The Titanium Vault hosted by RJ Bates III

How Top Investors are Changing Today to Prepare for Tomorrow presented by Next Level Mastermind

April 03, 2020 Next Level Mastermind Episode 118
The Titanium Vault hosted by RJ Bates III
How Top Investors are Changing Today to Prepare for Tomorrow presented by Next Level Mastermind
The Titanium Vault hosted by RJ Bates III
How Top Investors are Changing Today to Prepare for Tomorrow presented by Next Level Mastermind
Apr 03, 2020 Episode 118
Next Level Mastermind

Next Level Mastermind presents a round table discussion with Don Costa, Steve Trang, Alex Pardo, Ivo Draginov and Ryan Rotty on how the top investors are navigating the changes due to the COVID-19 pandemic. These are the types of Zoom calls Next Level Mastermind has on a weekly basis within the group. To learn more about Next Level Mastermind visit

Show Notes Transcript

Next Level Mastermind presents a round table discussion with Don Costa, Steve Trang, Alex Pardo, Ivo Draginov and Ryan Rotty on how the top investors are navigating the changes due to the COVID-19 pandemic. These are the types of Zoom calls Next Level Mastermind has on a weekly basis within the group. To learn more about Next Level Mastermind visit

spk_0:   0:00
Hey, guys, Welcome to the titanium vault. I'm your host, R. J. Bates. Today I wanted to bring you a special presentation of next level masterminds webinar that we get a couple of weeks ago about how top investors air changing today to prepare for tomorrow. This was right when the cove in 19 pandemic kind of was taking off and was becoming more of a reality of, ah, changing situation as a society. So on this call we have myself Cassie Diaz, Jaime Willie, Ryan Robson all from next level mastermind. And our special guests were Steve Train, Don Costa, Evo Dragon off Ryan, Roddy Garcia, Lazo and Alex Party. Hope you enjoy this and get some value and we'll talk to you guys next week. They

spk_2:   0:50
kick this off. Thank you, everybody first and foremost. I know right now there's a lot going on, like with family business, just everything that's going on in the world. And I really appreciate you guys all taking, you know, timeout to join this call and try to kind of bring our community together. You know, we I think all of us on this call for sure, abundant mindset before anything and I know the thing that screw leads by example on that I think everybody tries to follow their. But I really just appreciate this. And I know a lot of people in times like this still alone, especially entrepreneurs, you know, personally, on a personal level. My husband's going through a lot with his business, and so I just know that different things can affect us all differently. And I think for us to have, you know, different people in the group that have different types of businesses have been in business a year, 10 years, whatever that looks like. I just wanted to say thanks first and foremost for taking the time, and I really appreciate you all for being on this call. Thanks. Thank you for putting

spk_6:   1:58
this together.

spk_2:   1:59
Wonderful. Wonderful. Okay, so let's go and get started. What I want to do is in a perfect world, I would like this call just to be basically kind of a round table where we're all just sitting and talking shop. And all of us have been a part of a mastermind at some point or are have one. And you know, the best part of masterminds in my opinion is, you know, the dinner after or the breaks in between or when somebody's giving their presentation and we should all be listening. But there's 10 people circled in the hall, so kind of that shop talk is my absolute favorite. I could do it forever and hours and hours, So I really would just like us all to kind of, you know, shop talk, like we're sitting at the table having a beer and we are gonna take some questions. But, you know, if those questions lead into kind of our conversation, um, I know I listen to Tim brought yesterday, and he spoke for an hour and 1/2 just on this issue. So I'm assuming with eight of us as Panelists, there's gonna be a lot of information that we're gonna talk about. And if there's a question that comes up that we can kind of throw in the mix, that's awesome. But that's kind of how I would like this to go, and for you guys that are listening to this call. I hope that that will be helpful for you. I always when I first started, and even now I would love to just be that fly on the wall and listen to everybody. So I think that's what we're gonna try to do is just, you know, let you guys be the fly on the wall and listen to us have just a normal conversation like we would any time s. So that's kind of just a pretty face and give you kind of an expectation of what this call will be. We plan on it being an hour. I know a few of you guys have to jet, like, right after an hour and 1/2 or so, and that's fine if it ends up going a little bit longer and a few people want to stay on. Awesome. If you have to go, totally understand. But this recording will be available after as well, so I just kind of want to introduce everybody and just give, like a quick rundown and bio of who's on the call right now and kind of a little bit about them. So I'll go over that quickly, and then we can kind of get started. So I don't forget. I did write it down. So gonna look up and kind of, you know, let you guys know we have Ryan, Roddy Garcia Lazo, which I hope I pronounced that right. Um, he is kind of the contractor in the group, so he's the one that is literally doing, you know, all of the contracting stuff. He actually helps teach that. But he's basically a consultant and a trainer for the contracting part of our business, the flipping side with the systems and processes He has been in construction you guys since he was a teenager, basically. So he owns the rehab depot. I'm sure you've seen his classes or his training's or his YouTube videos. He's always putting out massive value and content. I know I personally have learned a lot from him, so we're really excited that he's on the call. Hey does that across the country, and he does personal consulting boot camps and has his academy trainings. We've also got Evo Dragon off on the call as well, even as good in real estate since 08 and he's done 3000 plus municipal construction contracts over 200 plus fixing blips 300 plus wholesales, and he's a co partner and 49 manufactured housing build out 64 unit melt multi family new construction and 24 new build single family houses and also the co owner of Batch with Jesse and any which are two of my favorites as well. And he also has a little angel in the oven on the waist. Or just putting that out there from could, maybe thoughts and prayers that everything is goes beautifully. Well, on that end of it, um, we also have Don Costa, who is husband, father, real estate investor. I think it's pretty cool that we've got done on because I know that John did go through the crash and on Lee. Did you go through the crash? But he literally lost it all. I've heard his story multiple times, and he's very vulnerable and honest about his story. And it was a rough moment for Dawn and to see someone lose everything and come back with flying colors. The way that he has, I think, is a huge benefit for all of us to get to see the flip side of that and from it. And I think he's gonna be able to bring us a lot of valuable information on how how that are inspired and what he's done differently. I don't believe that this is exactly like, Oh, a I don't think anybody knows anything for sure. We can speculate we can have our opinions, but I don't think this is an o A real estate crashed. It's very different. I don't think anybody can say I've been through this exactly, but he's been through something similar, so we really good to hear from dawn on that level. He also hosts the flat top podcast, which you guys can see. He's got the cool microphone and the talking, the logo on all of that fun stuff. So that's a great podcast on. I want a first that I ever listen to what was dawns on, but he also has a mastermind with old inner. Start slowly, and you guys can check that out to at a bee in this room dot com. We also have steep train. Who is the founder of the realist disruptors. Move. Um, some personal impression about Steve that you guys must know is he loves pugs. I'm just saying, like so, No, Steve luck, Bugs. Just getting the understudy does it. He has a really cool podcast. Is the real estate disruptors. I was fortunate to of eye in Phoenix and be on that podcast what Steve is doing with the real estate disruptors and the Phoenix crew. I think if we're all very omen, it's that we all indeed had, I mean, the Willy, that they all come together and help one another out. There is competition. It is all collaboration. I think we can learn something from what Steve created. If everyone in Steve's office, he goes in there, Jesse Brent Daniels, quite a few people and all very good friends of mine. So the podcast, Thoreau said Disruptors has over 10,000 followers, and New Member also created offer Fast Hopes Up, which helps tellers by putting fires in front of them quickly. You know, when you're a new wholesaler to find buyers, So he tried to kind of make that, you know, accessible and easier to wholesalers coming into the mix. Um, he has cells training, and he trained some of the top wholesalers in the country. He has a legacy that he wants to create 100 million years. I don't know if you guys, it seems he's giving away these little I think they're clear glass like millionaire number. I don't know. I think he's getting away three or four at this point. But what a cool so far. Yeah. So I think that's a super cool like legacy. To be able to say that you you were a part of creating, you know, 100 million years, and that's his goal. And have no doubt that, you know, he will obtain that. And he also has a burger is Stunning Homes Realty, which has over 100 agents and about 1% of the market share. So basically, one in every 145 homes that sold is sold by a stunning comes realty, which was pretty freaking cool in my opinion. Um, then we've got Alex Cardo. So family man first, he's married to Natalie and has two beautiful girls, Arianna and Felicia. Did I say that right. Alex Rose last year. A lassie A. Okay, well, I'm trying here with my Twingo last year, Okay? Perfect. He worked in corporate America G capital for a few years before starting his entrepreneur. We'll journey in 05 and he has closed somewhere north of 600 kills his main bitches wholesaling in the South Florida market and building a free and clear rental portfolio in Cleveland, Ohio. He is the host of the Flip Empire Show, which is another podcast. I also Listen to You, which was launched in 2016. He's got almost 400 episodes and the co founder and coach with Thin, which was a master riding coaching program for entrepreneurs who want a better life in business. So kind of that life in business balance. And he is the co founder of Holiday Mastermind, which is really cool. Um, 100% of the net proceeds go to charity. So I love when you know, I see us giving back and things like that. So all really cool stuff. So that's that's the Panelists today if you already knew them or didn't know them. I just kind of want to give you a brief background of you know who's talking as you can kind of understand, uh, what they've been through. And these are boomers, these air doers. These are people that are actually doing this business day to day and have learned so much and have so much to offer for us. If you're just now joining or if you didn't catch something I said earlier, I will have this recorded for everybody to go back. And then I've got all of your e mails from when you register all send a follow up email and just kind of give you the Panelist and a way to contact them, their social media, stuff like that, in case you wanna subscribe to their podcast or follow them or whatever, that would be awesome. So, yeah, sorry, I just wanted

spk_0:   11:06
to add. And I'm sure I speak for all the Panelists. Really, really appreciate. You Rock R J the entire next level family for putting this together now more than ever. And I'm sure this there's so much uncertainty and there's a lot of fear out there I truly believe we need to be leading for not fear. So I appreciate you guys stepping up his leaders, putting this together and and for everything you guys were doing as an online masterminding. It's incredible to see how much value and how much activities in the Facebook group. So I really appreciate you guys had it. Sure, everyone else feels the same way.

spk_4:   11:38
I agree. 100%.

spk_2:   11:40
Thank you I appreciate it. We're trying to do kind of that a disrupting movement and trying to take masterminds or great. I've been in three, I love them all, and I've got the best connections from all of the masterminds. But I think, especially now, as we can see having something online, no matter what's going on in the world or your financial status or your family or you're having a baby or whatever it is. And you may not be able to get to that mastermind like we can do it any day. I was on ours at two o'clock on a M, two in the morning, like just looking at something, just trying to get ideas about how I can pivot and change. And so thank you for saying Alex, it really is a passion of mine as a mom, to be quite honest with you. I was traveling a lot speaking, going to mastermind events and then, you know, my daughter's like, Well, when are we traveling well between my husband traveling and me traveling? And it's like, well, and it wasn't fair to her to put that on the back burner, but yet I desire and I think All entrepreneurs, you know, we're strong and we're independent, but we want to feel alone, especially at times like this. We want to bounce things off one another. So that is the platform we're trying to create. And also that work like balance. Because my family is so important to me. It's everything. It's the reason I do this. So yeah, Thank you so much. Um okay, so go ahead and getting started here. I don't really want to throw anything out. A ce faras like an exact topic. I don't know if anybody wants to kind of kick it off with what their thoughts are with what's going on right now and maybe what you're doing. Each of you in your own businesses too, you know, kind of adapt with the unknown because it is the unknown. And it's changing day by day. At this point, I would love to just kind of kick it off and spark, you know, kind of going down the list and see what you guys were doing. Thio adapt. And how you're communicating that as well to your team. Because I think communication is so key right now with everybody fearful or unknown, and I think that that's kind of top of mind and how you're communicating in what you might be doing. Um, Ryan, you happen to be on Roddy? You happen to be on camera? So you want to kick it off for us? Yeah,

spk_1:   13:46
The problem, I suppose being a camera,

spk_2:   13:48
I don't know I c e o

spk_1:   13:53
right now for us being the contract instead of things being of training the consulting side of things. I've been fielding calls nonstop since, I would say a week ago, the first president. And it's the fears, the anxiety that oughta fix and flip. What am I gonna do every half open and you know, it's the same. I guess for me, it's the same statement that I tell everybody that you were really good at rehabbing. That can happen to be very good now. So, you know, you really gotta get leave in this fact. You have to get construction, Lee being a company and being Lena's a company with your employees and costs and profits. There's so many things in their instructions. Well, that's no different for us. You know, we're looking at possibly reentering the construction market on a heavy dose, you know a way. Don't nine for us. We worked without the hedge funds we were doing. Probably 20 flips a month for every hedge fund at the time. It comes from waypoint. All those and we realized early on that there model was good. But at the end of day, they're just buying properties as they can, and that's gonna have probably more likely yet. So it's gonna be a nice rental market again, so you can have smaller construction projects that are gonna have to go on. So at some level, you might you might want to start looking at the hotel aspect. How can I? Bia's lean on my rehab is possible. You know you don't want to go after these big ones. In my opinion, you're not gonna have enough contractor to do so. You know, construction is gonna get impacted. But construction has been notoriously slow in catching up the economic problems. So, for example, where the big things that I've been going live on and sharing with invest across the country every single day is that technology now is going

spk_3:   15:27
to be

spk_1:   15:27
your friend because as of right now, 62% of all contracts still use manual ways of transferring Adam from the office of the field. Well, if you're an investor company that does heavy rehabs on by heavy, it could be anything to say. A few consistent doing rehab on a monthly basis. Looking at the technology you have, it's going virtual because these individuals are gonna get sick, right? And they're gonna probably quarantine and cities and municipalities gonna close down, which means inspections are gonna shut out for a while. So there's gonna be different impacts that are gonna happen to the industry and directly on dhe. That's what that virtual reality really comes in, being able to have technology that speaks to you from the office to the field and vice versa. So it has it impacted my business, per se. Not yet. It's kind of helping us rerouted direction. We want to go, of course. You know, we saw the opportunity to help investors years ago when contracts were completely taken advantage of everybody across the board. We still are. But the reality is we may have to get back in from a construction management point of view we're working with. They might even be on this call overrun with invested across the country, and we're assuming control of their construction divisions. Virtually ensure that I can monitor what's happening because I have the technology for that so I could watch. When they're they're communicating with your field. I could see what their project managers are doing. I could jump in and say Our That's not right. Let's fix that review that revise that the numbers are inaccurate. So there's a lot of things we have to do on our end to try to jump back in to the actual work versus kind of mediating in saying, If I were you pay attention. This and this one plus one is 23 s. Oh, yeah, so we're making our adjustments as well, but we're not as concerned on our end. We're just trying to make sure I'm getting back in. Are we gonna kind of stay back out? But I think it's gonna be 50 50 for us moving forward.

spk_0:   17:15
So, Jamie, I would love to jump in and kind of share a little bit of what we're doing. Um, obviously, we're newer into this business in comparison to some of the people on the panel. We've been doing this full times as January 1 of 2015 and we've been blessed to be able to accumulate quite a bit of rental properties had quite a bit of inventory is far splits going on. But we started off asshole sailing, and Cassie and I actually made the decision several months ago that we wanted to cut bait and and sell all of our inventory to liquidate as much as possible. I was trying to be ahead of the curve from some of the masterminds that I attended, and I'm gonna go all the way back to the 1st 1 that I ever attended, which was Don Costas back in 2017. Um, I was I was blessed to sit in a room with about 17 other people in Fresno, California, and and I remember my biggest question dim was is Hey, I'm ignorant to what a recession would look like. Like I'm blessed to come in and one of the hottest real estate markets ever, and and I'm fearful of the fact that I become so arrogant that I don't pay attention to what could happen with the exchange. So I asked people like Don and other people in that room that have gone through the recession of 08 No. Nine of what that looked like. And I remember Don told me he wish he was more liquid when that it hit. That was his biggest concern. And so that's the decision that we made several months ago. We started selling off rental properties to try to have as much cash as possible. Um, we're even ramping that up now. Any flips that we have on the market, we're doing price drops where we know that the cops are still saying that they could sell. But I don't want anything sitting on the market trying to get top of market value. So I've seen several comments on here already about Hey, the market's still moving and it's still flowing, and I agree with that. We had several properties that we listed last week that immediately got full price offers and the first day that they went on the market. So for us personally, that's a decision that we've made is trying to become a CZ liquid as possible because this is unprecedented times. We don't really know how this is gonna impact us in the long haul. There's conversations about quarantines. There's talk about shutting everything down for 2368 weeks. Um, we don't know how that's gonna play out, So those were just the decisions that we've made. It tried to become a CZ liquid as possible and then just focus on what we originally were great at, which is wholesaling. So that's kind of decision that we made one other question. That's all was. Are you making any changes to your staff? No. We have not changed any hours or paying anybody or anything like that status quo. That's really the only major change that we've made. Minus. We're not going on appointments anymore. Everything is virtual. Yeah, go ahead, done

spk_3:   20:20
your good Good.

spk_0:   20:22
You know, from my perspective, I think you guys all bring up really, really good points. One of the things that I'm really keeping top of mind is we have to keep the lines of communication extremely open. If anything, I think now is the time to over communicate. When I said over communicate, I'm talking about communicating with your staff with your centres, your buyers, your lenders, the title company, any vendor, anybody who's a key partner in your business. You need to over communicate, get a temperature on where they're at, how this is impacting their business. I think I've always been somebody who has led with kind of kind of lead with my heart, right. I don't hard to close our heart close, you know? So when I talk to people, I'm genuine. See how I can add value, how I could be a service to their business. Andi, I think now is the time to over communicate. There's a lot of fear out there. So with my staff, when I communicate with them, I want them to borrow my confidence. I want them to borrow my faith, and I'm very approach within that. Look, I don't have all the answers. I don't know what this is gonna do to our know what things look like. I'm doing my best to stay out in front of it, which is well, be a part of this. But the truth is, is that I don't want to I want to validate how they fear how they feel. You know, in a lot of people are scared out there. Um I think Ryan brings up a really good point about liquidity and getting mean. You know, one of the exercises that I recently went through is I went through my P and L and kind of the profit first exercise I put a P next to any expand is directly tied to the bottom line. I put in our next to any expense that can be replaced with a cheaper alternative, and I put a you next to anything that can be just completely removed or it's unnecessary on guy shaved several $1000 in monthly expenses, so get mean not just on the business side. On the personal side, we all have software subscriptions and different things like that that we're like One day I'll get to it. Now is the time t even get rid of that stuff? And then Mick, would you know if you're well capitalized. And if you've been positioning yourself in your business for this moment, communicate with wholesalers out there, communicate with people, let them know you're well capitalized and that you can be a partner for them if they're not able to take a deal, too. If you're not liquid, maybe now is the time to start reaching out to potential joint venture marketing partners, potentially even looking at lines of credits. You got properties heat in a line of credit. There's business unsecured business lines of credit out there. So try to get your hands on some capital because this uncertain economy having cash is king. You know, they always say, cash is king. Now, having cash is really came. Yeah,

spk_3:   22:51
2000 2008. That's when I want to throw out on their, you know, because we're talking about a lot of things that are gonna be different from 2008. This so 2008 I was in the market and I was arrogant. I share that story. I thought it was never gonna end. And I see a lot of that conversation right now about now. The market's great and everything in 2008 the differences were, um you know, that we had a lot of really loose lending, like people were utilizing the equity and properties they owned to fund their lifestyle and there was some fraud going on there. People owning multiple properties, nobody in them. There was a lot of really crazy stuff going on, and when when that stopped, it all fell apart. It hurt the economy, right? It hurts economy in a big way. But but the difference is is business is still were operating. Maybe not at the same capacity. Maybe not with the same income. I had opened a restaurant, a nightclub right at the beginning in 2008 and I had enough business to keep myself bleeding. But a lot. Okay, right now in California, we're in shelter in place in a lot of counties by city shelter in place bars, restaurants, nightclubs, air closed In Vegas, casinos are closed. That's an epic economic impact that hasn't filtered out yet. That is unprecedented, unlike anything we saw in 2008. And so I'm of the belief that you go through like Alex said. You cut all unnecessary expenses, you get lead. I've actually went down to necessary personnel. I've dropped a few people that were not necessary because right now everything looks good. But it's like musical chairs, and when when it stops, you don't want to be the one left without a chair, and that's kind of that's what happened in 2008. I thought it was never gonna end. And then I didn't act accordingly, not act quickly. And then when it stopped, they didn't have a chair. And so in this bigger situation, I'm preparing for the worst and hoping for the best. I'm making every decision out of absolute necessity of what is important to my business and operation in home and not making it from fear. I'm not making it from hope. I'm making it from fact. And I am just handling things as they come along day today, on the information that comes along day today. I'm not betting the market, You know, I'm not listeningto all the noise and the news. I'm not listen to what people are telling about how great their market is. I know in my hometown everything has stopped, and that's gonna have an economic impact at some point.

spk_4:   25:13
Yeah, So everyone go

spk_2:   25:16
No, go ahead. Evil. Thank you

spk_4:   25:17
from my perspective, you know, like so I got into the side of the real estate market rules starting to understand in 2008 right when the market election crashing. So I bought my first house and I want to say, like February of 2008 Or maybe it was April 2008 and, you know, just kind of riding the down Wave's on. Fortunately for me, Way made my fix it with the house and made money. So I got to see a lot of these a lot of like the panic that was happening as I was kind of getting getting used to real estate and understand the market. Um, and you know, like I was personally are buying for our house at 30 $40,000 selling it for 50,000 which is obviously not possible at the moment. But I do see, you know, like we were on a covert like Steve actually was two days ago, with the different with a different group of people and a lot of the consensus. You know, Uh, but general consensus of the people says, Hey, this this looks more like 4001 market crash in terms instead of like a 2008. But again, like I think, everybody else saying like we just don't know. I just literally open my phone 10 minutes ago and just saw an article that the government's blinking. This could last 18 months. My understanding of two days ago or yesterday was that this is I was thinking this may last anywhere from 4 to 6 months. It could be longer, like again, we don't know. But again, what was what R. J saying and Don and Alex just get us. Lena's possible. We've been trying to get as clean as possible in our wholesale company. We started with six acquisitions in 2000 or last year and June. We had six acquisitions right down to it. We went down to one at position on now where we actually have two acquisitions at the moment. So we are a Xena's possible, and we've just been very conscious of are reacting a lot of expenses an hour ago, an erection last week and he started going through all of our bank statements is hate this software. What is the software that we need? This same with Alex was saying, Just get us Venus possible. Are we cancelling something that we're not eating? Maybe something got forgotten. We're getting charged for it again. It's old place down into your bottom line. And are you gonna be profitable or not? Because this may look, we're doing is saying you're preparing for the best. But, you know, you could It could be that you're preparing for the worst and expecting the best. So, you know, I talked to one of the guys from Vegas came here yesterday. Casey Ryan. He's, like, so, like, with his he was about he over about a lot of houses on. Luckily for him, he has, like, the funds to sustain, you know, probably two years of market crash eventually. But, you know, it just depends where you got when you got cut on this cycle because nobody was expecting this. And at the end of the day, you know, even our thinking is we have right now 12 properties that were in the process of remodeling and fixing a flipping. So our thought was, Hey, we want to kind of get out of the rest of these properties before June, July time and obviously before the election season. But again, we just don't know what we don't know. But again, leaning staying strangling is as clean as possible. Um, is obviously gonna play a huge role in this market cycle. Me personally, I feel again this is just my opinion. I always think the market is going to take a huge, huge, like a short term loss because nobody's working. I mean, things were closed, you know, the economy and it's unprecedented, like Don saying It's just we just don't know what the actual impact is going to be in the whole world shutting down. So for the short term, in the next six months, I am expecting the market entry 2030% maybe not in terms of like actual prices for the houses. But I mean, people are not gonna be buying like they were Steven, maybe correctly from wrong. I'm not sure who said it actually on Tuesday, but in 2001 housing prices went up like 4.8%. But people for a certain period of time actually stopped buying houses, but the actual values went up. Could this be the case now? Possibly because obviously there's a housing shortage. Currently, with a new construction obviously being slow again, I I personally don't know either, but I am preparing for at least a 4 to 6 months down.

spk_6:   29:35
Yeah, I think

spk_5:   29:36
just a I think we're very lucky to be in the Phoenix market, right. I think in the Phoenix market because a lot of people are moving here. Uh, I'm not as worried. The Phoenix market as you know, the rest of the country camera Who? Iwas. I was in Ohio and you say it like everything closing those 100 people that

spk_4:   29:53

spk_5:   29:53
laid off. You know, over here in Phoenix, lots of people are moving here, so I'm not really worried about the prices here. I could be overly optimistic. You know, I'm not sure that the stock market is going directly impact our our housing prices only because people still need a place to live. You know, that's the one thing that's always been true. That's the reason why we're all over the state that people always need a place to live. Whether they're they're buying or they're renting, they're gonna have to have a place to live, right? So I'm not sure that we're gonna necessarily see a translation, at least in the Phoenix market, Uh, of the economic impact affected that the home prices again, that could be overly optimistic. I think one of the things that I'm doing, a lot of it is I'm doing a lot of outreach to some of the leaders of the reverend, but also, you know, I've got the number one

spk_6:   30:45
loan officer

spk_5:   30:46
in Arizona, right? I got to talk to her on a regular basis. The owner of the second largest company and talked to her. Hey, what do you mean, What are you hearing? Um, it just hanging out with Jemele or college a mil? We're not hanging out at the College of Milk, right? Biggest wholesaler in Phoenix. Hey, what do you mean, what do you feel? Um, and I think that this is what I've been able to do. Fortunately just for myself, right is just get connected with all the top players. So I feel like I got a pretty good bead on what's going on and what's impacting anybody and everybody. That's what I would encourage everybody. Right now, it's just gather some information, right? I think jumping on a call like this is really helpful connecting with other people at your production level and find out what's happening in their world is really important more today than normally. So just being connected, being well informed and well informed and not watching the news, you know, monitor the news even I in the news. But for the most part, they still get paid by selling here. Right? Uh, so I think that's being well informed in your community. Keeping I You know, I'm keeping an eye on the county reporter doctors every day. I'm just I'm just checking case the recorders open and be next answer. So yet I think that's really big. So it's all the bad, doesn't shut down. We should be okay in our market. And I want to address what, Alex, uh, Dani were mentioned earlier about being lean. So, uh, since I started actively hold something right, hold 2012. In fact, I talked Thio running Robson a few times about you know, what we were doing back in the day, but actively full time wholesaling between 18 and my mission or my purpose from beginning with the run. Because as an agent, you know, I had the glory days getting the 12 for being one of the top producers. I think, uh, remember, what year was number 38 the entire Phoenix market as faras Realtor production with this in the 100,000 year and all that was really cool that was great for the ego but didn't do squat for the bank account. And so once you started wholesaling from from day one, you ran a very profit first business model. Ran it, Lee. So one thing I could brag about, we don't make the most money money, But we kept 45% of every dollar that every dollar a men we get 45. That's something that's been purposeful. And I'm like this when someone like what you gonna cut or looking at? I don't know what there is because we've been cutting from day one.

spk_4:   33:22
Hey, Steve, do you

spk_0:   33:23
mind if I, uh, jumping on that question for you? So you and I both know I'm not a realtor, but Iona brokerages that does 30 listings a month. You have a big brokerage in town. You know, I talk. You know Brian Cunningham, my partner in that? You know, I talked to him on a daily basis. What are you seeing and what's really interesting in our market? And I'm curious if you see the same thing. Anything under 500,000 is still flying off the freakin shelf right now. And any he said, anything under 2 50 is like a cage fight like there's like five people fighting for the house right now. So

spk_5:   33:54
we offer over asking price waiting appraisal? Absolutely.

spk_0:   33:58
I'm very cautious on this call not to tell people. Hey, everything's going well. Like I still think in April everything still might shut down, and everything might stop right now preparing for that. But are you seeing the same thing that we're seeing that some of these lower and fires aren't taking it seriously? They're

spk_4:   34:12
still buying houses.

spk_5:   34:14
So I have a theory on this.

spk_6:   34:16
Um, you

spk_5:   34:17
know, I think that Arizona is although we've become a purple state, were still pretty much they're very concerned conservative leaning state. And I think that everyone suspicious right now is based on what they're consuming. And I think because if you're because we have a Republican president, right, this is true that matter. Which Democrat? President, Republican President? Because the Republican president all the conservative news that everything's gonna be okay and all the liberal news say everything. We're all gonna die in 30 days. And if it was a different president, right, It was a Democrat. President, MSNBC, You're saying everything's fine and Fox is like, Oh, my God, we're all gonna die like that's just the way you know, the media makes money off here. And so I think that right now, with us being a writer, Purple State But what we're consuming is that everything's gonna be okay, right or wrong. That's what we're consuming. And I think that there was more of less concern in our market due to that. I just you remember. I think so. Don and I are different mastermind and don invention a couple times like it doesn't matter what we what we think what? They heard things right? And so what? The herd right now, everything confined, at least in Arizona. I can't say we're gonna be firing. I could be fine, but I'm more optimistic. I think that the news is in general so But I think that's the reason why in Arizona were not now that being said, I am here. There are more cancellations during inspection period than normal. So even though they're crazy, uh, free for all you know, it's a cage fight, it's WrestleMania, uh, on the operation, I think that people are being more, uh, challenging or admired our left committed after they got it. Everything properly they might be Captain Maurine, the section that something.

spk_0:   36:03
Something I hadn't thought until just now I'm refining. Part of my strategy is to refinance and get lower interest rates and some of my loans. And my lender is telling me that they're being quoted 60 days to get alone done. It

spk_1:   36:14
used to be 30. It's a buyers or I need more time as it is now because these letters are so busy with finances. Are you seeing

spk_5:   36:20
any of that when you talk to your lenders? Oh, yeah. We work in that last week, right? I mean, the interest rates get so freakin low that everyone's refinancing. And so this happened in this sexually non office meeting last week was guys be patient because lenders and tile are both being slammed. So I only had a company right, and there were lots of complaints. I think they're taking too long everyone that everyone feels overwhelmed and the answer was, they are overwhelmed. Amount of refinancing is just bonkers. And in fact, I wouldn't call this collusion, but it sounds a lot like collusion. Ah, lot of the lenders across the board raises interest rates because they were too busy. All right, You know, you talk about your too busy raising fees, raising prices, lenders as a whole all racer prices to reduce the number refinance that they're working with.

spk_1:   37:14
Business rates went up this week for sure.

spk_6:   37:19
Exclusion. They just kind of agreed behind the scenes to raise the race

spk_0:   37:24
room quick. I wanted throw in there that, you know, you're talking about what's happening in the Phoenix market. Um, we've seen similar activities in other markets, like Hawaii in Alaska, where properties air still flying off the market in those affordable price ranges. So obviously Hawaii is a much higher price range. We've had 23 properties in the past week that are ranging from 500 to $700,000 go full price. They're still waiting to close in 30 days. And what we're seeing is is that yes, the lenders air backed up, But also if if the realtors air pushing and you're pushing along to try to schedule and you haven't inspector, that's in place and you haven't appraiser that you regularly use and a lender that you regularly use these air still being able to be streamlining close within those 30 to 40 days that are pretty typical on dhe. That's all happened in the past week and 1/2 to 2 weeks. We're still on track for those. Um, so my reason why bring that up is Hawaii is ah, very liberal state on. And we're still seeing that that affordable price range is still flying off the market. And I see that across the board. Hawaii, Alaska, Here in Texas, other markets that we're in, we're still being able to move ever all of our inventory very easily. So I'm kinda a little bit on the optimistic side with you in that regard. I don't think we're feeling any effects yet. And I think, you know, we were even receiving offers where people were saying to our realtor, we need you to make a decision today because we need to get this loan done for this interest rate right now. If you don't want to accept our offer today, we're gonna go off for another house. So biters are now wanting to capitalize on these low interest rates that were there. So just interesting how that's That's kind of playing out in our marketplace right now. Well, well, they're going to sum that up. Two dawns for respect. You know what Don said is this market This crash is different than anything evil address that, too. What's different about Theo? A crash is it was built on a faulty foundation and, you know, without getting too biblical for you, right? Our economy is built on a very strong foundation right now. And ask, Steve said, There's this huge shortage and inventory in Phoenix and probably across the nation. That's what's different about this three potential recession, and I don't know where it's gonna go. What what is? Everyone stops on the idea that we have the strongest economy ever, and we're gonna take this huge hit for a couple of months. And what happens on the has to come out of that,

spk_3:   39:54
you know, let me sew into Indian like 1989 2000 right in that ballpark is when the tech bubble crushed, crashed. You know, it popped and everybody lost much money in tech stock, right, and and they dropped interest rates to historically low levels then, and it really fueled the housing market. And that's essentially what they tried to do here, right? I mean, they went out in front of it and dropped interest rates And to try to fuel the housing market. The issue that the reason why I'm probably overbearing people call me crazy. I'm not saying the sky is falling. I think this is a big nothing, right? I'm don't fear the virus. I'm business as usual personally. But again, it's the herd mentality. What is her doing? And where this is unprecedented is the global impact monetarily, right? You know, we have casinos closed, which you know, effects. You know, workers and servers and and everybody down to the street level. And where is that? How are those people going to be able to buy food or pay the utility bill? Or, you know, that kind of thing? We talk about the Fed doing bailouts, but the last time around, the feds to bail out how much of that actually trickled down to the street level, right? Not much of it. So most of that was on institutional side. So that's where my hesitation is, is what's gonna happen in 3 to 6 months from now on. That economic impact really washes out across the world. So right now the market is hot. My point is absolutely take advantage of liquidating and moving inventory and anything that you get in and out of row fast. Do that make your money. But don't get into a long term project. Don't bet that's gonna stay that way forever. Get in, get your money, get out, liquidate any long term project you're in now while the market's hot and just prepare for the worst. And if that continues and when I'm wrong about that and it continues, then hey, at least you're ready to take advantage of it continuing. If it drops, you're ready. Take advantage of a dropping. I'm worried about the person who thinks the market's hot and Phoenix is hot in Texas. It's hot, and I'm gonna buy a project that I would be in six months, nine months or a year. You know, I'm not a very good Flipper says, but I'm gonna still do this thing. And then suddenly the bottom falls out of this because of the economic impact, and they're stuck, and that's that's the point I want to make you like. I don't want to be like the sky's falling today. Take advantage of it today. Just make sure you're in and out. And that's the point. I

spk_0:   42:07
want it done. I

spk_6:   42:08
think that on that point, I think that's a very valid point as Faras What? We're standing still. While I do believe we're gonna be fine on the grill stateside at the end of the day as a flipper, you have to take into account that when you are ready oh, to get the house ready. Even the prices haven't dropped because taking extra 2345 months to actually sell at the price you were expecting as a lender or the flipper you're so you're holding costs have gone up. On top of that, what I'm hearing is there some people not a lot of some people pulling out of private money lending as they're pulling out of private money, lending the liquidity as a flipper? It has gone down, and if that's happening, then we're gonna start hearing about paying more points or would be higher interest rate to borrow. You have to take that into account so before where you could pay as a clipper, you know, 78% minus repairs or whatever. It's got to be 74 75 the whole cellar. Now, when you're used to getting what you're tying it up for 77 to 35 now you got to say, Well, maybe I got tired of 65 in order to make this work. So this is like you're saying, you know, the because we don't know what could happen on the retail side, the flipper is gonna have to be more cautious. Or at least there their margins, which you're already thing because of the whole sellers is going to get dinner. They don't modify our adjust. And because of that, we also have to actively start buying a deeper if we want to be a business as a whole cellar in your future.

spk_0:   43:37
I completely guys, I had our weekly huddle this morning and we were talking about tightening up our by box. Let's let's adjust our by Bach suspect neighborhoods because and Roddy and I were talking about this on a podcast earlier this week, I chain is gonna get affected fix and flippers and a lot of the rehab er's. And so you know, we had a had a coaching call yesterday was someone who was gonna get in a d was probably gonna take them 3 to 6 months Dream Lee eggs into getting to long term projects in this climate. Unless you have somebody like rotting on your side, that can kind of guide you through that. But, you know, guys were in the business. You all know this. We're in a business that can erase a lot of mistakes, and we can still make money. We're probably heading into a time now where that's not gonna be the case where this is going to separate business owners and entrepreneurs from, like, people that are going to seminars and learning how to do this. And they can still make money. But But again, where we may not have the favor of the market on our side, you're gonna have to know what you're doing. And you should probably tighten up your by box. And if you're going to get into rehabs again, I'll defer to Roddy. Make sure you know what you're doing and make sure it's not a project that can get extended. I mean, I think is a really good strategy. Now, I wouldn't get fearful of moving forward and acquiring properties, but considered tightening up your by box

spk_1:   44:55
you to piggyback off that realities. Guys, people that are on this panel, people that are listening, they want your positivity right way. All have no answers. That's a fact. And everybody who knows me knows I get to the point. Reality is we're all entrepreneurs of the other day. Ingenuity and creativity is gonna get us all through it. When it's all said, Remember, go back to the very first day you started whatever you did in this business, because that's your skill set whatever. Itwas when the start off as a whole cellar became his massive 300 a year producer kind of thing. Whatever. Go back to that because you can always fall back on that right? I might go back to contract. Why? Because it's there for me. It's on the shop, but he's I might need it. But the truth is, it is a fact planned for it. There's no speculation here. Planned for it. If you look at your liquidity and you have only four months of it, didn't plan for that. All right, if you look at it, have you have two years. God bless you. Planned for that Which, seriously, Maines, look at your business model. If you unfortunately have to let people go, then that's what you have to do, right? It's a fact. So I would actually start thinking like I'm doing. I'm listening. All this great information. I don't think of myself, man, because it's taking me back to the day when I first started doing this and I thought to myself, How can I get out of doing this? And now I'm gonna go back. That's the irony of life, right? That's what you do. But I'm fully prepared to go be that gc again. So I want to Hell, no. But I have to Probably right. And it's okay because I have the skills that God bless people. The idea of me started with that thing is gonna help every single person, uh, ranger changing things were changing again. Plan for it, man. All right. I'm like, I'm the voice of reason. Just plan for

spk_0:   46:31
So Robbie, I I love that because you're what you're talking about is going back to the beginning and the basics. And using those skill sets, I saw a question from Jonathan Mark and I want a kind of transition to that a little bit because he's asking about Do any of us plan on acquiring more property subject to? And I think this has been a hot topic for, like, the past 12 18 months, where it's like as soon as there's some kind of crash recession, correction, whatever you want to call it, it's always been Hey, there's gonna be subject to and creative financing, right? What has ever by his thoughts about going that creative financing route or taking down property subject to is that even something that you're willing to take the risk on, right?

spk_3:   47:18
I want to jump in and just say, you know, buying right right now is is important. So, you know, I think I need any deals you're doing. As long as you're buying, right. If you're in them, where you can get in and out of them and a fairly reasonable amount of time. If you're buying at a deep enough discount where there is a dip in the market, you're okay, then I'm comfortable with that in my business. You know, I don't want to be again. The sky is falling. That's not the message I want to get across here. Prepare for the worst hope for the best. So change your buying patterns, you know, make sure not in long term projects where you could get caught with your pants down. Just take the fact that something could happen. Seriously, be real about it and then run your business smart, not from fear and not from optimism, but smart. And that's that's really the point. So we're still buying. We still I still have my core team working. We're still picking up property. We're still working the whole sell properties, and, you know, we're still moving forward. We're just changing how we're doing business. We're going through. I'm cutting the fat, we're going through cutting what's not needed. And we're changing how are operating and preparing to take advantage of whatever happens. Because when this thing shakes out one way or the other, that's going to be opportunity. It just when is it gonna happen? And we're preparing for that in big ways.

spk_2:   48:25
Yeah, I agree with everything you know that's been said, and our team is the least shut down, and this is probably four months ago decided that we felt something was coming if it's a year from now or whatever that looked like. But we actually leaned out then the way that I would probably lean out now if I didn't have then So I mean, we looked at every subscription that we had. We looked it, you know, every expense. We looked at every person. I think a good thing we were talking about cutting personnel. I personally have an issue with letting people sometimes stay a little bit longer than they should. I've got much better with that over the years. But this would be a really good time that if you were kind of on the fence or you've been really trying to help this person you know through and you've given him all the tools that you can. This would be a really good time to say Hey, you know, with everything that's going on and cut ties because it's gonna help both of you In the end, if they're still not cutting it at this point and you know, you kind of need to let him go, I think that's something that's really important. In about four months ago, we did that. There was a couple of people that, you know, I kept trying to, you know, bring up to the level they needed to be, and we had to let him go. And I'm so thankful that we did now are been because I would have now anyhow, because we definitely did all of that leaning out then to prepare for what could come, even though it could have been a long way away. So fortunately, our company was already, um, set for what's going on right now. I've got, ah, new development that may or may not, you know, go down as quickly as I was thinking. But I definitely wanted to lean out just so we could be very profitable. And I think something that's really, really important. What do you guys mentioned earlier? Where was that profit first? I think Steve may have been the one that mentioned that, but we implemented profit first in our business about six months ago is Well, I mean, the bank accounts everything, and it has been a game changer for us to be able to implement that profit first, Eh? So I'm kind of on the same page with all of you and what you're saying. But I do want to bring up because I think we're all very positive about this and I agree with that. And I love the, you know, playing for the worst. And let's let's expect the best. But a couple of things that I've seen. Some people talk about number one, which leaves. He did it this morning. I posted, like, one through five where you add on this scale as far as you staying inside or you cooped up or you're not going anywhere. There was so many four and fives on my Facebook posts of people that we're not leaving their house. People that were not so when we're talking about the herd like, I think a lot of the herd is actually quarantining themselves. They're not leaving the house like things that you know I am doing. I mean, I'm at the office today and I actually normally work from home, but I'm getting out because everybody's in my home. So I wanted to toe have Cem Cem self time, but I think that as a whole, there's a lot of people that are not leaving their house that are just going the grocery store, that air working from home. So I do believe that's definitely gonna lend to how many people are gonna go looking for properties on Saturday. You know, my husband was at the gym last night which closed down today and did a video, and he got, like, 15 messages. He got so much slack about your being You're responsible and you should be in your house. And so I mean, that's kind of the herd thinking, you know, because I mean, why would you get a message about that at the gym? Everybody's choosing to be a TTE the gym, you know, it was it like he's causing. So I guess I kind of look at it that way. And so I want to know what your thoughts are because there are some people that are in markets that are quarantined. Right now, we've got California, New York, and it's rumored that maybe in the next week or so, the government might say everybody's quarantine, you know, stay in your home for a couple weeks. What that turns out to be three or four. What does that look like for us? And our business is if there is a quarantine which is affecting some people right now. And also there is states that air saying you know about the rent. You can't evict your tenants for the next two months. So although it may not be happening in Dallas or Phoenix or some of our markets, since we do have, you know everybody on this call from different states that air affected in different ways. I'd love to hear what you'll have to say about us. First is the landlord, and you're not getting the money from your attendants. But yet you're still having to make that mortgage payment. And also if a quarantine happens and we really are legit, like, supposed to be in our houses every day, like what does that look like? What do you what do you all think? Some advice we can give to anybody in that scenario or when it may have come

spk_0:   52:48
subject she went over there on. I think this ties in with what R. J. Asked about whatever was doing with the subject ooze. I'm hesitant to jump into any new Reynolds. In fact, I just backed out of a contract this morning and whole sold it for a few $1000 that I was gonna buy and hold is a rental. Because of what's potentially gonna happen with first, all tenants might not be able to pay rent. Second of all, if they they put in a non foreclosure non eviction rule, that's a huge deal. I mean, that's a huge deal. You know, the other

spk_3:   53:20
subject have prepared him a property that's one chime in there

spk_2:   53:23
and and just said that Vegas is on full lock down and evictions or halted. So, I mean, evictions are being halted left and right in different cities and counties. Right now,

spk_0:   53:32
I'm not. I'd go under contract by a rental with, like, a 60 90 day clothes. Something like that. That gives me some timeto

spk_4:   53:38
which you, Ryan, what you could have like, I'm like a clause in there regarding this corona like unknowns. You know, maybe I was I At least I have the chance to back out if I need to. And, you know, two months, maybe those cause of extras as well, Correct. Yeah, that's Ah, smart move for you, eh? So from my perspective, I have, like, 15 rentals, actually, and I have a couple of Airbnb ease. And obviously my Airbnb is like got cancelled in, like, three days. Like for the next three months. Yeah, it is obviously gonna impact the bottom line for those air being bees. But I mean, what I'm doing for them is I'm just I'm discounting them. You have this kind of 40% for the next month, just so I could potentially get some bookings. I don't know if I were not. But again, that's just part of I am going for sure. Take a big hit in those Airbnb ease as far as my rent toes. I had two months ago. I needed to say that I just didn't get around to it. Send a rent increase to one of my tenants. She calls me yesterday. She's OK. I lost my job. I worked at a restaurant. The restaurant closed down. I didn't actually lose my job in the restaurant. Closed down for the unforeseen of his future. And, you know, always I can't raise the rent on her right this second, so I'm gonna have to put that on possible next. 23456 months. Maybe. I'm not sure.

spk_3:   54:56
Yeah, that's

spk_6:   54:56
uh, I want to add, uh, as far as the creative financing, so that has not been our strength. And so one of the things that, uh, I promise I'm gonna call yesterday. And Gary Keller, who owns Keller Williams. He wrote a book called Shift and the basic premise of shift is when things kind of weird things get difficult or challenging. That's the time to increase your market share, very increasing market share. And we're thinking back to normal and you keep your market share. And so right now, I don't think it's time to add necessarily new tools that I could be wrong qualify that I've been wrong many times in my life. But I don't think now's the time to add creative financing to your tool belt. I think double down what you're good at. So if you're able to close deals, you're able to lock up contracts, go lock up points with many contracts. I don't think now, now it's time for at least one after us. Thio. You get distracted with mother strategies. I know that we got Adam Johnson and effort Marino. They're crushing. It was creative financing, pay discretion and creative financing and they don't think they'll look at down the road. But as of this exact moment, we're not trying to add anything. And then, uh, to your other question, Jamie, about you know, what happens there of a nationwide quarantine? I think we're screwed. I

spk_4:   56:18

spk_5:   56:18
I don't want to sound overly negative, but we put the economy the screeching halt. I mean, it takes a moment to get it back started. There's a reason why we're talking about, you know, sending checks to all Americans they were talking about, you know, forgiving mortgages for short time, talking about, you know, not evicting. So but we get to a point where people are a lot of work. I mean, our economy, our economy is about money and one of things that, uh, we're talking about, you know, impacting comet velocity of money is really important, right? Like watching the same dollars go to everyone. Thank you, can't come back. It's really, really important. And if we if everyone nationwide quarantine and that money stops moving everybody, I mean, I don't want to go over there, and I think everybody screwed. If you have a nation like working when people are allowed to work

spk_3:   57:09
that's already happening and nations around the world that's already happening in many states right now, the United States and my my city. My team is not allowed to be in my office right now. So do I keep paying them? I got a few. That'll work from home, you know? But there's a few to become suddenly, you know, non essentials. So, you know, that's we don't know how this is gonna shake out. And the point the point I want to make is, is right now there's a rush. Get through that rush and then bunker down and get ready for the opportunity. But when that opportunity is gonna happen, who knows? And there is going to be like that Vegas casinos being closed alone. How many billions of dollars are not being pumped in the economy right now? So I mean right now, not just, you know. And as other states start to follow suit, you know it's going, there's going to be a huge impact that we just need to be ready for. There's going to be opportunity. I hate to say it out loud. I'm kind of excited about the opportunity because I thought I was never gonna have it again. I thought I missed it in 2008. Don't want to sound insensitive when I say that. That's my optimist. But right now I'm bunkering down and getting ready for the worst, so I can take advantage of it. And that's that's where my head's at. That's where I hope everybody else's head is at in this game, because there's going to be opportunity. If you die on the vine right now, you're gonna miss out and you're gonna be huddled in a ball in fear like I was in 2009 not getting back into the market. And that's the last thing I want for people.

spk_0:   58:28
Ah, 1000 per dude. And mine were I was talking, I think. Roddy, we were talking about this on Monday, right? Continue. Keep it moving forward. Right. Keep it moving forward. And you know, Jamie, you ask about what happens if for our quarantine number one. You know, I know this doesn't apply to the panel coming out there. Now is not the time to kick back and watch the newest season of Ozark on Netflix. You know, like keep it going, Keep it moving forward. If anything, now is the time to tighten up your K P. I stop processes your systems, your QuickBooks, all that type of stuff that sometimes kind of falls by the wayside. I know I've been guilty of it at times. Now is the time to shore that up. And then for us in my business, you know, we've always been directed cellar and director cellar. We like to meet face to face, and to a certain degree, I'll even admit it and I'll call myself out to a certain degree of had a little bit of a limiting belief about doing a lot of deals on the phone. I know several people that do it on, and it's been challenging here in Miami and our market to just go on the phone. I know it's possible now. This is forcing us to really sharpen that ax. Now it's forcing us to get even better on the phone because we're probably not gonna be going out meeting with Southerners. So actually see it as a huge opportunity in a good way. And it's an opportunity to help people for some formal some when you lead with that, the money's gonna follow. Yeah, First of all, Alex, the new season of beaus art doesn't come out for another eight days. I

spk_3:   59:47
think I know what I saw that I was like,

spk_2:   59:51
you know, those are is.

spk_0:   59:54
But I wanted to go back to Steve. I couldn't agree more to your point, and and I just kind of wanted hammer that home a little bit more in the fact that now is not the time to try to acquire new skills. Um, and this is the conversation that Cassie and I have pretty much for the past two weeks. Which is what do we feel like? We're the best. That that what is our best skill set? What can we do to survive? There's gonna be things that we have zero control over That's gonna happen, so I can't worry about that. I mean, that's just we're gonna be told that if I'm told I can't leave my house or I can't buy a house. I mean, there's nothing I could do about that. We could sit here and talk till we're blue in the face on a zoom. Calling it doesn't matter. I mean, that's just the reality of the situation, but I can't decide that. Hey, I'm not that good at flipping houses, and I'm not that good of a landlord. But I'm I'm good at wholesaling, and maybe we're really good at whole tailing Subject two's. Maybe these air things with newer builds these air go back in the history of our past 234 years and see where were the situations that we performed the best? And what are those one or two items that we're gonna do moving forward on a regular basis and solely focus on that Get laser focused on our niche? That I mean, there's several podcast host here. I think all of us can agree that we're blessed to be able to interview some of the best investors across the country. Write the one thing that I know is when I talk to people that are killing it, it's because they say I do this one thing. I'm laser focused on it, and I don't pay attention to it. Anything else? I don't care what shiny object comes in my way, and so that's what we're doing right now is just getting laser focused on what we're really good at and what our skills that is and ignoring all of the other noise out there and whatever comes our way, that's on an unforeseen circumstance. We're just gonna have to roll those punches and deal with it. So that's kind of my two cents. I appreciate,

spk_1:   1:1:53
but I think that's a good point. I think that's a good point. You said, What are you good at for us? For me, that our company, it's quality control were just crazy. When it comes to the details, quality control everything two and three and four or five times over. And that's again, That's a that's a learned A trade, if you will, that you practice over and over again before us. That's how I look at the business now. I got a wall. That's why I keep looking at it. I just feel it with notes every day as I study the market. As I studied construction, rehab, rehab, these things, I'm just taking notes and just keep looking at him and seeing what's happening. I checked that off what's not happening, which means it might happen, so I'm just It's just one of those things where that's the quality control in the mindset that goes into looking at, you know, everybody's talking about getting late, of course, 100% across the board, no matter what you do for a living, get lead right now. But you're looking at other things, like I've got notes on my board about value engineering, everything, which means mitigating all your costs all across what we talked about that in business. But then the real upset right there, you know, I see I'm watching a lot of the comments on the side here. Kinda hard not to when I see some people talking about rehab to school. And the reality is another risk analysis to looking at some of your current rehab center open right now that might be larger than others is to figure out How far can you take your rehab itself? That right? When can you leave When you exit? Said after inspections? Is it after Dr Walls? I don't know, but those air options we've done that notoriously in Chicago, where we would take a product that's extremely large and I'm talking for five years ago. We have $300,000 rehabs, in part by construction, and we take it to a certain point because maybe the client would run on money with funded, correct whatever. And at the end of day, I'd say, Listen, take it to dry walk. It's marketable. Do exactly what custom home builders. D'oh! Get a tripod, Put the layout blueprint out, showcase what it could be and let the homeowner let the buyer decide how they want to finish it. You know, there's different ways, so look at the right you might be in, and it's about knowing how that process of quality control did you prepare for it so you could dump it if you need to. And that's an option. Doctor. Shit out. Get out! I

spk_0:   1:3:55
want to make a suggestion. Oh, our share. Maybe what I'm doing. I do some Iran properties which have a huge risk in our market, as you guys can imagine with what's going on. So what we've done is unfortunately have two that are just completely de mode, which you can't. It's harder to sell a house when it's completely de mode, right, so we're listing them at a motivated price and saying people can pick their own finishes and come in and buy the house and pick their own finishes. Now, to do that, they're gonna have to put a big down payment down, which will help fund my construction. So I'm getting creative on howto sell these houses because my other option, I mean, both these houses. I got $400,000 of construction costs to finish these houses. I don't want to take that 400,000 right now and put it into these houses and not know if I'm gonna get it back or not. So I'm marketing him in that way, and it's a creative way that hopefully help somebody on this call. That's in the same

spk_1:   1:4:45
position that I'm in. I think it will, I think, getting creative as to what? How far you take your current rehabs to try to keep that liquidity back. That's exactly something that we did before anyway. And now more than ever, this could be a very beneficial helped a lot of these people that are watching, I

spk_0:   1:5:00
agree. I don't want to ask you a question, and it might be a bit intrusive question, but hopefully you'll share with us. Have you seen a drop off this week and people buying data

spk_4:   1:5:13
eso Monday we did not Tuesday. It was probably about 80% of the average Wednesday. Yesterday was roughly about I won't say 70 or 80% of the average again today. Let me tell you right now, So I think we're I think we're on track to pretty much better average for the day. So I have we have not. As of right now, it's seen any kind of a drop off. Um, people are getting always like, like our software side. And I think like Ryan said, that's where software they're really gonna shine as far as being able to be more efficient. I mean, even bigger, softer, like zoom what we're on right now. I mean, things don't have, like, 405 100% increase in usage just this week. So a lot of the system they're gonna come in placing again, being more efficient. Yeah, you're gonna have to eliminate the letter systems and things like that. But just the consensus. And even with this going in our co. On Tuesday that we had with Shawn, Terry was on the call in a couple of other people that Steve was on the court and people like a lot of the investors are not stopping their marketing. And so one of the biggest mistakes out there that we made for something in our company some of you guys don't know, like me and Jessie and Eddie like merged companies. Last year around May 1st and about 2025 days before we actually murdered, we stopped her marketing with the anticipation that we're gonna actually merging. Always. We had a new C around, so there was a lot of things in plain. So that was like, the biggest mistake that we made because then for about a month and 1/2 afterwards, we did not get a single deal just because we stop their marketing. So the biggest thing that I would say the people is like, You can get efficient. You can maybe eliminate a marketing channel or two, maybe stop S c o. Just figure out. And I think Alex was saying about KP eyes and just knowing your numbers, figure out where your money is being spent and eliminate the most expensive channels. But don't stop it completely. Like that's going to the biggest mistake that I think that anybody would make if they stop the market just because they're marketing just because they're panicked. And right now, you

spk_0:   1:7:15
could also go to the MLS like the MLS. Pretty soon here, if everything stops gonna be a really good place to buy for free.

spk_4:   1:7:22
Yeah. Emily, again, being creative, just thinking outside of the box, it's gonna really come in handy with a lot of these things in. You know, I think Don was saying even laying people off, I think people need to be conscious at least because what if this thing, you know, we're hoping that it lasted two months or four months? What if it lasts a year or 18 months? Order with the article just read. So what are you gonna do? Is a business one of these, these decisions you're gonna have to plan for eso. Jameel was actually their office yesterday, and we were just talking of Hey, we just don't know what we don't know. So, you know, we know our bottom line. So let's say we have to be I mean, for our company, it's a weight much higher number, But let's say it's like $30,000. We have to break you in every month or two South breaking every month. Then what happens if I crossed that line? And I'm under, like, $30,000 S O. What are the decisions that you have to make? Maybe I'm gonna obviously stop bonuses. Maybe I'm going to decrease salaries month, too. And then maybe I'm gonna start, like, laying off some people in month 345 Better. You know, my least performers. So then, as a businessman, I have to put a plan in place as well. That's what we're talking about, Jesse. Annie like, Hey, what if this thing drags out to, like, a whole year? Because I'm just like in our company. We have a lot of you construction projects which, you know, I think we're gonna be okay, because we're nothing sitting the market within the next year so over the whole thing, and then obviously election season on, dear, I think that by the time our products hit, the market will be okay. But again, even the manufacture house that we have with the case more B. I mean, they're about to hit the market, so I just don't know what I don't know what it's for us how that's going to be impacted. Um,

spk_0:   1:9:02
but it's the best thing about letting people go Eve. Oh, my fear is, is if you let them go, they may not come back. And that's what you really gotta consider that correct.

spk_4:   1:9:13
And that's why I think, But at the end of the like, what happens if I don't have the funds to back up? My, You know, let's say to back the company up and floated for 2345 months. You know,

spk_2:   1:9:24
you may not come back. You may

spk_4:   1:9:26
not come back. I mean, your family's gonna be effect, so I have to make decisions. And if he's prepare for it, that's all I'm saying.

spk_3:   1:9:35
I didn't make the hard decisions last time. You know, there's a term that a good friend of mine uses a lot, and he says we don't take care of yourself first. You have nothing to take care of. Anybody else with you? Yeah. Put your auction mask on first. And that's why you know, I kept people on longer than they should have. I didn't have a plan last time around. This time around is I just have a plan on Okay, Who goes win, Right. And so my business isn't going to stop operating. That's not what I'm saying. Like we're still marketing. Maybe not the capacity we were. We are going down to our core competencies, which is the smartest advice that you can possibly get is go to your smart board. And we talked about that several times in the call. Go to your core competencies, you know? But I'm also looking at, like, who is essential for my team to run and who's not. Who could I live without? Like, if I never got him back, we're gonna live without. That's the 1st 1 to go, right? So you got that plan in place. You hope you never have to pull that trigger. You got

spk_1:   1:10:24

spk_3:   1:10:24
be ready and you gotta have a plan to pull that trigger so you can make the decision from a position of fact and power and not fear and weakness. And that's really the whole point that I'm trying to get across is have this band in place pair for it. Because if we're not, if we pay everybody and this thing last like right now, our schools are closed in California, and I'm talking about keeping him close to the summer and maybe, even like Like they're saying this thing may last, you know, year, 18 months. If we keep paying these people indefinitely, then suddenly when the opportunity arises for us to build the wealth of this opportunity is going to allow us to d'oh. We're not gonna be able to take advantage of it. And how serving anybody in our family or our circle. If we're not able to take advantage of it, you gotta take care of yourself first. Which auction Master? First on first, Like Alex said

spk_2:   1:11:07
and I didn't want it. I want to address that for sure. We plan on continuing these calls. I don't know if it's gonna be weekly or biweekly. We of course we'd love to have the same Panelist on. Some are not gonna be ableto have you know the time or the opportunity, so we'll bring in different people if that's the case. But I think right now we're in the very beginning of it. So right now we're not seeing a lot of the aftermath or the back lad, but I mean, I think we can all agree on that Dallas County school or shut down for the rest of the year. So we're just now seeing, you know, every day something new is coming up, and I think that this is going to evolve just like everything does our marketing channels of all we have to pit it. And I think as leaders, we have to stay together in community and talk about this because none of us want to see any of our businesses fail, our family suffer or team suffer. So we all want to keep them through one if we can. But reality is we are gonna have to make some, you know, gut check moments. And I think that if we stay in communication, we can kind of, you know, move through those waters together and understand what everybody else is doing. I will never forget. When I first started this business, I always put myself in the shoes. Now I mean, I always have, and I think that something that's important is everyone on this call has different skill sets, right? Some people have the liquidity, and some don't. Some are living still week to week. I mean, you have to imagine There's got to be a few people on the call. It just quit their job 30 days ago to jump and hard and give everything they have to this. So someone like them. No, they're not liquid. But there is people on this call that are buying flips right now that are, you know, buying bills for rentals that are amazing at selling deals. So I think it's really important to have some kind of group that you're a part of. I know the real estate. Massa. Um, like meet ups are not meeting in your local community right now, more than likely, but I know there's Facebook groups and things like that. So I think it's good for us to stay like on a nationwide level like we are right now and talk about it. But it's also important for youto get close with some of the people in your community that have been doing this a while that have you know some liquidity or have the buyers, because right now, if you're amazing at grinding and cold, calling for eight hours and getting deals, but you have no liquidity and you don't really have a lot of buyers don't think that this is end all be all for you. There is someone in your market that is buying or that can find buyers. So I think it's really, really important to put that message out there because I know we're all in different phases of this business, and our finances all look different and we can hold out, and some people can hold out a week so people can hold out 10 years. So I want to make sure to talk to those people that were thinking crap like, I don't have that kind of money in the bank. Don't think that it's over for you, like at all. It's not theirs. So many opportunities. You just need to make sure that you're in these Facebook groups. If you're not sure you can reach out in D. M. One of us or just somebody that's in your group because I promised everybody skill sets could be used. But we're gonna have to kind of come together on this right now so we can all stay afloat,

spk_4:   1:14:22
agree that that's perfect advice. And Steve, I just want to mention something actually more a question for you. What are you seeing with them? Maybe Ryan as well for you. What are you seeing it as far as like, open door in, like some of the bigger like companies hedge funds doing right now. I mean, I think was a juror that mentioned Tuesday that they can't put six of his contracts or was somebody else's contracts. Have you? Do you know anything? It was happened the past couple of days. Order no open doors, suspended. All offers nationally.

spk_3:   1:14:51
100 back in our deals here in California as well. We've had a cool Yeah,

spk_0:   1:14:54
all of them. Did Zillow truly are Redfin? Open door perks. All of them did.

spk_2:   1:15:00
And what if you hold sellers? And that was their main outlet of buying properties? Which is another reason why I'm saying, you know, reach out to people locally. You know, toe help, help fill a void that maybe they're right. Now

spk_4:   1:15:11
that brings up a lot of opportunity, obviously full of wholesalers to be ableto pick up those properties and deeper than usual. I think that's

spk_0:   1:15:20
a great point. That money

spk_5:   1:15:23
back off, you know?

spk_0:   1:15:25
I mean, actually, uh, you know, I don't know how we could do it, but either through text message ringlets, voicemail or something like that. I mean, that could be something like, Hey, did you just haven't dropped contract, you know? I mean, just get creative, like karate is point earlier. You know, just going back to your original skill set when you first got started. And I don't remember when when cashing that first got started, I was a lot more, um, creative with our marketing because I didn't know any of y'all like there was No, I didn't know anybody in this industry, So no one taught me what to do. So I was just kind of flying by the seat of my pants. And I was like, Hey, I think this is a great idea. Like I remember, you know, putting YouTube videos that were funny on her marketing for wholesale property and get a ton of clicks, and we would sell properties that way. So maybe that's a good idea. Is like you're talking about There's opportunities where I mean it. Just one person we know lost six contracts because open door backed out. Imagine how many homeowners around the country right now are freaking out because they thought they had a solution with one of the biggest buyers that promised they were gonna buy their house. And then just out of nowhere, it's over. No r J Ted, to that end. You know, I think this is an opportunity. Now there is right and so many people out there pound their chests about. I have a huge team and I do multiple deals of months. Whatever the case might look like.

spk_1:   1:16:47
Don't be afraid to roll up your sleeves and get in there.

spk_0:   1:16:50
Don't be afraid to roll up your sleeves. Get in there with your team if you gotta make calls. I mean, this is so funny. So we are in the process of literally from, like, my home office printing out cover, ages and one page contracts, and we're sending out hundreds of offers, two appointments that we've been on in the last year, and I got my wife like, you know, stuffing the envelope. This takes me back to 2005 because I don't know what my fulfillment centers looking like over the course of the next couple of days. So don't be afraid to roll up your sleeves and get in there. And I think when you lead by example, your team's gonna follow. That feels good, right? I got in there with your team. I mean, yeah, doing that, man. I mean, I

spk_1:   1:17:28
got I'm getting guys have some old guys. I usedto be my stops and they're texting me that pencil days. When am I gonna get back in? When I get back and I'm laughing. Why do you need work? And they're like, No, but we want a plan around it. So I'm like, All right, man. Saw. Like I said, you gotta go back to what you know best. When it's all said and done, you gotta roll your sleeves up. That's the only way everybody survives.

spk_2:   1:17:48
And to be honest, I think we all have had to think that at one point in time and you find holes, you find processes that are jacked up. You find ways that you could do it differently. And the mommy has to say this bell about Alex and his wife is helping stuff. Envelopes you guys almost call Panelist in the cities are we have a lot of kids at home. Kids know how to stuff envelopes. They know how to do a lot of things that we could do like that. And that's a great time to let them be a part of your business and let them see and in time of meeting everyone coming together and stuff like that. So I can't help but say that the moment we had to, like, throw that out there. But when I first started, I took $9. All my rehabs. You know, she would help me clean and sweep and do things like that, and she actually really enjoyed it. And there's so many life lessons that can be learned right now for us jumping back in and kiddos watching that and letting them be in participation with it as well.

spk_0:   1:18:44
We're going on almost an hour and 1/2 now. If we get really good feedback from this calling, it makes sense to do it next week, and and I think everyone on this

spk_4:   1:18:53
panel only wants to do this. If it's helping people

spk_0:   1:18:55
right, we're all

spk_4:   1:18:56
coming from different businesses. Dawn and Alex and I, we compete masterminds and but we're coming together to get this done for everybody. So this is really

spk_5:   1:19:04
providing the value, you know, maybe we do

spk_0:   1:19:07
this next week and I think a

spk_4:   1:19:08
really good topic that we probably don't have the time to dive into

spk_5:   1:19:11
right now For

spk_0:   1:19:11
the next hour. How are we each changing our marketing and what are we doing? Yeah, I think that'd be a really interesting topic to dive

spk_1:   1:19:17
into that Maybe we could do next week.

spk_2:   1:19:20
Yeah, I agree. We'll have a lot more insight on to let next week. Looks like because I think the next 34 days, it's gonna be quite a bit unfold.

spk_3:   1:19:29
My whole week opened up. Everything else was good. I just want to add a positive to this for those your brand new watching this like we're talking in terms of people who have business is already in teams and the things we're gonna do People are brand new, like some of the most success people I know in the business right now. Started in 2000 and 2009 like this is this is not a time for you to crawl to be scared. This is time for you to start looking with your legal. Have a team this we get creative, the sweet take action. This is when you're going to see an opportunity. Clean house. That's the positive side of this. I think, you know, from the negative it's happened again. I don't want I don't want to take away from the fact that this is this sucks. But the positive side for those of your brand new without a team like this is gonna be the greatest opportunity. And then you have access to these kind of calls we didn't have in 2000 and 2009. You know that when we get through this, you're gonna have such an opportunity that you haven't way haven't had in years. And that's something that the silver lining? I guess

spk_0:   1:20:25
So it sounds like we're just want to say, Jamie, that was a great idea you had about the kids. But at next level flipping, we do not condone child labors. Report us. Okay. Um uh,

spk_2:   1:20:38
I'm gonna pay her. It'll just be like I'll pay you later. Anything. Jamie,

spk_0:   1:20:44
You want to know what, though? You bring up such an interesting point. Our kids, for the those of us that have kids, our kids were watching us. Whether we know it or not. There while and in times like this. Like they're gonna model our behavior. They're gonna model our mindset. And if anything, this is a book. Eyes like more time with my kids at home. You know, we get tau potentially have them stuff, envelopes, sitting who knows so, like, take the orange and squeeze the juice out of it. May turn lemon into lemonade. What? Whatever that saying is, but this is a blessing in disguise. It it's a little scary, but we'll get through it. I think like Don said, you know, always look at the positive. Look, I think I put something on instagram a couple days ago. You know, the, uh, I read a quote, The storm. What is it? The darker the storm, the brighter the rainbow, you know, So we'll get through. This is just a season.

spk_1:   1:21:31
Well, I'll leave you guys. One last funny thought about family because it's hilarious. When I was contracting, I brought my grandmother at one time. She wanted to see what I did, you know, we flip house and she's like, Okay, so I brought my grandmother out. We had just paid about 2500 and landscaping beautiful flowers. Everything was perfect. long story short. I had to go and talk to the sub's. I'm looking for my grandmother. Where she goes and she goes must be in the truck. Right? Come back outside. She had handpicked every flower. Then we had paid for planet. And she made a bow cage Because these I'm gonna take these home. You said you can't touch that. I know. We just planted those. This house is gonna go for sale, and she goes, what she did, she let me go? I don't care. And she got in the truck and she was wrapping it with a rubber band. So when it comes to putting family to work, I gotta pump the brakes a little bit on

spk_2:   1:22:12
that Well, and we're gonna wrap up. But I just wanted to say thanks it again. Um, Evo. Steve Ryan. Um R j other Ryan. Alex to two minutes. Somebody I'm sure. Dawn. Um, Alex? Yeah. Thank you all so much for being on this call. And I didn't see a lot of questions about how will we know about the next call or whatever. When you guys registered, we got your e mail, so we'll make sure and communicate with you. You know, when the next call will be how often we're gonna have them, everything like that and we're gonna post it all over. Social is well, so we'll make sure to keep you informed. And I did just again want to say thank you so much to the Panelists. We're all going through the same thing right now, and for you to spend an hour and 1/2 of your time with us to help others and get value is just It's awesome. It just says a lot about who you are as people, so I thank you very much.