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Real Estate Investing School Podcast
220. REAL DEAL: Trading the 9-5 for Financial Freedom
00:34:20
Welcome to the Real Estate Investing School Podcast. Are you currently working your corporate 9-5 and want out? Have you ever thought to yourself that there is something bigger in this world for you? Something that could help you feel more fulfilled...
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- [00:00]
Brilliant Fawcett
What's up, guys? Welcome back to another Real Deal episode. This is your host, Brilliant Fawcett, and today is a special day. We get to dive into Jason Pritchard. We're going to hear his story a little bit and most of all, dive into a deal he's doing right now. It's probably something that you haven't heard of before, and it's going to be awesome because all said and done, he's going to be cash flowing, amazing off of it, and it's going to set him, set him up even better than he already is because of real estate. But before we dive into it, Jason, just a quick intro on you. You and I, we met a mastermind and super impressed by you and your story and obviously don't have a ton of time to get into too much of the background, but, man, people just, they need to go follow you because you're so inspiring. I know we have a lot of people on here that come from, like, the corporate world, but you're a perfect example of that, where you had, you know, six. Six figure job, steady income. You know, in most people's eyes, you were living the dream. You had it all figured out and went through some stuff and ultimately landed on real estate and just haven't looked back since. And so the one thing I just appreciate about you is you're always adding value and just trying to teach people about real estate. So really excited to dive into this in the next, next 20 minutes and thank you guys for tuning in to listen.
- [01:24]
Jason Pritchard
Yeah, Brody, appreciate you guys having me on. I. I can't wait to, you know, talk a little bit about myself, talk about this deal because I think it's a pretty cool one and hopefully it'll give your audience something to think back, think about. I'm always about providing value, so hopefully the. The people that tune in will get something out of this call. Man, I'm excited, dude.
- [01:41]
Brilliant Fawcett
AB Absolutely, man. And once again, like, people are listening. The purpose of these is not so, like, Jason can talk about how cool he is in this awesome deal and how much money it's going to make him, even though all are accurate and true. But the purpose of us taking time is so how can you learn something that you can go and apply? How can you take a little nugget from this? Like, you're going to take multiple nuggets from this, but how do we get rid of all the fluff? Talk about a deal that's real raw so you can actually go and try and emulate the exact same thing. And reap the benefits of it. I think that's, that's one thing that gets oversold probably a lot of the times is the freedom that comes from investing in real estate. But that freedom doesn't come unless you take action on the stuff that you're learning. So with that being said, you give us, give us kind of a 30,000 foot overview of this deal and then we'll dive into the nitty gritty.
- [02:34]
Jason Pritchard
Yeah, yeah. Let me give you guys a primer just about my background and my experience prior to getting into the deal. Yeah. Because then that way you guys can see kind of the foundation that we jumped off of to get to the point that we're at. So you said it earlier, but I was in corporate America for 15 years before ever getting into real estate. I found myself in a space where I was just very kind of disenchanted what I was doing. And I had always wanted to give real estate a shot, but I just was not in a position mentally to, to get after it, man. And so after some soul searching and, you know, some crazy things kind of happened in my life, I decided in 2014 to just burn the boats. We went all in and haven't looked back since. And I initially started guys just fixing and flipping and it sounds cliche, but I know, you know, a lot of people, my wife and I included, used to sit down on the TV or sit down on the couch and watch hgtv and we would see these shows and I would be like, hey, I'm smart enough to do this. And I think I can probably figure this out. So let's, let's give real estate investing a try. And that's what we did for the first couple years is we flipped maybe 15 or 20 houses. And my goal initially was just to replace my corporate income. So I was making what I thought was decent money at that time. And I wanted to take the money that I was making from real estate and basically replace my corporate income. Because at least at that point I was doing something that I felt like would make me happy. And I was fortunate. As I started getting my feet under me, you know how important relationships are. I really started focusing on networking and getting around people that were doing the things that I wanted to do. And I got around a, a small network of guys that were based in my market that were focused more on buy and hold investing. And so they really encouraged me. It's like, hey, you've got some momentum with your business. You shouldn't just be flipping all of these properties because you're basically just getting yourself another high paying job or why don't you focus on buying rentals? And they really encouraged me to start doing that. So we shifted our business and in years three, four and five of our business, I basically ran the flipping company at break even and I plowed all the money that we made into buying rental properties. So in those three years, we went from zero to 50 rentals. And since then we're now eight years in the business. We've done 300 plus flips and wholesales. We own a rental portfolio of about 100 doors now. And it's a mix of like single family, small, multifamily, small, small apartments. And that was kind of the primer for this deal that we're going to talk about today, man. So that's the, the biggest deal that we're working on, which is this motel conversion. So I'm happy to share that with the audience.
- [04:56]
Brilliant Fawcett
Yeah, yeah. Thanks for going into your background a little bit. So cool, man. I think it's easy to look at, you know, people like you and where you're at now and we think like it just magically happened or it's always been that way. And reality is like, you have to start somewhere and for you is just watching, you know, flip or Flop or whatever it was on, on TV and you're like, hey, if that guy could do it, I can do it. And, and I, I love that because a lot of people can resonate with that 100%.
- [05:24]
Jason Pritchard
So yeah, and I, and I like to share, Brody, because I want people to know that it's a process, dude. And you know this, man, you don't just wake up one day and decide that you're going to start converting motels into long term permanent housing. Right? There is, for me, it's a process and there's some steps that you have to go to. And it's been an eight and a half year journey for me to get to the point where I would even feel doing it. And it was all of those deals that we did at the beginning that gave me the experience, the relationship, the knowledge, the finances, all the things that you needed to take on a project like this. So I think if we're going to talk about takeaways for the audience, man, I think the most important one is, you know, you have to, you have to understand that this is going to be a journey and real estate is not get rich quick, you know what I mean? There's, it doesn't have to take you a lifetime, but it's not going to happen overnight either. And so you have to start with wherever you're comfortable starting and just keep your head down and work really hard. And I think good things will happen to you eventually.
- [06:17]
Brilliant Fawcett
Yeah, yeah, man, I love that. Well, let's dive into it, dude. So give us, you kind of gave us a hint. It's a motel conversion that you're doing. Give us a brief rundown of what that kind of looks like.
- [06:30]
Jason Pritchard
Sure. So this deal came to us from a broker relationship. It was a, it was a broker that was kind of a mentor to me when I first got into the business. And he ended up reaching out to me and, and, and my business partner on this deal. And he said, hey, you know what? We've got an opportunity for this motel. It's something that, you know, I think would be right up your alley. You guys are young and hungry and looking for value add projects like this. And the long story short, it's basically, we have a Property, it's a 19 unit motel and a manager's quarter. Okay. And the owner lived in SoCal, so he was, he was an absentee owner and he was running the motel like they were apartments essentially. So he was violating a bunch of different rules and regulations and laws in the city. And he had not been taking care of the property. The property was really run down. He was renting the units out like they were apartments when it should have been a daily or a nightly rate. And it was all over the city's radar. It was actually on the news. Like, if you Google it, you'll see the news articles that were written about it. There was articles where the mayor and the police chief were out there. And whenever those kind of things are happening, guys, you don't want the chief of police and the mayor out at your property, typically. Right. You definitely don't want that. And so usually that's a sign that the seller may be motivated to sell. And in this case, he was. You know, unfortunately, it was so mismanaged that the city was thinking about coming in and just condemning the property and taking it over. And that's when it came in our laps. And the guy that bought it knew the broker, the broker knew us. And he said, hey, this guy's pretty much willing to give it away for pennies on the dollar. Are you interested? And we had a decision to make right then and there because I don't know the first thing about converting a motel. Literally, it's not the same as flipping houses. And I'll tell you guys that. Right? And so we had to make a very, like, serious decision. Are we going to go through this process? Because we have to know that the city's going to be involved every step of the way. We're going to have to deal with evictions. This was during COVID and there was no evictions happening in California. There was a moratorium at that point. So there was all these different red flags that were going on that were kind of surrounding the property when it was brought to our attention. So a lot to digest, you know, when we first, when we first had the deal brought to us.
- [08:41]
Brilliant Fawcett
Yeah, and I love that it's. Most people run away at the side of stuff like that, you know, like, get me as far away from that as you can. And, and I think most people's trash is a real estate investor's treasure. And if you can find those properties that it's like, oh, dude, nobody wants this. And people, in fact, they want to go the opposite way of it. Usually, like, experienced investors are like, oh, there's, there's dollar signs from this somewhere.
- [09:10]
Jason Pritchard
Absolutely, absolutely right. You have to retrain the way that you think and evaluate risk on some of these things. And you brought up a great point, man. I think most highly successful real estate investors think the opposite of what a normal person would kind of look at a property like this. Like you said, a typical person is going to run away. We're looking at, okay, like, where's the value add opportunity? And there was a huge one here with this. So I think the first thing for us that was important was just trying to figure out, do the numbers even make sense? And so for people that are not familiar with our market, I'm in Fresno, California. It's smack dab in the middle of central California. And it's one of the more relatively affordable markets that are left in California. Right. Most people think LA or the Bay Area, and those are very expensive, high priced markets. Central California and the Valley specifically is still relatively affordable. So the first thing that we did was we looked at what similar multifamily properties were trading for when they were completely fixed up. So we took our experience doing single family and small multifamily and just saying, okay, what is this worth when it's done? And let's back out all of the cost associated with it to get to whatever our number was. And so multifamily out here trades for anywhere from 100 and I'd say 25 on the low end to $150,000 a door. Right. And we were able to get the property in contract for $10,000 a door. 10,000 and some change. Right. And the owner was willing to owner finance the bulk of the purchase. So all we needed to put was 50,000 down. So initially when we're talking numbers, we had pretty much, you know, we had mitigated our risk as much as we could. We essentially had $50,000 down payment. The owner was owner financing it for the first year interest free with no payments to us. And we were fortunate because we have some relationships with friends and mentors and developers out here that are some of the biggest investors when it comes to these motel conversions in town. So we had relationships with people that I could pick up the phone and say, hey, you know Brad, his name is Brad. I said, brad, hey, we have this deal, it's in contract. Here are the numbers. What do you think about this? And he immediately looked at it and said, it's a no brainer, do it. He goes, if you don't buy it, sell it to me because I'll buy it. So initially we, we did our due diligence, we double checked with everybody and that gave us the confidence that we need when we're able to structure the financing in a way where we felt like, hey, you know what, Worst case scenario, we're out 50,000 bucks and I could probably sell it to Brad and make a few dollars anyways, even if it doesn't work out for us. So let's just give it a shot, man. So that was our jumping off point into motel conversions, man. That's how we started it.
- [11:45]
Brilliant Fawcett
Yeah, no, that's cool. And just I think there's so much of that that we naturally do as real estate investors that a lot of people overlook, especially if you're just getting in the game. But that's the first thing I'm always thinking, like, worst case scenario, what does this look like? And worst case scenario, this still pencils. Like you said, I'll make a few bucks. You know, it's not going to be amazing, but I'll make a few bucks. Now what's an average case scenario look like? Oh, well, I'm going to actually make a good chunk of change. Now what does an above average case scenario look like? And it's like, oh, I'm going to smash it and blow it out of the water. Unfortunately, a lot of people, they'll advertise their blow it out of the water best case scenario, or they'll run their numbers based on that scenario. And unfortunately, all of a sudden it comes back average and they lose money on the deal. So I'm glad you touched on that. I'm glad you talked about that. For, for you, it sounds like relationships is a big part of kind of. You mentioned a few times one, like the reason you got the deal was because of a relationship you had, right?
- [12:47]
Jason Pritchard
Yes. Correct. Yeah. I mean, if you look at the overall scope of all the deals that we do in a given year, I'd say 50% of those deals Brody come from are what I would consider my network. And those are relationship based deals. Right. So it's agents, brokers, other investors, friends and family, anybody. We were really big in the community doing events and different things like that. So people know that Jason is a buyer for investment properties. I'm very active on social media. I share my story pretty openly. Right. And so we do a good job of getting deals to come to us. And then the other 50% are deals that we do direct to seller marketing and all the stuff that everybody else is doing. So it's a pretty good blend. But relationships have been the biggest thing that have opened doors for me. Not when it just comes to deals, but raising money opportunities like joint venture stuff like relationships I've never seen are as valuable in real estate as any other business that I've been, if not more.
- [13:39]
Brilliant Fawcett
Yeah, 100%, dude. And I mean, that's how we met. Was that like, you know, a mastermind and get together? Which there's. It's gotten to the point now where there's. There's never any like hidden secret or something I'm gonna learn early on. Yes. But now it's stuff you kind of already know, but you go for the networking, for the relationships. And what would you say, Jason, someone who's like, that's cool, but like, I'm just getting started and I don't have any of those relationships. How do you go and build that?
- [14:09]
Jason Pritchard
You have to get out of your comfort zone. And you and I both know this, dude. Nothing good, in my opinion happens when we're complacent and we stay in our comfort zone. So I'm. What I'm going to tell you is going to probably force you, if you're that new investor listening to this, to get uncomfortable and just guys, you're going to have to be okay with that. Right. So what I would suggest that you do. And this is what I did, and I'm only telling you this because this is exactly what I did when I got started, when I transitioned from corporate America into real estate, I didn't know the first Thing about how a real estate transaction worked. I had bought and sold exactly one house, which was my primary residence at that time, and that was it. So I didn't come from a family with experience. I didn't come from money, none of that stuff, man. So for me, I built my network from the ground up. And so I just said that I have to go to as many of these RIA events, meetups, networking things, just go and try to meet as many people as I can, make a genuine connection when we're there, and then try to nurture that relationship longer term in real life and just try to align with the people that, you know, I could one provide value to. And then hopefully I could just be a sponge and try to learn things from them. Right. And so that would be the advice that I would give you guys. Don't overthink it. You just have to go and don't be the person that sits in the back of the room and, you know, sneaks out as things are ending. You're going, like Brody said, not necessarily for the information that you're getting. That information may be valuable, but it's not as valuable as that person that you're going to meet there that could be your next partner or your next lender or your next contractor or whoever, the wholesaler that's going to bring you your next deal. Right. So you've got to get out of your comfort zone and be willing to put yourself out there. And I think social is a really good way to do that, too. I know both you and I are active on it, and you don't really know, you don't really realize how many people are watching on social. And I think if you haven't leveraged it the way that we have, and I don't mean leverage in a bad way, but if you're not ready really sharing your story in an authentic way, you don't really know how many people that you can positively impact and how many doors that opens as well. So I think you've got to do both. You've got to leverage social and you've got to do kind of the old school organic way when you're meeting people in person and shaking hands and. And building relationships like that.
- [16:18]
Brilliant Fawcett
Yeah, yeah, man. No, that's good. That's great. That's great advice. There's a lot of power in just telling people what you're doing. I've gotten a handful of deals like that just because it's like, oh, Brody buys real estate. My dad is selling a property. Are you Interested? I don't know, let's look at it, you know, and you start breaking it down. And, and I also like how you're like, dude, I haven't done a motel conversion. That's different than flipping a house. But like, instead of being scared by it, and maybe you were scared by it, but instead of walking away from it, it's just like, hey, there's so many unknowns and a lot of people, it keeps them from even getting in the game. But it's like, dude, you just start to take one bite at a time and you start looking at it. And like you said, you called, you know, your network. How, how does this look? Asking different people, you know, making sure you mitigated all your risks or as much of them as possible and then you felt comfortable and, and move forward on it.
- [17:05]
Jason Pritchard
So that, that confidence muscle, though, that self confidence muscle that you're talking about, where we can exercise it to the point where we can. Because of course I was scared, dude, you know what I mean? Even now, like, I don't. I'd be lying to you guys if I told you I was an expert at doing this now, because we're still kind of figuring it out as I go. But the only reason why I am able to exercise that self confidence is because that is what we've been doing since day one. This same feeling and that same emotion that we had, I had that on the very first flip that we did. I had that when we started doing multiple projects. I had that when we bought our first rental. I had that when we bought our first multifamily property. And the more that you can like be self aware and understand, okay, like, I feel this right now, but what's really the worst thing that can happen, right? And do that exercise that we talked about at the beginning, go through all the outcomes. Let's just start with worst case scenario first and can we live with worst case scenario? And if we can live with what the worst case scenario is, then this is all of our upside right here. So for me, I evaluate risk much differently than your normal person. Right. It's much riskier for us to not do anything than it is to sit here and talk about all the potential bad things that can happen. But I would never have gotten to this space if I had not had all that experience with all these prior deals. Right. I have so much confidence in my ability to say, okay, if we're going to go, we're going to make this happen now. But I've been doing that for a long Time, just like you. We've been doing it for so long, when something new or challenging presents itself to us, we have a lot of prior experience to feed off of, and, you know, we're able to make it happen. But if you're at the beginning and you're struggling, guys, don't be afraid to bet on yourself. And if you need help, you need to reach out to somebody that's been there and done that. And that's why those relationships are important, because they can transfer that confidence to you. And you're just going to have to believe in yourself enough to take a chance. And usually, guys, if you're doing everything the right way, then, you know, good things will happen to you. That's what I believe.
- [18:58]
Brilliant Fawcett
Yeah, man. This. We could obviously just go off in so many different directions because this is. It's so good. I think it's good stuff that's on a lot of people's minds as well. You know, it's. It's what people think about, and it. It made me think of something. There's a difference in doing it stupid and doing it scared. Yep, you should do it scared sometimes, but you shouldn't do it stupid. You know?
- [19:23]
Jason Pritchard
I agree.
- [19:24]
Brilliant Fawcett
Cover. Cover all of your risks, but then do it. It's okay if you're still a little nervous. It doesn't mean that it's a bad decision.
- [19:31]
Jason Pritchard
Dude, here's the analogy that I always use, man. And I. And I love this analogy when I'm talking with newer investors. It's like our. Our comfort zone ends right here, okay? And then here is, like, the danger zone where if we go past this point, we're just being reckless. Like. Like you said, we're being stupid. Everything that's great that's ever happened to me has happened when I've been, like, right in this middle ground right here when I'm in this space, because you and I probably have been, like, feeling ourselves too much, and we've, like, gotten overconfident, and we start venturing over here, and that's when we get smacked around a little bit, dude, and we're like, oop, you know, like, we got to come back over here. And then when we're getting lazy and feeling too happy and we're feeling complacent, then we're not getting the momentum that we really need in our business, man. So, guys, if you're. If you're listening to this, everything great happens in this little sweet spot between those two zones. And if you can stay there and. And do that on A consistent basis. That's when you'll see pretty amazing things start to happen for yourself.
- [20:23]
Brilliant Fawcett
Dude. So good. Love that. Okay, so with this deal and you're. And the plan is to keep it.
- [20:29]
Jason Pritchard
Or to flip it, the plan is to keep it. So I'll give you the condensed version. We bought the, we bought the property. Okay. And this is a rundown motel in a rundown part of town. Right. And I, I, typically when I'm describing what it looked like when we bought it, I, I describe it as. It was a cross between the Walking Dead and Breaking Bad, if you've seen those TV shows. So if you merge those TV shows, that's kind of like what was happening over there. So everything that you can think of that was happening over there was happening times 10. So we had to do cash for keys with everybody that was living there. About 60 of the people decided to take it. The other one said, you know what? No, you know, just evict us. So we had to sit on it for a year until we were allowed to just to do actual evictions. And now we're in a place where we're working with the city to get a temporary zoning change so we can change it from a motel, which is what it's currently zoned into long term permanent housing. So the goal is to take all 19 studios plus the manager's unit. And we had our architect go out there and design everything and create a site plan. And we're actually going to be able to carve the manager's unit out into five more studios. So we're going to take a 19 unit motel and turn it into 24 units of long term permanent housing. And at the end of it, there are a number of organizations in our market that love to master lease properties like that. So the exit strategy is already figured out to us. So for those of you that don't know, a master lease is we do one lease with one tenant and then they sublease all of those units out to clients that work for them program. So it can be transitional living for homeless people. It can be for drug or alcohol rehabilitation. There can be all these different needs that are out there. And that's the goal for us. So the numbers, the way it looks like for us, Brody, is we paid 250 for the property. We think it's going to cost about a million two to fix it up. And then we think it's going to be worth after the master lease is done and it's performing and everything's ready to go. Somewhere in the neighborhood of two. So that'll be something that we'll keep as a long term hold and something that we would probably sit on and own for a while.
- [22:35]
Brilliant Fawcett
I love it. And so is the plan to do a refi or cash out refi once it's all fixed up?
- [22:43]
Jason Pritchard
Yeah, yeah. So right now one of the things that again it's, it's these things cause us to stretch. Right. And one of the things that's causing us to stretch is how we're structuring the financing on this. Because typically on our quick in and out deals, I use all private money. I've been very fortunate to develop a lot of relationships with private money lenders. But I don't want to borrow, you know, two and a million and a half dollars at 10% to do the acquisition and the rehab because this takes much longer than your typical flip. I mean the construction on it alone probably with everything that we're doing, we're separately metering everything, we're ripping up the concrete, we're doing all this different stuff. And it's going to be 12 months minimum. Right. So I don't want to pay 10% on a million and a half dollars. So it's forcing us to source funding in different ways. And so we are right now in the process of, of of sourcing that funding. There's all these different lending institutions that obviously they're lending to make money but the project is also important to them. So it's not just like does it pencil out on paper our deal pencils, but they're willing to give us a little bit more favorable terms because it's something that's eliminating blight in the city. Right. It's an initiative that's very big in our community right now. It checks all of these boxes that the, the, that these lending institutions like. So they're willing to give us more favorable financing terms, more favorable interest rates. So we're right now shopping that loan. But we've pretty much self funded until this point. And when we get ready to do the big construction on it, we'll probably roll that into like a bridge loan where we do the financing, then roll that into some type of permanent financing with the same lender once it's up and up and running and performing.
- [24:22]
Brilliant Fawcett
Cool, that's amazing. And then do you have, do you have numbers or projections on what your expenses will be and what that master lease is roughly going to go for? What, what you'll cash flow at the end of the day?
- [24:34]
Jason Pritchard
Yeah, we've done it will depend on the organization. Because some of the master leases that we have, they're not like true triple net where there's no expenses to us. They're kind of like a little bit of a blend between what we would get with a normal long term tenant in one of our houses or small apartments. Right. Where those expenses typically fall on the owner. And it's in between that and what I would consider a triple net lease. Right. So we're, we're still. Kind of. One of the good things is this isn't a carpet and paint rehab. Right. We're not just painting it. It's going down to the studs. Everything is getting rewired. We are doing separate individual meters on the entire property. We're doing solar. So it's a very, very substantial rehab. Right. We're only, we only got 24 units and we're spending a million two on it. So it's not like we're going in there throwing. We're probably going to be 50 grand a unit on this thing, dude. So everything from the inside out is going to be redone. So we're, we're expecting for like big capital expenses to probably not see any of those. And there's usually some language in there regarding management, small maintenance and things like that where that's going to go on the, the organization that's doing the master lease. So I expect it to be somewhere between what you would get from a normal, like a normal tenant and a, and a triple net lease on a commercial property where you really don't have any expenses. So another thing that's favorable for us because I don't really want to individually, I mean we have the capacity to do it, but I also don't necessarily want to do, you know, individual leases and rent all those things out and do that either on this particular property. Doesn't really make sense.
- [26:07]
Brilliant Fawcett
Yeah. And in ways too you can look at it like, hey, I'm paying someone to manage all those tenants or I'm getting someone else in that maybe it's a little bit less. But all that's taken care of. It's. I know what to count on. I can depend on it. It's coming in every single month. So yeah, I think that's great, dude.
- [26:24]
Jason Pritchard
It's nice. And because there's such demand for this, we're not taking a haircut on the rents either. They're paying for full blown mark because there's just, there's none of these types of properties there. So that's the other good thing is that we don't have to. Sometimes you do have to take a little bit of a haircut on the rents in exchange for the convenience of just having one tenant. But on this one, there's so much demand where there's multiple organizations that are interested in the property. So it's good for us when it's done. So, again, absolutely. We knew all of this prior to even closing escrow, right? So when we were talking about, hey, what's the best case scenario scenario here, right? We've figured out what's the worst is, okay, we lose 50 grand or we sell it to my buddy and maybe break even or make a few bucks. But best case scenario is what we're talking about now, man, where, you know, things really pencil out. We get the tenants that were there, all out of there, and, you know, we're able to get it fully redone and master leased and, you know, have a property that's, you know, somewhat on autopilot. It's never completely passive. You know that, but, you know, hopefully a little bit easier.
- [27:21]
Brilliant Fawcett
No, dude, that's. That's awesome. And I think that, like, just shows how. How you forced the deal or got really creative on it. You know, it's all these little things throughout the process of it, you know, that people can go back and rewind and listen and pull these little things from that, and you start to realize, like, oh, yeah, that's. That's how you went and forced the deal and got creative. It's because of all those other things. And I. I do think it's. I think it's important to point out, like, what. Or ask you the question, what changed for you to go from flipping houses to, I actually want to hold some of these and keep these.
- [27:58]
Jason Pritchard
Initially, it was. I wanted to have an insurance policy or a hedge against something happening to me. And. And it was very fortunate in those first couple years when I got around those guys and, you know, kind of like the story leading up to me getting into real estate, like, I was in a position where I really wanted to make sure that God forbid anything happened to me, that my wife and my kids and everybody would be okay. So I thought of all the rentals that we were buying, those were basically my safety net that in case, you know, things don't work out, we'll have 50 rentals and we can either liquidate them or live off the cash flow or whatever. That was kind of my thought process at that time. And then you grow and you progress, dude, and you start getting around other people that show you like, hey, man, if this guy can do it or this girl can do it, you know, I know I can do it too. So let me think a little bit bigger. What does taking maybe a step up into a development project like this look like, right? And what does. What type of investor does Jason need to become in order to do a deal like this? Because fundamentally, I had to change too, dude. The guy that was just flipping houses is not the same version of Jason as that's talking to you right now. You know what I mean? And so for me, I know we're big on self development and growth and mindset and things like that. And we're constantly, you know, pushing at, like, what is my full capacity during this time that I have on earth? That's a big thing for me. And it's like, what can we do to unlock our full potential? And some of it is you just got to force yourself to. To grow and do bigger things and step up to challenges like this, dude.
- [29:27]
Brilliant Fawcett
So good. That. That's. That's awesome, man. I. And I know that it means more coming from you than just like any random person, because I can tell, and I know that you. You live it that way, you know, and yeah, it means something, which is. Which is a lot of people can't say that. So.
- [29:45]
Jason Pritchard
Yeah, no, dude, I know it, man. You can't believe everything you guys see on Social, man. It's pretty wild, dude. And so, like, I know for guys like you and us, man, I just pride myself on being authentic. I want to share the good, the bad, the ups and downs. I can remember what it was like when I first started, and I want to be a resource to people like that, dude. So, you know, I'd love to provide value to your audience. Anybody that's listening, man, I'm. I try to be as accessible as I can be. So if you guys, you know, have questions for me about any of this stuff, you can feel free to reach out to me. Social is probably the easiest way, dude, And I'd love to. To answer those questions and be a resource if I can be.
- [30:19]
Brilliant Fawcett
Yeah, dude, absolutely. What? Instagram. Is that where you're most active or.
- [30:22]
Jason Pritchard
Yeah, Instagram and Facebook. Just Jason Pritchard on either one of those platforms. Platforms. If you put my name into either one of those, I should pop right up and you'll see all the stuff that we're doing. And. And like I said, I'm an open book. You said it earlier, man. There's not really, with the Internet and information the way that it is. There's no secrets, guys. Like, nothing is proprietary in this business anymore, dude. Like, everybody's just, you know, you know, everybody's doing kind of the same or similar things. And so I know, you know, my mindset comes from a place of abundance. I feel like deals are not scarce, opportunities are not scarce. There's probably plenty of stuff to go around and I'd rather share and collaborate with other like minded individuals like you, Brody, and other people that, you know, are in our circles because we get where we want to go faster, I believe because our momentum collectively combined pushes us to where we want to go faster versus just going on our own, dude.
- [31:12]
Brilliant Fawcett
So good, man. Anything else as we wrap up that. That you would say or anything else you want to leave, leave the audience with?
- [31:21]
Jason Pritchard
Yeah, I think for me, like just processing what we've talked about today, the biggest learning lessons for me were realizing and understanding that this is going to be a journey, understanding that it's going to take a little bit of time. You've got to live outside of your comfort zone and push yourself constantly to really see some of the results that guys like you and I have had. But if you're okay with doing that and still doing it, even though you're scared, not stupid, but scared, like you said, man, you. The. Everything that you want is on the other side of those emotions, man. Everything that you want is on the other side of that fear and that hesitation and that self doubt, that voice that's kind of lingering in your head. And when you can learn to really silence that and quiet that and do it anyways, your life will, will change very, very quickly, man.
- [32:05]
Brilliant Fawcett
Dude, awesome, man. And, and just to kind of like touch on that, my favorite thing that you said was what type of. In order to be doing these types of deals, what type of person does Jason. What type of investor does Jason need to become? And it just made me think, I think so many times we ask ourselves the wrong questions.
- [32:25]
Jason Pritchard
Yep.
- [32:25]
Brilliant Fawcett
Where are the deals?
- [32:26]
Jason Pritchard
How.
- [32:27]
Brilliant Fawcett
How do I find the deals? Like, how can I. How can I make, you know, a million dollars a month? How can, like, whatever it is, like we're asking the wrong questions. A lot of times it's just, how can I become the person or what type of person do I need to become that finds deals?
- [32:41]
Jason Pritchard
Yes.
- [32:42]
Brilliant Fawcett
That makes a million dollars a month. That. And it's, and it's so interesting because the type of person you become comes first, right? A lot of people think the money comes first and then that shapes you into who you are. Like no. Who you are first and who you need to be. That's how you get the results that you want.
- [32:59]
Jason Pritchard
Everything's internal, and you nailed it, dude. I believe everything starts internally first and then manifests in reality after that. Right? And so I think people. That's the definition of operating from a place of faith, right? Most people, they want to see the million dollars in their hand, and then I'm a millionaire. And what I think Brody and I are telling you guys is you have to believe that you're a millionaire, incapable of becoming a millionaire, and then the million dollars will show up in your hands. So you've got to retrain the way that you're thinking. And I think that's step number one.
- [33:28]
Brilliant Fawcett
Yeah, and that's. That's the hard part. People think making the money is the hard part. That's. That's, like, the easy part.
- [33:34]
Jason Pritchard
Real estate's the easy part, guys. It's. What's going on up here? Can you keep your head screwed on straight every single day? The real estate and doing deals, that's the fun part. That's easy for us. I think it's just showing up every day, being consistent, even when you don't feel like doing it, man. And. And most people can't do that. And once you can rewire your brain to. To think like that again, man, really cool things start to happen, dude.
- [33:55]
Brilliant Fawcett
That's it. Awesome. Well, dude, thanks so much for. For jumping on, sharing the time. It means a lot. Thank you guys for tuning in, and we will catch you guys next week.
- [34:05]
Jason Pritchard
Thanks, guys.
- [34:06]
Brilliant Fawcett
Sa.