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How I Bought a $1.2M House for $560K (Real Estate Secrets) | Donovan Camarotti DSH #1009
00:30:58
Discover how this 21-year-old real estate investor scored a $1.2M house for just $560K! 🏠 In this eye-opening interview, learn the insider secrets of finding and closing incredible real estate deals in today's market.
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- [00:02]
A
Hey, music fans, there are some great concerts headed this way. Don't miss out on all the shows in your favorite venues, like Deftones at Madison Square Garden, Eagles at the Sphere, and Foster, the people at the Ryman Auditorium. Tickets are going fast, so don't wait. Head to livenation.com to get your tickets. Now, that's livenation.com my personal house recently, too. And the way it went down is they were listed on the market for 935 grand, then they dropped it to 850. I offered them 550.
- [00:40]
B
Damn.
- [00:41]
A
And they were like, nah, we can't do 550. I was like, all right, what can you do? They're like, we'll do 560.
- [00:45]
B
You lowball.
- [00:46]
A
Yeah, lowball them.
- [00:48]
B
Wow. So you got that for, like, 40 off?
- [00:49]
A
Yeah. Put, like, 250 grand into it just to make it nice and, like. Yeah, I want to, but, you know.
- [00:53]
B
It was, dude, you got a steal. You doubled your money overnight. All right, guys, Donovan, camaraderie here.
- [01:03]
A
Today.
- [01:03]
B
We're going to talk Airbnb, right?
- [01:04]
A
Yeah, Airbnb. Flipping whatever, man.
- [01:06]
B
Let's go. And you're a young person to be in this space.
- [01:08]
A
I am 21.
- [01:09]
B
Did you start at, like, straight out of high school or.
- [01:12]
A
Yeah, I really kind of just started, you know, looking into it. You know, when I was, like, a senior in high school, I needed to figure out what to do. Then, like, first week in college started. You know, I got my first property first week of college, and just been doing it ever since.
- [01:24]
B
Wow. How'd you afford that first one?
- [01:26]
A
Saved up some money. Had to, you know, basically just put everything I had into it. Yeah. And then, you know, just bought that one, ended up having no money, so sold it. Then I had some money, and I bought a few more and just kind of kept doing it, like.
- [01:40]
B
Oh, so you were able to flip it quick?
- [01:41]
A
I was, yeah. Within a few months.
- [01:42]
B
Nice. And what. What gave you that conviction to pick that specific property?
- [01:47]
A
Well, you know, it was. It was cheaper. It was easier. Was like, a condo, so it was, like, super easy to get into. And it was a light renovation, so it was, like, a good first, proper property.
- [01:56]
B
Nice. And how did you learn how to, like, fix it and everything?
- [01:59]
A
Honestly, I kind of just figured it out by doing it. I. You know, my parents had, like, this handyman that worked for them, so he kind of just like, did the renovation. Had to find a couple other subcontractors. Yeah, just basically figured it out.
- [02:11]
B
A good handyman is important. I feel like for that business because you get ripped off with certain guys.
- [02:16]
A
Yeah. Certain contractors take advantage of people, especially if they don't know, like, you know.
- [02:19]
B
Dude, I've been on or whatever. I've been getting wrecked out here in my house. Have you, bro? Because I just bought a house and I've never had to like use contractors before, but a lot of them be highballing and you, you have no idea what to compare it to.
- [02:31]
A
Right.
- [02:31]
B
So you're just overpaying.
- [02:32]
A
Yeah. If you have like no reference, you know, you'll pay 100 grand for something that'll cost you like 40. 50.
- [02:37]
B
Yeah.
- [02:37]
A
You know, normally actual cost, I just.
- [02:39]
B
Paid like 12k to fix a leak.
- [02:41]
A
Oh, gosh.
- [02:41]
B
I got wrecked.
- [02:42]
A
Yeah.
- [02:42]
B
Yeah. That should be like a couple thousand max, right?
- [02:44]
A
Max.
- [02:45]
B
Max, yeah. So you live and you learn, though, man.
- [02:48]
A
100%.
- [02:49]
B
So is your main strategy to fix and flip?
- [02:51]
A
Yeah, I do have like one Airbnb and then one that's in the, in the process of being built. But fix it. Flip is my bread and butter.
- [02:58]
B
I feel that. What do you think about this Section 8 stuff?
- [03:02]
A
Section 8? I mean, you know, it's good for some people and I think it works for some people, but I don't think it's really something I. I'd want to get into. I mean, I know people can make a lot of money, but not so much my thing, I think.
- [03:14]
B
Yeah.
- [03:14]
A
You know, it seems attending classes, you know, lower level people is what you're dealing with.
- [03:18]
B
It seems kind of too good to be true. The ads I'm seeing for it, I.
- [03:21]
A
Mean, it's nice because the government will pay the rent, basically, or they guarantee it, but then, you know, you get just the lower class of people, which, I mean, it's kind of unfortunate to say, but like, me personally, I would rather kind of just deal with businesses and, you know, I'd rather rent to a business and, you know, they have a, you know, guarantee on it and it's just a lot easier. Yeah, so you're targeting like B2C.
- [03:41]
B
You're targeting like the upper middle class people.
- [03:44]
A
Yeah, people that are a little more stable, a little more, you know, they just are comfortable.
- [03:48]
B
Yeah.
- [03:49]
A
You know.
- [03:49]
B
So how many units do you have now?
- [03:51]
A
So I currently have just under 40 flips on the books right now. And then, you know, the two AirBNBs as well.
- [03:58]
B
That's so fast. Because you started recently.
- [04:00]
A
Yeah, yeah, within the last three years.
- [04:02]
B
Holy crap. So that's like 15 a year almost flips.
- [04:05]
A
Yeah, well, I'm on track to do about like 80 flips. 80 to 100 flips, you know, in the next 12 months. And then you know, just kind of like scaled up. So like my first year I did like nine flips. Second year, maybe like 22. And then now it's just like, you know, totally took off.
- [04:19]
B
Damn exponential growth. So what was that thing that. Did you change anything from what you were doing?
- [04:24]
A
Well, so between year one and year two, I learned how to raise money. Right. Because, like, you can only do so much in real estate, just, you know, money wise. Right. And then from year two to year three, I figured out how to hire people. So I hired project managers, I hired acquisition. I now have an assistant. You know, disposition as well. So everything is like kind of covered. Covered, essentially. So that just allows us to scale like crazy.
- [04:44]
B
Yeah, I feel like raising money is really hard to figure out, but once you got that and you have a good ROI system in place, like, why would you not continue investing?
- [04:53]
A
And I kind of had to raise money just out of necessity.
- [04:56]
B
Yeah, you didn't have any.
- [04:57]
A
You know, my fifth or sixth flip, you know, I, I already had a proof of concept. Like I know I could do it. And then I just, you know, ran out of money. So I was like, okay, hey, I need, you know, 50 grand for the down payment on this house. You know, paid someone interest and, you know, just basically kept doing that. I was like, oh, I can do this and do 100 properties, you know, why stop at one or two or three or four?
- [05:16]
B
I feel. Any flips where you lost money and if so, what was the big lesson Learned there?
- [05:20]
A
Yeah, 100%, dude. I lost like 50 grand on my third flip.
- [05:22]
B
Oh, wow.
- [05:23]
A
Yeah. Which sucked. Right. Because basically what I had made, I lost. But the good thing is that that property, you know, didn't sell for like a year. So with the holding costs, everything. That's why I lost. But I was able to flip other houses during that time, so it kind of just made up for it.
- [05:39]
B
Got it.
- [05:40]
A
And I would say, like, the biggest lesson I learned is not hiring. Bad contractors are not always hiring the cheapest, you know, bid. Obviously you don't want to get ripped off like we were just talking about, but, you know, you don't want to go with the cheapest guy because he's probably underbidding it for a reason. Either he doesn't know what he's getting into, or he's just going to put in cheaper material and not do as good of a work, you know, so that, that's what be on that house, Right.
- [06:01]
B
So maybe get someone in the middle of high and low.
- [06:04]
A
Like, if you get three bids and you got one guy at 10 grand, one at 12, one at 15, go with like a 12 guy.
- [06:09]
B
Yeah, that's probably the safest play.
- [06:10]
A
100.
- [06:11]
B
Yeah. Because if you go with the cheapest, it sounds good, but then you got to pay for the fix.
- [06:15]
A
Right. And then it's double, Right?
- [06:16]
B
Yeah, that happened to me.
- [06:17]
A
Yeah. Expensive guy to do it.
- [06:20]
B
Yeah. Yeah, I feel that, man. So it took you how long to be profitable after that? After that? 50k loss.
- [06:26]
A
So, I mean, it was kind of. It was profitable, you know, during that time. Right. Now, obviously, that hurt the P and L at the end of the year, but we were flipping other houses during that time, so, like, you know, we were able to survive it.
- [06:36]
B
Got it. So this. This business is. Is interesting then. Cause a lot of businesses, you're not profitable for a bit.
- [06:41]
A
No, and I will say, like, I didn't really take any profit and any distributions, you know, other than very small ones, for like, the first year, year and a half, you know.
- [06:49]
B
Got it.
- [06:49]
A
And then only recently, I started taking big ones, and I was actually able to take big ones comfortably.
- [06:53]
B
Right. So you got to lock in for a year and then minimum.
- [06:57]
A
Minimum year.
- [06:58]
B
Yeah. In this business, did you have a mentor?
- [07:00]
A
You know, I have a few mentors, Right. And I kind of. I get different things from every one of them now. None of them being like one on one, per se, but, like, you know, I think you had him on the podcast, Ryan Pineda.
- [07:13]
B
Yeah.
- [07:13]
A
He's been a big one for me.
- [07:14]
B
Nice.
- [07:14]
A
Right? You know, I have the guy that runs our local ria, you know, he's taught me a lot just by being in there and listening to what he has to say. You know, I learned a lot on YouTube, honestly.
- [07:24]
B
YouTube University, baby.
- [07:25]
A
Yeah, for, like, probably at least like nine months. Maybe a year. Before I really jumped into it, I was just watching YouTube, learning everything I could about, like, fixing and flipping houses, you know, how to talk to sellers, how to run comparable sales, you know, how to estimate rehab costs, everything like that.
- [07:40]
B
Yeah. And you won't learn that in college?
- [07:42]
A
No, not at all.
- [07:43]
B
Hell no.
- [07:43]
A
No.
- [07:44]
B
So do you even have a real estate license?
- [07:45]
A
I don't have a real estate license, but I have agents, you know, that now work for me that do have.
- [07:49]
B
Got it.
- [07:50]
A
State license.
- [07:51]
B
Got it. And how are you finding the houses on. On the ML, so.
- [07:54]
A
On the mls, we do find some houses. A lot of the stuff is, you know, Just through Google pay per click marketing. You know, honestly, the best, though, has been the organic leads and the referrals that we've got.
- [08:05]
B
Really?
- [08:06]
A
Yeah. That's been, like, by far the best. Number one, they don't cost anything. And number two, they, you know, they're really high quality because you don't have to, like, sell yourself. They kind of already trust you because.
- [08:15]
B
Wow. So that's the strategy right there.
- [08:17]
A
That's. That's been the best for me so far.
- [08:19]
B
Yeah. Because if you're looking on mls, everyone else is looking.
- [08:22]
A
Yeah. And you're gonna pay the most.
- [08:23]
B
100%. Yeah. Because they. They can run comps and everything, so they have a better idea of the market and they have an agent representing them.
- [08:28]
A
Right, Exactly. And then, you know, it's just getting out to everyone. So you're just gonna. If you win it, you're just probably the highest bidder.
- [08:34]
B
Yeah. You know, 100%. Any crazy stories with squatters or anything? Squatters, man, where are you doing this? What state?
- [08:41]
A
Florida.
- [08:42]
B
Okay.
- [08:42]
A
Which is good because the laws there are, like, decent, you know, for. For the property owner. Now it's still kind of difficult depending on, you know, what's going on and how they became squatters. The first time I ever dealt with a squatter was a property that I bought. There were, like, seven people living in there. By the time I had closed on it, there were like, maybe four people living there. And this lady, like, overstayed her, you know, welcome, basically. And then she said she left, and I was like, okay, cool. So we went into the house, and her bed was still there, her cats were still there. It looked like she was still living there. I was like, I don't think she left. So we went back a little bit later. Sure enough, she was in there. I was like, oh, boy. And it wasn't me. It was actually my project manager that went in there. Funny enough, I was on the phone with him, and he walks in and. And we were just talking, whatever. He's like, hey, what do you want to do with this, you know, baseboard? And he goes, hey, you cannot be here. Like, really loud, you know, really imposing voice. And I was like, bro, what's happening? And the lady's name was like, lisa. I don't know. I probably shouldn't say that, but who cares? She's a squatter. Lisa, you cannot be here. You have to get out right now. And then, sure enough, like, he kicks her out. She gets out and change the locks, whatever. I set up a camera the next Night, she climbs in the window and gets back in the house.
- [10:04]
B
No way.
- [10:04]
A
Yes. And apparently, two of her other friends come in the house, too. Whoa. So we walked into the house one morning. The bathroom guys were there to, like, you know, work on the bathroom, whatever. They walk into the house, and they got one person in the back porch, one person in the closet sleeping. And then Lisa's in her bedroom, so they're like, hey, guys, you can't be here. You gotta get out. And they left pretty easily. But this one lady, Lisa, kept coming back. Like, every night she would come back to sleep, and she was like, yeah, I'm getting out today. Getting out today. She never got out, right? So one night I saw her on the camera. I was, like, near where the house was. So I just went over there and I was like, hey, you gotta go. I got the cops over there. And the cops were actually kind of, like, giving me a little bit of a hard time because they were like, hey, you know, technically, you know, you're not the owner of record yet. I was like, yes, I am. Here's all the paperwork. It just hasn't updated on public record yet. And I had to basically convince the cops, like, hey, guys, help me get this person out that's not supposed to be here. And I had to prove my ownership and everything. And they had a conversation with her, and she was kind of like a meth head. So in that moment, she agreed to get out. I helped her literally take all her stuff and put it at the curb so she couldn't come back in. We put sticks in the windows to lock them. And after that, she finally got out. She didn't come back. I later found out that she got arrested and all the proceeds from the sale she sent to her meth dealer.
- [11:28]
B
No way.
- [11:29]
A
And she lost all the money that she made from that sale.
- [11:31]
B
What?
- [11:32]
A
Yeah.
- [11:32]
B
That is nuts.
- [11:33]
A
Yeah. Wow. She, like, endorsed a check over to him because she didn't have a bank account, and he ran off of it.
- [11:38]
B
That's crazy.
- [11:39]
A
What did you expect, man?
- [11:41]
B
You're lucky you were in Florida. I feel like if that was Cali, you would have been screwed.
- [11:44]
A
No shot. She would have still been there.
- [11:45]
B
Yeah.
- [11:46]
A
What is it, like, six.
- [11:47]
B
Six months? If you're there, you own the house or something?
- [11:50]
A
I don't know exactly. I actually had this one guy I know in. In California. He basically became a squatter. Like Chase bank, you know, still is, like, on the deed, but he's owned the house for, like, 20 years, and he's keeping rent on It. Yeah, he's, like, renting it out, and now there's, like, nothing they can do about it because it's in California.
- [12:10]
B
That's crazy. Yeah.
- [12:11]
A
So he's making rental income for 20 years on it.
- [12:14]
B
How do the HOAS feel about what you do in their neighborhoods?
- [12:16]
A
You know, it's interesting. Some HOAs are fine, and then some you just get, like, these Karens, right, that just have nothing better to do. They're retired or they don't work, whatever, and they just want to feel like they're in control. Right? So, like, one example, I had this one lady who. This is probably the craziest story, where she was like, hey, you can't be doing work without a permit. I was like, yeah, I understand. Here's my permit. And I showed her the copy of the permit. She's like, well, it has to be posted the window. It's like, okay, my bad. You know, I didn't know. And then we had it printed out, posted in the window, but it didn't get done that day. So what she did that day is she went into the unit. It was a condo. She goes into the unit, she kicks out all the guys that are working there, which I don't know why they listen to her, but. And she takes the keys out of my lockbox, and she holds on to the keys. Now, I live, like, an hour away from where this property is, so I get a call from the contractor, like, freaking out. He's, hey, this lady just took your keys. She kicked all my guys out of the unit. Like, you know, what's going on? I was like, oh, this is ridiculous. So I hop in the car, I go down there, and I go knock on the door. Because the contractor, he was like, hey, she's in unit. Like, 204.
- [13:25]
B
Yeah.
- [13:25]
A
So I go knock on 204. What's the wrong lady giving her crap? I was like, hey, you took my keys. She's like, I didn't take your keys. And I was like, yes, you did. Like, they said, it's 204. And then he was like, no, it's 304. Oh, dude, you told me.
- [13:39]
B
Poor old lady.
- [13:40]
A
Poor old lady. So I had to go back and apologize to her. But then I find the lady in 304. She's just nasty, man. And there's actually a video on my Instagram about it where, you know, we're yelling back and forth. I was like, give me my keys, lady. And she's just not giving me my keys because I don't have the permit in the window. I was like, well, hey, the HOA has it on file. I do have a permit. Like, you cannot take my keys and go into my unit. Like, it's breaking and entering. Ended up having to call the cops. But before that, she tries to take off. And I got. Tried to, like, you know, get in front of the car. So she didn't go, well, tries to, like, run me over.
- [14:17]
B
Holy crap.
- [14:17]
A
So I had to, like, hop out of the way. Whole videos on my Instagram.
- [14:22]
B
You recorded all this?
- [14:22]
A
I recorded all of it.
- [14:23]
B
Wow.
- [14:24]
A
Yeah. And then so she tries to, you know, run over me. Whatever. Cops come and they got like, I got her license plate. So then, you know, they called her back in.
- [14:34]
B
Yeah.
- [14:35]
A
And they got her. They talked to her. HOA president ended up, like, coming out. He was like, you know, kind of on my side, which is nice. And he was like, hey, you cannot be doing this. And the cops. So they gave her, like, a citation. They were like, you can press charges, but honestly, it's probably not worth your time. Like, she does it again. Go ahead and press charges. Thankfully, she didn't, but. Yeah.
- [14:55]
B
Oh, my gosh. Yeah. That's like attempted, like, right? Vehicular, like manslaughter or something. Right.
- [15:01]
A
Plus breaking and entering, plus, you know, whatever else.
- [15:03]
B
Yeah, yeah.
- [15:04]
A
She could have gotten the whole book.
- [15:06]
B
Holy crap. She did not like what you were doing.
- [15:08]
A
No, it's like, why? You know, I guess there's nothing better to do.
- [15:11]
B
I guess it was loud or something, right? That noise.
- [15:13]
A
I guess. I don't know.
- [15:14]
B
Yeah, I mean, that's something. That's just part of being a homeowner. Like, your neighbors are going to do work once in a while. Like, that's.
- [15:19]
A
Yeah.
- [15:20]
B
Like, what if she wanted to do work on her house?
- [15:21]
A
Exactly. Like, what are you going to do there? But, you know, then there is, on the flip side, you know, some HOA that are really cool, and they're like, hey, you took this really ugly house and made it nice. Thank you so much. Here's some other houses that are ugly and offer. So there are some good hoa.
- [15:33]
B
Oh, that's cool.
- [15:34]
A
They're not bad all the time. But just some of these, I have.
- [15:37]
B
A love hate with them.
- [15:38]
A
Yeah, me too.
- [15:39]
B
Because the monthly fees a lot. And then. So, dude, my way in Vegas, they found the money laundering.
- [15:45]
A
Really?
- [15:45]
B
Yeah. They were keeping all the money. Yeah.
- [15:47]
A
So what's going to happen with that?
- [15:49]
B
I don't know. I left that neighborhood, but I think they're getting sued. I don't Know, but that's probably common where. Because they're getting all this money, they're obviously not spending it.
- [15:56]
A
All right.
- [15:57]
B
Like, let's be honest, there's a big.
- [15:58]
A
Thing in Florida with. With condos because, like, you know, I don't know if you've heard about it, but there. There's something called a milestone inspection, where if the property is more than like three stories tall, they have to come in and do an inspection, make sure it's like up to, you know, up to spec and everything. If there's not, they get these huge assessments. Like, there's this one with had foundation issues near me. It was a probably like 70 something unit deal on the beach, and they wanted to sell it for like a million six, which is worth like $20 million.
- [16:32]
B
Whoa.
- [16:33]
A
Yeah, it. Just. Because they were going to dissolve the HOA and just wanted to get rid of it.
- [16:38]
B
Damn.
- [16:39]
A
So, yeah, right.
- [16:40]
B
Someone scooped that up.
- [16:41]
A
So it's a whole process. I'm trying to. Yeah, but it's a whole process to like, dissolve an HOA and everything like that.
- [16:48]
B
Yeah. It sounds complicated.
- [16:49]
A
Yeah. Yeah. But like, you know, they didn't have the reserves to do the fine foundation repairs and, you know, the people didn't have the money to come up with, you know, for the assessment and everything. So they were just. Hey, it's better to just get rid of it.
- [17:02]
B
Yeah. How's the market in Florida about you right now? Right now there's a lot listed in Vegas.
- [17:06]
A
Yeah, there's. There's a decent amount listed in Florida, too. I would say, like a few months ago it was. It was a little worse. It's picked up a little bit now with a little bit of an interest rate cut. Yeah. But it's definitely slower than it was, you know, like last year or year before. But it's not horrible. You know, we're still selling stuff.
- [17:24]
B
Yeah. It feels like there's like a stalemate still.
- [17:26]
A
There is a little bit. Right. Because people think interest rates are going to keep dropping, which they probably are. So then they're kind of just waiting. But, you know, then again, if you wait, then, you know, prices are probably.
- [17:35]
B
Going to go up if you wait. Yeah. And there's more offers.
- [17:37]
A
Yeah, exactly. You're going to be competing with more people and you're going to pay more for the property.
- [17:40]
B
That's why I bought now, because I was chilling. I was the only offer I had all the leverage. I was like, you know, you know, I bought.
- [17:46]
A
I bought my personal house recently, too. And the way it went down is they were listed on the market for 935 grand. Then they dropped it to 850. I offered them 550.
- [17:55]
B
Damn.
- [17:56]
A
And they were like, no, we can't do 550. I was like, all right, what can you do? They're like, well, we'll do 560.
- [18:00]
B
Wow.
- [18:01]
A
All right, cool.
- [18:01]
B
You lowball them. Like, so you got that for like 40% off.
- [18:05]
A
Yeah. And it. When I bought it, it appraised for 1.2 million.
- [18:10]
B
Holy crap.
- [18:11]
A
Yeah. So, like, it's so much easier to get better deals right now.
- [18:14]
B
That's insane.
- [18:15]
A
Now I'm going to have to put like 250 grand into it just to make it nice and like. Yeah, I want to, but, you know, it's solid property.
- [18:20]
B
You got a steal, you doubled your money overnight, and you didn't do any work to get that appraisal.
- [18:24]
A
No, I mean, it appraised as is just because it's a big house, nice neighborhood, big pool on a golf course. And just like that neighborhood. Wow. With that size of a house, you know, was north of a million, it.
- [18:35]
B
Sounds like that's your competitive edge. You're really good at identifying these deals.
- [18:38]
A
Yeah. You have to be.
- [18:39]
B
You've probably seen so many at this point where you can just see it and. Yeah.
- [18:43]
A
I'll tell my acquisition, guys, hey, guys, I want you to. If I tell you a street name and I tell you the approximate size of a house, I need you guys to tell me how much that house is worth. Because I know it, right? Like, if you tell me, you know, I live in Port St Lucie. If you tell me, hey, it's this street in Port St. Lucie. Three to seventeen hundred square feet. I know that. That'll sell for four hundred grand.
- [19:00]
B
Whoa. Is that memory or is that just skill?
- [19:03]
A
Knowing the market, you know, and now not everywhere is going to be like that. You know, where houses are not so cookie cutter or whatever. But. Yeah, I mean, you have to be able to know what properties are worth so you can identify a good deal right away.
- [19:15]
B
Right. That's important because you got to act quick. If you see a good deal.
- [19:18]
A
100%. Yeah.
- [19:19]
B
Before someone else scoops it up and makes sense. Damn, it sounds like you're going to surpass Pranada.
- [19:24]
A
Well, he's doing a lot. You know, he's. I think he. He changed his strategy a little bit. He's doing a lot more like wholesale innovation deals, which is awesome. I'm honestly, I'm getting into that.
- [19:32]
B
Wholesale innovation, you said?
- [19:34]
A
Yeah. You Know where, you know, he's not taking down as many flips just because the risk, you know, because, I mean, a lot of flippers, myself included, you know, 20, 23, you know, when the market really slowed, it's like, hey, if you're carrying 40 flips and they all drop by like 30 grand, you know, that's. That's $1.2 million.
- [19:55]
B
That's a big hit.
- [19:55]
A
You just like took an L on.
- [19:57]
B
Right.
- [19:57]
A
You know, and you know that. I think that's kind of why he's switching to, like the wholesale novation strategy, because there's a lot less exposure. You know, it's not like you have to go and own a property for six months and then, you know, sell it and make money.
- [20:11]
B
Yeah.
- [20:12]
A
You know, if you can't get the price you want, you just cancel the contract.
- [20:15]
B
How does novation work? I haven't heard that one.
- [20:18]
A
So it's a little bit complicated and it works a little bit different in each state. But essentially, instead of wholesaling the house to a cash buyer, where you get a contract, let's say for 300 grand, and you go assign your contract for 320 to a cash buyer who's going to flip it and you make that $20,000 spread, Novation is when you actually will sell it to a retail buyer, someone that's going to live in the property. Because those people can pay a lot more for the property than, you know, an investor can. Because the investor's trying to make money. Someone who's living there is just, you know, got it. They don't need a profit most of the time.
- [20:50]
B
So you're like middlemanning, basically. Similar to wholesale.
- [20:52]
A
Yeah, it's similar to wholesale, but you're selling to buyers who will pay you more. Right. And then in turn, you can get the seller more money.
- [20:59]
B
Right.
- [20:59]
A
That's. That's like a big pivot that he's been pushing. And it's. I 100% see why. And I'm. I'm honestly going to be doing that.
- [21:06]
B
Yeah. There's so many ways to make money in real estate. I know people buying land.
- [21:09]
A
Yeah, same here. Yeah.
- [21:10]
B
And flipping it for, like, crazy profits.
- [21:13]
A
Well, because you can change the zoning on land too.
- [21:14]
B
Right.
- [21:15]
A
If you buy an agricultural, you know, maybe 10 acres, and you get it mixed use, commercial, like, I mean, you're going to probably triple, if not quadruple the value of that land.
- [21:24]
B
And I feel like that industry, specifically the land, if you have the right, connects with politics. Like, you could really run it in.
- [21:30]
A
There and lobby and.
- [21:31]
B
Yeah. I mean, let's be honest. That's how the top guys are probably doing it.
- [21:34]
A
100%. Yeah. Because, I mean, you know, like, where I am in Florida, it's like. If you fly over Florida, like, you go into the airport, you just see it's like, by the ocean, it's just extremely dense and extremely populated. And then you go, like, a few miles out, it's just, like, trees and, you know, at the Everglades. Right. And it's just. It's slowly moving west as people, you know, just keep building and keep building. So, you know, people will buy this agricultural land. Couple of years, it'll be, you know, a neighborhood.
- [22:01]
B
Yeah, right. Yeah. They'll get priced out of all the major cities.
- [22:03]
A
Exactly.
- [22:03]
B
And Florida is the best. Probably the best state in the country to live in right now, in my opinion.
- [22:07]
A
Yeah. Well, and it's nice, too, because, you know, you have the beach, you have, you know, like, woods, you have, you know, access to water, access to, you know, the Caribbean, which is.
- [22:18]
B
Yeah. Good Airport.
- [22:19]
A
Yeah. 100%.
- [22:20]
B
Yeah. You could fly pretty quick to. Out of the country. So I'm a fan of it if it wasn't. The only thing is a humidity, dude. I walk outside, my glasses are fogged, like.
- [22:31]
A
Yeah. But other than that, Vegas is. I was here, like, three months ago in. In July. Oh, man, it was hot, man.
- [22:38]
B
120.
- [22:39]
A
Yeah. And it's like a dry heat, like in Florida. It's like, you know, you can breathe because it's humid. Like, I live in Florida. I'm used to it. Yeah, you sweat more. But, like, I'm coming out here to Vegas and it's hotter, but I'm not sweating as much. But, dude, I can't breathe.
- [22:51]
B
Yeah.
- [22:52]
A
It's so dry. And I'm sure you get used to it when you live here, but.
- [22:54]
B
No, you don't. My lips have been chopped for four years.
- [22:56]
A
Oh, my God.
- [22:57]
B
I get bloody noses still. You don't get used to this shit. No. Literally everyone here carries around chapstick or something.
- [23:03]
A
Really?
- [23:03]
B
Because your lips just don't get used to it. Yeah. Like, it's tough out here. I would pick wet heat over dry heat.
- [23:09]
A
Yeah. And, you know, it gets cold in the winter. I didn't realize Vegas.
- [23:11]
B
It does.
- [23:12]
A
You know, I was like, I figured desert, you know, it's like, still warm now. It's cold, man.
- [23:15]
B
Yeah.
- [23:15]
A
I was here in January and It was like, 40 degrees.
- [23:17]
B
No, you need a hoodie and sweatpants.
- [23:18]
A
Yeah. I didn't bring anything. Like that. I thought it was gonna be hot.
- [23:21]
B
Is Florida you can wear a T shirt and shorts the whole year.
- [23:23]
A
Yeah. Flip flops and whatever. You're good.
- [23:25]
B
Yeah. You're set. Now. Florida's big on supercars. I know. You got one, right?
- [23:29]
A
Yeah, recently.
- [23:30]
B
What'd you get?
- [23:31]
A
I got a McLaren 570, which is like, you know, entry level. I wrapped it orange because, you know, classic. Yeah. Like, I always wanted an orange McLaren, but, you know, I. I really got it more as an investment. Right. And some people might be like, oh, yeah, it's not an investment, but I think it is because just in the few months that I've owned it, I've gotten offers, you know, to be literally on TV shows and, you know, have someone write a whole pitch for me to do that. I've gotten people that wanted to sell me their real estate deals, that wanted to lend me money on my real estate.
- [24:06]
B
Wow.
- [24:06]
A
Just in a few months of having it, you know, because they kind of associate that, you know, hey, someone's driving a car that's a couple hundred grand, you know, they obviously have some type of level of success, Right. So, I mean, it's a big, you know, marketing thing.
- [24:20]
B
Cars are great, social proof, and I know they get hate, but if you use it in the right way, you can make an ROI on it, 100%.
- [24:27]
A
And plus, I'll go to these. Like, I'm in this club with a bunch of supercar owners, Right. So who am I hanging around with? Other supercar owners who obviously have a lot more money than I do.
- [24:38]
B
Exactly. And they got connections, people that probably invest in what you're doing. Yeah, it's a win win. I need to look into those clubs out here.
- [24:44]
A
Yeah, yeah, do it. I know. Fast Lane club. I don't know if they have it out here. Fast Lane, they're big in Florida.
- [24:49]
B
Yeah.
- [24:49]
A
And they have a few, like, national ones, too.
- [24:52]
B
Yeah, I know there's rallies out here. I've been meaning to get to one of those. Yeah, those look fun.
- [24:56]
A
Yeah. Are you into cars at all?
- [24:57]
B
I got a G Wagon. I mainly bought it for the write off.
- [25:00]
A
Yeah.
- [25:00]
B
Last year we had a lot of money, our lot of profit in December. So I was like, shit, I got, like a day to figure this out. I went to Vegas Auto Gallery and bought one. But no, I'm going to get more into it because my house has a lot of spots for cars, so I need to step it up.
- [25:14]
A
Yeah. That's one of the reasons I got my house, too, because it has, like, A huge driveway and like a three car garage. But there's like, there's room to add like another, you know, two car garage and probably some lifts. Wow. You know, I'm like, I really like cars.
- [25:26]
B
So that's the first one for you.
- [25:28]
A
Yeah, this is like, you know, for the future.
- [25:29]
B
One of many.
- [25:30]
A
Yeah. And you know, speaking of cars too, like not everything I have is like, you know, super nice. I got my truck, my you know, Ford Raptor, which is like my, basically my daily.
- [25:39]
B
Yeah.
- [25:40]
A
And then I have these like two old Jeeps. One of them I found in a house that I bought, which was awesome.
- [25:45]
B
What?
- [25:45]
A
I got it for free.
- [25:46]
B
No way. He left his car.
- [25:48]
A
He left his car? Yeah, yeah. And I, you know, I text him, I was like, hey, like, you coming to get this? Or he's like, nah, there's no title. It's like, you know, I can't get it running. All I needed was a fuel pump.
- [25:59]
B
Damn.
- [25:59]
A
Drain the old gas, put a new fuel pump in there and put a new battery in it and it got it running, you know, for like 350 bucks or something.
- [26:06]
B
That, that's probably worth like 10 grand at least, right?
- [26:08]
A
Yeah, yeah, it's probably worth a few grand. I mean it was kind of in rough shape, you know, but there was also no title to it. So that was. You had to, you know, go through that process, which I didn't want to. So what I did is I went. My parents have like a little bit of property and there's like, you know, more like land, like to ride, you know, ATVs and whatever out there. So you know, we would just take it on the trails.
- [26:32]
B
Oh, I love that.
- [26:32]
A
Beat the crap out of it. And like cuz, you know, you don't really care about it. Yeah, you know, it's not. I feel that your nice hundred thousand dollar truck, you know, so you just whatever, let one of my guys drive it and within like 30 seconds you crash it into a tree, bro. Total.
- [26:48]
B
Come on now. I've never been off roading.
- [26:51]
A
No, no, no way.
- [26:52]
B
I want to go.
- [26:52]
A
Dude, you have to.
- [26:53]
B
I heard Vegas has some good spots.
- [26:54]
A
I've heard that too.
- [26:56]
B
I've had the best off road racer in the world on the podcast. B.J. baldwin.
- [27:00]
A
Yeah.
- [27:00]
B
And he lives out here so he said whenever I'm ready. But dude, he goes, I have to do it bro.
- [27:05]
A
So fun.
- [27:05]
B
He goes like 100 miles an hour. So I don't know if I want that. But we'll see.
- [27:08]
A
Yeah. So you know, I got, I really liked it was like this old Jeep, and when that one got crashed, like, it just wasn't worth it to fix it. Like, it actually still ran funny enough. But I just. I liked it so much. It was so much fun. I got another one on Facebook, Marketplace, you know. Really? And I was like, well, you know, if it breaks, whatever, I can use the parts from the other one.
- [27:30]
B
Don't sleep on Facebook, Marketplace.
- [27:31]
A
I know, right? You know, I just. I lowballed the dude again, you know, Got it for, like, you know, a few grand lower than what he was asking for.
- [27:37]
B
Nice.
- [27:39]
A
And then. So I drove it. Whatever. Then we were in a field, just, like, it was, like, wet, so we were, like, doing donuts, whatever. Caught, like, a little hole on the front tire, ended up rolling it over.
- [27:49]
B
Whoa.
- [27:49]
A
Yeah. Thankfully, I mean, we didn't get hurt or anything like that, but it was, like, behind a neighborhood.
- [27:54]
B
Damn, that's scary.
- [27:55]
A
Yeah. And then, like, the neighbors saw it and they came over right away, helped us flip it back over, and drove it, and it turned on right away.
- [28:04]
B
Wow.
- [28:04]
A
Drove it. We ended up getting a trailer and just taking it home because, like, you know, windshield was all cracked.
- [28:08]
B
Yeah. Those cars are durable, man.
- [28:09]
A
I know, right?
- [28:10]
B
Damn.
- [28:10]
A
Yeah.
- [28:11]
B
Is that, like the biggest hobby you have, off roading?
- [28:14]
A
I mean, I like. I like doing that. And it's. It's easy because, like, you know, where I live and everything, it's. You don't have to go very far. I mean, I also love snowboarding, too, but I live in Florida, so I only do that a few times a year when I. When I go out to Colorado or Utah or whatever.
- [28:29]
B
I was UFO hunting last night.
- [28:30]
A
Were you really?
- [28:31]
B
Yeah. I had this guest on Shout out to Chris Bledsoe. He's a UFO expert.
- [28:35]
A
Really?
- [28:36]
B
Yeah.
- [28:36]
A
How'd that go?
- [28:37]
B
I, like. I can't say I saw one. I'm not going to sit here and lie, but I did see some weird, like, star movements.
- [28:44]
A
Yeah.
- [28:44]
B
Like, interesting. I thought they were meteors, but then we looked it up, and there was no meteors that day.
- [28:49]
A
Interesting.
- [28:50]
B
So who knows?
- [28:51]
A
So, all right, a little off topic here, but do you believe in aliens?
- [28:53]
B
Yes. Do you?
- [28:54]
A
Yeah. You know, I never did, but the more I think about it, you know, with how big the universe is, I mean, the odds are there's probably. Is something else out there.
- [29:03]
B
There has to be no. Right. Whether it's physical or, like a light being, who knows? But there's got to be something.
- [29:09]
A
Yeah.
- [29:10]
B
I mean, there's some animals that I think are aliens. Yeah, you know, like praying mantis, they be fucking shit up. Like, that's not normal, right? No, there's like, even octopus, they're like way too smart for Earth. Like, that doesn't make sense.
- [29:24]
A
They have, like a little brain in each one of their tentacles.
- [29:26]
B
Oh, they do.
- [29:27]
A
That's what I've heard.
- [29:27]
B
Yeah. Wow.
- [29:28]
A
Someone can fact check me on that. But that's what I've heard.
- [29:30]
B
That is wild. No, but they're super smart. Even, like dolphins, like, they communicate with, like, the energy waves or whatever.
- [29:37]
A
Yeah, yeah, it's wild.
- [29:38]
B
There's interesting animals.
- [29:40]
A
Don't underestimate animals, man.
- [29:41]
B
Yeah. You got any dogs or anything?
- [29:43]
A
I do. I got one dog.
- [29:44]
B
Yeah. Dogs changed my life.
- [29:45]
A
Yeah.
- [29:46]
B
Had terrible anxiety.
- [29:47]
A
Really?
- [29:47]
B
Yeah. Like awful crippling panic attacks. And dogs, they just, like heal you, man. They're so pure. You come home and they're always love you. Yeah. Like, you could have the worst day and come home and they just make you feel way better.
- [30:00]
A
100%. Yeah. No, they're awesome. I mean, I. You know, my parents kind of like fought me on getting a dog when I was younger. Yeah. And you know, for good reason. But now, like, you know, they. We got one probably when I was like 12. He's, you know, he's still alive. He's still doing great.
- [30:16]
B
Nice.
- [30:17]
A
And then, you know, just like, that bond is so close.
- [30:20]
B
That's massive. Are you big in, like, biohacking, personal development stuff?
- [30:23]
A
I haven't really gotten into that.
- [30:25]
B
Yeah, you're young, so you could. You have unlimited energy right now. But you'll see as you age, you'll have to start doing stuff.
- [30:31]
A
Yeah, that's what everyone tells me.
- [30:33]
B
But I remember when I was your age, I was working 18 hours a day, easy.
- [30:36]
A
Yeah.
- [30:36]
B
Sleeping like four hours, not feeling shit.
- [30:38]
A
Right.
- [30:38]
B
But it'll catch up to you. Yeah, yeah, yeah, it'll catch up, man. But, dude, it's been cool. Where can people find you and do you have a course or anything?
- [30:46]
A
I don't have a course. I probably will start some type of mentorship later this year. That is the plan. We're just kind of working out the details of that, but honestly, I'm super active on, you know, Instagram, Facebook. You find me@camaraderie homes.com. just my last name. Emirati. C A M A R O T I Homes. I post pretty often on that, you know, and people send me messages looking for stuff, whatever. I'm always trying to answer messages.
- [31:12]
B
Awesome. Yeah. If anyone here is watching this and they got a house in Florida. Hit you up, right?
- [31:15]
A
I'll buy it.
- [31:16]
B
Perfect. I'll buy it.
- [31:17]
A
I'll sell it for you, whatever.
- [31:18]
B
I love it. We'll link his stuff below. Thanks for watching, guys. As always. Peace.
- [31:22]
A
Appreciate it. Yeah. Hey, music fans. There are some great concerts headed this way. Don't miss out on all the shows in your favorite venues, like Deftones at Madison Square Garden, Eagles at the Sphere, and Foster the People at the Ryman Auditorium. Tickets are going fast, so don't wait. Head to livenation.com to get your tickets. Now that's livenation. Com.