From DoorDasher to $1.5 MILLION in Actual Property (All at 22 Years Outdated!)

David:
That is the BiggerPockets podcast, present 749.

Rob:
I by no means thought that whereas I used to be DoorDashing in faculty, not having probably the most clear imaginative and prescient of what I needed to do after, that actual property would permit me to personal over 10 properties proper round one million and a half in valuation and have the power to create some long-term constant money move.

David:
What’s happening, everybody? That is David Greene, your host of the BiggerPockets podcast. Right here in the present day with my co-host, Rob Abasolo, with a present that’s going to blow your thoughts. Right now’s visitor is 22-year-old Josh Janus, who has already established an actual property portfolio over 10 properties, can also be promoting homes as an agent. He bought $17 million final yr. On this episode, Rob and I get into how he’s doing it and what he’s found out that different folks haven’t. My thoughts remains to be blown, Rob. How are you feeling?

Rob:
It’s a type of issues the place I’m identical to while you discover somebody that unlocks one thing in actual property and so they’re completely crushing, it’s tremendous spectacular, however while you discover somebody that’s 22 years previous making six figures a month doing rather well in actual property, it truly is simply a type of issues the place I’m like, “Man, I obtained to catch up.” And I’m like 10 years after this man.

David:
That leads us to in the present day’s fast tip: Get began in actual property early. How are you going to get began now? I’ve typically heard it stated that the very best time to purchase actual property is 10 years in the past. The faster you get that clock began, the higher it’s going to be for you. The most effective offers that I’ve is the stuff that I purchased the longest time in the past. That doesn’t imply to purchase dangerous offers early, however purchase good offers early and wait. Rob, what’s one thing about in the present day’s present that you simply suppose folks ought to hold an eye fixed out for?

Rob:
Even with Josh’s success and the way a lot cash he was making, which we’ll get into that within the episode, he was nonetheless actually trustworthy about his fears entering into his first property that he in all probability may have straight-up paid money for in a single or two months. And so, it was simply good to listen to that even somebody that could possibly be making a lot cash may nonetheless be weak and fearful of their first deal, but it surely was actually cool to see the glow up and to see that that first deal catapulted him to the place he’s in the present day. Yeah, only a actually cool inspiring second, I feel, to only hear him put all of it on the market.

David:
He additionally shares how he obtained began in enterprise making duct tape wallets and DoorDashing. This can be a one who listened to the podcast driving round, dropping off Jack within the field and pizzas and turned it into an actual property empire, identical to lots of you which are listening to this now actually need. That is one I’ll hearken to twice and pull as many items of knowledge as you may out of this story to consider how one can apply it to your life. With none additional ado, let’s usher in actual property phenom, Josh Janus.
Right now’s visitor, Josh Janus, knew in highschool that he needed to retire by 30 years of age, so he constructed and managed totally different aspect hustles, from duct tape wallets to a profitable sneaker enterprise. Josh was a university pupil who additionally drove for DoorDash. Final yr at age 22, he bought over 125 properties in his first yr as an actual property agent, totaling over 17 million. As an investor-friendly agent, he has bought and renovated over 10 properties utilizing little or no of his personal cash in actual property during the last seven months. We’re going to unpack this in the present day. Josh, welcome to the podcast.

Josh:
Thanks.

David:
Yeah, it feels like you’ve gotten a powerful entrepreneurial focus. Earlier than we get into the way you completed every part that I’ve stated, what was it about actual property that attracted you within the first place?

Josh:
After I was youthful, I used to be all the time making an attempt to save cash. I didn’t actually know precisely the best factor to do with it, however I used to be like, “Hey, I would as effectively stash it away and ultimately I’ll determine it out.” I had round $10,000 saved up, like free capital to make use of. I used to be beginning my faculty profession, and I used to be launched to the concept of home hacking when mainly Googling what to do with 10 to $20,000 while you’re 20. That led me to BiggerPockets and that was my introduction to actual property as a complete.

David:
Did you ever truly go wherever with home hacking?

Josh:
I used to be shut. So again once I was residing in Cleveland, Ohio, I used to be properties. I found out the place I needed a home hack, however I ended up switching and going to a special faculty, I went to the Ohio State College, after which my subsequent journey was going to be the home hack there, however I didn’t truly find yourself doing it.

Rob:
So Josh, it looks like clearly you’re just a little bit entrepreneurial right here. Earlier than we get into the actual property stuff, as a result of I feel even on the age of twenty-two, having $10,000 in your checking account is a tough factor. Lots of people are like, “How can I get 10,000 bucks?” So are you able to inform us just a little bit about the way you even obtained the ten,000 bucks? Did you simply have a ton of aspect hustles or have been you working a job?

Josh:
Positive. I used to be working. I used to be doing a variety of aspect hustles. I used to make duct tape wallets once I was in center college and attempt to promote these. That was enjoyable. The subsequent factor was actually curious about was sneakers, the entire sneaker tradition, reselling, as a result of I used to be a fairly large basketball participant and I used to be uncovered to that trade. I used to be going to totally different sneaker occasions, I’d lease out a desk, deliver as a lot sneakers as I may slot in my couple baggage and attempt to promote them and mainly simply stored these earnings through the years.

Rob:
Good. What did a duct tape pockets run you again within the day?

David:
Oh, man, it was like $5 to promote. I imply, it was a variety of work for $5.

Rob:
Oh, I see, as a result of I used to be going to say a roll of… effectively, rest room paper… sorry, duct tape going to price you want three, 4 bucks, so yeah, for those who can make-

David:
See, Josh, that is my downside, Rob all the time forgets to incorporate the worth of time. He solely appears on the cash when he calculates ROI, you may see.

Rob:
That’s true, however you had a variety of time.

Josh:
True. Yeah, I used to be doing it at school and on the bus.

David:
This jogs my memory of me. I want I had had one thing. I’ve all the time had a really troublesome time paying consideration at school, at school. Anytime that I’ve to observe any individual else’s tempo, in the event that they’re speaking too sluggish, I’m like, “Ah.” My mind simply wanders. I can’t sit there. They didn’t have fidget spinners. Or what’s the opposite issues that everyone performs with now, Rob?

Rob:
Fidget cubes.

David:
Fidget cubes, there you go. Proper? What did we’ve got in my day? We had silly pencils with totally different coloured lead that you would click on the totally different colours and play with, or we had these bracelets that you would snap in your wrists and they’d curl up in a ball. I doubt both of you guys ever noticed these issues, but-

Rob:
Oh yeah, you continue to have that vivid pink one that you simply all the time play with throughout the podcast?

David:
Yeah. And once I work out. That’s my fortunate exercise wristband. Brilliant pink, completely. PinkerPockets for the win. You’re entrepreneurial at coronary heart, Josh, which I like as a result of I do know that is the place you study the basics that later translated into actual property investing. We interviewed Ryan Pineda on our podcast years in the past, and he talked about how he flipped couches. He would purchase couches, repair them up, and flip them, which he then later became a home flipping enterprise, and now he’s constructed a complete empire, which I wish to suppose we’re mainly those that launched in into the ambiance. However Ryan took that atmospheric launch and constructed one thing fairly cool out of it. So I’m curious for those who may share what classes do you suppose you discovered with a few of these early endeavors that translated into actual property later?

Josh:
I assume within the sneaker tradition you’d see a few of these actually cool sneakers that athletes have been sporting or celebrities, and perhaps you’d flip a number of pairs, you’d make like 500 bucks. And also you’d wish to take that revenue and instantly purchase your personal pair to maintain and put on. My mindset was I’d reasonably save that cash and perhaps put it in the direction of an asset. I discovered the concept of belongings once I was youthful, the place you may truly use cash to earn more money. I didn’t actually perceive which belongings to make use of on the time. I simply knew that idea, and I used to be like, “It’s obtained to be a greater method of spending my $500 revenue.” So I feel that’s one factor that I discovered for positive once I was youthful.

Rob:
By the way in which, that’s not the worst mindset to have the place you say, “I actually need this factor, so I’m going to determine the right way to become profitable with this factor that I would like, promote it, make a revenue, after which get the factor that I would like.” That’s actual property in a nutshell, proper? You wish to purchase property, so you purchase a property, you flip it, you are taking the earnings, and what do you do? And normally, for those who’re a superb actual property investor, you go and also you dump it again into one other property otherwise you purchase a property and produce other folks pay for it, long-term leases or short-term leases. I feel the mindset just isn’t incorrect, it’s simply actually spectacular that you simply came upon at a really younger age that as an alternative of shopping for sneakers, it is best to put it into one thing that’s going to make you more cash.

Josh:
Yeah, I feel I used to be all the time looking for extra methods to be extra productive with my cash. I discovered early on, for sure, sneakers that I’ve to go to the shop and wait a number of hours, I used to be pondering, “This isn’t very scalable if I wish to attempt to get 20 pairs of sneakers as a result of I can’t be concurrently at 20 locations on the identical time. I’ve to discover ways to depend on different folks.” Various things like that helped.

David:
I attempted totally different endeavors too. I labored at eating places, and I discovered the right way to promote wine and steak, after which I attempted to get a job promoting vehicles at one level and that didn’t work out. However in the end, I feel a variety of us see actual property as the head we’re making an attempt to get to. We wish to promote the costliest factor we are able to. Getting an actual property license just isn’t one thing you want this four-year diploma. I want it was. I’d really feel a lot better if brokers needed to go get a two or four-year diploma to so homes as a result of there’d be much less crappy ones on the market, and we’ll get into your profession there too, Josh. However was it the identical factor for you that actual property was only a pure development of the very best factor that you would promote?

Josh:
Yeah, I feel so. It appeared like I needed to put virtually, now they give the impression of being again on it, the period of time it takes for me to promote one home was virtually the identical period of time and vitality it took for me to promote one or two pairs of sneakers in some methods.

David:
And your fingers aren’t sore from creating these duct tape wallets on a regular basis. It’s simpler.

Josh:
Sure, that too.

David:
You let DocuSign do all of the work, much less paper cuts. All proper, so let’s return in time. You’re in faculty… I say return in time, you’re 22 years previous, you would possibly nonetheless be in faculty. The place does this curiosity in actual property begin to come into play? How and the place did you begin to dig in?

Josh:
I imply, I simply was googling, “What do I do with 10,000 or $20,000? How do I make investments it?” I can’t bear in mind if it was BiggerPockets straight away, however I noticed home hack, and I used to be like, “Possibly I may purchase a property on the school campus I used to be going to. Stay in a single unit, lease every part else out.” That slowly led me to grasp, “Oh man, if I turn out to be an agent, I may work out a method to discover probably the very best offers,” in order that was my aim.

David:
So that you didn’t purchase a home to deal with hack, however you bought uncovered to actual property, it made sense to you, and also you thought, “You recognize what? I’ll simply get my license and I’ll assist different folks do the identical factor.”?

Josh:
Yep.

David:
All proper. So did you simply search for the right way to get an actual property license and simply begin finding out and do this, or did you’ve gotten a mentor that guided you?

Josh:
The very first thing was diving into the BiggerPockets boards, actually. This podcast would possibly sound like a BiggerPockets promotion, however in all actuality, a ton of my progress actually stemmed from that basis. However that was one of many first issues. After which I additionally obtained latched onto a man named Remington Lyman, who’s additionally an agent. He works at Reafco Actual Property, he owns the brokerage I work at. However I messaged him, I used to be explaining my state of affairs. He hopped on a Zoom name with me, defined the advantages of home hacking like, “Possibly for those who needed to turn out to be an agent right here or come right here, we are able to educate you the right way to discover off-market offers. We may also help you construct these methods.” After which subsequent factor you understand, I used to be working as arduous as I can to get my license.

Rob:
So that you’re getting your license, and clearly as you identify your actual property agent enterprise, that’s going to take a while to get that deal move and really closing properties and getting cash. Had been you working another jobs when you have been doing this or have been you all in on the very starting?

Josh:
Within the very starting, I used to be nonetheless taking courses. I used to be finding out pc science, after which I used to be driving for DoorDash 20 to 30 hours every week. After which at any second I may, I used to be making an attempt to only chilly name. That was my important supply of discovering offers at first. My plan was chilly name, discover a deal, or a minimum of get any individual to speak to me about their property, get some particulars, deliver it to one of many brokers that I used to be working with. They’d break down the deal, clarify like, “Possibly an investor would love this,” or get some clarification on what the rents are, the lease phrases are. It began there.

Rob:
Had been you ever deep in dialog, you’re like, “Give me one second,” and then you definitely’d pause to take a photograph of the DoorDash supply to add within the app after which get again on the decision?

Josh:
Possibly. I used to be making an attempt to not do the supply whereas calling to… I used to be doing it once I was driving, however not necessarily-

Rob:
Oh, mid supply.

Josh:
Yeah. Yeah.

Rob:
What sort of cash does a DoorDasher make? When you’re working 20 to 30 hours every week, is that fairly good revenue? Are you able to give us just a little body of reference there?

Josh:
Yeah, I imply, I used to be round 5 to $800 per week, I feel, working that quantity of hours. That’s fairly good.

Rob:
Yeah, that’s stable, particularly for those who’re in faculty and also you’re doing all that. So that you’re DoorDash and making fairly good cash for the place you’re in life and also you’re chilly calling. What was that first deal like while you truly landed a lead that grew to become a transaction that paid you out?

Josh:
Positively. So I used to be chilly calling 4 items in what I’d name A-Class space. I simply discovered a man that occurred to be motivated that day. He was fairly simple to speak with. I offered it to the agent I used to be working with, he’s like, “Oh yeah, we may promote this deal.” So I wrote up an e-mail, which is the way in which that we market our offers, then he offered it to his buyers. Someone ended up taking the deal on. That took a couple of month to shut, as most properties do, and I mainly made what I’d make in a month and a half from DoorDash from that. I used to be fairly psyched as a result of I believed, “I simply have to knock out a number of extra of those and I may find yourself making this produce extra revenue than simply DoorDash.”

Rob:
So that you began math out like, “Oh man, if I did this 3 times, I’ll make this amount of cash.”

Josh:
Oh yeah, positively. After which one other factor is, for those who get your license, you find yourself making a a lot larger lower as a result of you may truly characterize both the vendor or the client, is determined by the state of affairs, so I used to be making a referral payment. In order quickly as that deal will shut, I used to be like, “All proper, I obtained to get my license. Let’s begin finding out proper now and attempt to knock it out.”

Rob:
Yeah. So was that extra, I don’t know, a wholesale deal the place you’re calling, you discover somebody, you get a property off-market. They’re like, “Yeah, I’m prepared to promote it.” Are you then passing that off to realtors to promote or have been you promoting it to an investor and taking a small payment for that?

Josh:
I labored underneath a realtor named Abe, so mainly I simply wrote all the main points of the property, gave to him, after which he discovered an investor that was within the brokerage that I used to be working at. It’s like a hybrid type of wholesaling. We simply don’t truly put the offers underneath contract, we simply current the data to the potential buyers.

Rob:
Is sensible. I assume you shut this deal, you’re like, “Oh my gosh, I simply obtained to do that many occasions.” You begin getting extra into this. How have been you capable of steadiness every part from getting your license to ending faculty to, I assume, nonetheless perhaps working some DoorDash right here and there?

Josh:
I imply, at that time, mainly I used to be like, “I’m simply going to make use of all of my time outdoors of faculty to dedicate in the direction of nonetheless sustaining a chilly calling schedule,” which I feel is absolutely vital, “after which getting my license.” So I obtained my license in about two months.

Rob:
Are chilly name hours all the time 9:00 to 17:00 or have been you getting inventive and calling from 5:00 PM to 9:00 PM too?

Josh:
9:00 to 11:00 was my chilly, chilly calls, the folks I’d by no means actually talked to. After which I’d use 13:00 to 17:000 as a variety of follow-ups or new chilly calls. Nevertheless it appeared like for those who hit any individual within the morning once they’re driving, “Oh yeah, yeah, yeah, name me again later,” then I simply hit them later, and normally that ended up being a reasonably respectable converter.

Rob:
David, do you contemplate your self a lot of an excellent chilly caller? I’ve by no means heard this aspect of you earlier than, so I’m curious.

David:
I did it at first of my profession once I needed to. I didn’t like it, so I didn’t do it lots. Once you’re looking for offers, most individuals fall into one in every of two classes. There’s the direct contact individual, which is a chilly caller, or there’s the content material creator, which will get folks coming to them. Most individuals normally take a type of two paths. And since I ended up as a podcast host and an writer, I went the content material creation aspect versus the direct chilly name.
Josh, I imply, you probably did what you would do since you didn’t have an enormous podcast behind you to unfold the phrase. I’m curious since you talked about one thing, you talked about this wholesale hybrid mannequin. Are you able to give us just a little extra element of what you imply by the way you have been getting cash on these offers?

Josh:
So the vendor was like, “Hey, I would like 450 for this 4 unit.” And customarily wholesalers would write up a contract, get it underneath contract, after which promote that contract for a payment. The best way that we do it on the brokerage I work at, at Reafco, we don’t put it underneath contract. We simply take all the main points of the deal, write it in an e-mail, after which current that to our buyers. After which if one in every of our buyers likes it or they wish to write a suggestion, we simply write up the provide and current it on to the vendor.

David:
How are you being compensated? Are you getting an inventory settlement from the vendor while you deliver the client to them and there’s a fee in there for you guys?

Josh:
We don’t truly use itemizing agreements, no. Throughout that timeframe once I didn’t have my license, I used to be getting a fourth of the fee for the agent I used to be working underneath. He obtained 3%, then the agent that introduced the client obtained 3%, after which I ended up with 25% of the three%. That’s how we did it.

David:
How have been you guys getting commissions if there was no itemizing settlement?

Josh:
It’s nonetheless an executable contract with commissions within the settlement, so it’s going to say, “Vendor to pay 6% to our brokerage.”

David:
I gotcha. So you’d deliver a purchaser and within the provide it could have who was getting paid so far as the brokers are involved?

Josh:
Appropriate.

David:
I see. So reasonably than placing, getting a home, placing it in the marketplace, letting all people see it, making an attempt to get presents, negotiating the best one, you guys simply lower to the chase and also you stated, “Hey, I obtained a purchaser that may pay this a lot for your own home. If you wish to take the deal, right here’s how a lot it’s going to price you. Right here’s what the online to make use of goes to be,” and also you guys have been working just a little extra effectively.

Josh:
Yeah. I feel it permits us to reap the benefits of these leads that aren’t as motivated to signal an inventory settlement, as a result of there’s lots of people that fall in that class, I feel.

David:
That is additionally a type of off-market deal, so different patrons didn’t have entry to the identical stuff that you simply guys have been bringing them, right?

Josh:
Yep.

Rob:
Yeah, however Josh, let’s say you’re presenting this property, since you don’t have a contractor, you don’t have an inventory settlement, what would cease an investor for those who say, “Hey, investor, I’ve obtained this cool property, right here’s the handle,” what would cease them from simply going over you and going straight to the vendor and simply transacting the deal themselves?

Josh:
That’s a superb query. Now we have an off-market settlement that we current to all people previous to setting offers that roughly states, “When you go after a deal that we deliver, you need to use us as your agent.” To start with once they haven’t signed it but, we’ll ship folks tough descriptions of all of the offers. It received’t have the handle, normally received’t have photos. However then in the event that they’re like, “Hey, I actually just like the idea of this deal,” we’ll set on the settlement after which they signal it and we’re good to go.

David:
So it’s a type of a purchaser illustration settlement. Individuals don’t understand you don’t need to set it up for each home that I present you or each home you would purchase. You may say, “For this handle, I’ve to be your agent,” however they may use a special purchaser’s agent for various properties that get delivered to them. That truly is smart. I see now why you’re calling it a wholesale hybrid, as a result of wholesalers do it that method. They are saying, “Right here’s a 3, two with 1,800 sq. ft on this zip code that might lease for this a lot cash.” That’s all that folks get to begin with till they wish to analyze it later. So you utilize that advertising strategy paired with actual property contracts to guard every social gathering there. What occurred subsequent? How did you get to the purpose that you simply have been making extra from these commissions than you have been making out of your DoorDashing?

Josh:
In order that first verify got here in, that was a couple of month and a half’s price of DoorDash. I had a variety of heat leads, folks that weren’t able to promote straight away however they have been getting shut. I used to be mainly like, “I’m going to take the subsequent six weeks, I’m going to go actually arduous at this.” At that time, I used to be spending two to 3 occasions extra hours per week on this than I used to be earlier than. Then I obtained my license, then I began placing a complete bunch of offers in contract.

Rob:
Once you say you’re placing two or three extra hours, do you imply simply within the follow-up?

Josh:
Sorry, my dangerous, two to 3 occasions extra hours per week than I used to be earlier than as a result of I used to be like, “Hey, no extra DoorDash for now, we’ll simply work on actual property.”

Rob:
Acquired it. Was all that point on lead era, was it following up with… since you stated you had a big pool of heat leads, so these are folks that, they’re , they’re not prepared to drag the set off essentially, however for those who hold approaching them, coming again to them, ultimately they convert, proper?

Josh:
Yeah, ultimately. Yeah.

David:
All proper. Had been there any key studying factors throughout this troublesome time? What was happening available in the market presently? Was it nonetheless red-hot? Had been issues slowing down? The place are we in time?

Josh:
That is the start of ’22, so it was nonetheless sizzling, positively. It was cooling off just a little bit, however each deal that was respectable that hit the market would have a number of presents and the itemizing agent could be getting hounded. It was positively robust. Presently, I additionally tried to make an even bigger presence on BiggerPockets, so I used to be posting lots. I feel I cranked out 1,000 posts in about three months.

Rob:
Wait, maintain on. Okay, in order that’s 90 days, so that you have been posting 10 occasions to 12 occasions a day on the BiggerPockets boards?

Josh:
Yep. That was my schedule. I consider from 5:30 to six:30 each morning I needed to spend an hour in BiggerPockets by posting or a minimum of studying content material and making an attempt to offer worth.

Rob:
The place you have been making posts and really placing content material on the market, what’s an instance of one thing you’d throw out into the BiggerPockets universe?

Josh:
I imply, most of it was simply feedback on folks’s questions. I’d attempt to reply them the very best that I may. I’d discuss concerning the Ohio market, the benefits to investing right here. I’d discuss my journey and the way I’m studying.

Rob:
Did you’re feeling like folks begin to know who you have been? Did you get any relationships from doing that?

Josh:
Oh, yeah. Individuals reaching out to me in BiggerPockets. They’re like, “Hey, I see just a little bit about this market or actual property investing usually.” At that time, I used to be making an attempt to handle these leads, after which I used to be additionally reaching out to different folks. So I arrange a Calendly hyperlink. I used to be like, “Hey, arrange a 15-minute name with me. We’ll work out what you’re in search of and the way I may also help.”

David:
So when the market was sizzling and itemizing brokers have been getting a number of presents, how are you getting sellers to conform to promote their properties by means of you to a particular purchaser reasonably than placing it on the market for everybody to see?

Josh:
I feel the truth that we weren’t utilizing itemizing agreements, they have been lots calmer. They didn’t really feel such as you have been making an attempt to push them to promote. It was extra so I used to be like, “Hey man, what do you want for this property? What quantity would you not deny?” If that quantity made respectable sense, we’d spend the time to jot down it up and promote it out .

David:
And so they weren’t having to repair their home up. I’m assuming a variety of these have been in all probability bought with tenants already inside.

Josh:
Yeah, tenants inside. We’d get the rents, the lease phrases. They’d virtually all the time be as is. Yep.

David:
What have been you doing to search out precise properties? Had been you simply pulling lists? Was this you’d be driving round and simply look and see a multi-unit property you thought an investor would love?

Josh:
I used to be pulling lists from PropStream for probably the most half and concentrating on totally different areas. I used to be making an attempt to drag lists of folks that hadn’t bought within the final yr or two years or that purchased it for a extremely low value in comparison with what it was probably price now, as a result of I felt like these may have been extra motivated folks.

Rob:
All proper, so that you’re on this world the place you’re determining your methods, I see that you simply’ve developed habits, you had a schedule, you’re now an agent. Give us an thought, how lengthy did it take from while you obtained your license to the primary deal that you simply closed as an agent? How lengthy did that take?

Josh:
That was December to March, so mainly three months. I had my first 11 offers fall out of contract. It was fairly brutal. I felt like every part was falling out for probably the most distinctive causes, but it surely was a giant studying expertise for me as a result of I used to be making errors, for positive.

Rob:
Man, the 11 offers, that’s brutal. David, is that ordinary in any respect? I do know you run the David Greene group, probably the most elite actual property brokers on the market, is it regular for 11 offers to only fall out from a first-time realtor?

David:
No, however as I’m listening to Josh’s technique right here, that begins to make sense. That is extra of a quantity based mostly strategy. He has sellers that aren’t motivated. He has patrons that they don’t have a relationship with. Everybody’s a little bit of a service provider marine right here. It’s simply pure numbers. If you will get me a deal that will get me the money on money return that I would like, I’ll go ahead. Or if you will get me this quantity that was in all probability greater than what they thought the property was price. So that you’ve obtained sellers that in all probability wish to promote for greater than a purchaser would wish to pay. You get patrons which are in search of the deal of the century. Each time you’ve gotten these expectations which are off, it’s simpler for a deal to collapse. I’m assuming, Josh, you simply needed to make up for that with quantity. You have been in all probability only a workhorse that was always in search of sellers, in search of patrons, matching them collectively, transferring on to the subsequent factor.

Josh:
Positively, sure. I haven’t actually heard a abstract like that earlier than. That’s an excellent method of explaining it. I used to be mainly simply taking two folks that had a low probability of closing and placing him collectively. When that occurs, you get a extremely low probability of closing.

Rob:
David is the king of this, by the way in which. He’s the king of summarizing one thing so concisely and succinct. I bear in mind we had… Let’s see, who was it? Chris Voss. Chris Voss got here on and he gave a philosophical factor, after which David is available in, he’s like, “So mainly, based mostly on this and this, it’s this, proper?” And Chris Voss was like, “Yeah, it’s that. Nobody’s ever informed me that earlier than.” It was like watching… Who painted the Mona Lisa? The painter of the Mona Lisa paint the Mona Lisa, however in the actual property world. Michelangelo. Shoot, I’m about to look so dumb. Everybody within the feedback are going to be like, “No, it wasn’t Michelangelo.”

David:
Nicely, the secret is you need to do this with Chris Voss since you don’t wish to find yourself in a negotiation with him.

Rob:
Oh no, I bear in mind who it was. It was additionally the Blue Angels man. He had this complete story about how he made a mistake within the jet, after which he was like, “Are you able to guess the rationale that I made that mistake?” after which David was like, “Nicely, it was in all probability since you obtained too snug and blah, blah, blah.” And he was like, “I’ve informed that story 1,100 occasions, and nobody has ever stated that to me. Yeah, that’s precisely why.” He was surprised. So in any case, I all the time wish to level that out once I see it.

David:
Nicely, thanks. Fast tip right here, if you want to have the ability to do the identical factor, cease in search of patterns to observe or so far as a technique, “Give me a blueprint, I simply wish to go do one thing,” and begin asking questions like, “Nicely, why did that work?” or “Why did that not work?” after which these things jumps out. So simply from that data alone, I can inform sure issues about Josh. He’s a workhorse. He doesn’t get emotionally hooked up to any of those offers. When he places one thing in contract, he doesn’t spend the cash earlier than it closes. He’s identical to, “That’s a metric that goes on a spreadsheet. I’m now again to going to work.” He focuses on what we name the lead measures, not the lag measure, so what’s it I can do proper now versus measuring one thing that already occurred?
That is all actually good recommendation for everybody. You see this with actual property brokers the place they work actually arduous, they put a deal in contract, they get emotionally excited, they rejoice, they exit ingesting with their buddies, they begin fascinated by what they’re going to spend the cash on, they’re calculating their commissions. Actual property brokers can calculate 3% of something, which is humorous as a result of we don’t all get 3% rarely anymore. However they get tremendous hooked up to the deal, after which when one thing goes flawed, the appraisal is available in low, the inspection report is dangerous, the shopper can’t get the mortgage, no matter it’s, they get actually discouraged after which they go ingesting once more. Which is why most actual property brokers all turn out to be alcoholics, as a result of they’re ingesting once they’re excited and so they’re ingesting once they’re bummed out and so they’re simply ingesting on a regular basis. I feel Josh’s strategy is a lot better since you’re approaching the enterprise of promoting houses like an actual property investor would suppose, the place you’re simply letting the numbers make the choices. Am I off with that?

Josh:
You’re proper. Yeah, it’s simply hold put them in contract, work out what mistake I made there and what can I alter in my methods and my strategy to probably keep away from that sooner or later.

David:
Okay, so let me ask you, what are a number of the key errors that you could share that you simply discovered while you put these offers collectively that made the offers collapse?

Josh:
The very first thing could be not vetting the sellers. Generally they wouldn’t… I imply, form of humorous, they didn’t even actually know what they owned. They’d say like, “Oh, these are three bed room items.” And then you definitely give them a contract, the inspector goes there, and so they’re like, “Dude, there’s solely two bedrooms.” And it’s like, ugh, you may’t do something about that. You may’t simply construct a brand new bed room. In order that’s one factor.
One other factor is I discovered about ensuring the tenants are paying and the tenants are paying on time. That’s essential, so getting these estoppel agreements probably at first as a result of that ended up inflicting points on the finish earlier than closing a number of occasions. After which not essentially vetting patrons very effectively. One instance that’s form of humorous is I had a man making an attempt to purchase two properties for $600,000. We fell two weeks prior to shut as a result of he couldn’t get financing. I discovered that he had lower than $10,000 in his financial institution and he was making an attempt to place 25% down. I’m like, “Will we even do the maths right here?”

David:
It’s so humorous, as a result of I may simply completely see how this methodology would entice these issues. That is looking for a date on Craigslist. You’re like, “It’s a numbers recreation, child.” You simply obtained to maintain lining them up since you’re going to get these folks which are in search of a deal that’s unrealistic. The $8,000 man, I guess you what he was doing was he introduced this deal to different folks and he was making an attempt to get their cash on this deal that had a excessive money on money return quantity as a result of he listens to the podcast and he hears Brandon Turner say, “When you’ve gotten an excellent deal, yow will discover the cash.” He didn’t inform you that. He’s like, “Yeah, I’ll purchase it,” after which he’s working round telling everybody he can, “What’s the elevating non-public capital script I’m supposed to make use of?” He’s making an attempt to get somebody to come back in on the deal. He ran out of time after which he has to only again out of it.
And also you, Josh, you get to work your method by means of all of those actually unimaginable eventualities that usually an actual property agent like us we’re like, “Oh, let’s see your proof of funds. Oh, you’ve gotten $8,000. No, we’re not going to go present you houses.” You didn’t get to do this. Did you place a system collectively? Do you’ve gotten a guidelines now? Do you’ve gotten a screening course of for each the patrons and the sellers?

Josh:
Positively, yeah. I attempt to write procedures for as many issues as I can. I’ll hop on a cellphone name instantly with the folks as quickly as I meet them, little 15-minute assembly, make certain like, “Hey, are you pre-approved? If not, I’ve these lenders that I like to recommend. They’re nice on this space. You wish to join with them.” I attempt to determine their timeline, while you’re trying to lock down a deal. One other factor I feel is absolutely vital for working with buyers is, what’s your standards? Numerous buyers don’t essentially put that ahead and brokers can find yourself losing time as a result of they don’t actually know what the individuals are in search of.

David:
Yeah, I feel that’s a standard criticism buyers have too. “I informed them what I would like. The agent didn’t hearken to me.” That’s one method to mess it up. The opposite method is the agent doesn’t even suppose to ask what would you like. It’s humorous, in our world, somebody will say they need a deal and we don’t even suppose to ask them to outline what they imply by deal. Some folks imply a extremely excessive money on money return. Some folks imply a property in the very best space. Some folks imply one thing at considerably lower than ARV. Some folks imply simply any multi-unit property. It may possibly imply so many various issues to folks a couple of deal. With out asking what meaning, it’s very arduous to make it possible for what you’re bringing them goes to land. In your expertise, what are most of your investor purchasers in search of in what they name a deal?

Josh:
Round 60% of the individuals are making an attempt to get into actual property. They’ve children. They’ve a full-time job. They’re not making an attempt to stop every part and simply do actual property. So they need properties which are turnkey or near they’re occupied, they’re producing a superb sense of money move. They’ll purchase a few these a yr and be pleased with a superb portfolio and so they’re achieved. After which the opposite 40% of individuals, I’d say, wish to do worth add, the BRRRR technique, inventive financing when it comes up, self-management, something that’s just a little bit extra concerned and requires much more of your time, that’s for the opposite folks.

David:
So these are the monetary freedom group that you simply’re mainly working with. They’re making an attempt to get sufficient money move to allow them to stop their job.

Josh:
Yeah. I’ve a variety of calls the place the primary two minutes it’s like, “Yeah, I wish to retire in 5 years.” It’s like, “You are able to do it, it’s simply arduous.”

David:
Let me present you the right way to promote some duct tape wallets.

Rob:
So that you talked about one thing earlier, Josh, a time period estoppel. Do you suppose you may simply give us a fast definition of what that’s as a result of it appeared like that was one thing that was popping up in a variety of these offers that fell out?

Josh:
Yeah. It’s mainly a abstract of what the tenant is paying, what their lease phrases are, and displaying that they’ve been paying. I don’t truly use estoppel agreements. That’s only a time period that I believed most individuals knew. Nevertheless it’s mainly I wish to see the lease historical past. Generally the vendor will simply present me checking account to point out that the deposits are coming in or an precise abstract or an proprietor’s assertion from the property administration firm, one thing displaying that the money move is actual, it’s not faux.

Rob:
11 offers fall by means of, you shut your first deal. Inform us just a little bit concerning the precise numbers on that first one. You stated that it was, I assume, the identical as working a month and a half within the DoorDash world, proper?

Josh:
Yeah. So it was a $450,000 4 unit. There was 3% paid to the agent that I used to be working underneath, so he obtained $9,000… oh sorry, $12,000, after which I obtained 1 / 4 of that, so I obtained round three grand.

Rob:
Good. How did that really feel?

Josh:
That was actually cool. That was the largest verify I feel I’ve ever gotten. I used to be just a little intimidated, however I used to be like, “We don’t spend this now. That is our life for the subsequent two months.”

Rob:
Oh yeah, that’s a variety of ramen noodles proper there, particularly originally while you’re grinding a lot. So let’s fast-forward just a little bit as a result of I do know you’re grinding it out on the agent aspect. Inform us about your precise first deal, as a result of David talked about originally of the present that you simply purchased 10 offers, which I feel was about $1.5 million in whole for the portfolio. So how did you truly get into the investing aspect of issues?

Josh:
Positively. I began to promote a variety of properties. By month six, I had scaled my enterprise as much as $50,000 a month in fee. Truly I had money reserves. I discovered these two duplexes listed by the identical agent. That they had been sitting in the marketplace for a number of months. I known as him up and he was like, “Yeah, the proprietor has short-term debt on it, he actually must promote it. They’re on the brink of name his observe.” They have been mainly prepared to promote them at a 30% low cost. I ran my numbers and I used to be like, “This might make for an excellent BRRRR, each of them. You possibly can be all in proper round 70 to 75% ARV. Once you pull your cash out, it’s nonetheless going to provide a reasonably stable money move.” So I needed to actually belief my numbers, however I made a decision to go after one in every of them.

Rob:
Okay. So wow, that’s a $50,000 a month, that’s what you have been making. How previous have been you while you reached that quantity?

Josh:
21.

Rob:
21. David, does that make you’re feeling like… I really feel so lazy as a 21-year-old once I was again… I used to be not doing that. I used to be making an attempt to make… I don’t know, man. That’s loopy. Congratulations. That’s so cool.

David:
I used to be making lower than that in a yr, and that was nonetheless more cash than all people else that I knew.

Rob:
Dude, that’s loopy. So all of that, the $50,000 a month, clearly that’s going to steer into your funding technique, however that simply got here from hunkering down in your agent enterprise, rising these methods, growing your processes, and then you definitely grew it into simply 50K a month. That’s insane.

Josh:
Yeah. By month eight I truly obtained it to about 100K. Ever since then, I’m proper round 100,000 a month. I’ve been leveraging VAs for lots of procedures. I attempt to delegate as many duties as I can as a realtor. Strive to not, I don’t know, spend all day writing contracts, for example, as a result of that may take half-hour on common. Numerous days I’m writing between eight and 10 presents. That might be my complete day.

Rob:
Can I come be just right for you, please? Can David and I come be just right for you? Okay, so you don’t have any offers within the first three months and also you begin to fireplace on all cylinders. By June of 2022 you determine to get your first funding, which is a BRRRR, it feels like, or some form of rehab. How did that go? Was that a complete new set of expertise that you simply needed to study after already being so good at the actual property aspect, the realty aspect?

Josh:
Yeah, I imply I had by no means achieved any rehabs. I didn’t actually know the right way to value issues out very effectively. Certainly one of these contractors that I had been working with for my purchasers, I used to be like, “Hey, are you able to stroll this for me? Give me a bid.” He gave me a bid. The numbers made sense. One other factor was I may solely get the worth the place it made sense if the proprietor was capable of promote each of them. So I used to be capable of finding one other investor to purchase the opposite one on the identical time. We lined them each up. I used arduous cash for mine. They lended as much as 90% of the venture price, which is your buy value plus your rehab, or 70% of the ARV, whichever quantity is much less.

David:
Nicely, it feels like we’re already within the deal deep tag, as a result of that is what we’re going to speak about. So let’s go forward and make this official. At this phase of the present, we dive deep into a specific deal that our visitor has achieved and get the juicy deets. So first query, what sort of property is that this, Josh?

Josh:
It’s a duplex, two bed room items.

David:
Are you positive there are two bed room items? Have you learnt what you’ve gotten? Are you a type of sellers that claims that he’s obtained extra bedrooms than he does?

Josh:
Fortunately this time I knew.

David:
All proper, we’ll take your phrase.

Rob:
How’d you discover it?

Josh:
It was in the marketplace. It had been on there for a number of months. I known as the agent and he was like, “The present proprietor has short-term debt on it. They’re on the brink of name it. He actually must promote. When you can promote this one and one other one, you will get round a 30% low cost.” So my job was to attempt to promote one in every of them as a result of then my present state of affairs, I used to be solely snug with taking down one deal. I didn’t wish to begin with two $40,000 rehabs.

David:
Okay. How a lot was this property?

Josh:
It was 85,000. The rehab estimation was proper round $30,000 for the one which I took down. The ARV that I had projected based mostly on gross sales comps was proper round 155,000.

Rob:
How’d you negotiate it?

Josh:
I imply, the agent mainly informed me that, “When you can shut fast, if you cannot have many contingencies, you will get it at this value.” So then I counted round 10,000 decrease after which we met about midway within the center and obtained the deal achieved.

David:
And the way did you find yourself funding it?

Josh:
I used arduous cash. I needed to put down round 10%, after which I utilized my fee as a result of I used to be representing myself as a part of my down fee. So I used to be solely actually out of pocket like $10,000.

Rob:
What’d you find yourself in the end doing with this property?

Josh:
I renovated it. It took just a little bit longer than anticipated, as in all probability the overwhelming majority of tasks do. I discovered lots. As quickly as I used to be achieved, I went to the financial institution, I refinanced it. I obtained virtually all my a reimbursement out, and now I run it as a rental.

David:
Okay. In order that was the end result there. Inform me, what classes did you study from this deal?

Josh:
I used to be actually petrified of debt. I actually didn’t have any debt previous to this. I used to be positively petrified of short-term debt as a result of the arduous cash is like they’re knocking at your door in six months like, “It’s due.” The property, you both need to pay it off, you need to refinance it, or you need to promote it. So I used to be positively intimidated taking up a property that presently wasn’t livable and wanted round 30 grand to be livable. These are the issues that I used to be petrified of, however I discovered from the buyers and mentors round me that you actually need to belief your numbers in any occasion when evaluating a deal as a result of that’s what you may depend on, particularly while you really feel unsure.

Rob:
So Josh, I assume I’m making an attempt to grasp as a result of I do know you stated you used arduous cash and also you have been actually nervous about, I assume, entering into this property and that you simply had wanted $30,000 of labor. But when I’m remembering accurately, have been you making $50,000 a month at this level?

Josh:
Sure. Yeah.

Rob:
So what was the actual concern right here as a result of it looks like you in all probability may have lined bills fairly simply?

Josh:
Yeah. I imply, the property was additionally not in a metropolis that I used to be residing in, so I used to be mimicking the expertise of an out-of-state investor as a result of I purchased it sight unseen. I used to be managing the complete venture from distant, so I discovered that.

Rob:
How do you’re feeling now although? Trying again, have been you want, “Oh, it truly wasn’t that dangerous,” or do you continue to have a few of those self same reservations doing the out-of-state stuff?

Josh:
I imply, after the primary one I really feel method higher. I really feel much more assured. I can depend on my group. I can depend on the data that I deliver to the desk by understanding gross sales comparables and issues like that.

David:
I’ve obtained two questions. One, have you ever learn Lengthy-Distance Actual Property Investing?

Josh:
Sure, I feel that was the primary e book I learn.

David:
Okay, good, as a result of that’s the primary e book I wrote, so we’ve got one thing in frequent. Quantity two, if I have been to make a revised model of this e book, based mostly in your expertise doing this deal out of state, what would you inform me to incorporate within the e book?

Josh:
I learn it some time in the past, so perhaps this was in there, but-

David:
Bro, you’re 22 years previous, how way back could possibly be some time?

Josh:
I don’t know, two years, yr and a half. I’d depend on a number of venture managers. That may take the type of an agent simply popping in each occasionally. That may be your property supervisor that’s chargeable for tenant relations, or that may simply be a totally totally different contractor that is available in together with his personal third social gathering opinion about how your venture’s going.

David:
So that you agree that the philosophy of have a number of folks trying over everybody’s work may prolong into the precise rehab administration? That’s what you’re saying?

Josh:
Yeah.

David:
Okay. The rest that I ought to know as a result of I feel I’ll revise this e book, The BRRR, however a pair different ones once I get a while. I’m simply curious what must go in these books to replace them?

Josh:
Don’t depend on gross sales comparables which are previous while you’re initially trying on the deal. As a result of typically, a minimum of in my state, the appraisers are going to have a look at the newest gross sales within the final six months once they’re appraising your property when it’s achieved. So the one factor that I did at my first deal was I used to be counting on a deal two doorways down that appraised for the worth I used to be going after, however by the point I used to be achieved with the rehab, that gross sales comp was outdoors the six-month window in order that they not may use it.

Rob:
That’s in all probability extra related in the present day, proper?

David:
I feel so. Yeah. I used to be nearly to say, for the final 10 years, you checked out comps and that was your worst-case situation. Odds are it was going to be higher by the point it was achieved. The market has rotated. Charges have went from 3% to 7, 8%. Now we’re seeing value determinations are available in low very continuously. A home may have bought for 800,000, you listing it for 750, the appraisal is available in for 685 or one thing as a result of charges have gone up a lot. In order that’s one other factor you bought to concentrate on is costs can go down now that charges have gone up, and that may catch folks without warning. Another surprises that got here up particularly when it got here to purchasing in one other state that you simply simply weren’t ready for?

Josh:
All the time estimate just a little bit over your preliminary rehab finances. The primary deal I purchased, I don’t suppose the contractor regarded up within the attic, however there have been dwell electrical wires working on the ground within the attic, which is primary, very harmful and quantity two unlawful. I needed to handle that instantly. That bumped my finances round 10%. I feel at each venture I’ve achieved since then, there’s all the time issues that pop up. I feel a ten% contingency ought to all the time be used.

David:
What about selecting tenants, what are you able to inform us about selecting tenants? Trying into tenant historical past, what are some belongings you search for?

Josh:
When you’re shopping for one thing already tenant occupied, make certain they’re paying, they’re paying on time. You may see the way in which that they’re residing. When you go in there and there’s stuff in every single place and it’s filled with the ceiling, you may not all the time get your lease on time, not to mention even get it. You possibly can nonetheless make offers work even with a non-paying tenant, relying on how good it’s. Simply be sure you’re accounting these bills in your numbers.

David:
Yeah. We briefly talked about this earlier, and it’s price repeating, it’s very simple, particularly for those who’re a brand new investor, you haven’t achieved this for some time, to get a lease to see this property’s making $950 a month, to run your numbers based mostly on the lease. You shut on the property, you understand the tenant’s eight months behind in lease, hasn’t been paying. The owner hasn’t needed to pay for an eviction or can’t afford an eviction, and they also simply bought it to you. That’s why we confirm that the cash’s truly being deposited within the financial institution, not simply what the lease is for. That is actually, actually, actually vital while you’re shopping for off-market properties or offers immediately from sellers such as you’re saying, as a result of most individuals, when their property is doing effectively, they don’t suppose, “I ought to promote it.” Except there’s like severe issues available in the market and individuals are pondering, “I wish to promote earlier than issues flip round,” in case your property is getting cash and nothing’s going flawed, you simply don’t take into consideration promoting it. However when issues begin breaking, tenants cease paying, it turns into a headache, you attempt to repair it. Once you understand you may’t repair it rapidly, you promote, which is commonly precisely when patrons are getting launched to that deal.
When you go in as the client anticipating that is only a common home on the MLS {that a} vendor is put in pristine form and so they’re making an attempt to get prime greenback, you may actually get taken benefit of. Do you’ve gotten any tales you may share of purchasers you’ve had or conditions you’ve had the place that’s been the case?

Josh:
Yeah, an off-market deal that I didn’t promote, but it surely was in my workplace, however this can be a nice instance. It was a duplex the place each tenants have been paying $1,100 a month. The rental comps have been actually round 900, max 1,000. So it was actually excessive, which ought to all the time be a purple flag for those who’re seeing items renting for far more than what every part else is round it. However when that property closed, when the vendor obtained his key or when the vendor’s PM obtained their keys and so they went to the property, each items have been vacated. It was vacant, and so they each left. That investor, I’m assuming, was working numbers based mostly on 2,200 a month in lease, and so they’re not going to be getting that.

David:
That’s an excellent instance. Thanks for sharing that. Let’s get some fast readability right here. This was your first deal. How rapidly did the remainder of your offers come collectively after this primary one?

Josh:
Yeah, so the subsequent 4 that I purchased have been round a month to 2 months after that. After which ever since then I’ve been selecting up about one to 3 each single month.

David:
Are these you’re discovering them the identical method that you simply have been discovering offers for purchasers?

Josh:
Yeah, just about the identical methods, yep.

David:
All proper, Josh, trying forward, what does your plan appear like for a way you plan to scale your portfolio?

Josh:
I’d wish to construct extra contracting groups in order that I can tackle extra tasks at a time. Proper now I’m engaged on 15 items. I’d wish to construct a 10X to that, depend on extra folks, W-2 extra positions in order that I can depend on them extra and lower your price down just a little bit. These are some classes that I’ve discovered from skilled property managers.

David:
Now, are you utilizing the BRRRR methodology on these properties fairly often?

Josh:
Sure, for positive.

David:
Okay, so with the change within the seasoning interval that we’re seeing with a variety of typical lenders, have you ever thought of how that’s going to have an effect on how rapidly you will get capital out and the pace you’ll be capable of scale?

Josh:
Positively. My technique hasn’t actually been affected by that as a result of I truly am not lendable nonetheless as a result of I don’t have two years of the identical revenue as a 1099 individual. So mainly I’m simply refinancing out in non-QM merchandise.

David:
That’s superior.

Rob:
Hey, David, you talked about that there’s a change within the seasoning interval. What’s that change? I do know with the BRRRR you need to have the tenant in there for I feel six months. Is that what you imply, now it’s longer than six months?

David:
No, it’s not essentially the tenant must be in there, however if you’re shopping for a property that has a mortgage on it and also you wish to refinance and pull money out of the property, you now have to attend 12 months as an alternative of six months for those who’re going to make use of a traditional mortgage. Now, Josh, talked about he’s utilizing no-QM, which stands for non-qualified mortgage. This could be DSER merchandise that you simply’re listening to lots of people discuss. It’s vital additionally to notice that that doesn’t imply subprime crap. These are nonetheless 30-year mounted charge loans. It’s not a complete lot totally different. The speed’s going to be just a little bit greater as a result of they’re not going to be basing your capacity to repay off of the cash you make, they’re going to be basing it off of what the property will produce itself, kind of business underwriting pointers. However many loans are making you wait 12 months earlier than you may take money out of a property, not six. It feels like from what you bought happening, Josh, this isn’t slowing you down since you’re simply getting cash by means of commissions as an agent, you’re not going to expire of money, proper?

Josh:
I don’t suppose so, no.

David:
Yep. I like that multi-pillared strategy. Once you’re not depending on only one pillar, these modifications don’t throw your recreation off since you’ve obtained a number of totally different approaches right here. What are you pondering, Rob, about transferring ahead, Josh’s technique?

Rob:
I feel it’s good, man. I imply, you’re selecting up lots, proper? I feel it could be smart to essentially settle into it. When you’re at this level the place you’re at 10, I’d begin fascinated by… I assume I’m simply seeing it in your private state of affairs. You’re younger, you’re hungry, you’re making a ton of cash, and also you’re doing the precise factor, you’re shopping for property. As a substitute of simply pocketing 100K each month, you’re transferring it into actual property funds. However I’d say now could be a second to perhaps take a step again and get thinking about your scale strategy. How are you going to cease placing a lot time into one to 3 properties each month? And how are you going to begin perhaps specializing in larger performs that may perhaps even successfully decrease your tax invoice as a result of I do know that that is one thing that you simply’re in all probability coping with for the primary time, making a ton of cash and having to pay a ton of taxes on it, proper?

Josh:
Sure. I jumped on the entire tax state of affairs as early as I may. As an agent, I arrange my consumption fee by means of an S-corp versus a person, in order that lowers my tax burden considerably. After which I can even leverage price segregations as effectively within the properties that I’m retaining to decrease my commissions coming in. I’m making an attempt to make the most of as many methods as I can.

David:
Completely.

Rob:
Hey, you don’t hear 22-year-olds discuss price segregation all that usually.

David:
By no means heard that come out of a 22-year-old’s mouth, truly, it’s the primary time.

Rob:
Critically, dude, I really feel like we obtained to speak about price segregations extra simply on the podcast as a result of it’s the actual property cheat code that may prevent, I imply in your case, a whole bunch of 1000’s of {dollars} in taxes. In order that’s cool, man. I’m actually glad to see that you simply’re saying it. It looks like you’re scaling up in keeping with what you are able to do. So simply take into consideration how one can most successfully use your time, since you obtained the time and the cash proper now, now you simply obtained to determine the right way to use it probably the most successfully.

Josh:
True.

David:
Your first aim was to exchange your DoorDash revenue. You’ve achieved that. What’s your subsequent aim?

Josh:
My subsequent aim, I wish to have 100 items by the top of the yr.

David:
100 items by the top of the yr, that’s all.

Rob:
I imply, it looks like you’re fascinated by precisely what I’m speaking about, proper? One to 3 properties in a yr, that’s going to be 10 to 30 properties. So clearly you’re pondering, “How can I get to 100?” Proper? I feel it’s so cool, man, that you simply’re on this podcast. It’s a really inspirational story. You went from being a DoorDash driver to proudly owning a $1.5 million portfolio. And it’s additionally simply so loopy to know that subsequent yr your portfolio goes to be wildly totally different than what we’re speaking about in the present day.

Josh:
I feel so, yeah.

David:
Congratulations, Josh. That is an superior story. Thanks for sharing the place you’re at. Very inspirational. You haven’t let something cease you, together with your age or how a lot I feel you appear like Dave Franco. You’re pushing ahead regardless of all of this. You possibly can have taken the Hollywood route. As a substitute, you took the actual property investing route, so welcome to our aspect. If folks wish to discover out extra about you, the place’s the very best place that they will discover you?

Josh:
Two locations. You may observe or message me on Instagram, @JoshJanus, simply my identify, after which identical factor on BiggerPockets, Joshua Janus, I’m on there.

David:
All proper. Rob, the place can folks discover out extra about you?

Rob:
You will discover me over on Rob Belt on YouTube and Instagram and in your coronary heart. Nicely, that joke received’t land as a result of the opposite podcast comes out after this one, but-

David:
You will note why I laughed for those who hearken to a future podcast episode. That can make a variety of sense. This was a callback earlier than it was truly stated. That is some tenant sort stuff that we’re entering into the place we’re manipulating time for you guys on a podcast. You’re going to like it.

Rob:
It’s a name ahead.

David:
Sure, a name ahead even higher. There you go. Josh, it completely is smart you don’t know what we’re speaking about, it would sooner or later, so simply cling with us right here. Thanks for being a superb sport.
You will discover me on social media, @DavidGreene24. Don’t ever ship cash to me as a result of I’m not asking on your cash. There’s a variety of faux accounts on the market, so hopefully at one level I’ll be capable of get the blue verify mark. I heard that Meta is altering it so that you simply simply pay like 15 bucks a month and folks can cease getting scammed. It’s about time. You can even discover me on YouTube, @DavidGreene24, or go to my web site, davidgreene24.com and see what I obtained happening.
Josh, unbelievable job. Very, very, very excited to listen to what you’re doing, particularly since you’re an agent and you progress ahead. Take a look at my books. Let me know what you concentrate on the three books I wrote within the Prime Producing Agent collection for BiggerPockets. I’d be curious what you suppose as somebody who’s 22 and is already crushing it. Rob, do you’ve gotten any final phrases earlier than we get out of right here?

Rob:
Yeah, Josh, you would try the books that David simply talked about, however actually the e book that it is advisable to be testing is David’s upcoming e book, Scale, which talks about how as an actual property agent you may scale your online business. That shall be popping out quickly.

David:
All proper.

Rob:
Promo code for that, we don’t have one. However in any case, verify that out.

David:
We’ve obtained a name ahead and a name again all in the identical present. Nice job, Rob.

Rob:
And we’re again.

David:
All proper, Josh, we’re going to allow you to get out of right here. That is David Greene for Rob ‘The Comic’ Abusolo signing off.