← The Code To Winning
The Code To Winning
THE BUSINESS OF FLIPPING: HOW TO SCALE IN REAL ESTATE || ARTHUR KOSHKARYAN || EPISODE 058
00:46:54
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- [00:00]
A
What got me into flipping? Luckily, when I first started in real estate, I actually joined a team, right. It wasn't like my own business at the time. I joined a team, got to understand the ropes of it, how a machine works, right? So I think especially when you're just starting out, I think the best thing you could do is hop on a team that is actually running. When I first joined in, you know, we did that flip and I actually liked it. You know, it was a little scary at first, right? When you're going into your first flip, you have no idea. Like this is a lot of money. Like just bought this. Like we're going to put how much into it? I mean, honestly, with flipping, it's a little bit of like a emotional roller coaster kind of, right? Because when you buy a flip, you don't know like you're going to tear down the wall, what's going to pop up, you know, because things always pop up. That's just how it is with flipping. You set a budget and you always tend to go over it. You know what I mean? That's just, that's just how flipping works.
- [00:44]
B
When you spoke about the flipping, what's the turnaround from when you actually invest in a property and to when you flip it and get paid, like what's an average turnaround from like the experience.
- [00:53]
A
That you've done on average, from locking it up to closing, getting paid, it's around four months.
- [00:57]
B
Okay. That's relatively like standard industry. What's an average? How much you make per deal.
- [01:03]
A
And flipping wise right now it's about.
- [01:06]
B
But the nice thing about a team is that we know the concept of the ship rights with the Tide. So naturally, if everyone around you is doing super well and you insert yourself in that team. Same principle of John Ron we are the average of the fact that you hang around with.
- [01:18]
A
What is wholesaling? Wholesaling is you contact a homeowner, right? In the simplest way possible. You contact the homeowner, they sell their house to you for a certain price. Or let's just say you lock up a property for 250. Now you hold the contract, right? You have equitable interest in that property. It then is your job to go find a buyer for, let's just say 265, sell it to them, they close on it and you just make what's in between.
- [01:40]
B
You make the code to winning insights you need today to seize the world tomorrow. If you are interested in curious and learning a lot about wholesaling, flipping real estate, the nice thing about that is that I actually have young and thriving successful entrepreneurs that are very experienced in this field. And so we're going to break down real estate in those different components. And this is the episode for you, Arthur Kosh Carrion. I got that correct. I can tell myself by. By the side, nodding. Arthur Koshkariam, half Armenian, half Mexican, again, is going to be pursuing and talking a lot about his experience. Actually, it's funny story, I interviewed him two years ago and, like, a lot has changed since then. So it's a blessing in disguise that we are. So without further ado, the man himself join us in the studio. Arthur, welcome, brother. How you doing?
- [02:32]
A
Thank you, brother. I'm doing good. Glad we got a chance to do it again.
- [02:37]
B
You know, I think one of the things I think you and I spoke about over the phone, I've realized how much more comfortable and confident I am in the camera. But not just that, like, also how much experience you've gained over time. I feel like, yes, it would have been great, but I think everything does happen for a reason. So the transformation since then, I mean, you're a bit more handsome than two years ago. Happy pride month. But if you could perhaps like, you know, you've built a name for yourself in the flipping industries and, you know, we know there's a few very popular names that we know through social media as well. What drew you into flipping game initially and how did your first deal unfold?
- [03:21]
A
Well, what got me into flipping? Luckily, I. When I first started in real estate, I actually joined a. A team. Right. It wasn't like my own business at the time. I joined a team, got to understand the ropes of it, how a machine works. Right. So I think especially when you're just starting out, I think the best thing you could do is hop on a team that is actually running. Right. A lot of people, you know, always tend to go and do things by themselves, which is fine. Right. But I stay. The best experience is joining a team and how I got into flipping. Pretty much we're like, hey, we locked up a deal. You guys want to flip this one? I was like, hell, yeah. You know, it was actually a deal in Chandler. It was a deal in Chandler and it was a super. It wasn't nothing crazy. It was just a little lipstick flip, you know, but just having my mentor, which is actually, he's my uncle, which is now my business partner. So him being my mentor, his name's Alex Delgadillo. He's been in real estate since 2010. So when I first Joined in. You know, we did that flip and I actually liked it. You know, it was, it was a little scary at first, right when you're going into your first slip, you have no idea. Like, this is a lot of money. Like, we just bought this. Like, we're gonna put how much into it? You know, and it was nothing crazy. It was just like a small, small, like 20k flip in, in Chandler. We did like the bare minimum paint, carpet. You know, they didn't even like upgrade kitchen, nothing like that. You know, that was back in 20, end of 2021, my first flip. And I mean, honestly, with flipping, it's been a, it's a little bit of like a emotional roller coaster kind of. Right? Because when you, when you buy a flip, you don't know like you're gonna tear down the wall, what's gonna pop up, you know, because things always pop up. That's just how it is with flipping. You set a budget and you always tend to go over it. You know what I mean? That's just, that's just how flipping works, you know? But yeah, I did my first deal, Chandler got it done. And from there, I mean, it was just like, I was like, all right, this is cool. It was nerve wracking, you know, but let's just keep doing it.
- [05:37]
B
No, and when you mentioned that just to even kind of track back on them sales or even like real estate, there's just so much of ego in there. So when you spoke about teams, sometimes people have got this perception, like, listen, yeah, I can do it by myself. But the nice thing about a team is that we know the concept of the ship rises with the tide. So naturally, if everyone around you is doing super well and you insert yourself on that team. Same principle of John Ron. You are the average of the five people you hang around with. So naturally, like by being in a, in a moving team in the right direction, culturally invested in improving and getting better, you naturally just seem to be able to improve in that aspect as well. Now going back to the, to that whole thing is do you currently have a team right now that you're building or that you're currently like running as well from, from your end? Or is it still you and your uncle right now?
- [06:29]
A
No, right now we're in the, we're in the rebuilding phase.
- [06:31]
B
Okay.
- [06:31]
A
You know, we went through a little change last year. We had a team as big as 10 people. A lot of people ended up leaving doing their own thing. So right now we're just in the rebuilding phase, getting that team Started. But I think that when you come from something that like when you first start with the team, you understand now how it works, right? How does a well machined team work? So now, and when you're rebuilding, you now can set a proper foundation, right? Like company culture, right? How to hire, how to fire, you know, how to onboard, I think all that just comes into play.
- [07:05]
B
And then when, when you spoke about the flipping, what's the turnaround from when you actually invest in a property and to when you flip it and get paid. Like what's an average turnaround from like.
- [07:15]
A
The experiences that you've done on average from locking it up to closing, getting paid. It's around four months.
- [07:21]
B
Okay, that's relatively like standard industry. What's an average, how much you make per per deal in flipping wise right.
- [07:29]
A
Now it's about 35, 40 grand.
- [07:31]
B
That's relatively good. Yeah, that's very good. And do you focus on high end homes like in the millions or is it like your, your standard, like residential, like 500, 600, 000 alone?
- [07:44]
A
Well now the way the market is, especially with rates going up and you know, basically it's, it's very shitty time to flip right now. But I think that we've actually started attacking higher price points, like still under a million, but listing them at that 800-700-900K range. You still, when you're dealing with people with money, right, if you're, you're not going to buy a house for 800k unless you don't have some like money in the bank, you know. So when you're dealing with higher price points, a lot of those like buyers, they, the rate changes and all that doesn't affect them that much, you know. So at least for us, how we're pivoting, we're attacking higher price points.
- [08:25]
B
And what's the toughest flip that you've done?
- [08:28]
A
Toughest flip that I've done. It was this condo on the west side of Phoenix. It was, it was a good deal. We, we locked it up wholesale. We originally were just going to wholesale it out. We could have made ten grand on it. And some of our partners at the time were like, let's just take it down and flip it, right? It was a good deal, it was a good condo, right? Not the best part of town.
- [08:53]
B
But.
- [08:53]
A
We flip it, we put about like 35 grand into it and we put it up for market. Now the issue that came up was there was an hoa and that HOA was there was no money, like they had no Money literally told us like, hey, we have no money, like we can't help you get this transaction closed. Once we listed it, a lot of the buyers that we had were convention or no FHA, right. Cuz we listed it for like 275 or something like that. And because of that HOA, not wanting to invest money that they don't have to fix that issue, we fell out of contract like six times, which was supposed to be like a quick three month turnaround. Actually ended up going up to like a year.
- [09:39]
B
Wow.
- [09:40]
A
Yeah.
- [09:41]
B
Gosh dang. Flipping can get so complicated. But the only problem right now is the sometimes is seething through like the phony gurus online right now that over promise and under deliver or like just end up like saying some things that aren't like so accurate. What's been a big misconception from flipping?
- [10:02]
A
I think that a lot of the gurus, they tend to make it seem easier than it really is. Right? They make it like, oh, this is how I made 35k, this is how I made 40k. You can make that. But they don't tell you all the ugliness that happens in between, right. They don't tell you with budgeting, right, you're going to go over budget. That's just literally how flipping works. You're going to need all this money to come in with. You're going to need to find, you know, your contractors. So I think that the misconception is like, they don't really show, like everything that takes to do a flip.
- [10:36]
B
And then I wanted to ask this one by reading and like, what's the process for estimating rehab costs, especially when you're flipping multiple properties at once?
- [10:44]
A
That can get kind of tricky, right? Because obviously, like, you know, everybody's numbers are different. Right. I might have a guy that could do, you know, the kitchen cheaper than you. Right. For example. But I think at least for me, I always just go based off my last flips. Every flip that you do, you just get better and you just start to understand like, okay, if I'm gonna, you know, install a kitchen, it's not gonna cost me more than like 35 bucks per square foot, just for example, right. So I think like, the more you do flips, the easier it is. And you know, as you gain the experience, you just tend to like know your numbers better. I'm not saying you're just going to win every single flip, you know, because there are flips where you're like, okay, we over budgeted, you know, But I think as you go along, you just naturally get better.
- [11:32]
B
Then with that though, would you say how are your best deals? Have been off the market stuff that you actually went and approached people and said, hey listen, let's get your homa. Are they usually like good deals you get like on the market? Because this is a very saturated like industry. It's wholesaling, it's flipping, it's realtors. People just want to get this and get the best deal. So would you say off the market it's been some of your biggest success? Yeah.
- [11:53]
A
Coming from wholesaling. All the flips I've bought have been off market.
- [11:57]
B
Okay, okay. And which segues? Perfect. You use the W word.
- [12:02]
A
Wholesale.
- [12:03]
B
In our own mean world. Whole sailing. Oh my gosh, dude. Wholesaling is, it's such a fascinating concept, but it's, it gets complicated, awful. The day to day people that don't fully understand like in terms of like novations and stuff, that I involve getting a contract within a certain time frame before selling it, all these different stuff. If you just explain to our viewers out there, I know people probably do know the term, but for somebody just tuning in, interested in this real estate market, what would you say or how would you define wholesaling in the real estate space?
- [12:40]
A
What is wholesaling? Wholesaling is you contact a homeowner, right. In the simplest way possible. You contact the homeowner, right? They sell their house to you for a certain price. Let's just say you lock up a property for 250, right now, you hold the contract, right. You have the equitable interest in that property. It then is your job to go find a buyer for, let's just say 265, sell it to them, they close on it and you just make what's in between. You make a quick 15 grand.
- [13:08]
B
Okay, but then do you usually flip those homes that you wholesale?
- [13:13]
A
Sometimes.
- [13:14]
B
Yeah. Okay, but sometimes it's just like boom, boom.
- [13:16]
A
Sometimes let's just make a quick five, quick ten, whatever it is.
- [13:19]
B
Yeah, okay, that's. And how quick is that turnaround? A little better than flipping, right?
- [13:25]
A
Yeah, like less than 30 days on average, like three weeks.
- [13:30]
B
But I heard there's a concept where you can actually buy a home while wholesaling, but you don't actually buy it. You just buy the contract in order to like sell that contract next person without actually putting any money down.
- [13:43]
A
Exactly, yeah. Wholesaling, you, you don't need any money to get into it. I still think today like a lot of the people wanting to start out wholesaling is 100% the best way to get in.
- [13:53]
B
Would you say it's the number one way to start when you're doing real estate right now?
- [13:57]
A
Absolutely.
- [13:58]
B
More than Airbnb?
- [13:59]
A
Yeah. Because you don't need any money when you start wholesaling. You could literally be in your house, in your basement, pulling a list and just cold calling homeowners.
- [14:09]
B
My concern, though, is, do you need a license for it?
- [14:13]
A
You do not need a license. That's the beauty of it.
- [14:16]
B
That is amazing. And then, so when you start off that. What's the process in which somebody can start, like, their first wholesale deal right now? Right now they're like, listen, I love real estate. I watch this thing and this interview. Arthur is the man, the myth, the legend. Now let's go try it out. Like, what is the first thing going to do down there? Basement.
- [14:36]
A
If you have zero money at all, you have no money to spend. I will go to your local courthouse, just pull a pre foreclosure list that's completely free and just start hitting pre foreclosures, making offers. That would be the easiest way that you come in with zero money and.
- [14:52]
B
Say this, There's a home right now for 200,000. How are you buying that contract? What's the. What, What? What's the. Can you walk us through the process?
- [14:59]
A
Yeah. Process is pretty simple. First, you agree on a price with the seller. You can pull, like, a basic standardized contract on Google, right? Write it up. Hey, I'm purchasing this property for 200,000, right. Obviously, you got to make sure that the numbers are good. You know, lock it up for 200,000. Then I always say, like, the hardest part, because a lot of people, when they first start wholesaling, right. They always tend to. I'm going to build this buyer's list. Let me get all the buyers, right? I want to talk to every single buyer, you know, see. See what they're buying, right? But the misconception, the hardest part is really just locking up the deal. Once you have a good deal, it's very easy to sell it. So I would say first, just focus on the sales. When you're starting off, focus on actually talking to homeowners and just, you know, how do they say, like, building your reps?
- [15:57]
B
And how quick is the. Is the. The turnaround is. Is 30 days. How quick does one get paid after that thing has been sold?
- [16:04]
A
Well, just however. That's what I'm saying. It could be three weeks.
- [16:07]
B
Wow.
- [16:08]
A
You know, three weeks, 30 days. But I think a lot of the people Online don't really show you what it takes to get that deal because you're going to have to knock out, you know, two, 300 calls probably a day. You know, you're going to have to put some reps in to get that deal. And I don't think a lot of people show you how easy it is. Like, they'll show you like, hey, this is how I made 15,000 in 30 day. I know you've seen those videos probably, you know, so. But I don't think they, they really explain to you, like, what it took to get there. Right. A lot of these big gurus, they have, you know, teams of 15, 20 cold callers who make, you know, thousands of calls a day to get a couple leads in. And then out of those leads, out of 45 leads, it'll probably take you like one contract. So kind of doing the math on that, that's a lot of phone calls.
- [16:58]
B
Yeah. And that's not even just like the, the standard phone calls. It's the fact that, yes, they're being done, but it's also the redials because people didn't answer. And going back and seeing through the list because, yeah, it's not even like how many you call it how many actually answer and then how many from the answer become leads and from those that are leads that end up converting. So, yes, I agree when you say the thousand because it's seething through. Right. Finding the right people because the concept of law of average comes into play again, because everything comes down to the amount of like, lead source and people that. That aren't. It's like with door knocking as well.
- [17:31]
A
Exactly.
- [17:31]
B
You can knock till you can knock as many doors as possible. How many actually even opened the door?
- [17:37]
A
Exactly.
- [17:37]
B
You know, so. And would you say with the wholesaling that you've done right now has all been like over the phone or has it been somewhere? It's been like a doorknock.
- [17:45]
A
No, we don't really do too much door knocking because I feel like, you know, It'll take you two hours to probably door knock. I don't know, 30 homes. And then in Arizona at 1:15 is probably not the best thing. You know, you're gonna be knocking on the door, y' all, sweaty, smelly, talking about, hey, I want to buy your house. Like, I don't want to sell you my house. Like, get out of here. You know. But yeah, it's mainly just over the phone. You can get a lot done in two hours on the phone versus calling. You could, you know, 10x that.
- [18:13]
B
I love that. How do you manage contractors, stand budget and avoid delays, especially as a young investor?
- [18:21]
A
Well, when you're doing flips, I think it's very crucial to know like your time frame with these guys. Right. Like if you're gonna, you know, if you're gonna do my electrical, how long is that gonna take? Right. I think a lot of people, you know, tend to not really use that. Like, how do I say this? Like, understanding time frames when you're dealing with these guys, like, hey, I need this done by this day, realistically. Because a lot of these guys, especially if you're just starting out and you don't have your set team yet, a lot of these guys, they have other jobs to do. So I think understanding that as well, like, hey, how many houses are you working on? Oh, I'm working on five. It's like how, you know, how much time are you going to put into mine versus trying to delegate the other five that you have, you know what I mean? Like an electrician, for example.
- [19:12]
B
Yeah.
- [19:12]
A
Like, oh, I'm putting new electrical in five other houses. So it's like you have to know that when you're talking to these guys, they'll come tell you what they're going to do, let them know this and that. But like, yo time frame I need to know because, you know, hard money payments coming up every day, we're spending money. So I gotta know. And I think that's the best thing.
- [19:34]
B
And then with house flipping and, and getting the right deals and all those investments, do you have investors that are doing the capital on that end? Or is it something that you guys have done between you and your uncle, where you've saved up from your experience in real estate? How, how is that, like, who's funding for that?
- [19:56]
A
We bring investors in.
- [19:57]
B
Okay, how do you get those investors?
- [19:59]
A
I think when you have like a set of like when you can show them flip success and show them like, hey, this is what we've done and you actually show them the numbers we bought it for. This is what we locked it up for, you know, this is how much we paying this, how much we came with, came in with all in is what we sold it for. I think that it, it kind of just speaks for itself. So showing basically just like, what do they call it? Like showing under your skirt or whatever they call it, you know, just showing them like, hey, this is what we got going on. This is how much we've made in these projects. You want to do one, let's do it.
- [20:36]
B
You Just got us canceled right now. I'm joking. No, no. Facts. I couldn't agree more. And I think I've noticed as well, because, I mean, there's so many different investors. What's the. The ROI that is present, or does it differ depending on what deal it is?
- [20:56]
A
Yeah, it depends on the deal, but, I mean, when you work with us, we make it very fair. We always do a 50, 50 split with our investors.
- [21:02]
B
Wow.
- [21:02]
A
Yeah, because if they're coming in with all the money, we're coming in with the experience. It's kind of like a perfect relationship. Makes it worthwhile for them, you know, because, I mean, you know, if you're gonna put in, you know, let's just say 100 grand to flip this property and you're getting back, you know, 25K. I don't know what the percentage on that, but it's pretty damn high on what you're getting back. 25%.
- [21:29]
B
That's. That's interesting. What advice would you give somebody out there that's wanting to start? You did say that wholesaling is the best way to, like, move forward and to build capital personally for yourself. And then if somebody wants to start flipping, what's the first thing they should start by doing?
- [21:50]
A
Like, once they bought a property.
- [21:52]
B
No, once they bought a. Start buying a property. If they want to try and go.
- [21:54]
A
Flip a home, I would say really understand how much money you have available. How liquid are you and. Yeah, understand how. How much money you have. And, you know, make sure you just know how to run your numbers. Right. And how do you calculate the rehab? How do you. Okay, after I buy this house, I'm going to put this much down, right? This is going to be the rehab. You know, I'm what, a 65k in already? What am I going to exit? You know, I think. I think that comes into play, and then I think it's more when you actually buy the property itself, I think, like, you know, the pretty. The basic stuff, like, every time you get a bid, always get three bids. If you're gonna, you know, if you're. If you want to do the electrical, get. Talk to three different guys. You know, if you're gonna do the, you know, roof, talk to three different guys. I always say get a minimum three bids before you accept one. When you're going to rehab, it.
- [22:55]
B
That's. That's golden nuggets, brother. No, I appreciate that. And I think that's what's one thing I've. I've loved about this. I feel like when I started off in the podcasting space. It was just very generalized, like, why are you so good? But like, I think having this blueprint and understanding and helping people know them, what's possible, what's out there, rather than just hearing how many deals people have made. Because at the end of the day, like, everyone is out there craving informative, educational form of stuff as well. And seeing someone as young as yourself just like making an absolute killing and just like doing super well. It, it shows the fact that it can be done and it's, it's, it's accessible, you know what I'm saying? And so I, I appreciate that. Now, what's the biggest misconception people often have from house flipping when they see it on social media?
- [23:47]
A
Well, you know, going back to what we said earlier, I think they make it seem easier than it really is. You know, you have a lot of things that come into a play. You have to know, like market trends. Like right now in Arizona, you know, June 2030, whatever we are, July, whatever, 2025, like right now the average concessions in Arizona is 10 grand, right? Concessions are basically like you're helping the buyer with the down payment based off whatever, like equity you have in the deal, right? So, right. Like knowing stuff like that, you got to know your concessions, right? You gotta, when you run your numbers, you got to give them at least on average 2% in concessions, right? You got closing costs. Right now we're in a, we're in a buyer's market, right? There's a lot of inventory on the, on the market, right? So what do you do? You got to make sure that you're the best house that goes to list because buyers have a lot of options right now, right? And then on top of that, you know, prices of materials going up. So you have to know that as well. I think understanding market trends and really knowing what's going on is going to really help you in the long run. Because if you don't factor that it all in, you're going to lose. And how do you get that? Right? You could do that, obviously, basic research. What's, what's going on right now. You could go on, you could go on Google and just type up like, average, you know, concessions on in Arizona. Understand that? Right? Factor that in right now since there's a lot of inventory right now, a lot of people, especially myself, whatever that we think the ARV is, the after market repair value, we're taking 5% off of that. So if it's 500, you know, 5%, whatever that comes down to, that's what is really what we're going to go list for now and then run your numbers based off of that.
- [25:33]
B
And then do you only do work in Arizona or do you wholesale outside the state as well?
- [25:38]
A
Well, yeah, I wholesale nationwide, but as far as like our, our flips, developments is all here in Arizona.
- [25:46]
B
That's a. It's a hobby. That's a good marketing.
- [25:48]
A
Yeah.
- [25:48]
B
And homes aren't as. I know that the housing market has went bonkers in Utah and Idaho. California, you get like a. You get a size of this box over there. It's like 2 million to live inside that box.
- [26:03]
A
Yeah, yeah. It's ridiculous.
- [26:06]
B
So I mean, Arizona is not like it's more reasonable. Like I said, Boise was the fastest growing state in Utah, but oh my gosh, California, you get that patch of grass and like just the one bedroom, it's like $5 million. And like did you make that price out your behind?
- [26:21]
A
Yeah.
- [26:21]
B
You know what I'm saying?
- [26:23]
A
It's a beautiful state, man, but it's getting expensive. A lot of people are moving out.
- [26:26]
B
Yeah, it's terrible. Only thing is a is hot as hell, man. Oh my gosh.
- [26:32]
A
I moved here in 2005.
- [26:34]
B
From where again?
- [26:35]
A
From California.
- [26:36]
B
Which part?
- [26:38]
A
LA, to be more bellflower.
- [26:40]
B
Okay. That's why you met Kobe.
- [26:42]
A
Yeah, yeah. Not yeah. Meeting Kobe was, was a crazy experience.
- [26:48]
B
Man. I want to know you're affiliated with Investor Lift. How is technology and software like that changed how you do your deals? What is investor left before you answer that question?
- [27:02]
A
Yeah. Investor Lift is a software that was created basically for wholesalers to dispo their properties. Right. What it is, is I would call it your like dispo all in one, like packet. Everything that you're doing dispo is on Investor Live. Like all my deals, I run them through there. All the buyers that I'm working with now are from there. You know, it's your all in one packet. You could upload a deal and it'll let you know, like, you know, let's just say like Boise, Idaho. If I've never done a deal in Boise, Idaho, and eventually if I upload it and it'll just pull all the buyers in that area.
- [27:42]
B
Oh, so who owns it? Who started that?
- [27:45]
A
One of my buddies, his name is Robert Wensley. Super, super smart guy. Went to. Went to Harvard. He actually had the. He. He shared the same room, not at the same time, but he had the same room that Mark Zuckerberg was in.
- [28:00]
B
You know, CEO based here in az.
- [28:03]
A
What, the investor live?
- [28:04]
B
No, no. Yeah, the guy you're talking about.
- [28:07]
A
Yeah, he. He just moved here in Arizona.
- [28:09]
B
Oh, wow.
- [28:09]
A
Like this past year, you know, but I mean, his software is. Anybody could use it, you know, all over the nation.
- [28:16]
B
Interesting. Interesting. Now that's. That's amazing, man. I mean, right now with. Which kind of even segues to the utilization of automation, artificial intelligence, AI, just everything like moving towards there. Like, I loved the fact that you touched on there. It's pointless, pretty much door knocking because it's not as efficient. Like you're just out there knock, knock, knock, where you do a few phone calls, figure out like, you know, lead sources. But like knocking is. And people still do it, but it's like it's not needed. What. How are you utilizing AI to the best of your ability for you and your business currently right now?
- [28:59]
A
Yeah, I mean, I think if you're not using AI, you're like dying a slow death, you know, like, if you don't keep up with what's going on and keeping up with technology, I mean, it's really gonna. You're really going to hurt yourself. What am I doing? I mean, on the dispo side, going, you know, going back to Investor Live, there's a. Actually an AI in the system that, you know, let's say if you upload a deal in, I don't know, Houston, Texas. Right. The AI in it will actually, like, for example, it'll pull all the data that's, you know, been pulled from the system and it'll let you know, like, hey, these are buyers that AI pulled. These are 10, 15 buyers. Go and go ahead and call them because these are the guys based on what they've shown in the system. These are the guys that are going to buy your deal. You know, so I know like from the dispo side because we're. We do wholesaling, like acquisitions and all that stuff. But we're really big on dispo. So I think, like just having AI do that for us, I mean, it's game changer.
- [29:58]
B
Love it, brother. I love it. Some of these questions I like so much. I mean, you and I have been going back and forth. Can we not start the podcast? Right. Let's start from question number one. Would that be okay?
- [30:07]
A
Yeah, was doing.
- [30:11]
B
I want to know. There's one I actually really liked that was written over here. Not the faith, not. Yes. How do you evaluate exit strategies for a deal now? Hold, flip wholesale. What determines your decision?
- [30:40]
A
Well, going back to that disaster flip that I Did I think what I learned from that is never get a property that you have to sell, right? Like, meaning that that's your only exit strategy. I flip this and I have to sell it. You have to have multiple exit strategies if it goes to shit, right? Can I buy this property if I, you know, if I buy it, okay, can I rent it out? If I can't rent it out, can I Airbnb it? Right? Like, you. You can never have just one exit strategy. That was the biggest lesson that I've learned from that property. Never buy a house that you have to sell.
- [31:16]
B
You know, and what determines what. Which one goes forward? Hold, flip a wholesale Gina. Like, what determines that?
- [31:24]
A
I think realistically, the way I do it, I always, you know, just go down the list. I always, from the top, want to sell the property, right? I. I always want to sell it. And then two, if I have to buy it, we'll keep it as, like, a Airbnb. If that doesn't work, then I guess we'll just put it out as a rental.
- [31:43]
B
Do you have currently some places that.
- [31:45]
A
Are Airbnb right now? Actually, I don't. We. Not anymore.
- [31:49]
B
Would you recommend people do arbitrage where they don't own the property, but they still rent it out?
- [31:54]
A
You can. I mean, I just think that it's a little shaky right now, especially, you know, telling the person that you're going to arbitrage their home. You know, it could get kind of like, hey, I wanna. I'm gonna rent your house out. But it's not gonna be me renting it. I'm gonna just get guys in there. You know, it's gonna be like a little. It's a shaky conversation, you know, But I think giving your expectations up front, what you want to do, how to even benefit them, like, you know, letting them know, like, hey, if something happens, I'm still gonna make that payment. You know, whatever is gonna happen, I think. I think you can make it happen. What. What's been really popping right now is this thing called Pad Split, right, Where you're renting out each room. You ever heard of that?
- [32:36]
B
Yeah, I've heard of that.
- [32:37]
A
Yeah. I think right now that's. That's really popping because you're taking, like, these houses that are, you know, the not so best areas, and it just. It's not. It's basically another exit strategy. It doesn't make sense as a. As a flip, you know, to make your quick 15, 20 grand. But if you put it on Pad Split, I mean, you can. I Mean, you're making an extra, like, thousand bucks on what it would normally rent for because you're renting them out per room. You know, 200 bucks a week per room.
- [33:07]
B
And flipping obviously makes way more money than wholesaling.
- [33:12]
A
It does, but it does take a little longer at, you know, and I think that. I think just knowing that because there's a lot of things that come into play, right? Like flipping versus wholesaling.
- [33:23]
B
It, man, it's just real estate is such a nuanced and broad topic and subject that it's different strategies work for different people. And at the end of the day is that people just have to believe in something rather than trying so many different multiple, like, things, you know what I'm saying? Because people, People, somebody will be watching this thing and thinking, oh, let me try that, let me try that. Actually, let me try both. But rather than focusing on one. And would you say the first thing people should focus on, it obviously determines the amount of income that they have. If they relatively. Okay and they find then maybe perhaps flipping. But if there's like zero dollars, you don't need any money for wholesaling. That's where you'd recommend people start, obviously, right?
- [34:07]
A
100.
- [34:08]
B
Okay, yeah.
- [34:09]
A
100.
- [34:10]
B
I love that, man. What's been the most challenging part of being an entrepreneur.
- [34:18]
A
I think for me, is managing money a little bit better. Because at least when I first started, when you start making money and, you know, you're. You have to help. You have to hold yourself accountable to, like, take out taxes, take out, you know, business expenses. I think that's a lot. That's very key. Like, a lot of people, they get their first $10,000 from a wholesale deal, right? And they just go like crazy. They buy, like, whatever they want. They buy the shoes, the clothes, all that. But you gotta, like, you gotta take out 30 for taxes. You got to take another, you know, 20 for. To put it back into the business. You gotta, you know, bills, whatever, you know. So I think understanding, like, once you get a check, really what you're gonna net after that is key.
- [35:07]
B
It's. It's so difficult because as entrepreneurs, you go from a normal nine to five and you do a sales single, and then you realize, oh, my gosh, there's uncapped potential in what you're doing. And before you know it, it's a hundred thousand your bank account. And you're like, oh, that's a nice Tesla. Let's.
- [35:24]
A
Let's get.
- [35:27]
B
I did the joke because you and I both drive Tesla, so I was like, hey, let me crack that joke in.
- [35:31]
A
Yeah. We leave the 9 to 5 to work 80 hours a week.
- [35:34]
B
You know, it's crazy because that's the. I think that's the biggest misconception. You start thinking, I'm going to become an entrepreneur, but I'm like, man, trust me, my sleep has gone down because you constantly. Always doing something. Not only am I interviewing people, I'm also. You're constantly selling. You know what I'm saying? You're selling viewers to watch your stuff. You're selling guests to come on the podcast because it's going to benefit them, and they have to see the value and, like, the potential that you're doing. But then you're selling, invest to try and invest because of the growingness of the thing. So before you know it, you're like, gosh dang, like, maybe I should have just stuck to selling solar.
- [36:12]
A
Yeah, it's a lot of work, man. It's a lot of work.
- [36:14]
B
You start seeing everything going through. You start seeing investors coming, say, hey, listen, I want to have a meeting. Let's try and turn this thing into an event. Let's. All these different stuff. And you start realizing, listen, the. The light is at the end of the tunnel, but you have to be able to put your head down and continue going forward. And I think it's a very rewarding thing. And like, doing an interview with you from two years ago and now, you could just see the maturity in an authenticity or authenticity in terms of, like, listen, we gotta have to rebuild right now. But now the beauty about that is that we redesign new culture, and because of new cultures, that. That's the expectation of what's going to be able to be the standard in the company moving forward as well. So it's just a lot of learning things that we do as well. Is there any, like, setback that taught you so much about business or in life in general that happened while being in the entrepreneurial space?
- [37:09]
A
I think the most important thing is building a great team, you know, because one, when you're hiring somebody, you got to set that expectation up front, right? This is how we run around here. This is how. This is what you're going to do. This is how you're going to benefit us. This is how it's going to benefit you. I think having that proper foundation and really setting your ground when you're gonna hire somebody will be the best thing to do when in business, because those are. Those are the people that are gonna make, you know, your life easier as A business owner, right? You gotta make sure, like, everybody's doing their thing. There was a story, actually, I don't know if you've heard of it. It was like NASA, right? They were doing. They were like. They went to NASA and they went to go interview all these people, right? And it was when they were first going to the moon, right? And then go to the moon.
- [37:55]
B
I'm joking.
- [37:57]
A
We went to the moon. Yeah. So there was this. There was this guy, and they were interviewing him. He's like, yeah, we're gonna go to the moon. You know, we've been putting in all this work. We've been, you know, doing this, we've been doing that. And he's like. They're like, what's your role in. In NASA? And he's like, oh, I'm the janitor. And they're like, what are you talking about? You know, like, you're just a janitor. But he's like, well, if I don't do my job, then, you know, the place and the whole company, the bathrooms is going to be dirty. And if that's dirty, those guys are not going to be in the right mindset. And if they're not in the right mindset, we can't get to the moon. You know what I mean? So, like, understanding, like, what your role is and putting, like that. What's the word I'm looking for? The, like, the company culture. No, not the company culture.
- [38:42]
B
The.
- [38:47]
A
Him, I think caught myself on that one. Let's refresh. Let's restart that. Him understanding what his role is and him having that passion to, like, really be on this team, even though he's just the janitor role. And him understanding if he doesn't do his job, that means that the. The company is going to. You know, it's not going to be in his best form. Is what you want on your team. Like, people that are like, they know your mission, right? You got to set that mission. This is our mission, right? We got to get to the moon. You got to do your job.
- [39:23]
B
How do you get people to see that vision and understand that they can play a role while still getting the full perks and benefits to it? Because it's so hard when people. Because you see it in basketball, you and I are both basketball fans. You and I, both Lakers fans. What the hell happened?
- [39:40]
A
These playoffs, I don't want to get into that, man. It's been.
- [39:44]
B
But, like, my point is not everyone can be a LeBron. Not everyone can be a Luca. You can still play a role and I think one of my favorite teams was the bubble team because we had playoff Rondo. We had AD that was somewhat healthy. We had all these different people, like, you know, like Dwight Howard. We, you know, Joaquin Morris. We had, you know, we even had green. I forgot about green. You know, we. We had all these role players that did play such a significant role, but everything came collectively in order to try and get the championship ring. And sometimes it's about understanding and knowing what role you play without trying to play a role that is not your role, you know, but how do you convince somebody that, hey, listen, you can be a Rondo, you can really play significant role as our point God. But how do you get them to buy in the vision? From your experience.
- [40:43]
A
That could get kind of tough, right? Because not a lot of people. And as you get in business, you're gonna. You know, I say the hardest thing is always hiring people, right? Because you don't know if they're gonna fit into what you guys are going for, right? Just, you know, having your set vision, like, okay, this is what we're gonna do. Letting them know straight up, like, this is what. This is how you're gonna benefit into that mission. This is how you're gonna help us get there. And this is what it's going to require, right? And if they don't fit into that or it may not be for them, they're gonna. They're gonna just drag you down. So I think just letting them know upfront, like, this is what's required, this is what we want to do, and this is how you're gonna help us get there. I know that's pretty broad, but there's a lot of people that run a lot of businesses, you know, that's beautiful.
- [41:32]
B
I actually like that a lot. I like that it is. I was telling people my confidence level right now in attracting and getting people. I'm not ever worried about guests and getting people, because after I went to Miami, like, my DMS were blowing up for people back in Miami and Vegas stuff. I was telling people getting the right editors is far harder than getting a grand cardone. No, I'm saying exactly. Because now you've seen how my reels are. I'm so specific at, like, the. That. That impulsing thing, stories, putting things together. I don't just want a normal thing where I can go to an Optus clip, AI do this thing. It's like, yeah, it does these weird, like, it does great clips and stuff, but, man, when I get, like, my one, I'm like, Dude, you name me a price, brother. I'll even freaking like guy. I don't. And it's hard getting through and getting. Because it's trial and error. You get go through so many people to get the right editor and then you're like, buddy, God save the king, you are him. Like, I'm not losing you, you name a price kind of thing. And I think it's, it's hard when you start realizing that, that people that buy into your vision, it, it comes at a cost. But also you have to set the expectation and not lose your standard.
- [42:53]
A
Yeah. So yeah, you, you find out who you can trust and then you take them all the way.
- [42:58]
B
100. Nah, I love that, brother. I love that. There's one I also wanted to touch on. I like this one a lot. What's your opinion on using private or hard money lenders to scale flips and how do you build those relationships? I know we touched on that, but can you kind of like quickly slightly rehash, do you just use private or do you use both hard money as well?
- [43:19]
A
Well, yeah, we use private. I love private money. You know, if somebody wants to throw some money at me, we'll make it happen. We can make it work, you know.
- [43:26]
B
And who throws it? Is it. Which are investors in real estate or who, what are the. Who are those people?
- [43:31]
A
Well, it's usually investors who, you know, have other businesses, they have cash that they're sitting on and at least what's worked out for us. You're just letting them know, like, hey, you know, people, a lot of people have a lot of money sitting somewhere. You just got to find them, right? Letting them know, like, hey, you want to put that at work? This is what we got going on. You know, let's, let's do a flip, let's do a development, you know, let's. Let's buy a property. It's pretty simple. I think once you understand and really show them, you know, what you got going on, really being confident in what you're telling them, you know, you got to know what you're doing, they're going to trust you. You're not going to give money to somebody you don't trust. So you got to build that trust up front. Super transparent, right? Super transparent. I think that's the, the key. Transparency is key, right? Because you're letting them know up front, like, hey, this is what it is. Do you want to throw some money at me, you know, being super transparent with them?
- [44:25]
B
No. That's powerful, man. That's powerful. I Can't believe time is flying by so much. Arthur, you're just a stud, man. I wanted to know. I often like. I like asking guests this, especially, like, towards the end, because, you know, you've known it before. The code. Winning is obviously insights people need today to seize the world tomorrow all define winning differently, in your opinion, for Arthur, what does the term winning mean for you?
- [44:52]
A
Winning for me, I mean, I think it's. There's a lot of things that come into play, right? Obviously the money is good, right? But I think, like, for me, it's peace of mind, right? Peace of mind. Knowing that whatever you got going on, no matter, like the storm that you're going through, knowing that when you have, like a set goal, just knowing, like, hey, I'm gonna get through this to get there. I mean, it's. It's. It's very. It's a very peaceful, stressful, peaceful journey, you know? You know, I think what's helped me. What's helped me for sure is, you know, for sure is for me is building my faith. You know, that's been. That's my foundation for everything, right? That's the first thing I do. Helps me make every single decision, right? Sticking to my faith, even though I may not know what the outcome is. I got my faith. I got my faith that says everything's.
- [45:46]
B
Going to be all right.
- [45:48]
A
You know, that's been. That's number one for me.
- [45:51]
B
Powerful. Yeah. Love that man. Arthur, if you could let our viewers know where they could get a hold of you if they want to. Do you have a. A coaching course or not? You currently just like.
- [46:03]
A
No, not really coaching. You know, if you want to partner up with me on something, we can make it happen.
- [46:06]
B
Okay. If you can get off you. There's no way they could get a hold of you. If they want to try and jump in a deal with you, invest with you, maybe come and work and try and get the deals for you as well. Let our viewers know what's the best form of social media platform, website, how they get a hold of you, please.
- [46:23]
A
Yeah, my best way to get in contact with me is Instagram. You can follow me at. Arthur, the dispo A R T H U R the dispo Instagram. If you want to do a flip, let me know you want to develop. If you want to just sell me a wholesale deal and I could be your buyer, let me know the code.
- [46:40]
B
Winning insights you need today to seize the world tomorrow. Arthur. Kush, Karen, thank you very much, my brother.
- [46:45]
A
Thank you, brother.
- [46:46]
B
Appreciate you awesome.