From DoorDasher to $1.5 MILLION in Actual Property (All at 22 Years Outdated!)

David:
That is the BiggerPockets podcast, present 749.

Rob:
I by no means thought that whereas I used to be DoorDashing in school, not having essentially the most clear imaginative and prescient of what I needed to do after, that actual property would permit me to personal over 10 properties proper round one million and a half in valuation and have the power to create some long-term constant money move.

David:
What’s happening, everybody? That is David Greene, your host of the BiggerPockets podcast. Right here at present with my co-host, Rob Abasolo, with a present that’s going to blow your thoughts. Immediately’s visitor is 22-year-old Josh Janus, who has already established an actual property portfolio over 10 properties, can be promoting homes as an agent. He bought $17 million final 12 months. On this episode, Rob and I get into how he’s doing it and what he’s discovered that different folks haven’t. My thoughts remains to be blown, Rob. How are you feeling?

Rob:
It’s a type of issues the place I’m identical to whenever you discover somebody that unlocks one thing in actual property they usually’re completely crushing, it’s tremendous spectacular, however whenever you discover somebody that’s 22 years previous making six figures a month doing very well in actual property, it truly is simply a type of issues the place I’m like, “Man, I received to catch up.” And I’m like 10 years after this man.

David:
That leads us to at present’s fast tip: Get began in actual property early. How will you get began now? I’ve typically heard it mentioned that the most effective time to purchase actual property is 10 years in the past. The faster you get that clock began, the higher it’s going to be for you. The very best offers that I’ve is the stuff that I purchased the longest time in the past. That doesn’t imply to purchase unhealthy offers early, however purchase good offers early and wait. Rob, what’s one thing about at present’s present that you just assume folks ought to hold a watch out for?

Rob:
Even with Josh’s success and the way a lot cash he was making, which we’ll get into that within the episode, he was nonetheless actually sincere about his fears moving into his first property that he in all probability might have straight-up paid money for in a single or two months. And so, it was simply good to listen to that even somebody that may very well be making a lot cash might nonetheless be susceptible and fearful of their first deal, nevertheless it was actually cool to see the glow up and to see that that first deal catapulted him to the place he’s at present. Yeah, only a actually cool inspiring second, I feel, to simply hear him put all of it on the market.

David:
He additionally shares how he received began in enterprise making duct tape wallets and DoorDashing. This can be a one that listened to the podcast driving round, dropping off Jack within the field and pizzas and turned it into an actual property empire, identical to a lot of you which are listening to this now actually need. That is one I’ll take heed to twice and pull as many items of knowledge as you’ll be able to out of this story to think about how one can apply it to your life. With none additional ado, let’s herald actual property phenom, Josh Janus.
Immediately’s visitor, Josh Janus, knew in highschool that he needed to retire by 30 years of age, so he constructed and managed totally different aspect hustles, from duct tape wallets to a profitable sneaker enterprise. Josh was a university pupil who additionally drove for DoorDash. Final 12 months at age 22, he bought over 125 properties in his first 12 months as an actual property agent, totaling over 17 million. As an investor-friendly agent, he has bought and renovated over 10 properties utilizing little or no of his personal cash in actual property during the last seven months. We’re going to unpack this at present. Josh, welcome to the podcast.

Josh:
Thanks.

David:
Yeah, it appears like you might have a robust entrepreneurial focus. Earlier than we get into the way you completed every part that I’ve mentioned, what was it about actual property that attracted you within the first place?

Josh:
After I was youthful, I used to be at all times making an attempt to save cash. I didn’t actually know precisely the most efficient factor to do with it, however I used to be like, “Hey, I’d as nicely stash it away and finally I’ll determine it out.” I had round $10,000 saved up, like free capital to make use of. I used to be beginning my school profession, and I used to be launched to the concept of home hacking when principally Googling what to do with 10 to $20,000 whenever you’re 20. That led me to BiggerPockets and that was my introduction to actual property as a complete.

David:
Did you ever truly go wherever with home hacking?

Josh:
I used to be shut. So again after I was dwelling in Cleveland, Ohio, I used to be taking a look at properties. I discovered the place I needed a home hack, however I ended up switching and going to a distinct school, I went to the Ohio State College, after which my subsequent journey was going to be the home hack there, however I didn’t truly find yourself doing it.

Rob:
So Josh, it looks like clearly you’re a bit bit entrepreneurial right here. Earlier than we get into the actual property stuff, as a result of I feel even on the age of twenty-two, having $10,000 in your checking account is a tough factor. Lots of people are like, “How can I get 10,000 bucks?” So are you able to inform us a bit bit about the way you even received the ten,000 bucks? Did you simply have a ton of aspect hustles or have been you working a job?

Josh:
Certain. I used to be working. I used to be doing quite a lot of aspect hustles. I used to make duct tape wallets after I was in center faculty and attempt to promote these. That was enjoyable. The following factor was actually keen on was sneakers, the entire sneaker tradition, reselling, as a result of I used to be a reasonably large basketball participant and I used to be uncovered to that business. I used to be going to totally different sneaker occasions, I might lease out a desk, deliver as a lot footwear as I might slot in my couple baggage and attempt to promote them and principally simply saved these earnings through the years.

Rob:
Good. What did a duct tape pockets run you again within the day?

David:
Oh, man, it was like $5 to promote. I imply, it was quite a lot of work for $5.

Rob:
Oh, I see, as a result of I used to be going to say a roll of… nicely, bathroom paper… sorry, duct tape going to price you want three, 4 bucks, so yeah, should you can make-

David:
See, Josh, that is my drawback, Rob at all times forgets to incorporate the worth of time. He solely appears to be like on the cash when he calculates ROI, you’ll be able to see.

Rob:
That’s true, however you had quite a lot of time.

Josh:
True. Yeah, I used to be doing it in school and on the bus.

David:
This jogs my memory of me. I want I had had one thing. I’ve at all times had a really tough time paying consideration in school, in class. Anytime that I’ve to comply with someone else’s tempo, in the event that they’re speaking too sluggish, I’m like, “Ah.” My mind simply wanders. I can’t sit there. They didn’t have fidget spinners. Or what’s the opposite issues that everyone performs with now, Rob?

Rob:
Fidget cubes.

David:
Fidget cubes, there you go. Proper? What did we now have in my day? We had silly pencils with totally different coloured lead that you possibly can click on the totally different colours and play with, or we had these bracelets that you possibly can snap in your wrists and they’d curl up in a ball. I doubt both of you guys ever noticed these issues, but-

Rob:
Oh yeah, you continue to have that vibrant pink one that you just at all times play with throughout the podcast?

David:
Yeah. And after I work out. That’s my fortunate exercise wristband. Shiny pink, completely. PinkerPockets for the win. You’re entrepreneurial at coronary heart, Josh, which I like as a result of I do know that is the place you be taught the basics that later translated into actual property investing. We interviewed Ryan Pineda on our podcast years in the past, and he talked about how he flipped couches. He would purchase couches, repair them up, and flip them, which he then later became a home flipping enterprise, and now he’s constructed a complete empire, which I prefer to assume we’re principally those that launched in into the ambiance. However Ryan took that atmospheric launch and constructed one thing fairly cool out of it. So I’m curious should you might share what classes do you assume you discovered with a few of these early endeavors that translated into actual property later?

Josh:
I assume within the sneaker tradition you’d see a few of these actually cool footwear that athletes have been sporting or celebrities, and possibly you’d flip a couple of pairs, you’d make like 500 bucks. And also you’d need to take that revenue and instantly purchase your personal pair to maintain and put on. My mindset was I’d reasonably save that cash and possibly put it in direction of an asset. I discovered the concept of belongings after I was youthful, the place you’ll be able to truly use cash to earn more money. I didn’t actually perceive which belongings to make use of on the time. I simply knew that idea, and I used to be like, “It’s received to be a greater method of spending my $500 revenue.” So I feel that’s one factor that I discovered for positive after I was youthful.

Rob:
By the way in which, that’s not the worst mindset to have the place you say, “I actually need this factor, so I’m going to determine the right way to generate income with this factor that I need, promote it, make a revenue, after which get the factor that I need.” That’s actual property in a nutshell, proper? You need to purchase property, so you purchase a property, you flip it, you’re taking the earnings, and what do you do? And normally, should you’re a great actual property investor, you go and also you dump it again into one other property otherwise you purchase a property and produce other folks pay for it, long-term leases or short-term leases. I feel the mindset isn’t incorrect, it’s simply actually spectacular that you just discovered at a really younger age that as a substitute of shopping for sneakers, it is best to put it into one thing that’s going to make you extra money.

Josh:
Yeah, I feel I used to be at all times looking for extra methods to be extra productive with my cash. I discovered early on, for sure, footwear that I’ve to go to the shop and wait a number of hours, I used to be pondering, “This isn’t very scalable if I need to attempt to get 20 pairs of footwear as a result of I can’t be concurrently at 20 locations on the similar time. I’ve to discover ways to depend on different folks.” Various things like that helped.

David:
I attempted totally different endeavors too. I labored at eating places, and I discovered the right way to promote wine and steak, after which I attempted to get a job promoting automobiles at one level and that didn’t work out. However finally, I feel quite a lot of us see actual property as the top we’re making an attempt to get to. We need to promote the costliest factor we will. Getting an actual property license isn’t one thing you want this four-year diploma. I want it was. I’d really feel significantly better if brokers needed to go get a two or four-year diploma to so homes as a result of there’d be much less crappy ones on the market, and we’ll get into your profession there too, Josh. However was it the identical factor for you that actual property was only a pure development of the most effective factor that you possibly can promote?

Josh:
Yeah, I feel so. It appeared like I needed to put virtually, now they appear again on it, the period of time it takes for me to promote one home was virtually the identical period of time and vitality it took for me to promote one or two pairs of footwear in some methods.

David:
And your palms aren’t sore from creating these duct tape wallets on a regular basis. It’s simpler.

Josh:
Sure, that too.

David:
You let DocuSign do all of the work, much less paper cuts. All proper, so let’s return in time. You’re in school… I say return in time, you’re 22 years previous, you would possibly nonetheless be in school. The place does this curiosity in actual property begin to come into play? How and the place did you begin to dig in?

Josh:
I imply, I simply was googling, “What do I do with 10,000 or $20,000? How do I make investments it?” I can’t bear in mind if it was BiggerPockets instantly, however I noticed home hack, and I used to be like, “Perhaps I might purchase a property on the faculty campus I used to be going to. Stay in a single unit, lease every part else out.” That slowly led me to grasp, “Oh man, if I turn out to be an agent, I might work out a method to discover probably the most effective offers,” in order that was my purpose.

David:
So that you didn’t purchase a home to deal with hack, however you bought uncovered to actual property, it made sense to you, and also you thought, “ what? I’ll simply get my license and I’ll assist different folks do the identical factor.”?

Josh:
Yep.

David:
All proper. So did you simply lookup the right way to get an actual property license and simply begin finding out and do this, or did you might have a mentor that guided you?

Josh:
The very first thing was diving into the BiggerPockets boards, actually. This podcast would possibly sound like a BiggerPockets promotion, however in all actuality, a ton of my development actually stemmed from that basis. However that was one of many first issues. After which I additionally received latched onto a man named Remington Lyman, who’s additionally an agent. He works at Reafco Actual Property, he owns the brokerage I work at. However I messaged him, I used to be explaining my scenario. He hopped on a Zoom name with me, defined the advantages of home hacking like, “Perhaps should you needed to turn out to be an agent right here or come right here, we will train you the right way to discover off-market offers. We might help you construct these techniques.” After which subsequent factor you understand, I used to be working as exhausting as I can to get my license.

Rob:
So that you’re getting your license, and clearly as you determine your actual property agent enterprise, that’s going to take a while to get that deal move and really closing properties and earning money. Have been you working another jobs whilst you have been doing this or have been you all in on the very starting?

Josh:
Within the very starting, I used to be nonetheless taking lessons. I used to be finding out laptop science, after which I used to be driving for DoorDash 20 to 30 hours per week. After which at any second I might, I used to be making an attempt to simply chilly name. That was my essential supply of discovering offers to start with. My plan was chilly name, discover a deal, or no less than get someone to speak to me about their property, get some particulars, deliver it to one of many brokers that I used to be working with. They might break down the deal, clarify like, “Perhaps an investor would love this,” or get some clarification on what the rents are, the lease phrases are. It began there.

Rob:
Have been you ever deep in dialog, you’re like, “Give me one second,” and you then’d pause to take a photograph of the DoorDash supply to add within the app after which get again on the decision?

Josh:
Perhaps. I used to be making an attempt to not do the supply whereas calling to… I used to be doing it after I was driving, however not necessarily-

Rob:
Oh, mid supply.

Josh:
Yeah. Yeah.

Rob:
What sort of cash does a DoorDasher make? If you happen to’re working 20 to 30 hours per week, is that fairly good revenue? Are you able to give us a bit body of reference there?

Josh:
Yeah, I imply, I used to be round 5 to $800 per week, I feel, working that quantity of hours. That’s fairly good.

Rob:
Yeah, that’s stable, particularly should you’re in school and also you’re doing all that. So that you’re DoorDash and making fairly good cash for the place you’re in life and also you’re chilly calling. What was that first deal like whenever you truly landed a lead that turned a transaction that paid you out?

Josh:
Undoubtedly. So I used to be chilly calling 4 models in what I might name A-Class space. I simply discovered a man that occurred to be motivated that day. He was fairly simple to speak with. I offered it to the agent I used to be working with, he’s like, “Oh yeah, we might promote this deal.” So I wrote up an e-mail, which is the way in which that we market our offers, then he offered it to his buyers. Any person ended up taking the deal on. That took a couple of month to shut, as most properties do, and I principally made what I might make in a month and a half from DoorDash from that. I used to be fairly psyched as a result of I assumed, “I simply have to knock out a couple of extra of those and I might find yourself making this produce extra revenue than simply DoorDash.”

Rob:
So that you began math out like, “Oh man, if I did this 3 times, I’ll make this sum of money.”

Josh:
Oh yeah, undoubtedly. After which one other factor is, should you get your license, you find yourself making a a lot larger minimize as a result of you’ll be able to truly symbolize both the vendor or the client, will depend on the scenario, so I used to be making a referral payment. In order quickly as that deal will shut, I used to be like, “All proper, I received to get my license. Let’s begin finding out proper now and attempt to knock it out.”

Rob:
Yeah. So was that extra, I don’t know, a wholesale deal the place you’re calling, you discover somebody, you get a property off-market. They’re like, “Yeah, I’m keen to promote it.” Are you then passing that off to realtors to promote or have been you promoting it to an investor and taking a small payment for that?

Josh:
I labored underneath a realtor named Abe, so principally I simply wrote all the main points of the property, gave to him, after which he discovered an investor that was within the brokerage that I used to be working at. It’s like a hybrid type of wholesaling. We simply don’t truly put the offers underneath contract, we simply current the data to the potential buyers.

Rob:
Is sensible. I assume you shut this deal, you’re like, “Oh my gosh, I simply received to do that many instances.” You begin getting extra into this. How have been you in a position to stability every part from getting your license to ending school to, I assume, nonetheless possibly working some DoorDash right here and there?

Josh:
I imply, at that time, principally I used to be like, “I’m simply going to make use of all of my time exterior of faculty to dedicate in direction of nonetheless sustaining a chilly calling schedule,” which I feel is basically vital, “after which getting my license.” So I received my license in about two months.

Rob:
Are chilly name hours at all times 9:00 to 17:00 or have been you getting artistic and calling from 5:00 PM to 9:00 PM too?

Josh:
9:00 to 11:00 was my chilly, chilly calls, the folks I’d by no means actually talked to. After which I might use 13:00 to 17:000 as quite a lot of follow-ups or new chilly calls. However it appeared like should you hit someone within the morning after they’re driving, “Oh yeah, yeah, yeah, name me again later,” then I simply hit them later, and normally that ended up being a fairly first rate converter.

Rob:
David, do you think about your self a lot of an excellent chilly caller? I’ve by no means heard this aspect of you earlier than, so I’m curious.

David:
I did it to start with of my profession after I needed to. I didn’t like it, so I didn’t do it rather a lot. If you’re looking for offers, most individuals fall into certainly one of two classes. There’s the direct contact individual, which is a chilly caller, or there’s the content material creator, which will get folks coming to them. Most individuals normally take a type of two paths. And since I ended up as a podcast host and an writer, I went the content material creation aspect versus the direct chilly name.
Josh, I imply, you probably did what you possibly can do since you didn’t have an enormous podcast behind you to unfold the phrase. I’m curious since you talked about one thing, you talked about this wholesale hybrid mannequin. Are you able to give us a bit extra element of what you imply by the way you have been earning money on these offers?

Josh:
So the vendor was like, “Hey, I need 450 for this 4 unit.” And usually wholesalers would write up a contract, get it underneath contract, after which promote that contract for a payment. The way in which that we do it on the brokerage I work at, at Reafco, we don’t put it underneath contract. We simply take all the main points of the deal, write it in an e-mail, after which current that to our buyers. After which if certainly one of our buyers likes it or they need to write a suggestion, we simply write up the provide and current it on to the vendor.

David:
How are you being compensated? Are you getting an inventory settlement from the vendor whenever you deliver the client to them and there’s a fee in there for you guys?

Josh:
We don’t truly use itemizing agreements, no. Throughout that timeframe after I didn’t have my license, I used to be getting a fourth of the fee for the agent I used to be working underneath. He received 3%, then the agent that introduced the client received 3%, after which I ended up with 25% of the three%. That’s how we did it.

David:
How have been you guys getting commissions if there was no itemizing settlement?

Josh:
It’s nonetheless an executable contract with commissions within the settlement, so it’s going to say, “Vendor to pay 6% to our brokerage.”

David:
I gotcha. So you’d deliver a purchaser and within the provide it might have who was getting paid so far as the brokers are involved?

Josh:
Right.

David:
I see. So reasonably than placing, getting a home, placing it in the marketplace, letting everyone see it, making an attempt to get affords, negotiating the very best one, you guys simply minimize to the chase and also you mentioned, “Hey, I received a purchaser that can pay this a lot for your own home. If you wish to take the deal, right here’s how a lot it’s going to price you. Right here’s what the online to make use of goes to be,” and also you guys have been operating a bit extra effectively.

Josh:
Yeah. I feel it permits us to reap the benefits of these leads that aren’t as motivated to signal an inventory settlement, as a result of there’s lots of people that fall in that class, I feel.

David:
That is additionally a type of off-market deal, so different consumers didn’t have entry to the identical stuff that you just guys have been bringing them, right?

Josh:
Yep.

Rob:
Yeah, however Josh, let’s say you’re presenting this property, since you don’t have a contractor, you don’t have an inventory settlement, what would cease an investor should you say, “Hey, investor, I’ve received this cool property, right here’s the handle,” what would cease them from simply going over you and going straight to the vendor and simply transacting the deal themselves?

Josh:
That’s a great query. We have now an off-market settlement that we current to everyone previous to setting offers that roughly states, “If you happen to go after a deal that we deliver, it’s important to use us as your agent.” To start with after they haven’t signed it but, we’ll ship folks tough descriptions of all of the offers. It gained’t have the handle, normally gained’t have photos. However then in the event that they’re like, “Hey, I actually just like the idea of this deal,” we’ll set on the settlement after which they signal it and we’re good to go.

David:
So it’s a type of a purchaser illustration settlement. Individuals don’t notice you don’t must set it up for each home that I present you or each home you possibly can purchase. You’ll be able to say, “For this handle, I’ve to be your agent,” however they might use a distinct purchaser’s agent for various properties that get delivered to them. That really is smart. I see now why you’re calling it a wholesale hybrid, as a result of wholesalers do it that method. They are saying, “Right here’s a 3, two with 1,800 sq. ft on this zip code that might lease for this a lot cash.” That’s all that individuals get to begin with till they need to analyze it later. So you utilize that advertising strategy paired with actual property contracts to guard every occasion there. What occurred subsequent? How did you get to the purpose that you just have been making extra from these commissions than you have been making out of your DoorDashing?

Josh:
In order that first test got here in, that was a couple of month and a half’s price of DoorDash. I had quite a lot of heat leads, those who weren’t able to promote instantly however they have been getting shut. I used to be principally like, “I’m going to take the subsequent six weeks, I’m going to go actually exhausting at this.” At that time, I used to be spending two to a few instances extra hours per week on this than I used to be earlier than. Then I received my license, then I began placing a complete bunch of offers in contract.

Rob:
If you say you’re placing two or three extra hours, do you imply simply within the follow-up?

Josh:
Sorry, my unhealthy, two to a few instances extra hours per week than I used to be earlier than as a result of I used to be like, “Hey, no extra DoorDash for now, we’ll simply work on actual property.”

Rob:
Acquired it. Was all that point on lead technology, was it following up with… since you mentioned you had a big pool of heat leads, so these are those who, they’re , they’re not prepared to drag the set off essentially, however should you hold approaching them, coming again to them, finally they convert, proper?

Josh:
Yeah, finally. Yeah.

David:
All proper. Have been there any key studying factors throughout this tough time? What was happening available in the market presently? Was it nonetheless red-hot? Have been issues slowing down? The place are we in time?

Josh:
That is the start of ’22, so it was nonetheless scorching, undoubtedly. It was cooling off a bit bit, however each deal that was first rate that hit the market would have a number of affords and the itemizing agent can be getting hounded. It was undoubtedly robust. Right now, I additionally tried to make an even bigger presence on BiggerPockets, so I used to be posting rather a lot. I feel I cranked out 1,000 posts in about three months.

Rob:
Wait, maintain on. Okay, in order that’s 90 days, so that you have been posting 10 instances to 12 instances a day on the BiggerPockets boards?

Josh:
Yep. That was my schedule. I imagine from 5:30 to six:30 each morning I needed to spend an hour in BiggerPockets by posting or no less than studying content material and making an attempt to offer worth.

Rob:
The place you have been making posts and really placing content material on the market, what’s an instance of one thing you’d throw out into the BiggerPockets universe?

Josh:
I imply, most of it was simply feedback on folks’s questions. I might attempt to reply them the most effective that I might. I might speak concerning the Ohio market, the benefits to investing right here. I might discuss my journey and the way I’m studying.

Rob:
Did you are feeling like folks begin to know who you have been? Did you get any relationships from doing that?

Josh:
Oh, yeah. Individuals reaching out to me in BiggerPockets. They’re like, “Hey, I see a bit bit about this market or actual property investing usually.” At that time, I used to be making an attempt to handle these leads, after which I used to be additionally reaching out to different folks. So I arrange a Calendly hyperlink. I used to be like, “Hey, arrange a 15-minute name with me. We’ll work out what you’re in search of and the way I might help.”

David:
So when the market was scorching and itemizing brokers have been getting a number of affords, how are you getting sellers to comply with promote their properties by way of you to a selected purchaser reasonably than placing it on the market for everybody to see?

Josh:
I feel the truth that we weren’t utilizing itemizing agreements, they have been rather a lot calmer. They didn’t really feel such as you have been making an attempt to push them to promote. It was extra so I used to be like, “Hey man, what do you want for this property? What quantity would you not deny?” If that quantity made first rate sense, we’d spend the time to jot down it up and promote it out .

David:
They usually weren’t having to repair their home up. I’m assuming quite a lot of these have been in all probability bought with tenants already inside.

Josh:
Yeah, tenants inside. We’d get the rents, the lease phrases. They might virtually at all times be as is. Yep.

David:
What have been you doing to seek out precise properties? Have been you simply pulling lists? Was this you’d be driving round and simply look and see a multi-unit property you thought an investor would love?

Josh:
I used to be pulling lists from PropStream for essentially the most half and focusing on totally different areas. I used to be making an attempt to drag lists of those who hadn’t bought within the final 12 months or two years or that purchased it for a extremely low worth in comparison with what it was probably price now, as a result of I felt like these might have been extra motivated folks.

Rob:
All proper, so that you’re on this world the place you’re determining your techniques, I see that you just’ve developed habits, you had a schedule, you’re now an agent. Give us an thought, how lengthy did it take from whenever you received your license to the primary deal that you just closed as an agent? How lengthy did that take?

Josh:
That was December to March, so principally three months. I had my first 11 offers fall out of contract. It was fairly brutal. I felt like every part was falling out for essentially the most distinctive causes, nevertheless it was an enormous studying expertise for me as a result of I used to be making errors, for positive.

Rob:
Man, the 11 offers, that’s brutal. David, is that ordinary in any respect? I do know you run the David Greene workforce, essentially the most elite actual property brokers on the market, is it regular for 11 offers to simply fall out from a first-time realtor?

David:
No, however as I’m listening to Josh’s technique right here, that begins to make sense. That is extra of a quantity primarily based strategy. He has sellers that aren’t motivated. He has consumers that they don’t have a relationship with. Everybody’s a little bit of a service provider marine right here. It’s simply pure numbers. If you will get me a deal that will get me the money on money return that I need, I’ll go ahead. Or if you will get me this quantity that was in all probability larger than what they thought the property was price. So that you’ve received sellers that in all probability need to promote for greater than a purchaser would need to pay. You get consumers which are in search of the deal of the century. Each time you might have these expectations which are off, it’s simpler for a deal to disintegrate. I’m assuming, Josh, you simply needed to make up for that with quantity. You have been in all probability only a workhorse that was always in search of sellers, in search of consumers, matching them collectively, shifting on to the subsequent factor.

Josh:
Undoubtedly, sure. I haven’t actually heard a abstract like that earlier than. That’s an excellent method of explaining it. I used to be principally simply taking two those who had a low likelihood of closing and placing him collectively. When that occurs, you get a extremely low likelihood of closing.

Rob:
David is the king of this, by the way in which. He’s the king of summarizing one thing so concisely and succinct. I bear in mind we had… Let’s see, who was it? Chris Voss. Chris Voss got here on and he gave a philosophical factor, after which David is available in, he’s like, “So principally, primarily based on this and this, it’s this, proper?” And Chris Voss was like, “Yeah, it’s that. Nobody’s ever instructed me that earlier than.” It was like watching… Who painted the Mona Lisa? The painter of the Mona Lisa paint the Mona Lisa, however in the actual property world. Michelangelo. Shoot, I’m about to look so dumb. Everybody within the feedback are going to be like, “No, it wasn’t Michelangelo.”

David:
Effectively, the bottom line is it’s important to do this with Chris Voss since you don’t need to find yourself in a negotiation with him.

Rob:
Oh no, I bear in mind who it was. It was additionally the Blue Angels man. He had this entire story about how he made a mistake within the jet, after which he was like, “Are you able to guess the explanation that I made that mistake?” after which David was like, “Effectively, it was in all probability since you received too snug and blah, blah, blah.” And he was like, “I’ve instructed that story 1,100 instances, and nobody has ever mentioned that to me. Yeah, that’s precisely why.” He was surprised. So anyhow, I at all times prefer to level that out after I see it.

David:
Effectively, thanks. Fast tip right here, if you need to have the ability to do the identical factor, cease in search of patterns to comply with or so far as a method, “Give me a blueprint, I simply need to go do one thing,” and begin asking questions like, “Effectively, why did that work?” or “Why did that not work?” after which these items jumps out. So simply from that data alone, I can inform sure issues about Josh. He’s a workhorse. He doesn’t get emotionally hooked up to any of those offers. When he places one thing in contract, he doesn’t spend the cash earlier than it closes. He’s identical to, “That’s a metric that goes on a spreadsheet. I’m now again to going to work.” He focuses on what we name the lead measures, not the lag measure, so what’s it I can do proper now versus measuring one thing that already occurred?
That is all actually good recommendation for everybody. You see this with actual property brokers the place they work actually exhausting, they put a deal in contract, they get emotionally excited, they rejoice, they exit ingesting with their buddies, they begin serious about what they’re going to spend the cash on, they’re calculating their commissions. Actual property brokers can calculate 3% of something, which is humorous as a result of we don’t all get 3% rarely anymore. However they get tremendous hooked up to the deal, after which when one thing goes unsuitable, the appraisal is available in low, the inspection report is unhealthy, the consumer can’t get the mortgage, no matter it’s, they get actually discouraged after which they go ingesting once more. Which is why most actual property brokers all turn out to be alcoholics, as a result of they’re ingesting after they’re excited they usually’re ingesting after they’re bummed out they usually’re simply ingesting on a regular basis. I feel Josh’s strategy is significantly better since you’re approaching the enterprise of promoting properties like an actual property investor would assume, the place you’re simply letting the numbers make the choices. Am I off with that?

Josh:
You’re proper. Yeah, it’s simply hold put them in contract, work out what mistake I made there and what can I modify in my techniques and my strategy to probably keep away from that sooner or later.

David:
Okay, so let me ask you, what are a number of the key errors that you may share that you just discovered whenever you put these offers collectively that made the offers disintegrate?

Josh:
The very first thing can be not vetting the sellers. Typically they wouldn’t… I imply, sort of humorous, they didn’t even actually know what they owned. They might say like, “Oh, these are three bed room models.” And you then give them a contract, the inspector goes there, they usually’re like, “Dude, there’s solely two bedrooms.” And it’s like, ugh, you’ll be able to’t do something about that. You’ll be able to’t simply construct a brand new bed room. In order that’s one factor.
One other factor is I discovered about ensuring the tenants are paying and the tenants are paying on time. That’s crucial, so getting these estoppel agreements probably to start with as a result of that ended up inflicting points on the finish earlier than closing a number of instances. After which not essentially vetting consumers very nicely. One instance that’s sort of humorous is I had a man making an attempt to purchase two properties for $600,000. We fell two weeks prior to shut as a result of he couldn’t get financing. I discovered that he had lower than $10,000 in his financial institution and he was making an attempt to place 25% down. I’m like, “Will we even do the maths right here?”

David:
It’s so humorous, as a result of I might simply completely see how this technique would entice these issues. That is looking for a date on Craigslist. You’re like, “It’s a numbers sport, child.” You simply received to maintain lining them up since you’re going to get these folks which are in search of a deal that’s unrealistic. The $8,000 man, I wager you what he was doing was he introduced this deal to different folks and he was making an attempt to get their cash on this deal that had a excessive money on money return quantity as a result of he listens to the podcast and he hears Brandon Turner say, “When you might have a fantastic deal, yow will discover the cash.” He didn’t inform you that. He’s like, “Yeah, I’ll purchase it,” after which he’s operating round telling everybody he can, “What’s the elevating non-public capital script I’m supposed to make use of?” He’s making an attempt to get somebody to return in on the deal. He ran out of time after which he has to simply again out of it.
And also you, Josh, you get to work your method by way of all of those actually unimaginable situations that usually an actual property agent like us we’re like, “Oh, let’s see your proof of funds. Oh, you might have $8,000. No, we’re not going to go present you properties.” You didn’t get to try this. Did you place a system collectively? Do you might have a guidelines now? Do you might have a screening course of for each the consumers and the sellers?

Josh:
Undoubtedly, yeah. I attempt to write procedures for as many issues as I can. I’ll hop on a cellphone name instantly with the folks as quickly as I meet them, little 15-minute assembly, be certain like, “Hey, are you pre-approved? If not, I’ve these lenders that I like to recommend. They’re nice on this space. You need to join with them.” I strive to determine their timeline, whenever you’re trying to lock down a deal. One other factor I feel is basically vital for working with buyers is, what’s your standards? A variety of buyers don’t essentially put that ahead and brokers can find yourself losing time as a result of they don’t actually know what the individuals are in search of.

David:
Yeah, I feel that’s a typical grievance buyers have too. “I instructed them what I need. The agent didn’t take heed to me.” That’s one method to mess it up. The opposite method is the agent doesn’t even assume to ask what would you like. It’s humorous, in our world, somebody will say they need a deal and we don’t even assume to ask them to outline what they imply by deal. Some folks imply a extremely excessive money on money return. Some folks imply a property in the most effective space. Some folks imply one thing at considerably lower than ARV. Some folks imply simply any multi-unit property. It might probably imply so many alternative issues to folks a couple of deal. With out asking what which means, it’s very exhausting to guarantee that what you’re bringing them goes to land. In your expertise, what are most of your investor purchasers in search of in what they name a deal?

Josh:
Round 60% of the individuals are making an attempt to get into actual property. They’ve youngsters. They’ve a full-time job. They’re not making an attempt to give up every part and simply do actual property. So they need properties which are turnkey or near they’re occupied, they’re producing a great sense of money move. They’ll purchase a few these a 12 months and be proud of a great portfolio they usually’re accomplished. After which the opposite 40% of individuals, I might say, wish to do worth add, the BRRRR technique, artistic financing when it comes up, self-management, something that’s a bit bit extra concerned and requires much more of your time, that’s for the opposite folks.

David:
So these are the monetary freedom group that you just’re principally working with. They’re making an attempt to get sufficient money move to allow them to give up their job.

Josh:
Yeah. I’ve quite a lot of calls the place the primary two minutes it’s like, “Yeah, I need to retire in 5 years.” It’s like, “You are able to do it, it’s simply exhausting.”

David:
Let me present you the right way to promote some duct tape wallets.

Rob:
So that you talked about one thing earlier, Josh, a time period estoppel. Do you assume you’ll be able to simply give us a fast definition of what that’s as a result of it appeared like that was one thing that was popping up in quite a lot of these offers that fell out?

Josh:
Yeah. It’s principally a abstract of what the tenant is paying, what their lease phrases are, and exhibiting that they’ve been paying. I don’t truly use estoppel agreements. That’s only a time period that I assumed most individuals knew. However it’s principally I need to see the lease historical past. Typically the vendor will simply present me checking account to indicate that the deposits are coming in or an precise abstract or an proprietor’s assertion from the property administration firm, one thing exhibiting that the money move is actual, it’s not faux.

Rob:
11 offers fall by way of, you shut your first deal. Inform us a bit bit concerning the precise numbers on that first one. You mentioned that it was, I assume, the identical as working a month and a half within the DoorDash world, proper?

Josh:
Yeah. So it was a $450,000 4 unit. There was 3% paid to the agent that I used to be working underneath, so he received $9,000… oh sorry, $12,000, after which I received 1 / 4 of that, so I received round three grand.

Rob:
Good. How did that really feel?

Josh:
That was actually cool. That was the most important test I feel I’ve ever gotten. I used to be a bit intimidated, however I used to be like, “We don’t spend this now. That is our life for the subsequent two months.”

Rob:
Oh yeah, that’s quite a lot of ramen noodles proper there, particularly initially whenever you’re grinding a lot. So let’s fast-forward a bit bit as a result of I do know you’re grinding it out on the agent aspect. Inform us about your precise first deal, as a result of David talked about initially of the present that you just purchased 10 offers, which I feel was about $1.5 million in whole for the portfolio. So how did you truly get into the investing aspect of issues?

Josh:
Undoubtedly. I began to promote quite a lot of properties. By month six, I had scaled my enterprise as much as $50,000 a month in fee. Truly I had money reserves. I discovered these two duplexes listed by the identical agent. They’d been sitting in the marketplace for a couple of months. I referred to as him up and he was like, “Yeah, the proprietor has short-term debt on it, he actually must promote it. They’re on the point of name his word.” They have been principally keen to promote them at a 30% low cost. I ran my numbers and I used to be like, “This might make for a fantastic BRRRR, each of them. You possibly can be all in proper round 70 to 75% ARV. If you pull your cash out, it’s nonetheless going to supply a fairly stable money move.” So I needed to actually belief my numbers, however I made a decision to go after certainly one of them.

Rob:
Okay. So wow, that’s a $50,000 a month, that’s what you have been making. How previous have been you whenever you reached that quantity?

Josh:
21.

Rob:
21. David, does that make you are feeling like… I really feel so lazy as a 21-year-old after I was again… I used to be not doing that. I used to be making an attempt to make… I don’t know, man. That’s loopy. Congratulations. That’s so cool.

David:
I used to be making lower than that in a 12 months, and that was nonetheless extra money than everyone else that I knew.

Rob:
Dude, that’s loopy. So all of that, the $50,000 a month, clearly that’s going to steer into your funding technique, however that simply got here from hunkering down in your agent enterprise, rising these techniques, growing your processes, and you then grew it into simply 50K a month. That’s insane.

Josh:
Yeah. By month eight I truly received it to about 100K. Ever since then, I’m proper round 100,000 a month. I’ve been leveraging VAs for lots of procedures. I attempt to delegate as many duties as I can as a realtor. Attempt to not, I don’t know, spend all day writing contracts, for example, as a result of that may take half-hour on common. A variety of days I’m writing between eight and 10 affords. That will be my complete day.

Rob:
Can I come give you the results you want, please? Can David and I come give you the results you want? Okay, so you don’t have any offers within the first three months and also you begin to hearth on all cylinders. By June of 2022 you resolve to get your first funding, which is a BRRRR, it appears like, or some sort of rehab. How did that go? Was that a complete new set of expertise that you just needed to be taught after already being so good at the actual property aspect, the realty aspect?

Josh:
Yeah, I imply I had by no means accomplished any rehabs. I didn’t actually know the right way to worth issues out very nicely. One among these contractors that I had been working with for my purchasers, I used to be like, “Hey, are you able to stroll this for me? Give me a bid.” He gave me a bid. The numbers made sense. One other factor was I might solely get the value the place it made sense if the proprietor was in a position to promote each of them. So I used to be capable of finding one other investor to purchase the opposite one on the similar time. We lined them each up. I used exhausting cash for mine. They lended as much as 90% of the undertaking price, which is your buy worth plus your rehab, or 70% of the ARV, whichever quantity is much less.

David:
Effectively, it appears like we’re already within the deal deep tag, as a result of that is what we’re going to speak about. So let’s go forward and make this official. At this section of the present, we dive deep into a specific deal that our visitor has accomplished and get the juicy deets. So first query, what sort of property is that this, Josh?

Josh:
It’s a duplex, two bed room models.

David:
Are you positive there are two bed room models? Are you aware what you might have? Are you a type of sellers that claims that he’s received extra bedrooms than he does?

Josh:
Fortunately this time I knew.

David:
All proper, we’ll take your phrase.

Rob:
How’d you discover it?

Josh:
It was in the marketplace. It had been on there for a couple of months. I referred to as the agent and he was like, “The present proprietor has short-term debt on it. They’re on the point of name it. He actually must promote. If you happen to can promote this one and one other one, you will get round a 30% low cost.” So my job was to attempt to promote certainly one of them as a result of then my present scenario, I used to be solely snug with taking down one deal. I didn’t need to begin with two $40,000 rehabs.

David:
Okay. How a lot was this property?

Josh:
It was 85,000. The rehab estimation was proper round $30,000 for the one which I took down. The ARV that I had projected primarily based on gross sales comps was proper round 155,000.

Rob:
How’d you negotiate it?

Josh:
I imply, the agent principally instructed me that, “If you happen to can shut fast, if you can’t have many contingencies, you will get it at this worth.” So then I counted round 10,000 decrease after which we met about midway within the center and received the deal accomplished.

David:
And the way did you find yourself funding it?

Josh:
I used exhausting cash. I needed to put down round 10%, after which I utilized my fee as a result of I used to be representing myself as a part of my down fee. So I used to be solely actually out of pocket like $10,000.

Rob:
What’d you find yourself finally doing with this property?

Josh:
I renovated it. It took a bit bit longer than anticipated, as in all probability the overwhelming majority of initiatives do. I discovered rather a lot. As quickly as I used to be accomplished, I went to the financial institution, I refinanced it. I received virtually all my a refund out, and now I run it as a rental.

David:
Okay. In order that was the end result there. Inform me, what classes did you be taught from this deal?

Josh:
I used to be actually terrified of debt. I actually didn’t have any debt previous to this. I used to be undoubtedly terrified of short-term debt as a result of the exhausting cash is like they’re knocking at your door in six months like, “It’s due.” The property, you both must pay it off, it’s important to refinance it, or it’s important to promote it. So I used to be undoubtedly intimidated taking over a property that at the moment wasn’t livable and wanted round 30 grand to be livable. These are the issues that I used to be terrified of, however I discovered from the buyers and mentors round me that you actually need to belief your numbers in any occasion when evaluating a deal as a result of that’s what you’ll be able to depend on, particularly whenever you really feel unsure.

Rob:
So Josh, I assume I’m making an attempt to grasp as a result of I do know you mentioned you used exhausting cash and also you have been actually nervous about, I assume, moving into this property and that you just had wanted $30,000 of labor. But when I’m remembering accurately, have been you making $50,000 a month at this level?

Josh:
Sure. Yeah.

Rob:
So what was the actual concern right here as a result of it looks like you in all probability might have lined bills fairly simply?

Josh:
Yeah. I imply, the property was additionally not in a metropolis that I used to be dwelling in, so I used to be mimicking the expertise of an out-of-state investor as a result of I purchased it sight unseen. I used to be managing the whole undertaking from distant, so I discovered that.

Rob:
How do you are feeling now although? Trying again, have been you want, “Oh, it truly wasn’t that unhealthy,” or do you continue to have a few of those self same reservations doing the out-of-state stuff?

Josh:
I imply, after the primary one I really feel method higher. I really feel much more assured. I can depend on my workforce. I can depend on the information that I deliver to the desk by understanding gross sales comparables and issues like that.

David:
I’ve received two questions. One, have you ever learn Lengthy-Distance Actual Property Investing?

Josh:
Sure, I feel that was the primary e-book I learn.

David:
Okay, good, as a result of that’s the primary e-book I wrote, so we now have one thing in frequent. Quantity two, if I have been to make a revised model of this e-book, primarily based in your expertise doing this deal out of state, what would you inform me to incorporate within the e-book?

Josh:
I learn it some time in the past, so possibly this was in there, but-

David:
Bro, you’re 22 years previous, how way back may very well be some time?

Josh:
I don’t know, two years, 12 months and a half. I might depend on a number of undertaking managers. That may take the type of an agent simply popping in each on occasion. That may be your property supervisor that’s liable for tenant relations, or that may simply be a totally totally different contractor that is available in along with his personal third occasion opinion about how your undertaking’s going.

David:
So that you agree that the philosophy of have a number of folks wanting over everybody’s work might prolong into the precise rehab administration? That’s what you’re saying?

Josh:
Yeah.

David:
Okay. Anything that I ought to know as a result of I feel I’ll revise this e-book, The BRRR, however a pair different ones after I get a while. I’m simply curious what must go in these books to replace them?

Josh:
Don’t depend on gross sales comparables which are previous whenever you’re initially wanting on the deal. As a result of typically, no less than in my state, the appraisers are going to have a look at the latest gross sales within the final six months after they’re appraising your property when it’s accomplished. So the one factor that I did at my first deal was I used to be counting on a deal two doorways down that appraised for the value I used to be going after, however by the point I used to be accomplished with the rehab, that gross sales comp was exterior the six-month window so that they not might use it.

Rob:
That’s in all probability extra related at present, proper?

David:
I feel so. Yeah. I used to be nearly to say, for the final 10 years, you checked out comps and that was your worst-case state of affairs. Odds are it was going to be higher by the point it was accomplished. The market has circled. Charges have went from 3% to 7, 8%. Now we’re seeing value determinations are available low very incessantly. A home might have bought for 800,000, you record it for 750, the appraisal is available in for 685 or one thing as a result of charges have gone up a lot. In order that’s one other factor you bought to concentrate on is costs can go down now that charges have gone up, and that may catch folks without warning. Every other surprises that got here up particularly when it got here to purchasing in one other state that you just simply weren’t ready for?

Josh:
At all times estimate a bit bit over your preliminary rehab finances. The primary deal I purchased, I don’t assume the contractor seemed up within the attic, however there have been stay electrical wires operating on the ground within the attic, which is primary, very harmful and quantity two unlawful. I needed to handle that instantly. That bumped my finances round 10%. I feel at each undertaking I’ve accomplished since then, there’s at all times issues that pop up. I feel a ten% contingency ought to at all times be used.

David:
What about choosing tenants, what are you able to inform us about selecting tenants? Trying into tenant historical past, what are some belongings you search for?

Josh:
If you happen to’re shopping for one thing already tenant occupied, be certain they’re paying, they’re paying on time. You’ll be able to see the way in which that they’re dwelling. If you happen to go in there and there’s stuff all over the place and it’s stuffed with the ceiling, you may not at all times get your lease on time, not to mention even get it. You possibly can nonetheless make offers work even with a non-paying tenant, relying on how good it’s. Simply be sure you’re accounting these bills in your numbers.

David:
Yeah. We briefly talked about this earlier, and it’s price repeating, it’s very simple, particularly should you’re a brand new investor, you haven’t accomplished this for some time, to get a lease to see this property’s making $950 a month, to run your numbers primarily based on the lease. You shut on the property, you notice the tenant’s eight months behind in lease, hasn’t been paying. The owner hasn’t needed to pay for an eviction or can’t afford an eviction, and they also simply bought it to you. That’s why we confirm that the cash’s truly being deposited within the financial institution, not simply what the lease is for. That is actually, actually, actually vital whenever you’re shopping for off-market properties or offers straight from sellers such as you’re saying, as a result of most individuals, when their property is doing nicely, they don’t assume, “I ought to promote it.” Until there’s like severe considerations available in the market and individuals are pondering, “I need to promote earlier than issues flip round,” in case your property is earning money and nothing’s going unsuitable, you simply don’t take into consideration promoting it. However when issues begin breaking, tenants cease paying, it turns into a headache, you attempt to repair it. If you notice you’ll be able to’t repair it shortly, you promote, which is commonly precisely when consumers are getting launched to that deal.
If you happen to go in as the client anticipating that is only a common home on the MLS {that a} vendor is put in pristine form they usually’re making an attempt to get prime greenback, you’ll be able to actually get taken benefit of. Do you might have any tales you’ll be able to share of purchasers you’ve had or conditions you’ve had the place that’s been the case?

Josh:
Yeah, an off-market deal that I didn’t promote, nevertheless it was in my workplace, however this can be a nice instance. It was a duplex the place each tenants have been paying $1,100 a month. The rental comps have been really round 900, max 1,000. So it was actually excessive, which ought to at all times be a crimson flag should you’re seeing models renting for far more than what every part else is round it. However when that property closed, when the vendor received his key or when the vendor’s PM received their keys they usually went to the property, each models have been vacated. It was vacant, they usually each left. That investor, I’m assuming, was operating numbers primarily based on 2,200 a month in lease, they usually’re not going to be getting that.

David:
That’s a fantastic instance. Thanks for sharing that. Let’s get some fast readability right here. This was your first deal. How shortly did the remainder of your offers come collectively after this primary one?

Josh:
Yeah, so the subsequent 4 that I purchased have been round a month to 2 months after that. After which ever since then I’ve been choosing up about one to a few each single month.

David:
Are these you’re discovering them the identical method that you just have been discovering offers for purchasers?

Josh:
Yeah, just about the identical methods, yep.

David:
All proper, Josh, wanting forward, what does your plan appear to be for a way you propose to scale your portfolio?

Josh:
I’d prefer to construct extra contracting groups in order that I can tackle extra initiatives at a time. Proper now I’m engaged on 15 models. I’d prefer to construct a 10X to that, depend on extra folks, W-2 extra positions in order that I can depend on them extra and minimize your price down a bit bit. These are some classes that I’ve discovered from skilled property managers.

David:
Now, are you utilizing the BRRRR technique on these properties fairly often?

Josh:
Sure, for positive.

David:
Okay, so with the change within the seasoning interval that we’re seeing with quite a lot of typical lenders, have you ever thought of how that’s going to have an effect on how shortly you will get capital out and the velocity you’ll be capable to scale?

Josh:
Undoubtedly. My technique hasn’t actually been affected by that as a result of I truly am not lendable nonetheless as a result of I don’t have two years of the identical revenue as a 1099 individual. So principally I’m simply refinancing out in non-QM merchandise.

David:
That’s superior.

Rob:
Hey, David, you talked about that there’s a change within the seasoning interval. What’s that change? I do know with the BRRRR it’s important to have the tenant in there for I feel six months. Is that what you imply, now it’s longer than six months?

David:
No, it’s not essentially the tenant needs to be in there, however if you’re shopping for a property that has a mortgage on it and also you need to refinance and pull money out of the property, you now have to attend 12 months as a substitute of six months should you’re going to make use of a standard mortgage. Now, Josh, talked about he’s utilizing no-QM, which stands for non-qualified mortgage. This may be DSER merchandise that you just’re listening to lots of people discuss. It’s vital additionally to notice that that doesn’t imply subprime crap. These are nonetheless 30-year fastened price loans. It’s not a complete lot totally different. The speed’s going to be a bit bit larger as a result of they’re not going to be basing your capacity to repay off of the cash you make, they’re going to be basing it off of what the property will produce itself, form of business underwriting pointers. However many loans are making you wait 12 months earlier than you’ll be able to take money out of a property, not six. It appears like from what you bought happening, Josh, this isn’t slowing you down since you’re simply earning money by way of commissions as an agent, you’re not going to expire of money, proper?

Josh:
I don’t assume so, no.

David:
Yep. I like that multi-pillared strategy. If you’re not depending on only one pillar, these adjustments don’t throw your sport off since you’ve received a number of totally different approaches right here. What are you pondering, Rob, about shifting ahead, Josh’s technique?

Rob:
I feel it’s good, man. I imply, you’re choosing up rather a lot, proper? I feel it might be sensible to actually settle into it. If you happen to’re at this level the place you’re at 10, I might begin serious about… I assume I’m simply seeing it in your private scenario. You’re younger, you’re hungry, you’re making a ton of cash, and also you’re doing the appropriate factor, you’re shopping for property. As an alternative of simply pocketing 100K each month, you’re shifting it into actual property funds. However I might say now’s a second to possibly take a step again and get thinking about your scale strategy. How will you cease placing a lot time into one to a few properties each month? And how will you begin possibly specializing in larger performs that may possibly even successfully decrease your tax invoice as a result of I do know that that is one thing that you just’re in all probability coping with for the primary time, making a ton of cash and having to pay a ton of taxes on it, proper?

Josh:
Sure. I jumped on the entire tax scenario as early as I might. As an agent, I arrange my consumption fee by way of an S-corp versus a person, in order that lowers my tax burden considerably. After which I also can leverage price segregations as nicely within the properties that I’m protecting to decrease my commissions coming in. I’m making an attempt to make the most of as many methods as I can.

David:
Completely.

Rob:
Hey, you don’t hear 22-year-olds discuss price segregation all that usually.

David:
By no means heard that come out of a 22-year-old’s mouth, truly, it’s the primary time.

Rob:
Severely, dude, I really feel like we received to speak about price segregations extra simply on the podcast as a result of it’s the actual property cheat code that may prevent, I imply in your case, a whole lot of 1000’s of {dollars} in taxes. In order that’s cool, man. I’m actually glad to see that you just’re saying it. It looks like you’re scaling up in response to what you are able to do. So simply take into consideration how one can most successfully use your time, since you received the time and the cash proper now, now you simply received to determine the right way to use it essentially the most successfully.

Josh:
True.

David:
Your first purpose was to switch your DoorDash revenue. You’ve accomplished that. What’s your subsequent purpose?

Josh:
My subsequent purpose, I need to have 100 models by the top of the 12 months.

David:
100 models by the top of the 12 months, that’s all.

Rob:
I imply, it looks like you’re serious about precisely what I’m speaking about, proper? One to a few properties in a 12 months, that’s going to be 10 to 30 properties. So clearly you’re pondering, “How can I get to 100?” Proper? I feel it’s so cool, man, that you just’re on this podcast. It’s a really inspirational story. You went from being a DoorDash driver to proudly owning a $1.5 million portfolio. And it’s additionally simply so loopy to know that subsequent 12 months your portfolio goes to be wildly totally different than what we’re speaking about at present.

Josh:
I feel so, yeah.

David:
Congratulations, Josh. That is an superior story. Thanks for sharing the place you’re at. Very inspirational. You haven’t let something cease you, together with your age or how a lot I feel you appear to be Dave Franco. You’re pushing ahead regardless of all of this. You possibly can have taken the Hollywood route. As an alternative, you took the actual property investing route, so welcome to our aspect. If folks need to discover out extra about you, the place’s the most effective place that they’ll discover you?

Josh:
Two locations. You’ll be able to comply with or message me on Instagram, @JoshJanus, simply my identify, after which similar factor on BiggerPockets, Joshua Janus, I’m on there.

David:
All proper. Rob, the place can folks discover out extra about you?

Rob:
You will discover me over on Rob Belt on YouTube and Instagram and in your coronary heart. Effectively, that joke gained’t land as a result of the opposite podcast comes out after this one, but-

David:
You will notice why I laughed should you take heed to a future podcast episode. That may make quite a lot of sense. This was a callback earlier than it was truly mentioned. That is some tenant sort stuff that we’re moving into the place we’re manipulating time for you guys on a podcast. You’re going to like it.

Rob:
It’s a name ahead.

David:
Sure, a name ahead even higher. There you go. Josh, it completely is smart you don’t know what we’re speaking about, it should sooner or later, so simply hold with us right here. Thanks for being a great sport.
You will discover me on social media, @DavidGreene24. Don’t ever ship cash to me as a result of I’m not asking in your cash. There’s quite a lot of faux accounts on the market, so hopefully at one level I’ll be capable to get the blue test mark. I heard that Meta is altering it so that you just simply pay like 15 bucks a month and folks can cease getting scammed. It’s about time. You may also discover me on YouTube, @DavidGreene24, or go to my web site, davidgreene24.com and see what I received happening.
Josh, unbelievable job. Very, very, very excited to listen to what you’re doing, particularly since you’re an agent and you progress ahead. Try my books. Let me know what you consider the three books I wrote within the Prime Producing Agent collection for BiggerPockets. I’d be curious what you assume as somebody who’s 22 and is already crushing it. Rob, do you might have any final phrases earlier than we get out of right here?

Rob:
Yeah, Josh, you possibly can take a look at the books that David simply talked about, however actually the e-book that it is advisable to be trying out is David’s upcoming e-book, Scale, which talks about how as an actual property agent you’ll be able to scale your enterprise. That can be popping out quickly.

David:
All proper.

Rob:
Promo code for that, we don’t have one. However anyhow, test that out.

David:
We’ve received a name ahead and a name again all in the identical present. Nice job, Rob.

Rob:
And we’re again.

David:
All proper, Josh, we’re going to allow you to get out of right here. That is David Greene for Rob ‘The Comic’ Abusolo signing off.