It’s currently live today is what is today today is August 14th yes all right today is August 14th check check on the mic I think we are good should I check yours there testing one two three definitely we are good it’s August 4th we’re good welcome to another
Episode of the backyard billionaire real estate and marketing Made Simple I got my guy Brandon in the studio and we got Chris Luna right here the man myth the legend what’s up people are starting to roll in there you accept Grant what’s up Steph what’s up everybody hello everyone Trey what’s good feel
Free to fire off any questions you have regarding real estate we’re going to dive into the show today you want to write out a little bit what we got going on so today is a very special episode I know y’all have been seeing it on all of
Both of our Instagram stories I think everybody’s like texting us and all that about it so uh today we’re gonna dive deep into the project that we are launching which is the backyard billionaire project and also we’re also going to be covering a little bit about
You know as always adus kind of stuff on how do you start your own development if you have a W-2 how can you get started in your own backyard if you already have a home how do you do that and Chris here will drop some heaters so absolutely you
Should have like a sound like heaters whenever you say something cool you know what I mean like wow which is like every time I speak exactly but for everybody that is new to the live stream so welcome uh basically we’re gonna make it like very interactive if you have any questions
You want us to ask uh just drop it either on YouTube or on Instagram so so usually the Instagram to get a lot more people so yeah you want to answer your questions answered hop onto the YouTube usually you get less people there so you can ask some questions you said Brandon
Your mic is hot let me turn it down Mike is hot good to know hey what about now okay should be better cool so yeah Chris um today is our launch day August 14th super excited super excited so yeah let’s just go ahead and go back in the
Beginning like why did we start this in the first place I’ll let you I’d like you take the mic on that one let’s bring it back to a year ago I just got a reminder on my phone me and Brandon were golfing we’re actually golfing and that
Was the start of you know moving forward using social media mixing my real estate skills and just collaborating really so it’s cool to see how far we’ve come in one year from just hanging out okay fast forward to January 2023 we’re at Ryan pineda’s wealth con and he’s like yo
Let’s start a podcast I’m like okay I don’t know how to do it but let’s start right commit to it and figure out the rest later that’s what we do so we’re moving forward and then we’re like okay let’s do a course so it’s been cool to see the progression you’ve been putting
In a lot of work I appreciate that and I’m super stoked to see where we could take this company I think at the end of the day we’re gonna help a lot of people do practical development in their own backyard art and what that means is you
Can build an Adu a second unit I like this play in student housing and Airbnb markets because you can really rent by the day or rent by the week and uh overall it’s just a good business model that’s good so let’s get into that a little bit so when I was learning about
This whole thing when I was creating this whole you know with you on the whole Adu development Journey yeah I didn’t know that there was a different types of idios like you know you can you have to detach you have one a garage conversion yes you have one talk talk to
About that so for those of uh people that are currently watching that don’t really know what are the options available do I have to just pop up like a building in my backyard like what are the options available yeah that’s a great question so early on when I was
Getting started I simply like doing the garage conversion method what is that what is that so typically a garage is 20 by 20. you fit two cars in there and it’s 400 square feet and so for student housing that works very well to as a studio a student by San Diego State will
Pay anywhere from 1200 1300 in rent for for that little studio so it’s very simple you spend sixty thousand on the actual build out plans and permits are twenty thousand so very low cost keep your cost basis low and then you get that additional rent so that would be
Option A if you have less money to invest very easy option just to convert a garage um the second option would be 1200 square feet in the backyard and that’s a little bigger of a play it costs more maybe two hundred and fifty thousand dollars uh but your Returns on that on a
Four bed two bath are really good so if you have more liquid cash I would always suggest building more and then from the Airbnb perspective like You’re Gonna Want a 1200 square foot house as opposed to maybe a casita or maybe not you never know just depends on what Market you’re
In right right yeah that’s interesting and you’ve you’ve done your stuff in the San Diego State Market yes like predominantly San Diego State but also starting plans and permits uh three blocks from the beach actually it’s already submitted to the city and that’s for a garage conversion but it’s bigger
It’s like 550 and the play on that’s awesome because I could Airbnb can be it or I can student house it there you go so if y’all like if that’s all sounds like gibberish to you like what is what is what is that conversion permits plans
Don’t worry so by the way we have launch our education program today so if you want to learn more about that make sure to DM us the word Adu and we can get you know get you more info on that kind of like how do you actually get started but
Get back getting back into that why did you use the student Market uh as your kind of primary Market of Choice like yeah that’s a great question to the market so the the simplest answer to that is it was my own backyard I already had lived on those streets I understood
What I could rent it for um I knew the agents in the market so I could reach out to them for dealflow so what I always tell people is start in your own backyard like yes I can go invest in Nashville Tennessee right now right and have an operator out there but
You have less control of the deal there’s so much more that can go wrong when you’re managing remote so I like like starting in my own backyard with San Diego State it was just super easy to to start to walk up to the property to meet the tenants to meet the
Contractors to meet The Architects to meet the city planning inspector I was just there right it’s my backyard it’s your backyard and so when you’re developing practically in your own backyard I think your chances of success go up tremendously there you go there you go that’s solid so like we covered
That in one week well like I think what look it’s like in in in the intro like do you think that’s part of the deal part of it right yeah yeah I remember like getting into that of the whole stuff and you notice too like a lot of
Markets right now in the US are starting to get it more and more oh they’re popping up yeah popping up yeah I had people DM me all the time hey it’s become the thing in Atlanta it’s becoming a thing in Austin Phoenix so if you’re out there and you’re watching
This like definitely get ahead of the curve I’ve been doing this for five years and so I’ve created financial success mainly between 2019 and 2022. I really went hard on it but because it’s pop been up across the city and you having the knowledge and starting sooner
Is going to be better off than waiting five years right exactly yep let’s see Stephanie said Bank on your backyard trademarket right right let’s check if any questions here thank you everybody’s joining by the way um great Insight is it like an Adu yes so we’re talking about Adu the accessory uh
Accessory dwelling unit at granny flat that’s what we’re talking about um especially in markets where there is not a lot of housing available adus are starting to become more and more important because that’s a place for people to live I got a great little question all right what’s the question pick this
Mic up so they can hear me what’s the question so she said so many different uh what’s up Stacy she got so many different views on that I’ve always wanted to invest in my own backyard but many are suggesting SD California is not the best option ugh I actually want to
Speak to that okay let’s hear it why San Diego okay so yes I do agree that California has a lot of tenant protections and landlord like it’s not as landlord friendly I get that but if you if you’re talking about San Diego what’s cool about San Diego is rental prices in this
Market are ridiculous they’re so high right everyone wants to live here and so you’re you’re trapped by Tijuana the ocean the mountains I always say that but it’s true so there’s less places to live so if you can find a little niche market where you can build multiple adus
It doesn’t have to be by the beach or San Diego State it could be a normal Heights or Chula Vista whatever you’re gonna get good rental like Chula Vista National City would be really good by the way especially right now right like certain popularity of people yeah because they still pay good rents
There’s a good tenant base a lot of it like it’s just a good area to invest so um where was it going with that um San Diego Market yeah the San Diego Market I think is still good because if you can buy a single family home or
Maybe a duplex or a Triplex and just go and add multiple adus there’s still a lot of value add there and then so when you’re building them it’s new construction so you can enter at the existing Market rent you don’t have to increase rent by whatever inflation plus
Five percent right you can go in at whatever the market rent is so that’s what I got for you Stacy DMS award Adu if you want to learn more we’ll get your questions answered there she said IB is up and coming I think it’s Imperial
Beach yes I got some buddies who who own out there and have bought some units so um side note besides buying on single family home you could buy apartment deals uh two to three units a five unit and add on adus on it as well so two different plays depending on how much
Capital you’re working with for sure that’s cool I think the the that’s a it’s a good Insight yeah um so I have this like question at least somebody asked me like last week I think so say I have a W-2 I work in Tech uh I
Work in sales right now making you know six figures and I own my own home how what is the first step for me to get started into that Adu Journey so it depends if you’re in Tech there’s one thing I can tell right away you’re probably W-2 you make
Good income I think that’s great because guess what you can go get a loan on a construction you could sign on the construction loan or buy another house or take a HELOC against the property you own often if you own a property and you have equity in it you could take a HELOC
So that’s a home equity line of credit pull out 200k and then go and deploy it to the plans and permits the construction and all the things you need to get it done landscape Etc so if you’re in that situation it often is a good way to get into this now people are
Going to say well I don’t want to own my home and then live there and then rent out the backyard to a stranger Airbnb I totally get that so what I would suggest is well do build it out do this many development rent out the front rent out
The back either long term or short term and then go and find a new house and upgrade and then use the cash flow from this property the Airbnb and the main house that you used to live in to pay the mortgage of your new home so some
Almost a way to kind of Step Up if you indeed want to move to a new location or a new property because your rent is probably your biggest expense yeah right so if you can offset that by having another investment property then you’re set you can use that extra what a grand
Or two Grands to go to Disneyland or something that’s what I did my first yeah my first deal I was making I think a thousand to 1500 bucks and that was paying my rent so at that time I felt financially free because I didn’t have rent but the problem I had is my
Expenses you know I probably went to a nicer apartment and I kept stepping it up if I would just kept that same lifestyle a thousand dollar rent like I’d probably be more wealthier now but that’s a different topic on a different day that’s a different story we’ll go
Down that way we’ll go through the uh and during one of our group calls well we’ll tell that story yes yes talking about the group calls I feel like there’s going to be a lot of value in this I think so too so basically for those of you who just join uh the
Backyard billionaire program we want to teach people how to invest in Adu so specifically the A through Z anything from the things that Chris has talked about if that doesn’t make sense see you that’s what we want to clear up because I think there’s a huge opportunity in it and
Involved in that Community is having group calls so uh group calls is going to be I think it’s every Monday and Wednesday as of now we’ll do one at night and then one at one day in daytime that way like if you have work or something you can go like to the later
One everything’s gonna be recorded recorded and I think what’s nice about that is not only in one of the days that Chris here will be uh speaking and kind of it’s like teaching you about adus but on the other day you’ll be able to uh underride deals together we have some
Sort of a deal tank going or maybe even some guest speakers from some of the uh the top dogs and the real estate investing space you know you shout out Alexia I see you there you go I see you live right there so it will be a great
Guest yeah so I think it’s going to be a really cool group community that we’re building especially that this new Adu Space is really like super new and it’s getting more and more I guess notoriety in a way like across the U.S absolutely so absolutely yeah someone’s got
Someone’s got a question here oh we’ve got to give priority to the YouTube people all right the YouTube people have been there so YouTube uh Liam said send it to the screen yeah so Liam said do you plan on doing edu deals in markets outside of California absolutely I mean
I haven’t really said this publicly or maybe I have but eventually students I know piss movie does this he has his students that he’s taught the game identify deals that are so good in great markets that they bring him the deals and then he goes and helps to raise the
Money so partnering with my students preferably the ones who are in the mentorship or the one-on-one program I would prefer to because I see them weekly I’m holding them accountable they’re bringing good deals and then that’s that’s what brings collaboration together right so absolutely to answer your question Liam yes um certain
Markets that I’d be eyeing were just going to be uh I would say well we’ll talk about those down the road but yeah there’s some markets on iron for sure so if you want to know that there’s going to be dropped in the uh the group program so absolutely DMS award Adu
We’re actually oh let’s talk about where since it’s our launch day we’re gonna take a little pause here pause this is our launch day okay we want to do a special deal because I know that this is not just gonna be an Adu thing because real estate investing is more than just
Adus right that’s going to be about multi-family it’s going to all these different stuff right now what we’re currently like that we’re launching is the Adu space but because this is our launch day we want to honor the first 10 people that sign up with us yep a
Lifetime membership for the community so what that includes is your weekly calls uh all of the current course and also future courses so that’s that’s worth I don’t know however many it’s going to be you know Millions because it literally it can make you a million like literally
Guys like just me so I was behind the scenes like working on the actual videos and making sure like it’s all look nice and pretty uh for you guys but as I was learning this I felt like I’m I’m just like finished the whole week one through week 12 module and I’m like
Man I just learned so much about edu and and guarantee you like you know uh Christmas has been the one that does a lot of the deals but now I feel at least confident to attempt that on my own you know what I mean like it just kind of
Speaks a lot to the power of the value that that we’re pouring into this this resource for everybody absolutely um if y’all want to know more about that uh DMS award Adu either my account here on Instagram or Chris’s account and we’ll get back to you and uh answering
Another question here somebody asked um do you also focus in Orange County or Long Beach um we’ve been looking at deals in Segundo and around La um LA’s got some cool little like we actually almost wrote an offer I think it was like a three unit I think it was
About 1.2 million we um you know Irina Irina Irina yeah yeah she’s an architect and a general contractor great person to have in the community because she understands zoning so if you’re a contractor or an architect or you work for the city and you understand that stuff I would love
For you to be in this community because I think there’s a great value add and we can work out something where we give you a mentorship yeah we’ll work on something but we definitely want people like that because there’s just a lot of value they can bring but yes to answer
Your question we do look at deals everywhere I think La is great because it’s similar to San Diego in which the rents are so high and you’re building at this cost and the when it’s done it’s worth this and uh it just takes time and effort I call it the grown-up flip right
This isn’t going to take two or three months this is real real estate investing it’s going to take a year minimum to stabilize this property maybe longer but you actually own the real estate and you build the equity by doing the work love that there you go yeah
Uh this person also says I’m in Long Beach is is what you teach helps here oh is it applicable in Long Beach uh yes absolutely absolutely um Colin I believe is looking at deals in Long Beach and Redondo so great great neighborhoods production is like higher Capital right because it’s probably a
Little bit more expensive similar to Pacific Beach it’s 450 per unit but it could be worth 600 per unit once it’s stabilized at the rents that’s what I see in PB and that’s why I like PB I lived in pb’s uh 2012 to like 2018. yeah
And I have this thing I always buy where I lived like five years after yeah so I lived at San Diego State five years after I bought there I lived in Pacific Beach five years after I lived there so next we’re going we’re going to Little Italy next yeah back yeah check back
Here billionaire yeah for those of you who are not from San Diego the PB is Pacific Beach yeah I think you can see it from here yeah somewhere around here yeah cool that’s awesome someone had a comment over here they just mentioned that Chula Vista um planning is a little faster which I
Think which is I think that’s interesting well I don’t know that for sure I would think it would be the same through um San Diego County but if it is indeed faster that right there is an example of value add and like bringing the community together because I don’t know
Everything and I’m not going to claim I do I do know a lot and I’ve learned a lot but I learned from other people who drop comments like that so think about that how would I know the Austin Texas market right I I wouldn’t it’s impossible so when you find someone out
There who’s kind of in the system maybe he’s a contractor maybe he works for the city whatever and and you pull that together and you have that community of resources now when you hop on the school uh which is the back end platform we’re using we’re all sharing ideas there and
It’s a collaborative so that’s the importance of uh working together in a community and that’s really I feel like what we’re trying to build here it’s not just supposed to be a San Diego thing right it’s like it’s going to be all across the U.S more and more markets
People just want to live in these big cities right um you know Raleigh stuff like that and it’s impossible for us to just know about all the markets in the US and that’s why we want everybody a lot of people in different places to be there and collaborate I feel like that’s the
Thing right because if you I mean I think everybody here knows real estate is a who you know sport right so if you know a person up there uh now you just open yourself up to a whole new uh opportunities operate a whole new deals absolutely what one deal can change your
Life literally one deal that’s all it takes so if you do it right and you you have the right Mentor you have the right support the right Community one deal can change your life one deal can make you a millionaire there you go one damn that’s
Crazy it’s true I’m not that’s not fluff that’s a real thing and one deal can make you in five years in five years maybe sooner you do it really good right probably sooner and that’s crazy because sometimes people think like a million like you know if I work if I work like
For I don’t know until I’m 50 and I invest all in my Roth or my 401k then I’ll become a millionaire but you said one deal in real estate investing can make you a millionaire that’s it can I it did for me and uh I know it’s
Possible someone had a question it kind of disappeared but I think she said uh what up Chris do adus work better in college areas so I’m sitting with um a real estate investor older guy probably about 70. last week we had coffee and you know he’s he’s just
Always dropping wisdom on me and I’m telling them about the course yeah and he’s like wait but you should you should tell people that it works really well in college neighbor I really haven’t been leaning into that right because what I did is I did it by the college
Neighborhoods and why is that because in college neighborhoods you can rent by the bedroom um talk talks about that yeah so my my uh house five bedroom plus a four bed room Adu let’s just call it nine bedrooms let’s call it ten bedrooms six and a four each one is seen almost like
A multi a unit at a multi-family property because of the rent it could produce and so when you can enter on comps on what the neighborhood’s selling for and exit on cap rate that’s that’s where it’s at so the student housing play I just it is a big deal and I think
It works better but also I think airbnbs are good also and that’s uh that’s finally kind of bringing back the story that’s how me and Chris met actually the first time ever was because I was I was a student at San Diego State trying to look for a place of housing that’s right
Right and then I was like walking the properties and as a student the perspective it’s true like it’s kind of expected that everybody will pay their own room you know and I mean like I paid like I think it’s like a thousand dollars and there was like I was living
With five other people at the time or six other people that’s all six grand for that property now thinking about it from the investors perspective and you know the students don’t chill with it like okay like because their parents are paying that I mean I paid for myself
I’m not that lucky but there are a lot of students who are come from all across America to San Diego State and whatever college today so if you’re a college student out there I have an idea for you um and we’re gonna this is free value
That’s what this is about right like all this is in the course but if you’re a student at ASU and your mom and dad pay for your rent at an apartment as a freshman maybe as a sophomore go and buy a house use your parents HELOC or Capital use your know-how take our
Course get the know-how and partner with your parents and do a deal that’s how we got in into our first deals I actually met somebody the past week so I was in the three weeks ago or two weeks ago I was in a conference in LA in Irvine
Called Sarah Khan I’m gonna drop the the heater her name is Jesse Jesse Zhang I don’t know if she’s watching this right now but um she’s about 23 years old but that’s exactly what she did when she went to college she said um she went to college and I don’t know
If she bought the property or her parents help her out with it I don’t know how much she did with it but she did rent out all the other rooms and and the um uh the basement and at the end of the today she’s living there rent free
And she used all of her money to start a bullish shop crazy start a business that’s it at like 20 when she did this she was a real estate investor right there so and when I was talking to her like how did she know how to do that and
She says she was just researching other people she got really good mentors and they led her through the way of like getting there so it’s not age specific you can do this whenever and whatever it kind of opened up my mind I was like wow
Like I wish I would have known that when I was in college I wish I have something like this platform when I was in college I would I would have learned how to do that and I’ll add something to that what I’m noticing just because I’ve been
Doing this for a long time is uh investors are becoming younger and younger I have kids who are like buying things at 20 joining the mentorship like young kids 2021 and it just shows you like you can like you could be doing this at 18 maybe even sooner yeah so it
Is very interesting to see and that’s that’s what happens with technology and knowledge the knowledge is more accessible and so what we have done is we’ve compiled everything I’ve learned over the years into one course so that you can go through it deal debt equity and then have someone walk you through
It week by week hold you accountable and so that’s why we dropped the new Adu course if you’re interested DMS the word Adu DMS to where they do let me see what someone said over here for sure LJ said is your strategy more for holding on to the property rather than flipping it
After the property is stabilized or it is situational great questions [Laughter] LJ great question what I think is that deals need to make sense going into them so they need a cash flow going into them and and you shouldn’t have the intent to flip unless that is your business model
I like to make sure I can cash flow because cash flow gets you through all the Cycles the UPS the Downs the feds interest increasing rates bringing them down right you need to have cash flow through those Cycles if you have the cash flow you can weather the storm
Either that or have millions of dollars in a bank account so that you’re not struggling right you don’t have to be forced to sail you don’t ever want to have to be forced to sell a property you want to sell when you want to sell so
You can take some profit roll it into the next deal so great question uh flipping is great long term I like doing that because I can take the money and then roll it into bigger deals for me I’m about expansion but I mean the real the wealthy they try and keep them
Forever the grant card owns he’s going to keep his properties in his ppms in his agreements it says he can keep them for 10 years within I think discretion for another five to ten years meaning he’s going to keep him forever and all you do is Cash out refinance borrow
Against them right and then take that tax-free money and then roll it into the next deal that that’s the move but every strategy is going to be different and so in our course we talk about what is the strategy for you yeah because like we we have a couple different strategies
Because we have like you know the like even in the underwriting process right because you can underwrite for the cash flow underwrite for uh you know the the grown-up flip you can underwrite for even the the shop already stuff you know the shovel ready uh strategy so at what is that
Yeah I hope I didn’t uh batch uh butcher your name jagadish he dm’d us so hopefully he’s dming us for for the course yeah if so you you’d be one of the first one yeah first 10 people that were giving the free access or is it lifetime that’s a lifetime action
Lifetime access that’s pretty sweet because we’re gonna do more courses I’m gonna do a deep dive on this I’m gonna do a multi-family one specifically because I have experience you’re likely going to do a social media course yeah talk about social media to talk a little
Bit like how has it how has it helped you I guess like in your investing Journey like think about where you are say you started five years ago so let’s think about three years ago and now like I official three years ago you haven’t really started on social media maybe not
As serious right we really got into the ball rolling starting in January how does that help you as you’re in your investing Journey just off the top of my my head I think it’s made me happier oh I feel really yeah I’m serious like I was always stressed doing deals like
Where’s my next deal like just hunting right and that’s that’s cool and like you have to develop that skill that skill set but now it’s like I’m happier because I get to help people it’s fun to bring value it’s it’s fun to see someone win when I think about my early
Investors the people partnering with me on deals yeah um they were like my early students now that I think about it because I did deals with them I taught them the game and now they’re going to go do their own deals and I didn’t get paid to do that
But what was I learning I was learning how to teach I was learning how to make it simple for them so that they can do it and so there’s plenty of investors who I talk the game almost like my buddies Matt and Garrett taught me the game right I’m always so thankful for
That and so now I’m teaching others again that’s good and it feels good but to answer your question what was your question I like how has it like impacted your investing journey by just like oh yeah building your brand on socials I mean just by posting We Got A Deal from
It so that’s that’s one there you go yeah um notoriety because more people know who I am they know like and trust me right that’s super important uh all in all a lot it’s it’s a lot of work I’ll say that definitely it’s a commitment and I love that word
Commitment you got to be committed to it and if you’re not it’s probably not for you but if you couldn’t be committed to it and stay consistent well then uh it’s gonna work out and committed to the process of just like getting better like you know kind of uh adjusting yourself
To what the market wants and kind of like how do we create content and stuff like that too absolutely yeah there’s a question right there I can’t really read it um what does that person say after LJ that person in your hand right there the James popola wins the announcement for
The first time people to join the list to be announced I’m going I’m getting value thank you Chris that’s awesome man I appreciate that appreciate all you guys for tuning in and asking great questions and just being here because I know your time is valuable um we we’ve officially launched so today
Yeah two day and August 14th yeah we got that we got the course done so just hit us up DMS will send you the link uh it’s a sales page that shows like everything we’re offering and whatnot what you get and uh we’re starting the zoom calls in
The mentorship this week I’m super excited so uh if you have interest just DM us hit us up so if you want to be on that part of that first crew to join the uh first group uh kind of call with Chris I’ll be there too uh yeah just
Make sure DMS sorted you and we’ll uh we’ll get back to you cool awesome so let’s talk about this a little bit more so um when I was uh you know creating the whole uh the video like kind of like structuring like when like how is people
Going to learn all the topics and stuff what I think something that I didn’t know and a lot of people didn’t know is the different ways you can fund a deal because at least when I first got into it again my family came from a low-income family
We don’t really know a lot we don’t even own a house we still renting um I always thought that you have to come up with your own money to invest in this property in this Adu place so in the course we talked about the different ways to do that so how How
Would how would you say like to these people watching what are the different ways for me to fund my deals my investment deals um it’s it’s other people’s money is how I started uh well actually you know what it’s a combo of both okay okay so what happens is typically you’re all excited
Right I’m gonna buy my first deal so you start saving money you start stacking the dough making more commissions and you’re excited right and so you have that money stashed aside I remember from my buddy Garrett it was like 170k I was like wow that’s pretty good and I
Remember that number specifically I’ll never forget I was like how did you do that he’s like selling toilet paper and stuff to companies that’s what he did okay Cintas so he stacked the dough so I said okay I’m not going to save that much it seems like a lot for me I’m
Gonna do 40K so when you save up your money what happens is maybe you send that off to one or two deals and then guess what you’re out of money again right yeah and those deals will have to wait again yeah so the the move is stack
The cash buy uh maybe your first or second deal by yourself if possible or with partners and then show the um document the whole process and you’re going to be successful because you’re in the program you’re learning the game and then so when you make money document
That and that will lead to raising money for your third and fourth and fifth deal right right yeah so and if you can’t do that if you can’t save up 40K because you’re not in a position too that’s okay too then just go straight into the OPM
But really have a clear concise method on what you’re going to do because the worst thing you want to do is lose someone else’s money like if you lose your money that’s on you but to lose your mom’s money your dad’s money or for me to lose Brandon’s money like that’s
Not cool that’s not cool so you want to you want to really learn the game and dive into it and you got to take real estate like very um you got to take it very seriously right because like yeah you know the last thing you want to do
Is like playing with your money and you’re not even know what you’re doing yeah because that’s I mean like I don’t know like you know like nobody would want that you know I mean that’s why it’s so important to like get yourself uh knowledgeable in that in that stuff
And it took you like what five years to say five seven years to to learn the whole game to get you to where you are right now um I would say 2016 I bought my first deal 6105 Dorothy and five five one zero Dorothy back to back it was a
July it was a June and then a July and I was tapped out I was stressed I was like oh my goodness I had no more money what am I gonna do yeah I took some time off 2017 18 and then 2018 I got my uh
License and I said hey I’m gonna go get these deals myself make commissions and roll them into the deals so it was I built most of my net worth from 2019 2020 during the pandemic I killed it uh 2021 and 2022. like that’s when I built
All my net worth by doing these same deals over and over like once a month I was doing a deal that’s cool and in the beginning like who did you partner with like did you partner with friends your families like because I feel like that’s uh maybe some questions of some of the
Viewers that would have it’s like hey like you know maybe I have I want to partner with someone but who do I partner who do I ask do I ask my mom to ask my friends do I have my college buddies like well who do I ask yeah
That’s a good question the money always came from the most random spots at first it was the fraternity Brothers right because we already had that Brotherhood we’re like we’re gonna go into this we had some friends doing it and so we did that together and next I’m sitting at a
Um California Pizza Kitchen at a lunch and it was very unexpected but uh she had been watching my videos seeing what I was posting she’s like hey I got some money I was like let’s roll let’s do it when I find a deal I’ll let you know and
So that was how I got my third deal she put up Jacqueline put up uh maybe 160 000 or something like that oh wow me and Garrett built the Adu we got 50 she got 50 when we did the value add and we cashed out refinance we paid back her
Money me and Garrett got back our construction and plans and permits money and now we own the property actually it was a 33 33 33 split on that one and so just just talking about it on social media consistently uh really just attracted people to me and it happens
All the time in my DMs like yo I got 100K can we hop on a call I want to do a deal dang yeah Power and social right there yes sir that’s cool Dell anybody anyways if somebody has any questions make sure to uh drop it in either on
YouTube or on one of our Instagrams uh this is basically uh these are like this basically what our groups are Tom group coach is going to look like yeah group call is going to look like with more interactions obviously like be able to hop on the calls and actually you know
Talk to talk to us kind of like it’s live you know I mean this is live but yeah there’s a little taste of what it’s like absolutely this is basically a free coaching session so you guys can see how we operate you know what we’re doing
We’re just trying to pour value into you because we want to help you get uh successful in the real estate game someone said they DM me so thank you I appreciate that and at the end of the day like hopefully like we can partner with them as well you know and I
Actually have like on a deal or something like that it’s actually already happening oh there you go one of my students one of my one-on-one clients uh not gonna say his name but we just had a call today we’re working on a deal together already oh there it is it is I
Mean we he’s been on the one-on-one for three weeks now he’s one of the first uh clients and so I’m super excited to see him committed to that he had some cash ready I had a deal and now we’re just pulling it all together so three weeks
And a deal I mean it happened it happened for uh I’ll just say his name happened for Mike so yeah there you go happens for Mike happen for for you all too someone said this is awesome thanks guys thank you John I appreciate you being here appreciate you thanks John
Thank you don’t know who John is what’s that Tom Tom 10x he was on the podcast oh good night awesome that’s cool so yeah let’s uh so I wanna let’s Dive Dive back into it in terms of like the thing that we’re gonna have some of this bro yeah bro
I’m like energized right now yeah I’ve never seen it out that’s that’s so funny it looks like it looks like beer that was unscripted cheers successful launch it’s a successful launch I gotta have some fun too right exactly that’s what it’s all about we gotta have our
Own logo and all our drink uh soon maybe in our own event that’s kind of what I want to do like even I want to hold those like events like here San Diego and stuff like that I’m speaking that one here locally can’t tell you guys
About it yet but I’m gonna be a headliner or you know right below the headliner and we’re going to speak about adus it’s gonna be great there you go there you go that just happened last week oh let’s go congrats that’s awesome um but so we got basically that whole
The deal the debt the equity right you learn that from your Mentor debt equity how has just learning from Grant cardone’s like like think about so imagine what it would be like if uh what your investing credit would be if you have not met Grant card I don’t know
Like green card and was not a thing and kind of like where it is now I know I know exactly what he did for me there’s the deal the debt the equity to be honest you can learn that anywhere go on YouTube hop in our course you can learn
It on Instagram reels but what Grant gave me that I’m forever grateful for is confidence he instilled the confidence into me so that I knew how to talk to Brokers which was super important and now I’m trying to do the same for others yeah but he gave me so much confidence
Just by listening to him how he spoke how he was so his tonality how he knew what a good deal was like and so that’s the best thing I pulled for him I I study his content daily still okay because if you want to be at someone’s
Level you you study what they do and you reverse engineer it and you just take the daily step-by-step action to get there when Grant was my age this is what he was doing but he was going City to City flying across the U.S putting all the miles on his body and um like
Speaking in front of uh big groups of people right but now with technology we could do that right here right comfort in my own home so I’m doing the same thing he did but I’m trying to do it from my home right now you’re leveraging what we have now maybe like he didn’t
Have that back then no he didn’t what you know leveraging technology and social media absolutely that’s crazy yeah and yeah because you know what up CJ is that CJ is here uh CJ the deal tank the deal tank investor himself oh really there you go yeah so
Um yeah we were talking about Grant Cardone that’s right that’s right so it’s been a huge help for sure um kind of I I’ve heard of this quote like I think a while ago but you know when you have somebody that is mentoring you kind of guiding you uh you know
There’s two ways of learning one you can do trial and error right you can do it yourself I try it and hopefully you make it and if not you’ll learn from it you do it again hopefully it’s for the better and you learn from your mistakes or you have somebody right behind your
Side to tell you all the blind spots all the the potholes you might be like encountering in your journey you know what I mean so that’s why I think uh I know now now we’re living in such a cool time because uh even the traditional education doesn’t do
That I feel like you know now I can go onto Instagram YouTube get info from experts like Chris Luna or any other Pace Norby and all that and get their guidance to walk them along the path absolutely you know they’ve done it longer than than I have but
I’ll be able to watch out for the mistakes that he did and learning from that and navigating that through that’s that I love that that you said that that’s what my mentor Robert Martinez tells me like I don’t pay Robert Martinez to uh I mean he shows me what
To do but more importantly he shows me what not to do so so watch out for this um this Pitfall or this what’s it called the the pothole watch out for this because there are like I know I make it sound easy right I give you high level
Stuff but there’s the uh intricacies is that the right word of the business that you need to know like how to stay off the setbacks what is a setback um how to negotiate with the seller what to say exactly like what is your pitch like why is the seller selling there’s
All these like little things yes super nuanced yeah um how to talk to the city inspector when when he says this or that so all these things and what’s cool about the mentorship is if a question comes up and it’s not answered in the course we’ll
Bring it to the the Monday call right or the Wednesday call and we will address it as as a community to solve your issue and to solve your problem and effectively help you get your deal done exactly and like for example like a really like example that I remember like
When I was watching the course is about the uh the comps like that whole situation yes like you know when people are like okay I’m just gonna get a construction loan just build it I’m gonna Cash out refinance whatever but you don’t know like sometimes like it’s
Hard to like get that comps out you know we talked about that all last week but if you want to briefly talk about what could have happened you know something to be watching out for yeah in that sense yeah it has to make sense going into it so check your comps and make
Sure the value that you think you can get be very conservative with that number okay like I thought these were only going to be worth 1.2 but maybe I should have been like looking at the comps okay maybe it’s only worth a million on the appraisal over time
That’s going to go up because there’s comps that show 1.2 1.3 1.617 I keep they keep going up and up but it needs to make sense on paper going into it um otherwise you’re increasing your risk tolerance which is okay I’m a risky guy and so I always believe in my ability to
No matter what happens I’m going to be okay I actually believe that and that’s that’s part of the confidence game like no matter what I’ll be okay if that means I have to hold on to the property a little bit longer so what I hold on to
It I own real estate that’s that’s my retirement that’s my life that’s what I’m doing this should be a shirt like like no matter what I’ll be okay it’s true I actually I believe that and when you can operate from that it helps you make better decisions 100 yeah let’s see
Here we’ve got five more minutes Justin vergado said yo what’s up Justin Justin we want you to be an affiliate because you’re always a supporter you’re always in the live streams and we appreciate you bro yes sir uh let’s see Stephanie said invest in yourself and find mentors
To support the journey love that 100 foreign lesson right there also thank you for everybody that’s uh joining if you guys want to learn more about what is whole stuff that we’re launching this DMS word Adu will get back to you guys and uh excited to launch this with with
Some of you here we go we got a question how long does the construction process take before you get a tenant in place how long does contract I mean so construction on my deals are typically three and a half months for a 1200 square foot four bed two bath that’s
When I was getting started I feel like they end up taking four months it’s funny because in my student housing game the units need to be ready by August one when the school year started and they’re on year to year leaps a month I’m sorry yes one year leases yeah starting August
One and so April Fool’s Day April 1 was always the day that we would be starting construction to hit the August one deadline so April Fool’s year uh April Fool’s date shares a special place in my heart because that’s the day I always have to start construction to be ready
On time uh to answer your question four months on some of the bigger deals where I’m building three units and I’m turning a single family home into a quad Plex that one took six months and then there’s some some hiccups with the city because of the water line and all these
New permits it’s so new still to do um what we did adding three units to one of these deals so that one’s taking a little longer but it varies but on a basic one which is what most of you are going to do I would plan for construction anywhere from three to four
Months unless you’re doing a prefab where you’re just pouring the foundation and they’re gonna fly in this unit and drop it in onto the um the foundation foundation so that is an option too and oh I just had an idea we’ll do a bonus
Section on the pros and cons of it and I don’t actually don’t have much experience with prefabs but we should we should do that make a video about that we’re gonna add that as a bonus section oh yeah did y’all know that we have bonus lessons by the way that we’ll keep
Adding like week by week so don’t want to know more about that again DMS were to edu and we’ll get back to you uh Jax here said uh do you buy on Market or off Market oh great question I do both I have Brokers on so when it comes to
Commercial real estate I work with Brokers they control most of the deals on the market and they bring them to me I just got one sent to me last week from a local broker here a great deal and so that’s on the multi-family side okay and if you’re trying to do single family
You’re going to work with the agents on that I’m an agent myself I have a lot of Agents around me and when deals hit in the markets I want to be in I simply call them or have one of my guys call them and so it just depends if you’re a
Single family you could go on Market um typically unless you have an acquisition team and then you could do off Market yeah which is week 12 right yeah that’s that’s when having an acquisition team and also in week like two is when we have even the art of
Talking to agents yes because I feel like agents got hit up by a bunch of uh you know a bunch of texts and emails and and calls absolutely I mean most of you here probably there’s like a lot of agents that are currently in our in our
Lives that they can prove to to us that it’s it’s true and we even broke down like what is the right way to talk about it to them the art and that you know and I mean so you don’t come off as super pushy and being you know being like a
Jerk you know what I mean yeah and how to do it with class you know absolutely absolutely um it’s a good great question off marketing on Market both work um week 12 is about that how to scale your team and so we’ll do another course on that that’s like what once you
Develop it and you can do it yourself how do you scale this out to to actually grow and create a real company around it right so that’s down the road and that’s that’s already in the works exactly uh somebody asked that a question there do you advise to purchase fourplex around
For example Miami-Dade College absolutely hey good to see you here um yes I would actually I’ve been wanting to talk to someone about the Miami Market it’s obviously hot down there everyone’s migrating to Florida so that’s really good I love that you mentioned a um uh college town that’s great too I’m
Interested on this this if it was a four Plex if there’s enough land to build multiple adus I don’t know the code out in Miami yet but if you if you do the research on the code and you enter the community it would be cool to start
Talking about Miami because a lot of people you know a lot of people talk about syndications and raising money and doing that that’s great I think it’s really good but um we could also be building units out there close to campus brand new class A
That is going to be worth a lot it’s very similar to San Diego where you can build for this and it’s worth this who is that uh she knows the area yeah send us a DM uh well we’ll talk more uh send us a DM yeah perfect what did you say
Over there I can’t read that oh we read that one I do one at the very bottom uh I know the area perfect there you go yeah I love that see this is what the community is about it’s about it’s about pulling ideas and resources together and knowledge together essentially and knows
Together we have five today in YouTube that’s kind of more usually we have two yeah YouTube now we have like you wanna know why because we’re committed that is true we’re here every Monday okay we show up oh look we have six and CJ thanks for the shout out man I
Saw you like one day like give it like what six months this is gonna be like 50 people oh yeah Karen yeah it’s Karen sorry I didn’t recognize the the name Karen good to see you here she’s in Grant cardone’s Real Estate club with me awesome cool I think we hit our 46
Minutes um this is great I this is the most value I feel like we’ve ever dropped the best questions we got three cameras going we got the energy we got the Celsius we got the water I’m online um but yeah just kind of like to wrap it
Up like again uh for everybody that is wondering about the backyard billionaire project to send us the DM uh the word Adu basically you know it’s a group mentorship program really we’re here to learn from one another you have Chris to walk you walk with you throughout the
Whole step from A to Z on building an Adu and if you’re in a different Market we would love to collaborate with you we would love to like learn uh you know just about what is that different market like Miami is all about and just building that database so that more and
More people can learn from each other and more and more people can get more value and more and more people can get rich right they can go more you know build generational and you know what you’re effectively helping your community you’re you’re providing housing that’s why all this makes sense
Because the the legislature the politicians they want this because there’s lack of housing what’s that do it increases the values of the properties and so people have nowhere to live we’re becoming a renter Nation right so you’re solving an issue you’re you’re creating wealth for you and your
Family right and the best part is we get to all do it together right and once again this is just the start too so this is the one of the best time to get into this whole Adu game and what is is the best way for you to get into the game is
To get to know about how to do it because if you have that knowledge nobody can take it away from you that’s the one thing that I think you know you can build a business you know like business can go up and down but the one thing that won’t ever fail is your
Knowledge in a specific skill absolutely once you have that knowledge you have it forever and that’s what I was talking about if you if you lose it all like you should have the confidence in yourself to get back up and do it in because you have it already by the way someone wants
To know where they can find you someone wants to know where they can find you so me uh me or us what’s your other presenter’s name I would love to follow him so it’s Brandon oh yeah my name is Brandon uh if you guys uh don’t know it’s brandon.fortino
It’s on Instagram it’s on everywhere so check it out I’m kind of more of a marketing side uh CEO operations for backyard billionaire uh building up on the back so uh yeah you know we’ve been there so uh yeah follow us Chris j.luna on Instagram uh on YouTube same thing
Check out our YouTube channel got our link tree there so it has on the come up Podcast everything I do I had to schedule a call with me if you’re interested in the program let us know and tell the people about this live stream too again this is like we’re here
Every week on Monday at 11 A.M Pacific Standard time uh we’ll answer we’ll try to answer as many questions as you can get now we’re getting a lot more questions than the the first ever week that we do like they got like basically one-on-one tutoring yeah you know so uh
Spread this word and if you guys would like to join to be our first like top 10 people to join this program again we’re giving away the lifetime access lifetime access with all the future courses as well that we’re going to be dropping it’s really like a no-brainer like you
Know for what value you can get you can you can do one deal and get a million dollars and we charge less than 5K for like to access on this on this membership it’s kind of like it’s kind of ridiculous yeah so um how do we join Armando there uh DM us
The word Adu we’ll get back to you and becoming that first 10 people will connect you guys and uh we’ll bring in more value real quick just because yeah we should have said this from the get-go because I learned this from Grant Cardone on the webinar yeah this is not
A webinar but it’s similar um the offers that we do have it’s a course which is just a one-time fee then there’s the middle offer which is which is the group coach yeah the group coaching plus the course that’s the mid-tier where I think a lot of people
Will end up and then you have the the like the premium which is the one-on-one which is what Mike did which is who I’m partnering with on a deal and so you get the two Zoom calls plus the one-on-one so we have three offers like if you’re
Tight on money maybe option A is the best just the course you have to get the knowledge or or if you don’t have money just show up to the live streams ask questions I’m here for you right okay I think it’s all about getting the access
To what we do it that way like if you if you were to hyper executioner like you learn something and you want to execute right away through the video all good will you have 12 comprehensive course from A to Z strategy on adus and also all the bonus videos that will be
Dropping like weekly or even bi-weekly and if you want to meet the community and kind of like talk to them in in the live zooms and all that stuff you know we have the group uh program for that so make sure you check that out out meeting
Twice a week Monday and Wednesdays both either in the morning once in the morning once in the later time in the afternoon that way like if you have work more and more people can get to the show yeah or if you are ready to just like if
You’re like at the edge of like all right I have all this money I need to do this deal I’m like I need to know the house I need to get my questions answered ASAP with Chris that’s where the one-on-ones will be perfect super helpful I sit down with you one hour a
Week the same time every week we stay consistent I answer your question and we move forward it’s just it’s the best way to get deals done quickly there you go we just hit 50 minutes I’m feeling good about it I know you’re feeling good about it feeling good about it again
Join us next week in a uh you know in 11 A.M Pacific Standard Time sure we’ll answer more questions so just show up tell your friends and if you guys are interested in that you know DMS the word Adu brandon.fortino or at Chris J dot Luna appreciate all of you guys on
Instagram you guys really showed up today man I really appreciate that and I think we’re signing off here sounds good yeah okay back here building it out late see y’all have a great week and now and broadcast
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