0 to 14 Rentals in 2 Years While Working A Full Time Job

0:05Charles welcome to living off rentals hey man awesome it's so good to be here Kirby and and just meeting you in person in Phoenix Arizona was awesome man so I'm so glad to be here and you know before we even jump in I just want to mention how awesome your podcast and everything you're doing it it is it's just so amazing man I I just you know I listened to a few episodes early on just to figure out you know what's going to be the format but man I got hooked I got hooked on your podcast man so I love the content and I just want to encourage everyone to continue listening to the awesome content that you're showing well that is awesome I I'll venmo you that money that I said i' I'd send you if you said nice things so I'll send

0:53That to you after this I appreciate that man I don't get paid for any of this but I love I love love your podcast Kirby seriously and I even saw listen to episode Robert Kaki and so many different people you know people who went from homeless and living in the car to to being a real estate investor it's it was just so inspiring man to keep please keep keep it up what you're doing buddy awesome thank you no I appreciate that and I think people are going to be super inspired today by your story which is why I wanted to have you on here I just met Charles man it was about a week ago at the real estate Wealth Builders conference in Phoenix like you mentioned ruon is what it's also known as and we met walking out of our hotel rooms at the exact same time he

1:42Had a hotel room right across the hall we were going to a speaker's dinner because we were both speaking at the event and so we we ended up sitting together at dinner and then ended up being placed at the same table at the the following VIP launch the next day and really got to know each other and hearing your story and just your character and all of it you're just like the perfect example for for somebody I think who who's in this community who listens to this show who you know you're you're the type of person who just decided you know that the status quo wasn't going to be good enough for you and and you decided that you were going to not have to work a ninet to-5 for the rest of your life and you're going to do something about it at a young age and and really change your family's future and so you've done over the

2:30Last couple years by building this rental portfolio and so I think it's pretty inspiring and I I really want to hear more more about that so I I appreciate you taking the time to to come on the show tonight absolutely it it is great to be here man and so yeah that was just I like I was telling you I just feel like we were sat next to each other on purpose and it may seem random but the process was random but I believe it was on purpose man and I'm so glad to be able to to be here to share my story to inspire others and so yeah you know a little bit my story U I came to the USA on a one-way airplane ticket and yeah in

3:18Hopes of fulfilling my dream and I know like literally a oneway airplane ticket and you know so you know coming from the island this was something that's crazy for island people people so I grew up in the Bahamas you know walking around the streets bare feet climbing coconut tree H I'm just kidding it's not that's not what it is not exactly the bubble I I like to get my shoes on but I did but I did eat a lot of coconuts growing up nice nice and so but yeah so coming from the from the Bahamas to the US yeah was it's a big deal for a lot of people on the island just because you know if especially like the the amount of money that we that I had to pay for school fees and I came over here not even having that money my parents didn't even

4:07Their combined income wasn't even enough to pay for my school fees but I had a dream to fall to to to go to the USA to start my life and and become a civil engineer and I always wanted to do investing but you know the the engineering path kind of is where I started and so I I came to the USA on a oneway airplane ticket and didn't know what was going to happen almost got kicked out of the school or the university cuz I couldn't pay so it was crazy I was 17 years old when that happened wow and so but you know to it's a long story but you know just fast forward you know praise the Lord I was able to graduate UNCC Charlotte you know with on a fully

4:56Dep free you know things really worked out for me to to continue being in the US as well even though I almost got kicked out and you know some my story was like aired on TV in the Bahamas and everything and it was it was just yeah it was it was it was pretty crazy everybody on the island thought I was crazy for like you know coming to the US on a oneway ticket not knowing I'm going to pay for for college and everything and so that's that was sort of the the beginning and that's awesome yeah man how you sorry to interrupt you do it debt free by the way yeah so it my story was actually unique so I I actually so I applied for a lot of scholarships okay and and but I didn't I barely got any of them I

5:44Barely got any of them it's so crazy I I I only my last year of college so my last year of college is when I got like full like full scholarships my last year but the first three years was interesting and so you remember I told you how I almost got kicked out of the college because I couldn't pay and so it happened to you know come through a grant came through right in time to pay for that first semester but then the next semester is and the following after that I didn't have any money so I didn't know what I was going to do and so my story was aired on TV in the Bahamas how I came to the USA on a oneway airplane ticket all in faith and you know so many people from the island and even like people from the US and

6:33England you know was was wondering how can I help this young man out and so so my story is a little bit unique where most of my school was funded sort of through Grassroots efforts and and it's crazy because you know I didn't literally didn't go go on TV asking for money it's and so that that just shows that whatever you go for in life you know when you put your all into it when you go at it in Full Faith and full efforts you know the things just you know some people call some people say describe it like this it it it's attracted to you and so and and the same thing in real estate when I decided to get into real estate all in you know things just started falling into place of course me doing my part when I say things fall into place I'm not saying that this is

7:21A overnight success type of thing you put in the work you put into the work you got to put in work work but when you put into work then things start to fall in place I do want to stress that yeah yeah no that's that's amazing what an amazing story and and I do want to get into you know the transition from civil engineering to to real estate and how that happened but I did want to mention this is sort of a unique episode because we're recording this in the evening you know Charles is still working is 9 to5 so you know I'm from for people who know me they know that my brain is typically solar powered so it's difficult for me to operate in the evening but I brought a ruming Coke to to assist me because I knew you

8:09Were from the island so this my first time drinking a rum and coke while recording a podcast so we'll see where this goes I don't know it could get pretty entertaining it sure can man if if I knew that man I would have tried to send you so we have a famous drink called Bahama Mama and it's like it's a it is it's rum with like orange juice pineapple juice and some granadine it's it's a simple recipe man good yeah no it's yeah tribute to you in all you've accomplished so I appreciate that but but yeah I I did want to get into like you know so obviously you overcame a lot to get through school and you did it debt-free and you started working then so how

8:58So tell me about the trans when did when did you graduate and then talk to me about the transition of how you decided that you wanted to get into real estate investing yeah so I graduated college in 2014 and I started working my regular engineering job and in the construction industry and you know I've been blessed to to work at a really good company but you know one of the things that started to realize over time is at any moment anyone can be you know can can can can be let go at these companies and while you know you know you know we hear a lot of stories of of people who get fired sometimes you know you may it may not be that you get fired but you

9:47Don't have that freedom and so when I started to to like to think on these things and and I remember like having to you know everybody have a turning point you know some people they maybe they got fired or or maybe they dealt with a really bad supervisor whatever the case may be and you know for me you know one of the things that was eye openening was I remember you know having to so I I met certain standards for AR raay and and you know my supervisor was like you know I'm going to put it in and and I was like I had to fight for that raise for like you know almost two years which was crazy and so yeah I was like you know I got it eventually but I was like you know I'm

10:36I'm I'm not going to have to go through this again I was like I'm I'm G to like I'm not going to depend on the company I'm not going to depend on the government I'm not going to depend on anyone to to go after my future and to and to be financially free and so you know for for for me that moment was like a turning point looking at everything you know I had to go through that and and I just thought about imagine if I have to go through this all the time to feed my family you know and my wife and I start having kids and all these different things so I'm like you know I'm not going to I'm not going to have to do I'm I'm you know I'm thankful to to be where I'm at I'm thankful to to provide for my my family but you know at the same time you know having that freedom that that Financial Freedom is is so important to me and so you know at that point I

11:24Was all in in real estate and that's when I met Dustin just through looking for some sort of coaching and so I I I Funny Story how I found Dustin I I I originally wanted to get into airbnbs I had this whole plan how I'm going to an Airbnb and I I got a website everything didn't know what I was doing at all thank God I didn't you know I've putting in offers all this stuff before I met Dustin like before I want to stress that because if Dustin is listening to the episode you're like no way you're going to do it that way before because you know Dustin always teach to build the business first right but I I I didn't do it that route but thankfully that route did not work out

12:14And and I actually so a friend of mine from church he mentioned about a master Airbnb class and I forgot to like you know write down like the website and everything and so I went home that night looking for master Airbnb but couldn't find it on Google but I end up finding Master passive income and it was an article Dustin had on you know the differences between short-term rentals and long-term reyolds and you know he spoke very well of both of them but and he talked about you know just to figure out you know what kind of person are you and and which one you want to get started with and so I I thought about longterm right so so so then I met that's how I met Dustin and ended up signing up for his coaching and programs and

13:02I I ended up like renewing my coaching with him because I was like man this is just I just got to soak in that knowledge I mean you met Dustin just to be just to be around someone like him and how inspiring he is and how selfless he is I was like I I got to stay connected to this guy and yeah and by the way just for the listeners he's referring to Charles is referring to Dustin heiner who was on episode I think it was 103 or 104 of the podcast so you can go back and and hear from him but he's the guy actually who who started the real estate Wealth Builders conference where Charles and I met so obviously had a big impact on Charles sorry go ahead yeah know absolutely that good interjection absolutely and you know I should say Dustin heiner not everybody know who just Dustin is there's a few of them so yeah

13:51Just a few yeah so I just signed up for Dustin Heiner's course with Master passive income and you know I renewed the chorus and you know then I started to work on his team he invit he know got me in to work on his team which is fantastic just working with him just getting to help so many people is so amazing but before I get too too far along in the story I'm jumping ahead jumping all over the place so I know you're trying to keep keep that timeline so so my wife and I we we decided to to to get into real estate in 2019 so I graduated in 2014 we got into real estate in 2019 and and got some coaching with Dustin and we were able to buy purchase our first property

14:40And at the very end of 2019 which was a duplex so you know we had two doors at the end and we our goal was to close two properties at the end of 2019 by the end of 2019 and we were able to close that duplex right on time like I it was December 30th 2019 wow so it was yes I was you know it felt like it took us a while to get that first property but we had to really keep at it there was some times where I almost felt like giving up and was looking in different markets and but you know thankfully we had Dustin to keep pushing us through and reminding me to be patient and all that stuff so Clos on this first property and you know then then we were able to close another property about

15:29Three months later U so at the beginning of 2020 which was which was awesome so we were like so excited to be able to you know own three two properties at this time with a total of of of three rental units and so we but and we wanted to continue closing properties and we wanted to buy more and more and to achieve our Financial Freedom goals but there was only one problem we were out of money so yeah we spent everything oh yes that happened especially early on and so we were like were you financing them with conventional financing and using your own money for the down payments or yes okay that's that's exactly we did the conventional financing on the first property

16:18And with that duplex we brought 25% down and then on the second but the second property we actually use hard money but we also had to bring we we had to bring money to the Clos and I can't remember what it was maybe 15 or 20% just because of the value of the property the way it worked out so we so we did you know so we Ed conventional on one and then we Ed hard money but we we both we used down payments on both of the deals so we had drained all the money we had saved up and so we just you know we didn't know what to do from there and so yeah and that was around the point when I renewed for coaching with Dustin I was like okay I I got to keep this moment momentum going and you know the the money that we that that we invested in coaching so we don't say money we spent

17:06On coaching and education more we call it investing so the the money we invested in education with Dustin we we made that back you know many times over from from those first deals just just because of how he teach you how to do the business right and so we were like okay it's no-brainer to sign up for for to renew our coaching and you know one of my goals was to was to find creative ways to fund properties and so we've we've tapped into a number of ways but one of the ways that we were really able to to tap into and figure out the system is private money and that was that's why Dustin had me speak at the conference on it because we yeah man the private money it was so awesome to be able to use it and to build our private money network

17:55Whereas we were able to like close properties after properties and you know and in a lot of those properties we're able to close with 100% financing using private money which was awesome to be able to to do that and so we use some other creative methods too I mean we've even used a a signature loan to buy a property but I I don't encourage people to do that right away and unless you know what you're doing because you got to make sure the numbers work before you do something like that but so but but we really tapped into private money and in fact we were even able to close you know just even like in one month we we had closed like four deals using private money 100% financing and while working a fulltime job amazing while working a full-time job can you

18:44Believe that that's hardcore so yeah yeah so that that's you know so we really you know tap into private money we for for our deals and then then we refinance it with a long-term lender yeah and you know you know one of one of the deals that we focus on too because some people may be listening and wondering okay how can I do that too yeah and so you could you could use private money and still bring a down payment to the table but the way we do it is we we we we like to use 100% financing which is totally possible I remember reading Robert G Allen's book nothing down and was like this is Guy crazy like no money down what is he talking about and now here am I like doing deal after deal just like that and but the types of deals that we look for is we try to

19:32You know we follow the 70% rule where we you know where we look for 70% of the of the arv right minus the the repairs and so and the arv is the just for those who don't know is the after repair value of the property and you know those type of deals are very attractive to private money lenders and so you you you could do other deals with private money lenders that may not meet the 70% rule but what we found is when when we get that type of discount we can do you know we can close that deal with almost any private money lender and even if we needed to use a hard money lenders backup is still an attractive deal for them as well yeah absolutely that's so I want to put a pin in in the financing aspect real quick because I definitely want to get back to that because that's really interesting I

20:20Hear people all the time say well I haven't saved up down payments so there's no way I can get into rental property ownership and I'm like there's so many options right now for for funding you can combine all different kinds of funding you can just use like you said private money 100% so I want to get back to that but first I want to kind of hear about how you initially decided on where you wanted to invest so you started working with Dustin in 2019 you said it took a little while to to figure out you know you looked at different markets so what Market are you investing in now I guess is it the same as where you started and how did you decide on that market yeah so so I'll I'll share how we got to that point so we we live in Charlotte North Carolina and we

21:09You know just like most investors were like I want to invest local you know I want to be able to drive to the property yeah I want to be able to take care of some things on my own you know save money on repair cost yeah that's kind of how we we kind of started off with that mindset and the issue with that was you know around that time you know if you look at some of the migration charts and everything a lot of so Charlotte Raleigh those cities in North Carolina they're both on on the top 10 fastest grown cities in the US so you know a lot of people have been moving in in the Carolinas especially in Charlotte and so when the issue that we faced with that is is that you know a lot of properties are selling for way more than what

21:57It's worth and so people are like you know so we were constantly being outbidded by you know an investor from California or New York yeah or somewhere else someone with for them yeah yeah I know yeah so it's like you know they when you know some of them like some friends of mine live in California and they they're they have like a 1,200 sare feet house and they paid like $1.2 million for it so they you know so when they see something in Charlotte for 150 or 200 or even 300,000 or whatever the price is you know for them it looks like pennies and it's an even nicer area than than where they may be living in California so so you know they will gladly pay 20 30 even $50,000 over ask and

22:46So so that was a that was a challenge for us and so we so we started okay okay well we don't really have to invest in Charlotte you know let's just you know maybe it can be within an hour hour an hour and a half and so we then looked into Colombia South Carolina and we really thought that it was going to be Colombia and we we drove we we drove there some weekends going with our Realtors like looking at properties and I mean that guy he was so nice I mean I I I I I just wanted to buy properties in that area just because how nice he was I he was a great guy he had he was so patient he spent like so many hours with us and but come to we end up not getting any properties in that area and but you know we put a lot of time and effort and energy and

23:35You know that was the point where I almost gave up because you know I was like you know at this point you know I'd made that decision to get into real estate in probably in about February of of 20 2019 and you know so we're you know months into this right now you know we started off doing it on our own thank God we did didn't get any of those offers on our own because they would have probably we probably have been losing money but but then we then halfway through got some coaching with Dustin started doing it right building the business first so we're all the way to about October like end of October still we haven't gotten a property yet and and I remember like you know we almost got this duplex

24:24We got a a we got an approval via email from the the seller they agreed but you know they hadn't signed the contract yet so Kirby I'm sure you know that that email you know is is worth the you know paper it's on right come you know you have to get it under contract right exactly and so and so we but we really thought we would they would sign they keep on giving us an excuse keep on giving us an excuse then finally like a month later we find out that they you know they gave the deal to to somebody else and so you know it this was like you know it was devastating for me at that point because I'm like man you know I'm wondering like you know when is this going to happen and you know I had looked at hundreds of deals and put

25:12In probably even hundreds of offers too at that point just between Charlotte and Columbia South Carolina and so it was so discouraging and and I remember like for like probably like maybe two weeks I I had stopped like looking at properties is and I share this part of the story too because you know some people look at me now and think like you know they they wouldn't know that I went through that point I I I stopped looking at properties I was like you know it it was very discouraging I didn't give up per se at that point I just I I just felt like a blow you know and so then you know I remember my wife you know you know thank God for my wife she was like she was like she she encouraged me and she was like you know remember you know why you did this remember you said you're going to make me proud and you know plus you need to make that money back

26:01That you paid Dustin for coaching yeah more important or invest or invested in coaching I should say right and so and so she just you know just encouraged me and and so I started you know getting back into my problem solving mode because I'm a Problem Solver and and Dustin was always encouraging me throughout the way but you know so so I so I I reached out to Dustin talked to him about where I was at and I and I asked him you know well you know what if I just start looking at different cities and he was like he's like that's a great idea he said sometimes it's good to be looking in you know one or two cities at the beginning just so you can figure out where's the best place but absolutely you want to build a business first right and so because I I started and I ended up choosing Memphis Tennessee and I was ready like put

26:49In offers like right away because I'm like gosh like these properties are like great prices I'm like I can I can buy these up right now and so and Dustin always encour encouraged us to build the business first so we we made sure and built that business first get got our team in place and then you know started make putting in offers in Memphis Tennessee and I remember so my wife and I our anniversary is in November November and so we were on our anniversary trip and it happens to fall on the week of Thanksgiving usually and so we we were in the airport and we got our first deal under contract whilst we were in the airport flying to New York for our anniversary trip which was so awesome that was so exciting so and you know I remember during

27:37That whole week we were like you know getting the home inspection scheduled and trying to you know just making sure everything is in place but it was just so awesome we got our first property under contract while on our anniversary trip which was the best gift that we could ever asked for at that time and so yeah and so from from there you know things just took off in in the business you know from closing the the first property and then closing another one and then learning private money to close more and more deals and then to be able to come to the point where we're helping others you know with with dust you know through Dustin and and just you know just helping people in in the community I I go to a lot of networking events with the r groups and

28:26So just to be able to to accomplish that and and Pay It Forward by helping others it's been so it's been an amazing journey and just so fulfilling being able to achieve our goals and to also be able to to help others so it's it's been great man amazing wow what a what a great Testament for people who are listening to this who you know have been hustling for a while and thinking man this Market's too tough the you know it just it's not working for me maybe I should just give up on real estate I mean it was I think you said February right 2019 when he started that's right yeah and so and and then what what you said it was November when you your anniversary trip was yeah

29:15November is when we clo when we got the the deal on the contract the duplex and then closed it on December 30th 2019 yeah so hustling for pretty much the entire year of 2019 to get your first deal and and having several fall through putting in hundreds of or over 100 offers I mean that that a lot of people wouldn't wouldn't put up with that you know and they think well this is too hard you know my first offer wasn't accepted my first 50 offers weren't accepted but because you didn't say well I'll just take a crappy offer because then I can get a deal done or you didn't say this is just just too hard now you're you're in this really enviable Place several

30:03Years later so so I want to kind of fast forward a little bit and get into that so got your first deal December 200 19 which was a duplex then it started to snowball which I think happens a lot so for people who haven't got their first deal yet this is pretty common you know where it's it's hard because you don't know what you don't know in the beginning and it was the same way for me I got out of the Army in 2011 in October well actually I got home in the summer my my final date after all my leave was spent was October and I thought by Fall I was going to have all kinds of deals going and I was going to be you know I jumped into real estate fulltime it wasn't until March of the next year that I finally got my first deal going and

30:52And it was painful you know it was because it just there's a lot to learn in the beginning but then right after that a few weeks later I got another one and then a few more a few months later and and it snowballed so it sounds like that was a similar situation to you so kind of walk me through your progression of of deals if you would yeah so so yeah we we got that first deal on December 30th 2019 and that was in Memphis and that was in Memphis absolutely and then we got a we got another deal in in Memphis in in like March 20 March 2020 which was right around the time of the pandemic literally like we signed the as the sky is falling like yeah

31:41We so we we literally signed the contract for that deal I'm well we we s we did the closing like right before everything shut down you know there like Mass shut down and and people had to work from home and all that stuff stuff so we we we did it all around at the same time and and then we we decided to like just continue invest and so my wife and I we spoke about it and we were like you know we saw it as an opportunity because you know some people stopped buying when when the pandemic started but there were some people who continued investing in real estate and we decided that you know well this could be a great opportunity for us to continue investing because you know and even if there's a an

32:29issue where you know the values of properties drop well we don't invest in properties for appreciation right we invest in properties for the cash flow based based on how we build our business model so we you know so we so that kind of gave us some comfort to to know that you know even though we're taking a risk well we're taking a more a more calculated risk a more risk on the safer side right and so we we decided to continue investing and you know the the third deal was another duplex and I remember that one taking being stretched out a little bit longer because this is when we started to use like some of the creative financing whereas you know we we we we started to you know use different methods the Signature Loan different things and you know so you have to kind of you know that's a whole long process to

33:18Get into so we started this is when we started our creative financing and and then we you know we ended up we ended up closing that duplex and and then we and that's and after that closing that duplex was was where the private money kicked in so I remember we ended up getting another deal while we were closing the duplex and we were able to to find a private money lender because and at this point we had one thing one of the things I didn't mention this is one of the things that that we teach we teach people how to use private money and one of the things we we help people do is build their pitch build a a presentation that they could use for for some people like maybe family friends or just people who want to learn more about priv private money just to take it from an educational approach

34:08And and the goal is to build your network at the same time so we were going through this this presentation and this pitch with a lot of different private money lenders I mean we were calling up tons of private money lenders I got like a you know a list from you know I bought a subscription into this website with private money lenders and so we were like calling a ton of different private money lenders and we were putting into the work we were calling family friends every anyone that we can talk about talk to private money about we were calling them up wow and and I remember yeah Sor I was just gonna say what were you what would you say to them when you call so I so at the beginning we didn't know what to say can you give me some money I need like 100,000 I just just just a 100,000 you know

34:57Just just give me some money but you know so so we so which it was good that we that we called a lot of people up because you know we got a lot of practice doing that and one of the one of the greatest things that that we learned is is is figure out what they want right and we had a you know figure out what the private money lender you know figured how you could solve their problem and take just taking it from that standpoint is like it's it's already puts you in a different category even if you're not a good speaker even if you feel like you're not a good negotiator if you try to be a problem solver to that private money lender and figure out you know what you know what what do they need you know how can you help them and positioning it you know not just give me some give

35:45You know give me some money let me some money you know but presenting it and position it as a as a opportunity that you're presenting it to them presenting it as you know hey I'm trying to help you solve your problem Problem whatever you need that's kind of the approach that we take and that's what we teach other people to do as well I I just gave that presentation at a ria meeting last week Thursday and I had some private money lenders who came up to me and they were like you know we never heard somebody you know mention you know be a problem solver to the private money lender figure out you know how you can solve their problem making about them they were like because you know they dealt with a lot of people where you know a lot of investors who made it all about themselves and you know I have this and I do that and this and you know which is great like you should show your track record

36:34And and all that stuff gives you credibility but you know the approach we always take is making it about them we make it we make it about our private money lender and and then you know we have our whole you know kit with exper showing our experience all that stuff but what we find that building that relationship with them making it about them solving that problem is the best way to go about it yes totally yeah yeah and that's the thing I think a lot of people don't get in the beginning is that you are giving people an opportunity to make a really great return and in a a pretty secure way I mean you're you're offering them in a lot of cases double digit you know I use a lot of private money for my deals and you know it's presented

37:23There's there's like there's a lot of people who have more money than they have opportunity to make a secure double digigit return on and so when you present it that way that you know you're going to have a mortgage on this property if I just stop paying you you should celebrate because you can take back this property that I just went out and spent the last months several months trying to find well below market value so if I don't pay you you've got a mortgage you can just foreclose and take the property over and you get this great deal or I can continue to pay you at 10% interest and you know that's better than you're going to get in the stock market you know you might get better than that but if it if Things Fall Apart nobody's going to give you a property you know so it's a it's a fantastic opportunity for them but

38:12I think people get so wrapped around the axle of you know I'm asking for for more money than I've ever asked for before and it's all about like me they think about themselves too much they think about like you know like you said exactly like they present around you know I need this money as opposed to here's an opportunity if you don't like it there's somebody else who has an IRA that they can self-direct and you know give me $100,000 and they'll make 10% so so I think that's a great point that you bring up yeah it's it's it's what you said like like just like what you said it's a great opportunity for them and it's it's a win or a win for them right it's not a win or lose like they they they got a win from from you paying them interest or from them taking this really good property back if you if

39:00If you know you stop paying them so so that's kind of the the approach that that we take with with our private money lenders and it's it's been working incredibly well to to do it that way like even in our presentation you know some people I see they they do their presentations when you know the way they started off they talk they talk all about themselves and all about their certifications and and all stuff is great don't get me wrong it's really good to to to have those things and and to even share those things but you know the the first thing we start talking about is what's in it for them you know how are they going to be protected you know we figure out what they want to make and those kind of things that's how we start and then you know oh by the way and you know we also you know

39:49Have this experience these qualifications you know and all that stuff like that and so it it it works out so so so well when we do it like that and so and you know I I I give a lot of thanks for Dustin heiner because I remember he he he's he taught me that a lot you know when when he looked at the presentation he was like okay you know Charles I know I know you're not you know person who's all about yourself you know so you know so I I you know maybe you want to put the slides about about you in the back and put the slides about them in the front and I was like yes that's a great idea because it is about them and I want to solve their problem I want to offer them this incredible opportunity so that's kind of you know how how we how we how we pitch our deals and the conversation looks different with everyone just based on where they are because you know the private

40:37Money lenders it's not like a Traditional Bank where you go in is one set of rules and one set of terms or or whatever you you really you know figure out where they are and how you can help them where they are so so that's you know a little quick lesson on how to approach private money l there's and but but one of the cool things is one of the things I heard you mention is a lot of people they don't know how they're going to fund their deals or they don't know how to ask someone for all this money and don't know who to ask and a a cool thing that we actually figured out is one day I was talking to my title agent and you know just letting him know how we we use private money and we offer people incredible opportunities to build wealth

41:26Through it and he was like really he was like he was like I know several private money lenders you know who I could connect you to I was like really I was like he was like yeah and so he connected me down to some private money lenders and one of those private money lenders is like my number one private money lender to this day I mean great guy like he calls me up he was like Charles do you have any more deals so he like calls me up and so I try to close with him whenever I can just because he's he's been so good and always shows up to the closing table and always you know he's a man of his word so yeah so so it's I'm I'm sure Kirby since you work with private money lers you probably have some of your favorites too yeah well it exactly what you just said it builds on itself so you know initially I

42:14Think it's like well how am I going to ever you know raise potentially if I want to get into like bigger deals you know that that's like millions of dollars that seems like Out Of Reach and you know I've been doing this for just over a decade now and the deals are are much bigger problem than the capital the capital is there if the deals are there at this point and it was all because of that like exactly what you said so I've got one lender a great example just recently I've been paying him 8% fixed over many years and it started off with a very small amount and then he wanted to invest more because he liked the returns and then he just introduced me to a friend who just left the tech industry just interested in real estate never really got into it but you know knows the

43:03The potential and I had a conversation with him and then at the end he's like you know I got some money I want to invest if you got deals I and I was like okay you know and he's like it's somewhere between you know 600 and 1.1 million if if you can put it to work I'm like wow you know like I that that's more than I expected but I'll I'll work on that you know and so that but it was just because I've done well by his friend so he made that introduction and so that's how it that's how it works I mean it just Builds on itself over time it really does yeah they you when when you and when you have that good reputation and like you do definitely want to when you do this thing like you you definitely pay your private money lenders if you're going to get into it like pay them like even if if

43:51If I don't get my if I if I'm I will borrow money if I have to to pay my private money lenders and that's how serious I am about paying them now praise the Lord I I didn't have to do that you know because because of the type of deals I look for a lot of my deals are cash flowing from day one but if I needed to I will because you want to you want to be a you want to be a man or a woman of your word to your private money lenders and they will talk about you and and some of my private money lenders I met through existing private money lenders and so that that definitely that definitely helps and you know you said something that reminded me like you know when you talked about now you know money isn't the hardest thing is like trying to keep up with all the deals and so you know early on I I mentioned

44:40After after we close those first two deals you know our problem was that we didn't have enough money now our problem is we can't we don't have enough deals yeah we have more private money yes always of the others and now we have like you know basically you know an unlimited amount of money for the type of deals that we look for and you know and and not you know having enough deals to keep up sometimes and you know how it is Kirby you know some we sometimes we think like when I first got into real estate I was expecting to you know close one property after the other but sometimes it may be you know a month or two or it you know it it it's not like you know one after the other you know it may be

45:29One this month and then four or 3 months later so you know cuz you can't you can't time the market and so now we we we need we're looking for deals and because we're very strict on our on on the type of deals that we get we you know so so we we we we search a little bit harder but you know it's the type of deals that we like you know we like to make money when we buy the property so we like you know we like to get deals with for for good discount and so you got to put in that hard work and so we put in you know our our students at master pass of income they're always amazed when at ni say our students because Dustin now invite Dustin has me as a coach in the program and so the students are so amazed when they find out

46:17That my wife and I we put in you know sometimes 10 to 15 offers a day wow and they were like how do you do that Ian you have to put in offers in order to get deals I mean we have some you know I know people who they they really want to get into real estate they really want to invest but they're putting in maybe one offer a month yeah you know yeah that's not going to work in this market exactly exactly yeah a lot of people are just like hoping that a deal is going to just fly to them or something and it's not the way it works yeah yeah and I want to get into your deals because I think people are probably pretty curious what what type of deals you know because I think it's important what you said that there's because you're buying the type of deals that you are there's unlimited money there and so I think a lot of people don't

47:06Get that connection and and it's it's really Paramount to understand that because if you're buying just any old deal then your money's going to dry up pretty quick because you know it's it's probably not going to perform the way that an investor wants to see it perform so because you're so discre because you're putting in so many offers and just taking the cream of the crop investors are lining up to fund your deals and you're getting 100% financing so can you talk through what type of deals that you are targeting and and maybe maybe an example of of a deal that youve you've done recently yeah so the type of deals that we're targeting so I mentioned earlier where we where we follow the 70% rule quite often and so the

47:54So like if if if the deal is worth a h 100,000 the arv is 100,000 after repairs the property is worth 100,000 so 70% of 100,000 is 70,000 and we also you know we also want the the the repairs and the purchase price to be 70,000 or less so let's just say you know just to make a you know simple numbers the the property is worth 100,000 and the purchase price is 50,000 and the repairs is 10,000 I mean it sounds like a deal we just purchased last month right we because the deal is worth 100,000 and and we bought it for 50 and the repairs is 10,000 we worth 60,000 in so we're under the 70,000

48:43We're under 70% of the arv and so when when private money lenders see these kind of deals they love it because you know it takes a lot of risk away from the deal and is a great deal even if let's just say worst case scenario we stop paying them well they could foreclose on the property right away and they could even sell it out of discount because they they they lended they lend us 60,000 for the property well they could turn around and easily sell that property for 80,000 70,000 whatever they could sell it on a discount still make more money and whatever interest we paid them and so their risk is is so much lower with the type of deals we find and so that's why we end up having a lot of private money lenders who

49:32Want to do deals with us because you know they they like those kind of deals and then we also were very picky about the area so we're not really you know looking at at A and B properties because it's a lot more money but we're we're right around C you know maybe B minus in some areas right but you know typically right around the the the sea we don't we don't go into D areas and more of the higher seas and it's cash flowing areas a lot of the areas are up and coming like some of our properties are near the Amazon facility the Nike plant some of our properties are around FedEx so Memphis is is so is positioned so well whereas you know a

50:20Lot of the you know the FedEx headquarters and a lot of the it's just you know right like in the Cent at the center where there's a lot of jobs and a lot of you know stuff going on right there so so so our properties are positioned around all of these different areas whereas you know there's a lot of renters who have stable jobs stable income and so so you know that's some of the things that that we look at too and then you know screening our tenin as well you know we have a tough selection process for that as well and so you know we we're very kind of like rigid on you know those kind of things because you know we're in it to make money as well and so because this is g to this is something that we're looking to replace our our W2 income to provide for our families so you

51:08Know so we need to make sure we have stable income and so so those are the kind of things that that we look for these are the type of areas we also even started our business in in in Little Rock as well so that's where my wife fully came on board with everything she was always you know there to support me to beginning but at the beginning of 20 2021 I know I'm jumping all over with the story beginning of 2021 so she was towards the end of 2020 she was like you know I I I she was like I'd like to come to business full-time with you I'd like to you know help help you whenever whatever you need help with I said great you know because I I'd like to you know start to expand more and so she came in and she she expanded into Little Rock as well and which was awesome you know to to

51:56Start a new territory with our business and and then she helps with all aspects of the business right now to mostly the administrative things you know she deals with all the deals so we work as a team to keep everything flowing and so she got her degree in recently Christian Counseling but I don't know if she'll ever use that degree she may you know she she she'll help people for free I'm sure but but she's so she's so she's successfully unemployed in our business right now which is great and then the goal is yeah thank you the goal is for me to transition full-time into that too so it it's it's just been an awesome journey together awesome awesome yeah and so you talked a little bit about the the equity piece you know if you're buying them you know like example

52:45You said if you you're 60 all in and it's worth 100 now you got 40,000 in equity so you can easily refinance out all the cash that you put into it that 60,000 you know because Banks will give you 75% of the appraised value from a cash flow standpoint what what is it that you're you're targeting because you said that's that's the most important thing to you yeah so so we we follow the master passive income model to the te with with Dustin heiner and you know so we look for at least 250 or more in cash flow on all of our properties and you know this is this is after the mortgage after the Insurance taxes and also having savings every month for potential vacancies or

53:33And repairs as well so after all of that we shoot for at least 250 or more for each one of our units and so we're able to get more often on some deals you know I mean we'll take even even if it's 250 we we'll we'll take it right away but being in in Memphis market and Little Rock they they we're able to get some really good cash flowing deals that's awesome yeah that's a solid little little rental property then if you're getting 250 or more in free cash flow so so what is your your goal so you talked about your wife being able to work in the business full-time which is awesome and it I mean like you you mentioned it's it's so cool she got a

54:22A Christian Counseling degree but she's in a position now where she can use that degree at will and she can and volunteer and maybe help on a a larger level than if she had to you know show up to a 9 to-5 and and check the boxes and do the things that are going to you know provide for a family which there's nothing wrong with that but when you have the flexibility to show up because you want to and take the roles that you want to because you don't have to bring home a paycheck you're in a very different position and I think a lot of people don't understand the power of that so I think that's awesome you said you're looking to potentially leave your your full-time job so what does that look like for you

55:10Guys so where you at in terms of how many properties you have what's your goal when what's your what's your exit plan yeah so so right now so so you know so since the end of 2019 to now we were able to close on a total of 14 rental units nice and yeah thank you man so we we we sold we sold let's see we sold two two of the units back last summer and so so now we're down to 12 rental rental units right now and that just worked out good I mean the appreciation on that was like it went up so much we were like we could use this money to like buy more yeah and you know and and and I say buy more but

55:59Because we we do 100% financing deals but but just to have that money in case something you know goes like you know how these appraises are so I like to have a backup plan like like ready just in case you know we need to bring cash to the table it's happened before with with one of our deals and so so we we want to have cash ready to like to be able to you know to keep keep these deals going too so so anyway so we we realized because we were I mean we were like so harded Kirby I mean we were we were literally like you know we would put everything into these properties and and whatever so we were like okay well we probably should like you know sell whilst the market is high right now and like just just to have some reserves like

56:47Sitting there just in case we need it for whatever nice so so yeah so we're we're we're at 12 right now and we're we'll continue growing our business and we are man you know being at the real estate Wealth Builders conference just open our mind up to to so many different opportunities man just you know even hearing you speak about the how how you've achieved so much success with some short-term rentals and and you know heing you know multif family and everything too so we are looking at you know even expanding our business and in into you know doing you know maybe doing some some short-term reent on some some deals and then maybe doing some multif family but then you know our approach is always like you know one step at a time right you know we're not going to go I'd

57:36Like to do everything but then you know the best thing to do is is to is to is to pick pick one thing you know do very well at that and then move on to the next so we're at the point where my wife she's she's running the business just about just about everything so I've been training to do just about everything and then and you know the next step is to get into maybe some more short-term rentals or maybe some small multif family around anywhere from five to to to 20 units so that's kind of what's what's What's brewing for us that's coming up coming next and we'll continue our single family business just because you know it's I mean it's a it's a great business model and you can make I'm some a good fortune doing it and then I'll have my wife running that whilst I'm

58:24Whilst I'm focusing on on on expanding awesome awesome yeah I know that's great man yeah it's it's incredible progress in just a couple years well I'm I'm getting low on rum so I I need toh wrap this up but last question here how do you so I think a lot of people are in your same shoes where they're they're working full-time and trying to you know make real estate work at the same time and and it's challenging and and a lot of people have families too and all the other stuff trying to have some shred of a social life at the same time so how do you manage all of this like how do you how do you get 14 properties in two years while you're you're you know working a very full-time job

59:13And your wife was going to school and you know you had all the things going on so you know that's a great question Kirby and the short answer to that is really don't make excuses make adjustments right and so don't I'm going to say that again and don't make excuses make adjustments and what that looks like for us is you know although you know I may be working this full-time job working in construction and you know I'm managing a a a $600 million project in construction so it it's a lot of energy a lot of time doing that I could make an excuse just saying I don't have any time and this that and next I even work in a different city Kirby so I commute every day three hours three

1:00:01Hours so yes so I commute every day and it's crazy right around the time we got into investing was when I got you know I was I was on that you know I was placed on this job and so I was like you know I could have make an excuse I could just be like you know this is too hard I'm I I don't have any time but instead of making excuses I decided to make adjustments and so you know and so that means on my drives you know when I'm you know in the morning in the evening making phone calls or speaking to different people and you know lunch breaks you know making phone calls and then also weekends evenings and and even like you know like how we're

1:00:50Talking now so sometimes people may not be a sometimes when we couldn't find meetings during the work hours because I'm working the job you know just like how I asked you hey man can you have any time in the evening right so you know just asking the questions like we' we've literally talked to some people you know who work you know during the regular business hours and we did it on the on the we we did business on in the evenings or the weekends and so just really finding a way to make it work and then you know thankfully now my wife is full-time into it starting last year she started full-time so that definitely takes a lot of the pressure off because now I could just focus on on on expanding the business I could focus on all the different things I could focus on networking and even being able to to

1:01:38Give back and help other investors I could focus on those things more as well since she's joined the business but is really again not making excuses making adjustments making it work we make time to do what we want to do in the end I'm a firm believer of that yeah yeah and and you're clear on your goals I think that makes such a huge difference too because you know what you're working toward you know you know yeah I gotta give up a little bit now but you're still pretty young and before you even have a family to have to juggle you're going to be in a a much different financial position to be able to support that family so so I commend you for I mean obviously you have a track record going back to

1:02:26When you're 17 years old you know just figuring out I'm going to make this work making a decision and and leaving with a one-way ticket and figuring out how to finance your your schooling and then figuring out how to make real estate work so I know you're just at the beginning of your success journey and I'm just I'm I'm really impressed with all you've accomplished so far and so I I appreciate you coming on tonight I appreciate the the information I know that the community is really going to benefit from from hearing this thank you Kirby and and I I appreciate you I appreciate just the opportunity to be here and and share this story to inspire others because you know I'm just a regular guy literally and you

1:03:15Know if I can do this then everyone who's listening can do this no matter where you are no matter where you are on your journey whether you're at no property or two properties three properties wherever you are you know you can do this and it's nothing special about me except you know just I'm just you know just like Kirby I'm going after my dreams and and so many other people who we connect with so so again don't make excuses make adjustments if if you only remember one thing from this don't make excuses make adjustments and then also whenever you need to stay up you know laid like Kirby just drink some rum and coke right that's right exactly man I'm so glad I tapped into that Bahamas Spirit here

1:04:06If if people want to get in touch with you what do you is it social media or do you have an email or what's the the best way yeah so so I I am on social media if you search Charles Rose Jr you can find me on you can find me on Instagram Facebook and Linkedin and then so my emails I I really you know I go by two emails right now so so for my rental property business it's just Charles Ros rentalhomes.com so the homes is plural Charles Rose rental Holmes and then you know for everything that that I do with Dustin heiner to help investors achieve their their their dreams through real estate if you any questions in that area is

1:04:54Charles atmp passive income.com so either of those emails you can reach me on I check both of them they all come in the same box so you know I'll I'll I'll get it nice that's awesome man well thank you very much for sharing that and you'll probably have a couple people reach out to you and you know tap into your knowledge so I appreciate again your time and we'll we'll talk soon all right thank you Kirby I'll talk to you soon oh