E 131 Real Estate Investing and Negotiations Jude Mendonsa

e131 a doctors perspective jude mendonsa real estate investing
Jude Mendonsa talks to Dr. Justin Trosclair DC on A Doctor's Perspective Podcast.

Tenant vs landlord real estate lease concerns and negotiations, should you buy single unit or multiplex homes for real estate investing and why, creative financing these projects, silent partners and mentors with Jude Mendonsa.

Tenant vs Landlord Business Lease Concerns

Purchasing price is one of the most important aspects of real estate investing. It’s not what you sell it for, it’s what the purchase price is for cash flow. Also for real estate the term really matters a lot maybe even more than the price if you plan to hold it long term.

What is negotiable when signing a commerce building lease? He has a chain of cell phones across several states, so he gives us some real world advice based on actual rent amount versus length of contract and more.  One idea if you need renovations is to have the landlord pay and you sign longer lease or you pay and get a few months of rent free.

Can we reduce triple net or CAM fees or general building upkeep fees? What do these things cover?

How do you get around signing a personal guarantee?

Everybody says, “Everything is Negotiable” however it depends on your negotiating skills and are both parties willing to be creative.

A few pointers to consider when remodeling a place, or starting from a vanilla box.

Single Family vs Multiplex Homes

Jude goes into a weaving story of why he prefers 2-4-8 and 50+ unit residential buildings instead of focusing on single family homes.

10% maintenance, 10% vacancy rate, 10% property management: these rates should be expected

When do you remodel your multiunit properties, should you add a gym,  and should you repair issues asap?

Creative Finances

Mendonsa discusses ways to get houses and buildings at $0 down, owner financing or how to use investors’ money if you do have to give a down payment?

How can you take over a house mortgage without a whole bunch of banks and fees with a Section 2?

How do you find distressed owners/properties: borderline bankrupt, tired of dealing with the maintenance, going through a divorce, foreclosure etc? He gives generically at least 10 different ways to build relationships with people who are in the inside tract. (real estate investor group, wholesaling, property management companies, tired landlords, title company foreclosure list, driving for dollars, birddogs, city code violations, shortsales or craigslist)

Coaching: Not on Real Estate Jude Mendonsa “the barefoot millionaire  “ coaches men on how to do more in business, health, wealth and better husbands and fathers. (If you want to know a good real estate or real estate distressed homes, message him for contacts.)

He gives several great ideas to build that relationship with your spouse as well as guiding your children to an entrepreneurial journey. Big key is to spend time with your family and watch less TV.

His own PODCAST Freedom Experience–a week by week case study of a supplement company they bought, making it better, branding, growing, and other things like that.  On Apple and Google Podcasts,

His webpage is www.judemendonsa.com and is getting a facelift.

Books: Robert Kiwasaki – Rich Dad Poor Dad, Cash Flow QuadrantRich Kid Smart Kid, Grant Cardone: The 10X Rule, Pejman Ghadimi- Third Circle Theory, Radius, Jesse Itzler- Living with a SEAL , Dean Graziosi –Millionaire Success Habits , Tony Robbins –MONEY Master the Game , Jude Mendonsa – The Freedom Blueprint

What to look for as a tenant in strip center and tall buildings?
What is negotiable and what can we ask for that might be overlooked?
Anyway to just have biz sign the lease and not have personal guarantee?
When buying a building, what are you looking for:  location, price per sq ft, current tenants, vacancy?
There is usually some kind of formula for price, improvements or renovations, rent, vacancies… what do you use?
How do you find more tenants and  how to determine how much build out to do for them vs rolling it in their lease?

Show notes can be found at https://adoctorsperspective.net/131 here you can also find links to things mentioned and the full transcript.

a doctors perspective e131 jude mendonsa real estate investing negotiations
Full Transcript of the Interview (probably has some grammatical errors). Just Click to expand

Justin Trosclair 0:05
Episode 131 real estate investing and negotiation I'm your host Dr. Justin Trosclair

and dances perspective

joined 2017 and 2018 podcast Awards Nominated host as we get the behind the curtain look at all types of doctors and guests specialties. Let's hear a doctor's perspective.

Welcome back to the show before we jump in, did a cruise a riverboat cruise with three gorgeous Damn. From chong ching. Each young and family went very low key it is not Carnival, not Royal Caribbean or above the nickel and dimed. You like crazy but overall still is fine. You know we just paid some upgraded packages so we can do the things that we wanted to do and feel less nickeled and dimed. But very relaxing. It was great these gorgeous, pretty cool, you can see how high the water

Could be versus how high it was. That was pretty impressive. And it's the biggest Damn, when you finally get to that in the world, it's like 2.3 kilometers long. And there's actually like, took like 17 years to build it. That's a long time. But then when you see like the actual entire project, there's like four dams and whatever. What's cool is that to meet a bunch of foreigners, as you know, there's not very many foreigners in this town at all. In fact, it's just me and the occasional person that shows up. Really fun to just kind of kick back and talk. What do you do? How do you do, where have you been, and all that kind of fun stuff. So it was interesting too, was that a lot of them were doing like a 16 day China tour, and this was part of their tour. So you make the best of it. You have fun when they're doing the the cupid shuffle. You know, we played that music one night after the talent show. So we all had a little fun. went away, get back to the show. Dude joins us today. The good news is he's not selling a coaching program on real estate. Just wanted to say that up front. He's discussing

His own investment strategies and what he uses for that. But another thing that he does is he's got a cell phone business and he's got different locations in different states. So he has a wide range of commercial leasing being the landlord as well buying 50 plexus, eight plexus, and even commercial spots of you know, 20 30,000 square feet. So he's gonna go through all of that what should we look out for as a tenant? What kind of build up can we do? Is there any way to get out like triple net that he switches it at the same time and says What about my landlord These are what I'm looking for as far as a good tenant, why would choose to spend the money on these things where I'm willing to negotiate and then like said, we're gonna go into like, why he's not a big fan of single family homes as rental properties and would prefer like anywhere from, you know, four Plex condo and higher and we go in the ins and outs of all of that, really, it's it gets your mind thinking okay, you know, this the financial series, we've talked about student loans. We've talked about life insurance last week, and we had invested in one on one so this is another piece of your portfolio diversification, you know, some people are actually

Like, hey man, forget the stock market, invest in real estate, use other people's money, we'll figure out what that means. And then how to find distressed properties. He doesn't go into that too much kind of gives like a laundry list because let's be honest, once you start getting into that space, there's so many people selling you programs. And like he said, if you're interested in that, just just hit him up on social media, and he can least advise you to people that are good and not just gonna take your money. So strap in all the show notes and transcript can be found at the doctor's perspective. NET slash 131. write a review at net slash reviews, figuring reviews, Bachman Dan wrote Dr. Trosclair host an excellent chiropractic podcast. Great variety and topics range from clinical to marketing to recommendations for students, very informative. Thanks that keep up the great work. Thank you Bachman. For that, and as always, if you read review, I'll give you a shout out as well. That's hashtag behind the curtain.

Live from China, and Montana. Today on the show, we're going to wrap up our financial series talking about real estate, and only the show today we have not a real estate agent, which is probably a good thing because they're so limited. A lot of times they get all these regulations, you can't talk freely. But he is not an agent. So I think we're going to get even more information than you can legally get otherwise. He also has businesses outside of that. He's He's a published author, he does a little bit of coaching. He's got some tech businesses as well. So he's a really well rounded guy, please welcome to the show, Jude. Min danza. Hey, how's it going? man doing great. Oh, I love I love pre chat. I found out you. You've been to China, you've enjoyed some of the festivities that I've experienced. And so it just brings it together? I think sometimes when you have these bonds?

Unknown Speaker 4:45
For sure, for sure. Yeah. Makes it makes it more relatable. Because you know, I understand like some of the stuff you're going through there and how awesome the experience actually is how crazy it actually is. And also something else I didn't think about right away. But you know the time difference? Yeah, we're on time right now compared to where I'm at in time right now. 6am my time if I would have known but 6am a bad. So

Justin Trosclair 5:10
I tell people, I actually wrote the schedule that I sent to you. So my Internet's better in the morning than at night. So I prefer waking up and doing this. I feel like you know, everybody says you should wake up early at four o'clock. Get your grind going? And I'm like, Yeah, like the grind at night actually thinks. So. When I get up, I feel like I'm being more productive in like a book. Right? Well, this interview is going to talk about the investment side of well, first really space, you know, strip centers, tall buildings, things to look out for as a tenant, so that we can get the most out of our landlords. And then we're going to reverse it and say, what has a landlord? How do we get the most out of our tenants? And then as you're buying big buildings and strip centers, what are we looking for KPIs, those types of things. And then we'll also talk about like flipping these things, and you know, flipping real estate buying houses or duplexes or multiplexes. So that's what you should expect on the on the podcast today. So let's, let's jump in what, what kind of got you in to the real estate market.

Unknown Speaker 6:14
Um, so I,

Unknown Speaker 6:17
I've always understood, you know, if you want to be successful, you know, you want to be rich, you want to be the best at whatever it is that you enjoy, learn from those people. So from studying, people always saw that there was one thing that all the wealthy have in common, you know, people make money in so many different ways. You know, they have a big steel company, you know, they've got some online thing, just all these different ways, but the thing they all have in common is they all invest in real estate at some point, you know, and you start looking into it, it's very stable. Yeah, we've had housing crashes, things like that, sooner or later, it always comes back, though, because people need a roof over their head, or at least people want a roof over their head. You know, this is something from all the way back at the beginning of time, you know, that we very first started out with trying to build a domiciled trying to build a place keep us out of the weather. So it's a very stable investment. It's something all the wealthy have in common. So it just made sense to start figuring out and trying to find a way to get into it.

Justin Trosclair 7:16
I heard the profit or the point of growth is you got to get it at a good price. That's how you become profitable. You can't worry about the sale later on, if you can get at a good price. And that's how you win is that is that true to you.

Unknown Speaker 7:27
So that that actually works in all sales. It's not what you sell something for, it's what you buy it for, you know, if you're buying a watch to turn around and flip later, you know, it doesn't matter if you're going to sell it at 4000 5000 matters whether or not you buy it at 3000 or 2000. Yeah, same thing with property, you know, you want it to cash flow. Now, because you're renting it, you need to be able to buy it at the right price where it is going to cash flow, you want it to be able to withstand through a downturn, you need to buy it at the right price for that. So 100%, what you get it at now is definite that you know one of the most important parts. There's also the aspect though of being an investor buy and hold investor, price doesn't actually matter. Terms matter in dictating the term. So I don't mind paying full retail value for something, if it's on my terms, you know, if I dictate a commercial property, that's normally on a 20 year term, we do it at a 40 year term at this interest rate now, but then maybe there's a buyout after 10 or 15 years, something like that. So if you can manipulate things in the terms, then it doesn't really matter what you're buying it for.

Justin Trosclair 8:36
Especially if you can double the term length. My goodness, every like right. You know, just got cut in half. So you can actually make cash profit each month. Yeah, why not? Okay, well, let's jump with the easy stuff. First is I'm already excited about what you're talking about. But then with the reverse it all back. So because I know there's an important aspect when you're trying to buy a piece of real estate for a commercial, you're looking at how tenants they have available. And then what's empty was the turnaround build out for the tenants. And there's like all these little numbers and like a robotic, she supposed to use algorithms. So you can find out Yeah, this is actually it worth it. I don't remember what they were because I only read a little bit of book about it. And it's really interesting and above my pay grade. Right. But let's go, let's get meat and potatoes. We're all bunch of doctors. We're typically leasing space for the first few years of not our entire life depends on what city you live in. So what are we looking for? What's negotiable in the least as a tenant?

Unknown Speaker 9:32
What's the ghost, please? Okay, so yeah, you're talking commercial spaces here, right? So I gotta get my mind on it. So I invest all over the place. My preferred our commercial and bigger apartment building, things like that. I don't like single homes, which we can get into that later, if you want to know why. But so with commercial stuff, almost anything's possible. Just like anything in life. When it comes to businesses, there's always room to talk on the table negotiate. Before I got everything I'm doing is a chain cell phone stores, we spread from Montana, out into Washington. And when we went out to Washington, we actually negotiated a really awesome price for the area where we ran into coma. But we did it by doing a really long lease with them, we knew we could do a really long lease because it was a business that survives downturns, things like that. So we knew is going to be in there for the long haul. So not a problem. A lot of my spaces, though, with, again, sticking with the cell phone stores, like even in Montana, some places we've rented is, you find something, maybe it's not up to par where you want it or you have to go and do things. So you can you know, negotiate, hey, you know, we're going to come in, we're going to be good long tenants, but we have to remodel everything, well, that's going to cost money, and I can't pay your rent out of the gate because of that. So give me the first two, three months free, you know, but I'll sign a good lease for you one year to year on top of that. But that gives me the money and the cash flow to be able to come in and do it. Some people do things like floor and credits, things like that, like Oh, hey, place looks really nice. But I would like a different floor. You know, if I put it in when you give me credit on the rent. And as a landlord, you're like, Okay, yeah, I can do something like that, because it's going to bring in a good tenant. And then even if you move out, I've got a brand new floor, which will help me rent it later. So then do the tenants.

Justin Trosclair 11:17
The landlords typically, if they spent 30 grand to build out for you just include that into the rent over the next five or six years, though, is that pretty standard?

Unknown Speaker 11:24
know, what I've seen if they're doing the build out for you is, yeah, probably on smaller projects, they'll do something like that. A lot of things though, and I've never had anybody build out, we always had our own team and things like that. So we'd hire on crew crew and everything that just negotiate something on the back end, like the free rent or getting a rent credit right away. For smart things that I have seen, though, which I haven't been very privy to a lot of it is, you know, they tend to just get it charged right away, you know, hey, okay, if we got to come in and do this for you, we got to pay for it. So it's got to happen in the first couple months that you pay that back. I'm sure there's probably some landlords out there, though, where, you know, they're sitting pretty, they've got plenty of profit coming in on building, they're like, yeah, we can break this out over a year. The problem with that, though, is the failure rate of businesses. You know, if you do 10, grand worth of maintenance, repairs, whatever for somebody, and you're expecting them to pay it back, and they go out of business after three months, and you are, you know, on a two year thing, you're not going to get your money back now you're taking them to court. So

Justin Trosclair 12:28
risk reward sort of thing. Right? Okay. Because I think on my situation, it was there for like 12 years, and then I was going to be there for another five. And so they just rolled in, I was like, do this gotta be remodel, you know, like a new mexico ass tech vibe to it like with those wrought iron lizards? And it just, I was like, No, I'm not, I'm not into this at all. Like, the lease went up. I was like, we paint, we're doing everything. And luckily, they're okay. So that's cool, that we were able to do that then.

Unknown Speaker 12:56
Right. And then again, we went your long term tenants, they know that you're going to be there for a while. There's a lot of people, landlords, that'll just work it out with you like I know. So we're in one of my commercial buildings, right now. It's 32,000 square feet. I have a guy, he's like, hey, I want to do carpet in my office. You know what, I'll give you a rent credit on that, man, I'm not going to do hire the people, I'm not going to pick it out, I'm not going to spend the money on it, you get all that done, bring me the receipt, I'll give you a rent credit. The guy's been here 10 years, he's gonna be here longer, obviously, because he wants to do carpet. So why not take care of him on that? Okay.

Justin Trosclair 13:33
Any advice on triple net? I think some doctors don't realize until they get into actually leasing, you've got your square foot price that you should negotiate. But then you got this thing called trip on it. And when you're not you're building, those things can get out of control, like they can be like five to eight more dollars. Is that? or How can you reduce that? what's the what's the appeal.

Unknown Speaker 13:55
So usually, so you've got two things, you've got your triple nuts, and you have cam fees. Different places will call it different things. Sometimes they mean the exact same thing. Sometimes am fee is just common area maintenance. So like let's say this building, I charge everybody here $2 per square foot for their common area maintenance. So that covers because there's a public restroom, you know, someone coming in cleaning the restroom, that covers maintenance on the air conditioners, things like that, that covers cleaning up the parking lot, you know, and that's money I put aside for all that. I'm not going to really negotiate with anybody on that, because that's stuff that has to get done. And we want the place running, working right things like that. I'm my biggest candidate, though, in this building. So they're a beauty school, they're running like 13,000 square feet, they get a little break, because they're running so much. But I've also worked out their lease that they're taking care of some of their things too. So it balances out that way. Triple nuts, especially like anybody in bigger areas, you know, Chicago, New York, places like that, Phoenix, you're not going to get any of that negotiated because the rent, yeah, you can do something on that, you know, they want $22 a square foot 1815, whatever, you might be able to negotiate, hey, I'm gonna do a five year, get me down to 14, you know, something like that. Triple nets, though. Triple nuts covers the commentary, maintenance, and it covers the taxes and the insurance, like they're making you pay for everything, which is why it's great to be a commercial landlord. You know, but the taxes Don't go away, you know, the insurance doesn't go away. That's a hard cost to them. So they're not going to negotiate with you on that.

Justin Trosclair 15:38
As a landlord, is there a markup on the trip on it?

Unknown Speaker 15:42
There isn't supposed to be I mean, there's no rules about at least in Montana, where I'm at, there's no rules about it. So don't quote me, I'm not a real estate, you know, realtor, business realtor or anything like that. I'm an investor. So I don't have pay attention that stuff. There might be some places where there are rules about that. But as far as I know, I mean, honor wise, usually what they do. So like, one of my cell phone stores was in a pretty big strip mall here in Billings, Montana, where I currently am, they had a triple net lease went all the way around, but they would keep track of everything, all that money would go and account and it would all get spent. And like let's say one winter, we didn't have a lot of snow. So the snowplow didn't get used as much. So there was extra money. So that went into the next year's fund, you know, and they would record that and everything. I'm sure there's plenty of landlords though, that probably pocket that, you know, spend it on their vacation, whatever. So, all just depends on the landlord, you know, how honest are they? How much do they care about their building their tenants and staying profitable?

Justin Trosclair 16:46
I think the place I was at did the same thing. We had a ridiculous snow year one time. And so we had the next year, but then it balanced out because they would they'd keep it more legit, which I thought was, okay, cool, cool, you know, cuz one, you have a bunch of snow all over the place, you just want to go on.

Unknown Speaker 17:03
You know, if you're, if you're going to be a commercial investor, you want to be like that, because you don't want to take advantage of your tenants because they're going to go find someplace better. And you want to show you're actually taking care of the building and everything. And when you're giving them records like that, then they feel like a partner in the building and like they are being taken care of. Why are they going to want to move, you know, like my tenant who came about the carpet, took care of him on that we've been asked, but everything handled any problems that come up, that guy's already been here 10 years, he's gonna be here another 10 years because of something like that.

Justin Trosclair 17:33
Yeah, that makes us as a tenant really mad when your rent goes up every year. And then you notice, dude, you don't even get the plow out there in the winter. You're not keeping track of the flowers, you know, my air conditioner breaks. And you know, you just found a nickel and dime, and you didn't get anything for it. So the issue and you you getting taken care of you're like, all right, I can justify that. And now it cost me 500 more dollars a month. in year three, is there a percentage increase? This was nice, you have both sides don't want to pay much and you want to maximize? So what is a good number of increase per year in rent?

Unknown Speaker 18:06
So again, that's going to kind of go according to the area. Up in the Montana area, for example, we're right around 6% per year, per year, per every other year, depends on what lease you do. So my people in this building that were in there every two years, yeah, it goes up 6%? Because that's about inflation. 3% a year. Yeah, it was what think, and you have to do that. It's it has to happen. Because my taxes went up, my insurance went up, utilities go, everything goes up the cost of bringing out the AC guy goes up. I mean, we already paid you then trip on it. I mean, all that stuff, but part of it, you know, it's just it's part part of the deal of doing business. But there is a point to where you have to look at the numbers and go, Okay, we're in a be building a see building, you know, we have this type of neighborhood. What's everybody else renting for? Okay, do I risk doing a huge increase? You know, and possibly losing this tenant, and they go across the street to the other guys place? And then I gotta find a way to replace them. Which is probably a harder one. Yeah, no, I'd rather keep a tenant long term for a little bit less than rent, then have it go empty. Have an empty because commercials harder to fill than a house, somebody needs a place to live, they don't need a place to do business. So it could take a week, it could take a couple years to fill a spot. That's a lot of money lost over excellent timing. So you want you want to be honest, you want to play it smart. You want to see what the markets doing? and balance it out. Now.

Justin Trosclair 19:45
Is there any way to not have a personal guarantee? Oh, when you're signing a lease,

Unknown Speaker 19:49
yeah, negotiate it? Um, if your business is big enough? I mean, if you're a small business, probably not. Because

Justin Trosclair 19:56
don't say you're a doctor of a doctor, a dentist, the Kairos after you going in, and you know, maybe you have experience, maybe you got five years experience or 10 years experience, maybe that makes a difference. But if it's called a newer business, it seems like there's no way to get around it

Unknown Speaker 20:09
without good negotiating skills, you're probably going to get hit hit no matter what we you're a bigger company, you can push out of that. Because, you know, if you got a subway coming in or something like that, obviously, they're not signing a personal guarantee. But you're like, it's suddenly you know, I want to hear you're going to be here 60 years. So

Justin Trosclair 20:28
right, then you can probably get a longer lease too late.

I was looking at three to five, they're like now we're talking nine or 1020 me,

Unknown Speaker 20:34
right? So I'm, everything's negotiable? I mean, everything in life negotiable. Yeah, it doesn't hurt to ask. Now, if you just got to try as a landlord. You know, it says someone investing, you want to get that personal guarantee. Granted, I've got a lot of candidates. I don't do that on because like, so the building where NPP is again, as example, the main floors retail, the upstairs is all office spaces. Well, as therapists renting a unit for $400 a month, I'm not going to get a personal guarantee on What do I care, you know, I'm not going to go to court over 400 800 1200 dollars. That's not worth my time. You know, I probably over three years, though, I'm probably not going to go to court with someone until it's about 100 grand, like, it's not time, you know, that's just where I'm at in life. But bigger tenants though, like, if they're reading 13,000 square feet, you know, they're giving me a very good chunk each month, if they moved out two years early, we're probably going to have a conversation in court, you know, I'm going to

Unknown Speaker 21:35
that bills come in every month. Regardless, I'm gonna

Unknown Speaker 21:37
want that 1720 grand, whatever it is, each month for the next couple years. Because I got it, I got to fill that hole. And that's a big hole to fill. 100 square foot office, and that's whatever, you know, I can throw the mop bucket in there. Yeah, so you know, that personal guarantee, I'm gonna want that. On the other end, though, if you're starting a new business, you know, even if you already Dr. Something, and, you know, you realize, Hey, I'm gonna open the status office, I need 4000 square feet. Well, I don't really want to do personal guarantee because deep down inside, I'm like, maybe I'm not a dentist who runs his own office. Maybe I don't actually like doing that stuff. And I want to work for somebody else. But I'm just trying it because my wife wants to so yeah, you got it. You got to try and negotiate for sure. So

Justin Trosclair 22:22
okay, cuz I mean, like you said, if you're the landlord, 10,000 square feet, that's a that's a lot. That's like five extra businesses, you would have to go in and remodel. Yep, find businesses that want to do it. And all of that like that would be really expensive on the landlord for like, pretty much all your profit is gone. Yeah. You're just trying to stay afloat for a while at this point.

Unknown Speaker 22:45
Okay,

Justin Trosclair 22:46
so let's switch gears in like the way we did that was like a back and forth tenant versus the landlord. Anything else you can think of whenever I think that was about, I think that kind of covered it. I mean, I would only say if you're a tenant, be careful how much money you're putting into a lease base. Because unless you really know your area, if you really know your area, then you can say this is up and coming place, you're not going to want to leave in five years that the demographics of your neighborhoods not going to change, because like my place, it was changing. And if I would have spent another hundred grand building it out to look perfect, I would have been upset because they actually moved. And they're things they're doing better now than when I was, you know, just for like location, a lot more walk ins, a lot more foot traffic, just because they're in a mate, you know, on a better spot, maybe not as nice of a building, but they get a lot more traffic flow, right. You know, visibility, like, wow, location.

Unknown Speaker 23:33
Yeah, as a tenant, you want to weigh out a lot of that stuff, especially if you're at the beginning of a business. But you know, you don't want to go into a spot, throw in 5060 grand, and then you find out all the metrics, everything, you paid attention to the foot traffic, all that stuff. It was wrong for your business now and the spots just not working out. And you possibly have to look for something else. Like those things happen. Maybe the landlord's a total turd hasn't been taken care of the building. And even though the face looks nice, you go and remodel that old grumpy spot because someone was there 20 years, you know, it looks like it's from the 80s it had to be done. You throw in that 6070 grand? Well, then you find out, you know, the boiler system doesn't work. It's freezing in the winter, and the landlord refuses to fix it. Because he's like, oh, it warms up. It just takes time. You know, like, so you run into things like that. So you definitely, you got to be very studious, you gotta pay attention. Maybe there's so many aspects pay attention to whereas you said like, you don't want to overdo it, but can't under do it either. You got to make sure it's done right. But be paying attention to everything. So that way, you know, if you do have to get out, it's not a huge loss for its money you can afford to lose. Basically,

Justin Trosclair 24:44
I'm opening up a place in my hometown, and it was a vanilla box. And for those who don't know what a vanilla box is, it's literally four walls and no floor and no ceiling. Like you have to build everything. And now at that point, the landlord usually generous with helping you build stuff out, or they give you higher rent, as I know, there's no way I'm doing this. Like it would cost so much money to make this visible versus adding a wall or moving a wall and spending like 10 grand. I was like there's no way I'm doing a vanilla box. I thought.

Unknown Speaker 25:21
I like that the Videla box. I've never heard that term before. But I mean, as soon as you said it, I had pictured in my mind what it was

Unknown Speaker 25:26
What do y'all call it? That was the interesting term.

Unknown Speaker 25:29
I just empty spot, you know, blank.

Justin Trosclair 25:35
I thought I was being jargon rich.

Unknown Speaker 25:37
Right? Right. Yeah, actually, you might be I mean, it's just something I haven't run into. But it's something I'm going to use from now on. I like the things yeah, there's a lot of places especially when it comes to near construction where they'll build something up, it'll just be that blank, you know, long unit. Justin up might have the flooring in there. But that's it, you know, there's no walls, because they're leaving it open for the tenant to come in and decide. Now attendant who's going to take over that like a Jimmy Johns, you know, they're going to move into something like that. And obviously, they're going to build it the way they want it because they need it. Now. Yeah, they're excited. As an accountant, you know, you go in there as an accountant, you're like, oh, man, this a lot of work. Like, I don't know if I want to do this. And that's where they have the signs up, oh, build the suit suit, you know, so they're going to negotiate something out with you. Because Yeah, you're not going to want to do all that. And you're going to want to get it figured out. But then they're there. And they're going to figure out a way to charge you whether monthly or over the next couple years, get that personal guarantee and everything like that.

Justin Trosclair 26:35
But above market rate for the areas what I noticed, especially this place that was like, you're no one even knows the strip centers around that you pick the worst, you're like, this is the only place available quote downtown. And it is off to the side that no one drives on is like you crazy, trying to charge that kind of money. I was like this, it was more than when I was paying in Colorado. I was like, That's nuts is super expensive, right? me my buddy, you always compare numbers sometimes I'm like, my goodness, just just on the savings he's having right there. He's going to outperform me, right? every day of the week, unless I can like, you know, make that much more visits per month or something else. Like this is crazy. It just made me realize like how much it matters, right. If you can pick the right spot. I've wondered

Unknown Speaker 27:19
about the Colorado market, you know, especially Colorado, California. Actually, they've been dealing with it forever, but they got kind of space but get Colorado Oregon, Washington with the legalization of marijuana. Because now people are buying up warehouses, you know, they're using it up.

Justin Trosclair 27:35
Oh, yeah.

Unknown Speaker 27:36
So like places that were empty. Now there's a boom in the economy. Businesses are open up, you got weed shops opening up, you got bakeries opening up, you know, you got supply centers opening up, like everything's getting filled. So man, commercial real estate, it would be a spot to be in Not now, like everything's expensive now, but I mean, 10 years ago, couple years ago, man, yep, like, oh, you'd be making money now. And you're charging premium, because a lot of people don't even like renting to that store sort of stuff. So like Montana, we have medical marijuana here. A lot of people won't rent to it. I want more warehouses to rent to those guys, because you can charge a premium because they know no one will rent to them. So you know, you got

Justin Trosclair 28:19
there for a while. Yep,

Unknown Speaker 28:20
you got a blank steel shops, loans, they don't get rated. But you got a blank steel shop. You know, normally, let's say you're running $1 a square foot lot of those guys, you're renting it out for $1 75 per square foot. Now, because they're not a mechanic, you know, they run some risk and everything and no one else will rent to them. So why not?

Justin Trosclair 28:38
Yeah, yeah. As long as you're not covering the heat bill, you're good to go. I heard that's expensive. All right. Let's switch gears. We've been in business for a while. We're like, yes, we got some cash flow, I've been saving for this. It's time to buy a building and do the I don't know how you set it up. I'm going to buy the building as Trosclair real estate. Then I'm Elise it out to Trosclair, chiropractic, and the other 6000 square feet, I'm going to divvy it up and they're going to pay my mortgage on this thing. Right now, my landlord and save it all this money and pay myself rent and yada yada yada. Okay. Let's talk about commercial. I don't however you want to do it. I like the idea of duplexes and quad Plexus because once you jump in, you got four rooms for the price of in a little bit more than a single family house. And you long as you can manage the the monthly payment. I think you're pretty good. But how do you want to tackle this first? Is it all in one? Or do we need to separate it out?

Unknown Speaker 29:35
Yeah, we can separate it out. I kind of want to hit what you just said on the the residential real estate there.

Justin Trosclair 29:42
Let's do let's be investment brokers instead for now.

Unknown Speaker 29:44
Perfect. Perfect. So, okay, residential. Here's the problem with the single family homes. And I own a few single family homes. I think I have 13. So a few. A couple. I'm, the problem is and I keep it picked up a couple over the last year and not not by choice. They were kind of just thrown at me. I hate single family homes. And here's why. Let's just get give a fair price, you know, across the country will say you bought this place for $100,000. Okay, and you probably get it on a residential loan. But let's say it's on the commercial loan, because how many properties you haven't had a thing. So you got 20 years, let's say 6%, just to make it a little high. So what would that be? Probably around like $720 a month is your mortgage payment, okay? in my area right now, you know, two bedroom, and $2,000. But you're not the most beautiful place, you ran that for $900 a month, okay, you're making profit on $184 a month in profit. That's cool. You know, not including maintenance, taxes, things like that. So let's say all that thrown in your $800 a month, and we're renting it out for $1,000 a month. So you got that $200 a month in profit, awesome. It's cash flowing. And every time you know, the tenant makes a payment, you're paying on the mortgage, that's building that equity, your savings account. So you're building wealth, while getting immediate cash flow. We love that. Here's the problem though with the single family, they move out, they were great tenants had him for three years, okay? You got to do just little touch up stuff, throw $500 into it. That's nothing awesome. Kids can take you two months to recoup that and profit. While it also takes you three months to get it rented. Okay, so you lost all that money. So that's going to take you longer to get recoup on top of that $500 put into these people you put in there great. They're doing awesome for six months. Well, guy loses his job, you know, catches his wife cheating on him something family starts breaking apart. He's drinking, they're fighting all the time. They're no longer cleaning up holes are getting punched in the wall. No place gets destroyed. You have to victim that takes another six months. You're a year, year and a half into this total mess. Get them out. Now you have to throw 15 grand into the place get it cleaned up. plus the amount you

Justin Trosclair 31:57
already lost all the profit for the last two years. I'm missing three months of rent and two months of paint, right? For $500. Like, due to realize a margin of $180 minus taxes is not a lie. Oh,

Unknown Speaker 32:09
no, not at all. Not at all. So not at all. You look at the opposite of that. You know, let's do an eight Plex for example. Okay, so you pick up an eight Plex x $400,000. Hey, what's an eight Plex for those who are

Justin Trosclair 32:21
like what

Unknown Speaker 32:22
a Plex. So a four Plex. four units, eight Plex eight units, which means eight apartments? Eight apartments. Yep. So you know, eight apartments. All two bedroom, you know, all branding, let's say $800 a month. So that's 50 $600 a month, why you bought this building? Because you're an investor like me, you know how to find someone with the problem. Now if somebody they died divorced, whatever, or they just hate real estate, they don't like dealing with tenants. So you pick up this eight Plex on a deal. $400,000. Okay, so our payments 20 $800 a month, we're making 50 $600 a month. Okay. 1800 dollars in profit. Yeah, we're doing much but something goes wrong. Let's say you have one of those bad tenant situations, you have one unit that's just empty, because it's empty. You know, sometimes that happens, another tenant issue, get rid of him, those other six units are still paying for the place, that's 40 $800 a month, you're only at 20 $800 a month, plus, you know, sad in taxes, insurance, it's still profitable. Even if three units going on, it's still making a little bit of profit for units go out. It's paying for itself. So it's a thing of numbers. So I like looking at you know, 10 2050 hundred unit apartment complexes because of that stuff. My single family homes, horrible investments, one thing goes wrong. How long does it take me to recoup that big apartment complex? Hey, you know, something got flooded, we lost 10 units going to take some time. That's okay. Everything's still paying for itself. It's still cash flowing. We're still building equity. Life is good.

Unknown Speaker 34:02
So what kind of empty rate?

Justin Trosclair 34:05
They say like, you know, if you have my biggest fear, 100 units? vacancy? Yeah, what kind of rate is expected? industry average, if you will. So

Unknown Speaker 34:13
usually when running a deal we try and do being by people, the groups I hang out with themselves. So we try and do 10% for maintenance, 10% vacancy rate, and 10% property management rate. Again, you're investing for freedom, time, building wealth. If you're waking up at three in the morning to go plunge a toilet from a phone call, you know, that's not worth it. So we throw property management in there. So you look at it about 10%. So, now you figure that out, do the math, I'm not going to try to do the math on an eight plexo know 10% is but no. Okay,

Justin Trosclair 34:53
so roughly 10% you can expect. All right

Unknown Speaker 34:56
now, though, you take care of your stuff, just like with commercial. So most of my units, I have property management on them. But we go in when somebody moves out, if it's an older place been beat up, whatever some we got on a deal, we remodel it up, make it nice. put people in there. And then we have things set up with the property management company where we've worked out with warranty companies on all of our stuff. So if something breaks down, we get it fixed right away, we take care of it right away. They need a fridge, fix it, replace it, no. Window broke, fix it replace it is their fault. Okay? figure a way to charge them our fault. Cool, let's take care of it right away. You do those things, it's easier to keep a place filled. Because people know crummy landlords, they're everywhere. They've already lived through crummy landlord. So now they're living with the landlord. Like Wait, I called and they're here on the same day and took care of the problem.

Unknown Speaker 35:49
Yeah, so

Justin Trosclair 35:52
yeah. So again, like, I like that idea, too, because you actually said, Look, I'm gonna upgrade this crappy, inside me get better. And now you might be charging 30% premium on this one apartment compared to the next one. And then once these people finally leave, eventually, you'll have a nice place. Yeah, maybe you redo the outside a little bit better. So that matches the inside.

Unknown Speaker 36:12
You look at the area you're in, because obviously, you can't buy a C class area building and do a class stuff in it. Because a class people aren't going to live on that side of town. So you do have to pay attention that that doesn't mean it can't be a C plus class building or even a b minus building, you know, do it up that nice. So everybody in that area towns like oh, I want to live in that one. Because you know, it's still reasonably priced. It's in my area of town. It's near my friends, family, whatever. But it's the nice one. It's the one that shows the landlords taking care of it.

Justin Trosclair 36:47
And we always see those you can definitely find, right. It's not marble cabinets. But it's it's a nice linoleum on top or something, whatever you guys use. Yeah. Have you ever taken a piece of an apartment and said, Look, I'm gonna make it nice and classy. We're going to add a gym, we're going to remove one of the apartments and make it like a gym. So that is an amenity or like a business office, you know, a two bedroom apartment, if you had eight, and you turn one into a gym and a business thing for people? I don't know if that's profitable, or if it's necessary.

Unknown Speaker 37:16
Yeah, so that would be an A class thing. You know, if you bought 200 units, like an in a class area, and they're let's say, they're there was a storage room or something, you know, you turned something like that into, I would never turn an apartment into that. Maybe I mean, you know, if it's a class area, and you're doing a portion of it, like let's say it's in Florida, somewhere near the beach, you got 200 units, you're running out 150 of them, and 50 of them, you turn into Airbnb, you know, then maybe I'd look at something like that. Now. Okay. But otherwise now because other people don't do it. Unless it's like super high end, you know, like a tall scrape or something, then, yeah, you're gonna want a fitness floor and maybe sit office floor, things like that. But now usually, yeah, people can go to the park and workout.

Justin Trosclair 38:07
Yeah, okay. I mean, I've been in apartment complexes before where they have them, right. And sometimes you just like, why did you even waste your money? Because I mean, they can put it on their flyer now. But you look at and you like, well, I'm really in a budget crisis, I'll use your gym. But other than that, like I'm going down the street.

Unknown Speaker 38:24
It's a marketing tool. And I've been in places like that growing up that were in C plus and B minus neighborhoods that had home and you could tell it's a marketing tool. I'm like, the equipment's not that great. They don't really have all that stuff in there. I mean, the person is going to go out working there is that you know, 58 year old man who's out of shape, but wants to feel like he's doing something, you know. Yeah. So yeah, I wouldn't waste time on things like that. I have added washers and dryers quite not to places now where it's like, okay, there's not a washer and dryer ability in any of the apartments. If you find a little spot for a common area, now, it gives them something now they're not having to drive anywhere. And you know, we're going to make a couple of nickels. So

Justin Trosclair 39:08
I live in a place like that. It was, it was my first time experiencing the whole boiler system. And downstairs is the only place where you can watch clothes. Like there was no option in your place. Like unless you really like put some pipes and you know, you had to it would have been so rigged up you would have been embarrassed to have anybody over right just for the convenience. So you know, when I was looking at that place, I was like talking about real estate agents. This is ridiculous. I'm a grown man I shouldn't go to the basement in like wash clothes for

$1 would you just do the math for a second? He's like what's the washer and dryer cost? Okay, how often do you wash clothes? What does it cost to do that? He goes right stop

being an idiot I was like all right, right right right The point is like I'm a grown man I don't want to go to the basement right

Unknown Speaker 39:58
especially with creepy basement and I needed don't know who's rifling through your stuff and

Justin Trosclair 40:03
yeah, you're not staying there for an hour and a hot and air conditioned area like nama go back to my condo wait around and come back

Unknown Speaker 40:10
right? away stole it

Justin Trosclair 40:12
would have ridiculous. Okay, we're looking for a big complex. What's a normal rate that you have to put down? Because an eight Plex we're talking? What three? 400,000? Maybe? That's a pretty big chunk of money. But what's a equals zero down? Why not? How's that even possible this thing every 2004

Unknown Speaker 40:31
everything's negotiable. So. So I'm different than a probably, I'm not a realtor, again, you know, I don't play by the rules, I do things differently. I'm a real estate investor. So I don't use my own money for any deal. Again, I'm going to use the building where and it does exist sample, okay. These people on this building for a long time, they had inherited it, okay, as you on a commercial building, depending on how you do your taxes, most likely you'd appreciate it. So you depreciate it over the 20 years that you're able to, well, if you ever sell the building, Uncle Sam wants that money back. Now there's different tax things you can do and stuff, you know, like do a 1031 exchange, throw all your money back into a different property. But if you don't have that setup, when you sell, you're going to have to pay a huge chunk back in on a you know, $3 million building, that's going to beat some things up. That's a hefty penny to pay back. I find people again, who are in trouble who are struggling have issues like that, okay, these guys enjoyed the cash flow the building. They didn't like the maintenance of the building and the calls and the dealing with tenants things like that. So they want that when you pay somebody to do that a lot of people don't a lot of people,

Justin Trosclair 41:43
it's only 10% it's worth the 10% loss.

Unknown Speaker 41:46
A lot of people believe if you want something done, right, you do it yourself. And because of that mom and pop businesses never grow. You see it all the time, right? You know, yes. last as long as the old man's around and when he dies, he goes on, it's gone. You know, Brian punch in the toilet. Yep. Because they didn't build a system a process like McDonald's, you know, where Ray Kroc was like, I'm not doing it myself. I'm hiring people, and they can't do it. They're fired. I'm hiring the next guy. So. So you find people with problems like that. Okay? So these people have this property, they want the cash flow still, they don't want do that. Okay, let's work out an owner finance deal. You be the bank, I'll come in, I'll handle all the stuff you don't want to handle. I'll treat it as my own because it is going to be my own. And I'm going to write you a fat, you know, 1715 $13,000 check every single month. Okay, well, I do want some money down. Let's say they want some money down. Okay. Well, what I do, as being an investor, I don't like using my own money. I know Dr. Justin, know, doctors and with a lot of money and stuff, you know, whatever other business, people with a lot of money all want a better retirement, they want some cash flow, but they don't have the time to do it, you guys are busy, hey, I've got this building, want to bring you in on you know, give you a great return, or maybe even make your partner on? We need 100 grand to put down. Okay, so even 100 grand for down, we work out whatever deal we do, I give these guys 100 grand, then we take the building, get it running, going do that for a couple years. So like this building here, I bought for 1.4 do get some stuff to it got the rents raised up filled up some empty units, we got an appraisal at 3.2 million, okay, well, we just profited over a million dollars on the property, we're going to refinance it out, buy them out, take that money, go invested in some other properties. That was money I never had, you know, it automatically goes somewhere else. So that's how you start building the wealth and everything. But that's how you can deal with no cash or your pocket partner with other people. There are deals though, where we've done it without any money at all, not even using other people's money. So like how I told you, I had three houses thrown at me recently, single families, I try and stay away from them. Two of them, we're family, friends, I've known forever, just down on their luck, bad things have happened. Okay, we'll take care of the property, you know, make sure it doesn't go into foreclosure. You don't lose it or anything like that. The one we did an owner finance deal. The other we did a thing called the subject to, in every mortgage, there's a code in there called subject to you go to a lawyer, they fill out the paperwork, boom, it's in your name, you take over the loan, don't have to go the bank, anything like that. So there's a lot of strategies, a lot of great strategies. If you're willing to, you know, look for people with problems and help them solve the problem where you can get into something. Now the normal way, the way we're taught in life in school, things like that, because, you know, we're taught to be, I'm going to get political here, but we're taught to be, you know, basically servants to the 1%. So not doing things the way the 1% does. But doing it the normal people. Yeah, you're going to find a place, the bank's going to want you to throw 20% down 20 5% down depending on what it is. So yeah, $400,000 building, you're going to have to throw $80,000 down. How long does it take you to get your $80,000 back? You know, that's horrible. I don't like that. So we're getting creative about investing. We're going to find people with problems, and we're going to solve those problems.

Justin Trosclair 45:18
All right, let's go back. You went back to the bank, and you refinance. So okay, two things as a doctor, and myself, I'm like, wow, if I could give you 20 grand to cover your thing. And then now I work out something with you where I'll make 25% over the next three years, or over two years, I make 20 and whatever, whatever I want 12% on my money for the next five years. And then I'm done with you. You can you can write me out. That sounds great to me. I don't have to do a darn thing. You did all the work. I just gave you 20 grand, I made 12% a year that's better than my stocks, Ray and testing. And for you, you're like, that's great. Because I got you and you and you I needed 60 grand, I found three buddies, they gave me the 60 I was able to get that owner, his head. He's happy. I'm right. happened in my head.

So this guy's happy. And they said, Look, but you the new owner, Mr. Jude,

I still want 10 grand a month from you. Even though you're buying it from me. I want 10 grand a month for the next six years. And you're like, cool, because I'm supposed to be making like 25,000 so I'm still making money. And then after like a year, like you said, You got everything situated, you go back to the bank and say, hey, it's worth 3.2 million refinance. And now you owe $3.2 million. Let's just say 3 million now you're $3 million to the bank. But technically you got 2 million free so you can go out and buy. Yep, five more commercial buildings with the other banks money. Yeah. And then now that's how you once you get a deal like that. All of a sudden your empire can grow pretty quickly if you can find distressed properties over the next two years. Exactly. That kind of accurate.

Unknown Speaker 46:49
Yep. 100% you know, and for anybody listening and I don't know if you've read any of these books, but you look at like Robert Kiyosaki books, Rich Dad Poor Dad cashflow quadrant, and then even watching like Grant Cardone videos and stuff where he talks about, he wish he would have understood real estate earlier, because he would would have been a billionaire quicker, you know, he would have already been there. Because there's nothing that builds wealth as fast as that. And that's why if you do it, right, if you do it the traditional way, throwing 20% down going to the bank, things like that, it can still happen. But it's going to take time. And the problem with doing that you're buying things at retail, like right now where I'm at Montana, we didn't get hit by 2008 the way everybody else did, because we were already such a cheap state, that people that were in suffering states were moving here. So that's boosting the economy. And we have oil all around us the Bach and if you hadn't heard of it, the Bach and one of the biggest oil finds ever, and we were exploding. So we're kind of like the poor man, San Francisco, I want to say like, our housing prices are insane. Right now, there's duplexes that I've seen a buddy of mine actually just messaged me two days ago, found a duplex he's interested in, I'm there also, Hey, guys, he came, talk to me about it $300,000, you will never cash flow on a $300,000 duplex in Montana. So you can't buy things retail, we have to find problems and solve them. And when you do that, that sets you up were like going back to the eight Plex example, I use that because I have an eight Plex that I bought for that price. Now, we got into it puts a little bit of money down, you know, through some investors and stuff we're sitting really good at we've had it for a few years, I'm actually working on things with the bank right now to refinance it, it's valued at 600,000. Now, so we're going to do that 80%. So you know, we're going to be in there at what 480,000 when it's all said and done. So I'm going to have that 80 grand and profit plus some of that equity I've made. So we're going to have about $120,000 to go find another eight Plex or something with and throw that into that in a couple of years, we're going to do that again. And again and again. And again. All right. And that's how you Well, I'd be remiss without asking this, how in the world, are you finding distressed properties? Or people that are needing to get out like, inside track? What's going on there? How long does this episode go?

Justin Trosclair 49:12
That's actually my 999 plan. Right? coaching on.

Unknown Speaker 49:15
So going back at the beginning, you know when you mentioned it, so I am a coach and a mentor, I consult with businesses, things like that. My specialty, what I coach and mentor is working with men specifically on helping them to be you know, successful in business, in their health, in their wealth, and as husbands and fathers. So I don't sell real estate courses. So there's going to be no real estate course pitch here. Like, I'm just adding value. I just want to help people be free be out of the system. So

Justin Trosclair 49:45
go there's a bajillion people selling that program,

Unknown Speaker 49:48
tons of them, tons of them, and I can tell you who's good and who's not good. I'm connected with so many of the guys and everything over the years, I can tell you that the best courses and coaches out there. That's an upsell. I don't get anything hang out of it. I just could lead you guys there. So if you look me up on Facebook later, I can help out anyone who's interested. But I'm sorry, going back, what was the

Justin Trosclair 50:10
How do you find like these homes.

Unknown Speaker 50:13
So finding out there's many different ways, um, a lot of it building relationships and networking. So like, you're going to have a local Ria in whatever area you live in, which is a real estate investors sort of group, you know, you're going to go meet up people there. Just talk with them, let them know what you're doing. A lot of people start out in a thing called wholesaling, which is where you just go find properties for people. But the way you find properties, you know, you can go talk to property management companies, let them know you're an investor, hey, I'm an investor, I'm looking for buying old holds. If you have excuse me, if you have any tired landlords, you know, they want to sell out they're done with it. Maybe the property wasn't what they thought they were, let me know, connect them with me.

Justin Trosclair 50:56
The can be only one asking this.

Unknown Speaker 50:58
No, you're not Bye. It's it's again, about building relationships, you're going to be hopefully the only one who asked it twice, three times, four times, you know, you're going to keep going back, you're going to do with every property management company, you're going to go to title companies, you know, you're going to ask, Hey, can I get put on the foreclosure list? So they're going to send you the foreclosure list each month, you're going to look through that. Who's in trouble, whose names repeating who has equity, you know, who's upside down, you're going to do a thing called driving for dollars, you're going to drive around town, look, oh, that place has really tall grass. And looks like the roof hasn't been changed in 50 years. I wonder what's going on there. You know, you're going to look up the address to see, see if maybe there's notes on the door saying like, you know, county code violations, things like that. And then you're going to try and find the owners and go, Hey, I see this really bad place. I want to get ahold of it. There's, without going into everything. I mean, there's so many different things that you're going to put in place you're going to build systems for, you're going to find bird dogs, you know, talk to your mailman. Hey, you drive all over this town, you see everything you see any foreclosed on places you know, that are boarded up, maybe they got stickers in the window, the grass is overgrown, let me know about it. And if I wind up closing a deal off of it, you know, I'll give you 500 bucks. All of a sudden your mailman is looking for you know, you're going to talk to the city code people. Hey, who's giving you problems? I want to fix the city code violations for you. I want to find that house, buy it and fix it up. What do you got? He's gonna give you a list. Oh, yes, other people are doing those things too. But you can't worry about that we don't care about competition is good because it means something works. Go do it better.

Justin Trosclair 52:41
So you're when you're looking for these things, I'm sure there's rules and laws involved. But a lot of this stuff. It sounds like you got a foreclosure list. Hey, Bob Smith, maybe it's time to go visit him and see if there's a way to work this deal without actually go into a bank and the traditional routes.

Unknown Speaker 52:56
Yep. So some people you know, some people there's scared. So they'll send a yellow letter, you know, they'll just send them letters hope people respond when they're ready to sell some people do bandit signs you've driven around, you know, seeing a sign up buying houses for cash, you know, things like that. That's usually the thing that's illegal. People don't like the signs everywhere. So what people do is, they'll take a ladder in the middle of the night, put the sign up really high. So it's higher than the code enforcement guy is tall. So he leaves it up there. Yeah. tactics, right. I don't do things like that. But that's what some people do. Again, it's just going out there building relationships, finding things. Craigslist is a great resource, you know, doing 40 posts a day in the housing and apartments, threats, things like that, hey, you know, paying cash for houses. Tired landlord just coming up with real gimmicky sort of things that are catchy, so that people who need that would actually respond to

Justin Trosclair 53:54
that. I look at that and be like, dude, Can y'all stop spamming? But if you're someone who's like, in that predicament you're like,

Unknown Speaker 53:59
exactly, maybe actually contacts on all you need it annoying until you need it, you know, you don't want to see you don't want to see you don't see it. Now you're getting a divorce. She's trying to take everything and you're like, nope, we're going to get rid of this house. All of a sudden, you know, you need it. Your dad died, he's in a totally different state, he's got a couple rental properties, you know nothing about rental properties, you're running a great practice, you know, you're making a million dollars a year as is you don't have the time to go take care of that. Now, what do you do that's one of those guys is going to find you because a guy like me, I've already talked to all the different probate lawyers, things like that in town. So they know me, they're gonna call me up, hey, this guy, Justin, his dad, just it super busy. He's trying to figure out what to do with the properties, I'm going to give him your number, or I'm going to give you his number, you know, and then you're going to contact out. So again, there's so many different ways. And what usually happens with investors is you just build a system that starts with working for you. And then you focus on that method. I got some good friends down in Florida, they do a thing called short selling, that's when a bank's getting ready to take the person's place. And it already has an auction date, and they're going to auction it off. So we go or sorry, not we they go talk with that person, because they have their ways of finding those listings like that. They go talk to that person, negotiate a deal, get under contract, then they go negotiate with the bank, stop that auction date, and wind up getting it at a good price, and are able to save that person's credit that person from foreclosure, and help the bank out and make everything happen. That's all they do is short sales, because they figured out how to make it work, how to make it profitable, and how to create a system so

Unknown Speaker 55:46
and there's 1000 programs you can buy on short sales.

Unknown Speaker 55:49
Yep, there. Yes.

Unknown Speaker 55:52
Sounds like yet again, if you can sell the course, it might even be more profitable than actually doing it.

Unknown Speaker 55:59
Yeah, you have that aspect of it too. Man. guys go out to work deal. And then they go rent a Lamborghini and then build a course for it. So

Justin Trosclair 56:08
Holly, I know. That's what sucks sometimes about like marketing. They're so slick. They look so good. And then you get to and you're like, man, there was nothing in this in right, and the rate is $10,000 so you give them $10,000 and everybody's charging $10,000 there's no other way to get it. You're just like, all right, which one who am I going to give it to? And then you realize crap, because only one sale one sell away and you've made your money back maybe two, right?

Unknown Speaker 56:32
So before I built my coaching thing and stuff, I started working on this about a year and a half ago and it was something I'd never planned on doing. People had always been asking me to you know, mentor them coach them and business and I just, that wasn't me. One of my mentors finally told me dude, you're being selfish and you don't deserve to be successful until you return it so I decided okay, well if I'm going to do it, I'm going to do it right I don't want to be one of those gimmicky guys. So I started Hi, hi hiring sorry if I could learn to speak started hiring better and better mentors and coaches. So like, while I was putting this thing together over the last year and a half I started working with PageRank God D me writer of third circle theory, radio sound secret entourage, exotic car hacks, started working with Jesse Itzler. Romance 30. Yeah, so NBA team, Atlanta Hawks, things like that. Work with Dean Grassi, Ozzy and Tony Robbins, they actually just did a video shout it out of me pretty recently. And I've started working with real estate developers, like the kingdom real estate and Tyler chef, just finding the most amazing guys that were so far above me. start learning from them. So that way I knew what I was going to put together was going to be real and not just a fake. Oh, yeah, I'm successful. Look at my car, buy from me, you know, like, actually build something real, and get that proof behind there. Because, man in this Instagram, YouTube day and age, there's just so much of it, it's so easy to do. So you got to watch out for that. And because of that, like in this real estate game, there's a lot of really phony investors because they're not getting taught the right things. And they're doing a lot of illegal things and saying things that actually are illegal that you can't do. And it's giving investors a really bad name because of it. Wow,

Justin Trosclair 58:13
that'd be horrible. I want to ask you the personal questions, you kind of made a comment, like you cover four different things with your coaching program. So give me you know, give us a couple of minutes, like, what is that about? and Why will we hire you?

Unknown Speaker 58:25
Well, so why I decided to focus on men was because I didn't really have a good male role model in my life, my dad was a drug dealer, and out of prison, him and my mom actually left me at 11 years old. And because of that, I wanted to be like him. So I kind of went that same drug route, I spent most of 16 to 21, homeless, on drugs, things like that. And I have four boys, you know, those are my kids, I don't want them to grow up and go through those things, I want them to be different. So I learned I have to be different, I have to be what I want them to become if they're going to become that, you know, you can't just want your kids to be better, you got to show them that path. You got to teach them. Well, as I started going deeper and deeper into that I started realizing that's a huge part of the problem in America and in the world is we have absent dads, we have dads that are just so focused on whatever they're focused on, that they come home, they ignore the kids, they push Little Johnny and Susie aside, you know, they'd rather watch the game, men aren't being men anymore. You know, we're not men in the relationships, we're not leading the family. And when you're doing that, things become stressful at home, while when it's stressful at home. Even if you're successful at business, sooner or later that stress comes over and the business starts to fail, the health starts to fail. Or if a man's unsuccessful at business, he'll bring that stress home, he's yelling at the wife, you know, he's drinking, there's all these issues. So it came down to, we have to save, you know, we have to save the mail, we have to save the man the king, we have to make him better at not only a business, but we have to make him a better husband, a better father, we have to make him better in his own personal self and a spiritual relationship, we have to make him better at his health. So we know what's the point of being successful, if you're so fat, that you can't get off the couch and go enjoy your success. So that was the whole point was to help men be the best that they actually can be be their best self possible. There's no reason you can't have an abundance in your business, in your marriage, you know, with your children, and in your health. What's one thing men really have problems with, you know, not enough sex anymore in the relationship after a while in the marriage? Well, why is that men are doing things differently than they did when they were first dating or at the beginning of the relationship, we get lazy. Now, why am I having as much sales in the business we were doing so great before, same sorts of things. So we built this program, this coaching method to work with men to make them successful in those four areas. Because you, I don't want you to just be the best salesman I want wants you to be a man that's going to go out in the world and change things for yourself, for your family, for your business, somebody that my kids are going to be able to look up to

Justin Trosclair 1:01:10
see perfect transition. So

Unknown Speaker 1:01:13
you're still married?

Unknown Speaker 1:01:15
Yeah. Okay. Yeah, we actually just yesterday, because my wife celebrates every moment, because four years ago, yesterday is when we first met each other and talked.

Unknown Speaker 1:01:26
You know what, my wife does the same thing. I'm like, there's so many dates to remember, right? I got two marriages, the marriage in China, that didn't actually count, because we didn't get the people working time. Real marriage in America. I'm like, well, what's what are we supposed to celebrate here? Yeah.

Unknown Speaker 1:01:41
Yeah. When you do those things, pay attention to them, even if we forget sometimes, but you do those things. that strengthens our relationship so much more. Because she's like, Oh, my gosh, you know, he actually cares. No other husband would do that. So the fact that you even know something like that's huge.

Justin Trosclair 1:01:57
In the day and age when you put in I mean, I get birthday reminder, my Who are you?

Why are you even in my calendar? Like if I could just put a yearly reminder that hey,

Unknown Speaker 1:02:05
I just get reminded, yep. So

Justin Trosclair 1:02:08
you forget it, you do it once, and then Google takes care of it forever. Yes. But you just gotta remember to do it. So what? Since it's a whole coaching program, you know, not to get too crazy on these answers. But I'm spouse and kids. So two different questions here, you can tackle them kind of what can you do to keep your marriage excited and happy

and you know, stay close. And then two, you got four boys,

right? entrepreneurial like crazy. That doesn't mean your kids going to give two craps about what you do. But you're like, dude, I could set you up, like, people are paying me to learn this. You're my kids, if you would just listen. Right? You could have a real estate Empire by the time you're 25. Right? So I'm not sure that's, that's a goal of yours to teach them how to become entrepreneurs and business people, but it is how do we do that?

Unknown Speaker 1:02:55
Right. So Okay, so first question, how do you keep the marriage exciting, right. Okay, so with that one, you know, it goes back to marriages start to fail, because a couple things, but one of the big things is people quit doing the work. No, love is work. It's a four letter word. You know, it's not just Rainbows, butterflies and happiness. You got to put in the work well, with women, especially women have a couple different love languages. One of them's time, you know, they want your time, the other's gifts, and they don't have the big extravagant gifts. You know, when it comes to gifts, if you write your woman a poem, even if you are so anti Paul, she's going to go nuts. She's going to tell all her friends, all her friends are going to be slapping their husbands going, why don't you do that, you know, Justin does that you buy or just a card, you're at the post office one day picking up stamps dropping something off, they got cards right there, you just grabbed one, you're gonna have to read it that well, as long as it doesn't say grandma on it by mistake, you know, you're gonna win. I like to go to the local grocery store we have. They do three bouquets, for $15. And like they're really small bouquets. But I'll pick up three different ones, you know, like a yellow flower, purple one in a blue one or whatever, bring that to her. She loves it, because it just shows I thought about it that day, doing dates. Now. If you anybody follows my business page, Jude, the Barefoot millionaire men dancer, I've started doing a video series on Monday, it's called marriage Mondays. We just did two episodes ago, I was showing we bought some paddle boards. So instead of just going out to movie where you don't speak to each other, now we're doing an active activity for date night, where we're standing on some paddle boards, we're talking to each other, we're having fun, man, she loves that. Like, those are the things we used to do when we dated now, because when you date someone you're trying to learn about them, you're all excited, you're spending this time with them. But then after you get married, you know, the football games more important. Do the work put in that time, and that's going to build everything that's going to make her look at you as the leader as the husband and make her want to help push your dreams help make you successful, you know, put in the time the love effort that you want. That's what's going to get you from sex, you know, 123 times a month to two to three, five times a week. Now, those are the things that the women crave. So we do those things. That's what helps the marriage. That's what helps build it up. Keep it going. But again, it's work because as men, you know, we're lazy. We want to lay down watch the football game. Yeah, it's actually hard to think about buying flowers for years. I didn't do it. Our relationship at one point we were on the verge of divorce, you know, just being honest with you here. And that was about eight years ago. Now. We are so close, so tight, she pushes me on everything. She helps me and things. I've had rentals where we've had to get the whole thing out. She's down there cleaning that whole house out tearing everything out, you know, working non stop, like she's pushing the dream. She's a partner now, not just a wife, who I have set aside. So then the second question with the children. I

Justin Trosclair 1:06:06
hit me with that again. Oh, sorry, went long winded on that one. You got kids, your entrepreneurial, assuming you want that for your own kids so that they can be successful at an earlier age. How do you teach them that at it, you know, because you're dead, that you don't care what you think.

Unknown Speaker 1:06:23
So there is a Kiyosaki book. Was it rich kid, poor kid, something like that. I haven't read it yet. I did buy it. It's kind of in my stack of books. I have a list. It's in the stacks. I just have. So I have heard from a lot of people, and I've heard people talk about it. There's a lot of great info in there. So I'm just going to throw that one out there as a freebie. But for me again, I'm spending time with my wife. I'm spending time with my kids. Yeah, we do a little TV like a movie night here there will buy some snacks, things like that. But it's not TV every day. You know, I'm not letting the TV be the babysitter. Yeah, we'll play a video game every once in a while. But I'm not letting the video games be the babysitter. We take our kids on bike rides. No, I bring them to work with me sometimes let them help take part in a project. We talk about things. Yeah, my kids are young. They're 986, turning seven and five. So very together. But I'm spending so much time with them. Like they've even helped me put a mastermind together a down in my basement. I've got like 12 whiteboards on the wall. And they're sitting down. They're asking questions, and I'm explaining things to them. They want to do business with me because of that stuff. Because I'm putting that time and effort. They see me excited. They see me doing successful. So they're like, Dad, can we do a business together?

Justin Trosclair 1:07:46
You're still their hero at this age?

Unknown Speaker 1:07:48
Yeah. So start out with them about it. Okay, well, let's come up with an idea. So we spent a few months coming up with ideas we finally narrowed it down. They want to make pet toys. So now we're looking going into how to do that I'm teaching them drop shipping so that I'm things are China. Yep, you know, do it that way, then once we build up money will start white labeling some things. So just being connected with them, putting the time with them, that's going to make them want to do it. Remember the song cats in the cradle, Catholic crystal silver spoon Little Boy Blue Man on the Moon when you come in home son, I don't know when but we'll get together then. Or when we come home dad. Again, his parents, you know, dad gets off work. What's he do? He ignores the kid watches the ballgame, or he goes out to the bar. The kids, they're in public school eight hours a day. So they're getting raised by the government, and then daycare after that are on their own after that. So we're not putting any time into, again, a love language kids is Love Languages time, they want to be a part of that. So you put that time and effort into, they'll grow up to be entrepreneurial, they'll grow up to follow a dream, they'll grow up to want to be like dad, because dad put that effort into them. They won't grow up with that spite that hate and that rage.

Justin Trosclair 1:09:00
Far as really great. See, I really hope I can do that with my own daughter, like do something where they can learn, you know how to podcast or do some, you know, whatever. Just learning those lessons. So that's why I asked that question. Start like, Hey, you don't have to go to college. You don't want to but if you're not, let's make sure that you know what you're doing to get out there and make some money.

Unknown Speaker 1:09:19
Yeah, you just do some projects with her. You know, just pick one out and go, Hey, honey, what do you think of us doing this together? She'll be like, yeah, Dad, I want your time. Let's do this. And then we'll get excited about it. Kids get excited about whatever we're excited about. Unless we do it too late. You know, you can't wait till they're 20. And they've got issues and they're not being the kid that you always wanted them to be. And you're like, oh, what's wrong with you? You know, got you. Now you got to build the foundation for them to build that skyscraper off of awesome

Justin Trosclair 1:09:51
before you go any other books or podcasts that you would recommend? Oh,

Unknown Speaker 1:09:56
shameless self promotion. Yeah, I recommend for books, freedom Blueprint by Jean Mendota, you can get it on Amazon, we just redid the book cover, it's beautiful, I recommend checking it out. Awesome. I love it, I love it. And then we actually have a podcast to on the freedom experience that we took a little break from, because we bought a new company, a supplement company, we're just relaunching it again next week, it's going to bring a ton of value, we're actually weekly going to go through all the things we're doing in this company, how we're building up the brand, and actually making it profitable and taking it to, you know, seven, eight figure company. So there's going to be a lot of real world actual on the spot value, because we're going to tell you the problems, we run into different ways we're coming up with solutions, and you know, how we're trying to build it up. So. So yeah, that's great.

Justin Trosclair 1:10:47
I have to tune into that. I like listen to those types of things. Because I was I followed a different a Jungle Scout. Now I haven't people like doing Amazon, or they, they, you find a product that you like, and then you in prove upon it. And then you know, they teach you part of it has been teaching you how to actually do the Amazon drop ship, and white labeling from China and insight and everything on Amazon. But they were taking it through bamboo skewers, like you know, skewers, right. So they walked you through the process of everything. And then even like six months later, when they had copycats come in and like try to cheat one price and stuff. They went to all of them. I was like just as amazing. And I got all excited. I was like, but what would I sell. So I didn't really do anything with it. But I got so excited. So that sounds like a really good because supplement companies. I mean, I even looked into that. I was like, there's so many. And you know, as a doctor, there's certain things I like. And I'm like, man, if you could just get like one pill, or this the short, not the big line, but just a few things that you always recommend. Right? If you can source it, because so many people could just create a product, like it's very easy. I went online one time, and I was like, wow, like, like that I could have a white label on this other product. But I didn't really like what they were selling. Like I was like, I don't think your products worth anything. It wasn't that great. But I could do it. Anyway, I didn't know how people actually do these types of things. So this will be really fun. And what was it called again?

Unknown Speaker 1:12:10
The Freedom experience. Freedom experience.

Justin Trosclair 1:12:13
Yeah, you got one person excited, at least awesome.

Unknown Speaker 1:12:17
Yeah, and I'll be checking out that jungle One, two, because that sounds really great. Like, I would love hearing something like that, even though it's a space idea and just to, you know, hear other people's takes on and see what they've done. Maybe it'll be one I'll listen to with the kids since the kids are trying to get their own product to go on and then you know, get that white labeled, so that'd be a good one.

Unknown Speaker 1:12:34
It's actually a blog though.

Unknown Speaker 1:12:35
Oh, blog. Okay. You gotta read.

Justin Trosclair 1:12:39
Now they have the whole thing. They like this little chain and all this. Yeah, well, you're just trying to get somebody to read it. You're You're a big enough company. Come on, right. Geez, what's all the links? Where can people find out more about Mr. Jude over here?

Unknown Speaker 1:12:54
Perfect. So the podcast freedom experience. You can find it on iTunes, Stitcher, Spotify, all the normal things. As for finding me, I do have a website, Jasmine Johnson. com. We are going to be redoing it though. It's kind of old. So I don't really recommend it. But you can find me online Facebook, you've been dancer or my business page. She had the Barefoot millionaire, my men dancer and just follow along from there. Invictus is our mastermind. We're just launching the website for that. So

Justin Trosclair 1:13:24
very good. Well, I hope everyone got some Bible information. I mean, this is to me has been really good, really running out this financial series that we just finished up your your week for. So really excited about that really happy that you brought so much good value and willing to go as long as we did today. Really appreciate that. So I hope people will definitely contact you through this podcast.

Unknown Speaker 1:13:46
Awesome. Yeah, thank you so much for having me. And I hope I did bring value.

Justin Trosclair 1:13:54
That was a powerful interview, like always say, Please listen, critically, think about it, and then implement. I know lot of people don't always make it to the end of the episodes. But I encourage if you made it here, and you, you talk to your friends about it, encourage them to do it. I think the family and vacation and the home life balance part of the end is important. It's something that I didn't get a lot of those other podcasts that I was listening to. So check them out Minnesota Thursdays and Saturdays, those come out, let me know what you think about that. If you have an episode that you want me to do for the audience, just send me a message on Facebook, Justin Trosclair. MCC is the official page of everything about me. You find the books, the acupuncture needle book, The today's George's tomorrow's health book that talks about weight loss, exercise, dieting, and financial health, you can get free chapters at net slash chapters or slash in a protocol. So that way you can experience the book before you buy. And if you're sitting in the interviews that I've been a part of where the roles have been reversed. It's dot net slash, as heard on the resources page on the website has all the products that I recommend, and there's some deals for some of those. So check that out. And as always, if you click any of the hot links in the show notes page for books, we get a piece of that, and we appreciate that as well. the.net slash support is the web page if you want to buy the host a cup of coffee. And lastly, reviews are always always appreciated and so grateful when you get them. So that's a doctor's perspective. NET slash reviews. You'll have a great week. We just went hashtag behind the curtain. I hope you will listen and integrate with some of these guests have said by all means please share across the social media. Rather review and go to the show notes page. And all the references for today's guests. You've been listening to Dr. Justin Trosclair giving you a doctor's perspective.

Transcribed by https://otter.ai

About the Author
Dr. Justin Trosclair, D.C., an expert in Chiropractic Care, has been focusing on back and neck pain relief for over 12 years and has delivered treatment to more than 6000 patients. With advanced training in treating disc derangement conditions, you can count on him to keep up to date with the latest research in physical medicine for spinal pain. He has 5 years of hospital experience in China, is currently working in Germany, and had a private practice in Colorado for 6 years. Dr. Trosclair hosts a doctor to doctor interview podcast called ‘A Doctor’s Perspective‘ with over 220 episodes. During his free time he wrote 3 books. Today’s Choices Tomorrow’s Health (rebooting health in 4 categories), a Do-It- Yourself acupressure book for 40 common conditions called Needle-less Acupuncture, and a step by step guide to look like a local for Chinese dinner culture called Chinese Business Dinner Culture. If you have kids, you may be interested in his 6 series tri-lingual animal coloring book series (english, spanish and chinese).