going to do good work. I mean, it's either they pay your construction company and you're going to do a good job or they pay someone else and that construction or that contractor might run away with their

cash. Exactly. >> Right. So they they >> So if I can control it and >> Yeah. >> It's not about controlling the whole landscape. >> It's more about giving the experience that they will never get >> right. So I mean people that connect with me they will never leave right because they are getting help everywhere >> right >> of course whenever they are ready to graduate and I mean >> then I tell them okay now now

is the time you need to find your own handyman because otherwise you're going to pay a lot more >> right >> to my company. >> Yeah. >> Uh just like you I mean you have been doing this a long time and I I see you like every year is doing new things >> something different. Yeah. So I mean one of the reasons I like to go on podcast with like people with same uh expertise or same

level is to learn from each other. >> Yeah. >> Because your >> um your success story is slightly different from mine. >> Yeah. >> But we can learn from each other and maybe find opportunities to collaborate. >> Yeah. Absolutely. So, not only is this a learning opportunity for all your viewers, >> it's a great opportunity for you and I. >> Yeah, absolutely. Yeah. Chop it up and see what we can make some money together. >> Absolutely.

>> For sure, man. So, um, has that 16 units, have you already broken ground on that one or not yet? >> We will break ground by I'm optimistic when I say April, but realistically maybe May. >> Very cool. >> Because we still have to submit plan of profile, which is the hardest part, which is like a 90-day process. Yeah. >> Uh but with lot less con construction happening and the way the market is hoping for a

miracle >> and get it done quickly. >> Yeah. >> But I still Yeah. Actually, my first meeting is tomorrow with the architect. >> Oh, good. >> Cuz I went through like two architects and didn't like their style. So, >> yeah. >> Finalize someone. >> You found someone good now? >> Yeah. >> Cool. Cool. >> Do you know of him? Jacob Mendoza by >> No, not Jacob. >> I think he's uh more I mean he works with

like big builders. He came through uh my existing >> architect I have on my previous project. Her recommendation. >> Cool. I have an architect that uh he's from Montter. >> Oh, okay. >> And uh yeah, his cause is really it's really cheap. >> But he does it in Montter and for you. >> So um yeah, he he he has a license here, but his guys help. Yeah, they help with the design and everything in Monterey. But

>> I was I have a borrower in San Antonio. I was trying to work with him >> because I really I mean I don't know how much San Antonio you know, but >> I I didn't know much until I started lending there. I went there and saw all these cool houses in their downtown. >> Yeah. >> And I was like, "Oh my god, like we need like this type of style in Houston downtown." Because Houston downtown,

everybody's everybody's making money, so they're not really motivated to make it stylish or But I I I personally get inspired by design. >> Same. >> Okay. So I don't like to create like plain and plain Jane products. >> I So I started working with him, but we ran into issues because he doesn't know Houston code and all that. >> So I ended up with Jacob. >> Oh, that's very cool. I'd love to check it out. I

mean uh yeah, show me some of those designs. >> Yeah, I'll send you some presentations. >> That'd be awesome. >> So uh right now we're in 2026, man. And uh you know, we're at the beginning of the year. Um, I think this is a really good time to ask this question. Where do you where do you see 26 going for real estate? >> Oh my god. Like favorite question uh and most common one these days. >>

Yeah, I know right. >> I mean 2026 I think we are going to see some drop in interest rates. >> Yeah. >> I think J I I mean iron is still hot. >> Mhm. >> Everybody should grab this opportunity while it's still there. M >> and when I say opportunity, the interest rates have squeezed the economy so hard >> that people are not doing deals because they are afraid. >> Yep. >> I mean I I'll ask

you because you are you are doing it every day. >> Yeah. >> Have you ever had a problem with finding tenants or contractors or anything in 2025? Have I ever found how >> like have you have you had what what like so people that are not doing deals, >> they think the houses won't sell. >> Yeah. >> They think they won't find tenants. >> They think uh contractors are too afraid of like getting deported or whatever.

>> Oh yeah. >> But none of these things are true. >> None of those things. >> In fact, I mean all you have to do is just tailor your strategy to the current market environment. >> Yeah. We have made 90 grand profit on flips last year >> just because it was 2025. >> The reason is everybody's afraid. Wholesalers are afraid of asking >> their ask. So they are lowering their number. So we were able to get

it at a really good price. >> Then contractors are doing it at a lower price than what they could charge outside. >> Yeah. So if you are a smart investor, you have more opportunity in 2026 than what you would get in a market like 2021. >> I agree. >> So I think from that perspective, >> I don't really care how the market is looking like. >> I care about how you structure your strategy around it. >>

Right? >> And I think >> this is the best time to grab as much real estate as possible with the way things are going. Mhm. >> I mean, uh, America just took over Venezuela and with the world, uh, going in that direction. >> Yeah. >> Things are only going to get expensive in America. >> Yeah. >> I think this is, >> I mean, American markets will rally. Real estate is I mean market is already rallying. >>

Okay. >> So, the next step is for real estate to rally. Whenever they open floodgates, you are not going to be able to find opportunities that are available today. >> Yeah. >> Wholesale deals are still selling closer to 100 grand, like 100, 120 for investment properties. >> But when 2021 was happening, they were selling for 140, 150. >> So, you're getting houses at a discount. You're getting contracting done at a discount. You're able to negotiate. Uh

I mean because of that you are able to list your house at a lower than market price and sell it quickly. >> Yeah. >> All you have to do is deliver better value than 2021. >> Yeah. What the the thing that I've seen a lot of people and the reason why they've been successful in 20 25 is >> they overrehabbed projects and they underpriced the competition. >> Absolutely. So, as long as investors do this, I think

they're going to be very successful for sure. >> But it's the what people don't realize or rather flippers is that money is not coming from your pocket. That money is coming from seller and contractors, right? >> Because sellers are willing to negotiate and contractors are willing to negotiate. >> Yeah. >> In order to overd deliver and sell it under market, all you have to do is negotiate better >> when buying and negotiate with your contractor >>

and overrehab just like you said. Absolutely. You spoke about pivoting earlier and you spoke about like every year you've been able to pivot um effectively. How are you pivoting this year? What are you doing? >> Oh my god. Like this year I'm not pivoting. I think this was this is the first year I'm not I'm not required to pivot. >> Yeah. >> So luckily and I I always say everything luckily because I feel like I'm lucky

because I've gone through all these opportunities. I like to sing see things positively. Yeah. >> So every year since I came to America, something major has happened. And of course, this is like first world problems, right? >> So 2008 happened, then 2012 happened, then 2015 because we had different oil and gas downturns that maybe other people didn't see. >> Yeah. >> After 2015, COVID happened. >> Well, 2017, Harvey happened in Houston. >> So every year I'm

required to pivot. >> Okay. So >> yeah, you're right. This year's like it's been quiet in the last year. >> This year and last two years I'm >> I'm actually thanking the government for >> like keeping the lid tight on this economy >> by keeping the interest rates high because now we can predict we can plan otherwise >> like one year we are going up another year we are going down we can't plan anything. No >>

also uh this is the first year when I can really say that I am prepared >> otherwise every January >> market is changing now what so I'm spending first four months of my year planning >> this is the first year when I'm going into 2026 with a house I'm rebuilding in Richmond it's a big 3,000 ft² house >> uh that one's going to pay us pretty decent profits >> then we uh we have a big listing

like a luxury property on the market. >> So we are already like going into 2026 positive >> like and then we have this new lending company that has gone through like ups and downs and now stabilized >> and our credit lines have stabilized to where we are going to do well and alongside I have been growing a brokerage with my other partner who has helped me like her name is Jada Toli. If you ever need DSCR

loans or new construction loans or any hard money loans nationwide other than Texas, she's your girl. >> Yeah. >> Amazing person. I mean, you probably know her. Jada. Uh >> what's her last name? >> Jada Toli. >> No, I don't think I >> She was in Houston like for a like few few months, I don't think. Okay. >> So, she's from California and now she lives in South Carolina with her boyfriend. >> Nice. >> Uh that's

awesome. young girl, high energy, very like I like to work with people that are emotionally intelligent. I I always say this. >> Yeah. >> And she's one of those people. >> Yeah. >> And she's the one that is growing the brokerage side of things for me nationwide. >> Very cool. >> And we get all these like all the work I have done in the last four years in sub 2 community building these nationwide relationships. Those are

cashing in. You know, you should you should definitely get on um I have two friends that have uh websites basically that will connect borrowers to hard money lenders. >> Oh wow. >> Uh so I think you should reach out to both of them and get on their websites. Yeah, it's one of them's uh >> Boris Sanchez. He's got righty rayy.ai. Um >> he's keeping a lot of things uh uh you know keeping the lid on for

for now, but I think there's going to be opportunity. Uh and then also uh Joey Davis, he owns gethardmoney.com. >> Oh wow. >> And uh and basically people go on there, they pick the state that they're they have uh and then it'll show them a list and then you can go on there and kind of select different hard money lender. If you're nationwide, you should definitely get on those websites. >> 100%. >> Yeah. Yeah. And I'll

be happy to connect you with those guys. >> Thank you. >> Yeah, for sure. >> Like I said, that's why I'm here. >> Yeah, absolutely. >> Collaboration. >> Yeah, it's what uh that's what business is all about. help helping each other out. But um man, that's awesome, dude. I um I love to have learned all about you, your story, and uh everything that you've shared. Um it seems like you have a really good vision now in

terms of what's going to happen next. >> And I'm I mean, you may think this is a very like cliche thing to say, >> but I'm always learning from people like you. One of the reasons I'm even like hung out as friends, but we've always seen each other. So, it's like automatic mutual respect. Like Jose is one of those guys >> that has like through good and bad times he has survived and so did I. So,

so it's automatic mutual respect. >> Uh I mean I see you work hard. You're always putting content out. You're always I mean doing new things. I just learned about your roofing company. Oh my god. Like that is amazing. >> I mean I always thought about it. I was sharing with your partner earlier. >> Yeah. >> But you are the one who takes action. We have >> I mean and it's not I mean there are so many

intelligent people out there and unfortunately >> the ones that actually take action survive and do better than >> I mean just having that intelligence and keeping it bottled up >> right >> so >> you don't have to be you don't have to be brilliant man you just got to take action and work your butt off that's it yeah >> well Chai man pleasure for you being here man thank you so much for sharing everything. I think

everyone that uh is listening to this podcast and watching it on YouTube, uh I think they're going to get a lot out of it. So, thank you again for everything you have to say. >> Thank you for having me. >> Uh one last thing before we wrap this up. If someone wants to get a loan from Chai, uh Venulkar. >> Yes. >> Uh what is the best way for them to reach out to you? >> Okay.

So, my the brands that I own are called Stepup Capital. >> Okay. >> And Rising Tides Lendy. Okay. >> And I actually have a this is like my personal passion business and my way to help my brother. >> My brand it's called Creative Books. We do accounting for real estate professionals only. >> Really? >> So if you or anybody you know has a accounting need, we are happy to help them. And the reason we do this

is >> I want to help investors all the way. >> Mhm. >> Okay. If they come to me from my lending like lending company door >> and they want a loan. Yeah, >> I want them to get more loans. After 5, 10 loans, now they have a portfolio. Now they need an accountant to manage that portfolio. >> And they need property management management to manage their tenants. So I want to give them an experience that they

will never get anywhere else. >> Right? >> So that's the whole reason I created these different brands. So Stepup Capital is our hard money lending direct lender. >> We are lending out of pocket in Texas markets only. Yeah, >> rising tides is our brokerage. Uh, stepup-cap.com for stepup capital. For rising tides lending, it's rising tidesending.com. >> Okay. >> Uh, and you can go to those websites, fill out your forms. >> And personally, my I mean most

people I have the most following on Instagram. Yeah. >> I go by Chai Fans. just uh >> yeah, I'll make sure to tag it on the description and YouTube and everything and uh >> they can so they can reach out to you on Instagram too. >> Yes, Instagram, Tik Tok, wherever. I'm same username everywhere. >> Yeah. Cool. Awesome, man. Well, thanks again for uh being on the podcast. I really appreciate it and uh until the next

one, bro. >> Thank you. Languish is