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- [00:00]
A
What is up?
- [00:01]
B
Welcome back to a Real Deal episode with Real Estate Investment School podcast. This is Brody Fawcett, your host, and I have a super awesome guest today. We're going to jam on his deal. Remember, these are quick episodes or dive into the deal, but we're going to have a full one with this man named Alex Smith. So, Alex, super pumped to dive into your deal. This one's going to be a cool one because I was actually following along through the entire process as you got the same under contract as you were fixing it up and to now, finally, when you're, like, making some really, really good money on it. So, dude, thanks for. Thanks for jumping on our quick show today.
- [00:45]
A
Let's rock and roll, Brody. Let's do it. Thank you.
- [00:47]
B
Let's do it. Yeah, man. Tell us where you're at really quick and how old you are.
- [00:52]
A
This is awesome because I never get to talk about real estate to anybody because I'm just in the solar world, and that's all I ever get to talk about. So I'm just excited to talk about something different for one. So first of all, thank you for having me on for the pur.
- [01:03]
B
Absolutely. We're excited to learn. Learn from you, learn from your deal. Give us. Give us a background just on your real estate experience up until now and. Yeah. And tell us where you're in. California, right?
- [01:14]
A
Florida.
- [01:16]
B
Florida. Gotcha. So your market's Florida. That's where your property's at that we're going to talk about today. I know you have a few deals, but I know we're going to talk about one specifically.
- [01:25]
A
So background on my real estate. I hesitated on getting into real estate for a while because I was in California and the cost of real estate was really high. Although if I would have met someone like you beforehand, I would have realized I could have still got in and would have done pretty well in that process. But I didn't meet someone like you back then. So my first investment buying a house was about a little over, like, a little over two years ago. I bought my mom a house in Vera Beach, Florida, and we got a great deal. She actually found the deal. It was a great deal, but she also needed a place to live and to call home. And that home has gone up by a couple hundred thousand dollars. So it's also been great to have it for her, but it's done very well. So that got me more excited about Real est. And then after. After meeting you, Brody, over in Lake Powell with Jeff Mendez, like, it really got my gears turning on Airbnbs and getting in deeper and just, just pulling the, really just pulling the trick, like pulling the trigger. And so since then bought two, two other properties. I know we're going to specifically talk about one and then have got into some multifamily larger deals, you know, as a limited partner with some people like Jeff.
- [02:30]
B
Cool, dude, that's awesome. So you kind of had your feet with real estate. Talk about an awesome first deal. We needed dive into that one. Just buying your mom a house, going, going out, all out swinging right off the bat. That's super cool. I know people only dream of doing that, so congrats there. And yeah, dude, let's, let's dive into this deal. So maybe tell us about it starting off like where, where is it and how did you find it?
- [02:54]
A
All right, background story. So coming to Orlando, I rented an Airbnb from someone that had a dope. Airbnb had a beach volleyball court. The inside was decked out, cool lights, electronics, cool features, is on the lake, had a tiki bar. I rented this Airbnb for a month. This guy's name was Bill. That was his property, he managed it and we became friends over that month. So I became friends with, actually really good friends with him and Fabian, his now wife. So I became really close friends with them, went to their wedding and we've just kept this relationship. I've always hung out with them and I've always picked his brain because he's just really good at something I'm not good at. Like he's really good at having an idea and turning it into real life. You know, he wants to make a crazy dope pool all in his. All by himself. He will make that crazy dope pool all by himself. Like that kind of guy. I'm not, not that guy. I'm not a hands on guy. Not a handyman by any means. So he's. We've talked, you've talked about this before. But finding like partners and that can do things that you can't do is much more valuable than someone else that can do the same thing you can do, right?
- [03:51]
B
Yes.
- [03:52]
A
So after talking with him for years, we looked at a couple properties because he was trying to help me get into Airbnb with him. He's also a realtor and so I know he has a really good eye for it because he's done really well with his properties. And so I've really kind of trusted his judgment. So I found a really good player because you taught me one thing, which is triangle of real estate. Which is knowledge, money and hustle. Right. You need two of the three. Knowledge, money and hustle. And I knew I had the money. I have enough knowledge to know I want to get into Airbnb and kind of what I'm looking for. But I don't have time with my business at all. Like, it's just would be not a good return on my energy or time to go fix up a place and make it really cool. Like, I just, I couldn't do that. And so when we came to an agreement that he would basically help me find the deal, he would help me renovate the entire property to what we want it to be, bring my vision to reality, and then he's also going to manage my property, be the property manager. That was like the all in one solution to pull the trigger on it, right?
- [04:47]
B
Yes, dude. Which we're going to, we're going to dive into like your vision of the property. And if you guys are listening to this, you can't see the pictures, but if you're watching on YouTube, then you'll see what this property looks like. It's unreal. Right? So when he says vision, you'll see everything that kind of came to pass with it and why it's such an awesome deal now and a property now, but backing up. You stayed in an Airbnb, Random Airbnb. And the host of that Airbnb is your future business partner. That's how you met him. You just started talking to him and you're like, hey, maybe this guy's done a good job with this property. Maybe he can help me on a future property. Is that another line of thought?
- [05:23]
A
I'm staying here for a reason. I picked this property and paying way too much money for it for the whole month for a reason. Because it stuck out like a sore thumb. It wasn't even a choice to go to any other property. There was no other options, you know, in my mind, because I wanted to live full lifestyle and he provided that with his place. And so getting. I just started picking his brain and chatting with him regularly.
- [05:42]
B
Dude, that's awesome. Props to you and, and, and you and I. What's going to be interesting about these Real Deal episodes is you mentioned it, you know, the, the triangle. Right. And. And some of these deals are going to fall into. I don't have a lot of money, but I have the time and the hustle. Others are going to fall into. You know, I don't have a lot of time like yours. Right. But I wanna, I'm learning and like if you guys don't know Alex, he invested in real estate investing school and became, you know, one of our elite students and dove into that, and it's like, hey, I'm gonna figure this thing out, but props to you for being like, my missing link is time. That's. I don't have enough of. So I'm gonna go find someone who's the best at it and just recruit them, so. That's awesome, dude.
- [06:24]
A
It was. Yeah.
- [06:26]
B
Cool. That's sweet. So. So now tell us a little bit about the property in general. Like, it's an Airbnb, right? And that's how you rent it out now, and that's how it. How it makes you money. Dive into really quick just how you funded it.
- [06:40]
A
Okay, so I'll go over a couple things, like find. Like, found the job through him. We wanted to find a unique property.
- [06:48]
B
Is he a real estate agent or is he just. Okay, cool. So he's an agent, too?
- [06:52]
A
Agent too. So we want to, like, maybe you.
- [06:54]
B
Could help me find the property and you can help me set it up. Like. Like, you have your set up.
- [06:59]
A
That was the deal. Like, hey, you find the property, you set it up, and we kind of go from there. And so he kept sending me a bunch of different options. This one was fully renovated inside and out, not the outside backyard, but the house was. So, you know, the rooms are clean, the floors, the roof, the H vac. So it was, like, kind of just fully redone. And it was right near Universal. A lot of properties are really close to Disney in Orlando, and so those Airbnbs, they're all the same. They're all themed, you know, like Magic Kingdom. Like, they have all these themes in the room. Spider Man. It's just the same generic thing everywhere. So everyone's kind of struggling over there, cutting costs and, like, renting it out for a hundred dollars a night. And so this was in near Universal, where there's not nearly as many properties. And also it's four bedrooms. And with the way we were able to do it, we knew we could make it sleep 13, which puts us in a world of our own. No, almost no Airbnb is around there can sleep 13. I don't think any with eight beds, because we created custom floating beds. And, you know, there's four bedrooms and three baths. So we already knew getting into this, we were going to be able to be uniquely positioned in this market, which is why today we can rent it. And we rent it for more than any other home nearby by quite a bit, because we just well positioned there. That fills a. Fills a void. And there's a lot of other things we did at the property. So that's what we. What we were looking for and then funded. I just paid for it. It was 20 down. So after closing cost, I paid 121,000. It was 25. I ended up with 121 out the door.
- [08:24]
B
Okay.
- [08:24]
A
After closing costs, then total for renovations, which was me paying toward. Toward Bill and Fabian, who did amazing job. I paid them 87,000.
- [08:35]
B
And then he didn't take any equity in the deal?
- [08:38]
A
Nope.
- [08:39]
B
Cool. That's awesome. So you just paid him to. And Theo's listening. Equity is always way more expensive if you're paying out in equity. So it's better to take on debt than it is and actually pay somebody than it is to give away equity. Always cheaper long term. Maybe not short term, but long term.
- [08:57]
A
Yeah. And that's what I kind of came to the conclusion, too. So all out the door was 210,000. Okay. That was total amount down. What else do you want to know? That's how I funded it.
- [09:07]
B
Yeah. No, I love that. I love that. So ba. Your basic investment loan, 20, 25% down, and then you paid for the rehab on it. It's interesting too. Like, I. I don't know the answer to this, but on the. What was the purchase price of the property and what is it worth now? Just out of curiosity, purchase price, I.
- [09:26]
A
Have some stuff written down here. Purchase price was about 5, I think 559. So 560. And then value of the property. Let's see if it says.
- [09:43]
B
Doesn't have to be perfect. I just. I was just curious if it's. I mean, it's probably appreciated since you picked it up and renovated, I'm sure.
- [09:51]
A
Yeah, I would imagine. You know, it's funny. I'm, like, trying to look it up, and I just realized, like, I don't even. I don't even remember the address. I found it. Okay. I don't even remember the address. Okay. So, I mean, according to Zillow, it's gone up. I mean, I did definitely buy the high, but according to Zillow, it's worth another 30,000 since I bought it. Cool.
- [10:19]
B
And Zillow is usually. Usually super conservative when it comes to those numbers for sure. So. Dude, that's sweet. So that's just another way, obviously it's gone up in value from your sweat equity, but really, that's without all the.
- [10:32]
A
Stuff we've done in the backyard. That's just Zone, not knowing anything.
- [10:36]
B
Yeah, totally. And the cool thing too. This is more, say, cash flow play for you. Right. You wanted the monthly passive income, which we just got done diving into and how much peace of mind that is for you, just in general knowing that that's coming in every single month. But you already covered how you forced the deal, which is what we like to dive into. You said a few things. I just want to touch on one. You talked about how instead of being, you're over in Universal Studio area, where most of them are by Disneyland. So that already set you apart, made you stand out a little bit. And there weren't as many themed houses over there as there were compared to Disneyland. So that's good. And then right off the bat you're thinking, hey, how can I maximize this by standing out by sleeping the most amount of people.
- [11:22]
A
Yes. Yeah, that was a big one. You know, sleep 13, get creative with the bedding. It's not the standard bunk beds that everyone hates to sleep in. All of our beds also this, this has nothing to do with forcing the deal, but all of our beds are either, you know, purple tempur, pedic, they're just top line beds we got for basically nothing. But this way, guys, people can actually sleep in a bed. You told me one thing, which is if you're going to do it, go all the way, like, do it, do it big. And so I really grabbed that because I was expecting to pay a lot less money in renovations.
- [11:52]
B
Yeah.
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A
But after hearing that, I was just like, no, I'm just going to keep pressing until it is the way I would want it to be. And now I have my friends hitting me up all the time like, hey, can you send me the link so I can book your place? And so, I mean, I'm hosting my, my, my brother in law's bachelor party there in a month. You know what I mean? Like, people are hitting me up left and right to just go, stay there. Nothing but five star reviews. So I just, I love this experience for myself because I can use it when I want to for recruiting meetings, for bachelor parties, or my friends can use it. But because we found that unique part, which is it sleeps 13, four bedrooms, three baths. And then it had a huge backyard. And so I was like, what do we do with this huge.
- [12:31]
B
Tell us, tell us what you do with the backyard. Because this is on the huge backyard.
- [12:34]
A
So I got.
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B
This is part of, this is a big part of forcing it. Right?
- [12:38]
A
This was, this was forcing it because this, this deal made zero cents on a Long term rental, straight up. The. The mortgage is 3, $500 a month. Sense I would lose money on this if it was a long term rental. Or maybe I could make a hundred bucks a month, which I think I'd end up losing money when you really figure out what other costs I got. So that makes no sense to me. And that's also not enough to get me excited whatsoever. I just, I can't wake up excited about a hundred bucks, 200 bucks, 500 bucks. But I can get excited about 10,000amonth, 15,000amonth. And so I was like, how can I make this property collect the highest fee while making something I would want to be? So we had a huge backyard. And I just got into golf recently actually because. Because Jeff. Jeff kind of was like, hey, I got this golf trip coming up. I was like, I don't know how to golf. Can I. I gotta figure out to be around cool people. I don't know. So I just got a golf and so decided to build 18 home mini golf. We have a golf pro shop in the shed. We turned the shed that was just already there into a golf pro shop with a hole in there and all this other stuff in there. We have a. A driving range as well, which is a giant batting cage basically so people can drive. And we have a putting green. And then the whole rest of the grass. You know, this is acre, 2 acres. I forget how big exactly is all Turf. It's a 6,000 square feet of turf. Like high quality turf. And then we have a beach area where we put in, you know, beach that could. You could lounge 20 people there. Huge beach area. So people are in Florida. And we put a bunch of big palm trees back there. Royal palms, little palms, I don't know all the palms. And then we put Eurekas. I think they're called Eurekas. These plants all around the outside. 100, I think 80 of them, like all around the outside. So it'll just grow and just block out all the neighbors to create its own world. And obviously a lot of these ideas weren't mine as far as like the Eurekas and the creative stuff there. That was Bill and Fabian. They just crushed it. I really just gave them the vision of, hey, I want 18 hole mini golf. I want the whole thing. Turf. I hate grass. I hate going to Airbnbs with great backyards. But I'm in dirt and grass. I will never play back there. There. I don't think anyone will ever play back there, no matter how cool it is. And so I just wanted to eliminate all the problems I've experienced with other backyards, including having really nice beds right where you like lay in bed. You're like, wow, I wish my bed at home was this good and my sheets were this good. That's the same experience provide people in the Airbnb. So that backyard play funny too.
- [14:56]
B
That's like, that's. People put that on reviews all the time. Like all the time. And getting so many. Just like, the bed is so comfortable. The bed is so comfortable. It goes a long ways.
- [15:07]
A
The sheets, everything. Yeah. Or like we're putting plaques on every bed because, you know, there's eight beds, we're putting plaques on all them, let them know what kind of bed it is. Because these are all beds that people would want to buy or have thought about buying anyway. So people can literally experiment and test all the beds there. So just another reason to stay there. But the backyard, when you see the visual with the pool and everything and 18 hole mini golf, there's. There's no place like it anywhere nearby or I don't even really know any places like it in general that I've seen on Airbnb. So it just put us in a unique position where now we're able to get more per night than any other house.
- [15:42]
B
Dude, that's awesome. I love it. I love the vision. I love the, like, we talk a lot about like forcing the deal all the time. And a lot of times that comes down to just getting creative. And for most people, it's getting creative on the financing side and how that works out, you know, logistically with getting a good return on their money. But I just love the foresight, the vision. It's not just one thing either. It's like all the little things that went into it to get the highest roi. And you mentioned it briefly, but is that. Is that. I know it hasn't been up and running super long, but what's kind of it. Numbers. Monthly numbers. Yeah.
- [16:16]
A
The December is our first full month booking it. We've booked for 22 days in December was our first full month. And on average $471 a night. And so that brings us to 10,362. Minus their 20%, that puts us at about $8,300 cash flow. Now that, you know, minus my mortgage of $3,500 would leave me at an extra 4,500 bucks. But that's just December. Now January is almost all booked up already.
- [16:47]
B
Okay.
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A
We'll be getting more around the range of five to six hundred dollars a night. Like moving forward in the near future. So like that's kind of the direction we're heading. So call it $500 a night. At 90% occupancy, this property will bring in about 13,500 in January, leaving me after paying out the 20% to them for managing the property, 10,800 and minus the mortgage, which is 3,500, leaves me with a net cash flow of 7, $300 annually, that's 87,000. So one property should make me between 80 to 90k a year and I think it'll end up netting more as we continue to make more improvements to the property, which is, yeah, I want to get, yeah, I want to get it to, yeah, six figures. Cash flow a year from one property is. I want to have less properties and more from each. And so I plan on doing 18 home mini golf around the world. Like make this kind of my thing everywhere or destination locations. You'd want to stay at my property because you get a scorecard, you get to be part of this group that's play golf at my course.
- [17:51]
B
Boom. That's another just way to force the deal. Yeah, I love that. So sick. I love the idea of golf around the world. Isn't that, what's the name of it? Hole in one. Is that the one home? One home. I love that. Dude, that's so cool. And I just did some quick math based on December's numbers, right? Which not even at full occupancy, like first month, getting up and running, not having the reviews and all that stuff. And, and it was 27% cash on cash return. That was on the conservative end going off of only December's numbers and that's you putting in, you know, over 200 grand the property. So it's interesting on this one because I think a lot of people like, oh, 200k on, on a 500, you know, and something thousand dollars house, like I'm going to lose my shorts on it. There's no way I can make enough money back. But you force it and that's what keeps people from probably getting into it. Right. And you go to get creative like you've done and now you look at what it's turned into and there's not a single person that's probably going to say no to that investment now, right. Even if you sell it as is, they're not going to say no to a, a 25 plus percent return on their money. So that's awesome.
- [19:00]
A
And my whole goal too in my head was just I want this one Property to pay for my three properties. And that was like, all I kept thinking about is if this one property could pay for my three, which with these numbers penciling out at 90% occupancy, $500 a night, which is definitely within reason, I think we'll do better than that. It pays for all three of my properties, all three mortgages, and I still cash flow about 500, $1,000 a month. Wow. So that's where I'm thinking. And then I'm like, if I do one more of these, then I'm up hopefully like six figures a month or six figures a year. Just off this thing doing its thing. And I spend zero time on this at all.
- [19:40]
B
Yeah, man, I love that. And I like how you talked about quality over quantity as well. Just because we focus a lot on that, obviously inside real estate investing school. And it's so much easier to pick up less properties that are going to produce way more and way higher returns than having a hundred doors. That cash flow, 50 bucks a door. Right. There's so much work and energy that goes into that. So I love that. What was the biggest thing you learned going through this deal specifically?
- [20:10]
A
So I got really stressed out at one point because I was buying two homes at the exact same time. One having a extremely knowledgeable and expert mortgage broker is critical. This mortgage broker I found out here is unbelievable in Orlando. Like unbelievable. He got really talk about creative and forcing deals because, yeah, we're all 1099 and we do things a different way. So banks don't love us necessarily. Even if the income is there, they don't love 1099ers. And so he was able to do a lot of things on the back end that I didn't see him do. But he told me after he did them to get all these deals to go through. So having a good mortgage broker is because I've had a so so mortgage broker or someone that seems good. And then comparing to like a person like this, it's just no one else could have done what he did. I could not have got these two properties at the same time if it wasn't for him. So that's one thing I learned. And they also takes away a lot of stress because he just starts solving problems out bringing the problems to my attention. Like, he just tells me what he already did, the solution, which is what I like to have in my life. And so he is the solution for a lot of those. And so I was really stressed out at one point, like trying to see if all these deals would go through, like, man, this is a lot of work for these one, these properties. And once everything went through, though, like, I. I learned the biggest lesson for me now was, like, I trusted my gut entirely, and I listened to you as well, which is, was that go all in approach? Because I was expecting to pay $25,000 to do, like, perf and stuff. I just had this number in my head. I was not based in labor and reality. And the total actually came to 87,000 after, like, doing all the rooms up and all the furniture and everything else. So I didn't let that change scare me. I just. They, you know, they. I kept asking, what would make this place better? What would make this place, you know, the best place possible? And I just kept going and going all in with everything that would make it exactly how I would want it to be. If I was renting, I would want to be, like, super proud of and excited to stay at, like, what would make me want to click that button over all the homes in the area? And I think about this, like, what if there's 10 times as many Airbnbs in the next three years in this area? Is this property still going to stand out? Because I've, I've, I've, you know, relatives or family members that do Airbnb somewhere else. And, you know, they. They just went from in their area, 2000 local Airbnbs to 4000, and now they can barely rent their place, and they're getting way less money for. And they're trying to think of what else to do. And I'm like, I never want that problem ever to happen to me. I was like, I just got to be so unique and the pictures sell. So I just wanted the one of the pictures to sell the property. So I learned all in on this thing. Quality over quantity. I just want more quality homes.
- [22:50]
B
Yeah, I love. I'm glad you adopt that principle, because that's something that, yeah, I fully stand behind. And that saves you so much time. In the long run, it keeps you wanting to come back. It attracts a higher quality tenant. Like, it's just, you go to resell, like, the ROI is that, like, all these things that make so much sense. In the short term, it's like, oh, I'm spending a little more money, but in long term, it always pays off. So sweet, man. And then someone that wants to go out and replicate, maybe this is the same answer, maybe it's different answer, but someone wants to go and replicate and do kind of the same thing you've done. Maybe in their market or take some of these principles. What's like, one piece of advice you have, or you'd give. You'd give them.
- [23:32]
A
I mean, this is a probably precursor to that piece of advice. But I would say, stay at the dopest. I keep using that word, but it just makes sense to me. Stay at the dopest. Airbnbs you can find wherever you go and become friends with those hosts. Sometimes they're actually owner, and you'll find that out and you'll develop relationships. You'll see things they've done that you really like, and you kind of can realize, like, the next level to the game and why it attracted you. So I think that's, like, that's what got me through this whole experience to where I'm at today within this bubble for airbnb was because of that. Because I just wanted the. To be around the coolest people and experience the best places. So I think that's a kind of like a precursor, just something you could do. Maybe it'll lead to something, maybe it won't, but it can't hurt, right?
- [24:13]
B
Yeah.
- [24:13]
A
And then for getting a deal like this, I would. I would say, I mean, I don't think you have to spend as much money as I've spent on a property to make it unique, but I just think finding something that would make just you personally want to be at that Airbnb on the weekend, like, what would. I kept thinking, okay, if I'm a fam. If I'm a family and I have kids. We just got done with Universal. The kids are going crazy running around. They're all antsy. I was like, I just want to. I would like. If I was that parent, I would like a place where we could all be in the backyard, the kids could be running around doing whatever they want, and everyone's thoroughly entertained and off their devices.
- [24:52]
B
Yeah.
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A
I was like, how can I create that? Or they want to Snapchat or Instagram the place. So I wanted to create the environment for the people. So I thought of that ahead of time. Of, like, how can I make it to where. If I was a parent with a bunch of kids or a bunch of families, like multiple families, because it sleeps 13, what would solve a lot of my stress and make me a happy parent.
- [25:11]
B
Right.
- [25:12]
A
Because those are the ones that are going to book the property. I'm like, so the happy parents can be the one where the kids are thoroughly entertained. They don't have to be on their devices. They could be outside. And so I think looking through the lens of the people you want staying there is one of the most impactful things you can do. And that's what I kept thinking about when we were going through putting this property together.
- [25:31]
B
Dude. Yeah, that's great advice. I love that. And this is complete side note, we'll wrap this thing up and let you go. But now that you have a proven method and you did it and you took the leap, especially with your vision of around the world, 18 holes around the world, it's going to be so easy if you ever needed capital in the future to go and raise capital around that. Because people want to be. Yeah, people want to be involved in a. In a cool project. Like, even with like the tiny home resort that I'm building right now, it's like, like everybody wants to be a part of it, right? Like, they want. They want a piece of it. And it's not even. Sometimes I don't even know how lucrative it is. Right? It's just like, hey, can I get in on this? They don't even care about the return. They just want a project. Right? Yeah. So. So anyhow, that, that just like, that clicked for me and I'm like, that goes a long ways for you, I think, and just for anybody in general is like, kind of like if you build it, they will come type thing. You have the vision and people follow vision more than they. They, you know, care about money a lot of times. So.
- [26:41]
A
I'm glad you said that. I didn't even, man, I didn't even think about that. You might have just accelerated my next hole in one home purchase.
- [26:47]
B
Oh, yeah, easy, man.
- [26:48]
A
You might have just accelerated that because I didn't even think about other people's money in this situation. But yeah, you're right. Like, who, who wouldn't want to be part of that project? Like the tiny home project. Who wouldn't want to? It's fun, it's going to work, and it's proven.
- [26:59]
B
Who wouldn't, man? And I know this is longer show, but this is good stuff to dive into. Even taking a step further, if you can, one, you have a proven model of it, which people want to see that. They don't want to just see an idea like, hey, come invest in my idea. Come. And I think this would be really cool to do these properties with backyards of golf. No, you have proof of concept. You've done it. You took the leap. You invested in it. You invest in yourself, and it's paying off and you have the real numbers to show for it. And so you have that, which is huge. But then the other piece of it is looking at it like, okay, this is a 30% cash on cash return for you. Easy math. Next time you go rinse and repeat, you find an investor, hey, let's split this 50, 50. You put in 200 grand. I'm going to manage everything and head everything up. Well, their 200 grand is getting them a 15% cash on cash return plus half the equity of the house as it appreciates and half the cash flow. Everything. Right, so you're into it now. Zero money. Your return's infinite. But on the flip side, they're stoked out of their mind because they didn't have to do anything stress about it. Neither did you, because you're having Fabian. Fabian do it. Right. But like, they're getting a 15% return. So it's a win win scenario. Like, Fabian's stoked because he got work and he just got paid some money to make this thing come to life. You're stoked because you didn't have to put any money in this. And you have another property that's, you know, an infinite return. And your investor's stoked because, you know he's getting a 15% return on his money and it, it didn't take him any ideas finding or doing any of the work. Right.
- [28:39]
A
So. And I think the next time it'll be less expensive because we know what we're doing. We're not going to make any mistakes. We made a couple mistakes that cost a bit of money. One was getting turf from a football field when they were done with it, and that turf was very hard to put together and we had a. Yeah, that was a mistake. So I think the next time iteration too, it'll cost us a lot less money and we'd be able to do it a lot faster.
- [28:59]
B
Totally, man. Yeah. It's just economies of scale. And whoever's managing your stuff, they can manage all of it instead of just a couple. And I love it, man. Well, where, where can people that want to just connect with you, that resonated with you or want to ask you more questions about your deal, what's the best way for them to get a hold of you?
- [29:16]
A
Yeah.
- [29:17]
B
Best place is gonna give us your cell phone number.
- [29:19]
A
Best place is gonna be Instagram. Yeah. Alex. Alex H. Smith. That's Alex H. Smith on Instagram. I do not go on Facebook. I don't do LinkedIn. I don't do any of that stuff. So Instagram is my, my business card. That's where I operate out of awesome, brother.
- [29:32]
B
And you're an Instagram baller. So, dude, thanks for. Thanks for dropping all the. All the knowledge and so stoked about this deal for you and glad it's been. Been a home run for you and I'm excited for the future and what it holds.
- [29:46]
A
Yeah. Can't thank you enough, Brody. Thanks for getting me turned on.
- [29:50]
B
Absolutely, dude, thanks. Thanks for coming on, brother.
- [29:57]
A
Sa.