[0:00] Good advice for the whole room and I'll
[0:01] shut the heck up.
[0:03] [music]
[0:05] 2021 and 2022 I bought 300 sub 2 deals
[0:09] all over the country and I spread myself
[0:12] into markets that I didn't really plan
[0:15] on
[0:16] expanding it. I just got I was like oh
[0:18] 2% 0% 1.9%. Like I have one sub two deal
[0:22] on the beach in Hawaii. It's the only
[0:24] one I have in Hawaii. That was dumb.
[0:27] Why? Cuz I didn't build it. I I didn't
[0:29] have it. I don't have enough houses
[0:30] there to build a team around. And so
[0:32] what I'm currently doing right now is
[0:34] over the last 12 months, I've sold about
[0:35] a hundred of my single family houses and
[0:36] we're 1031ing either into RV parks or
[0:39] 1031ing into stuff in Arizona. So in 24
[0:43] months, my single family portfolio will
[0:45] be less than 100 rentals and they will
[0:46] all be in Maroba County. So Sacramento's
[0:49] awesome. The two sub two deals I have
[0:50] here perform well. They, you know, net
[0:52] me probably 5,600 bucks a month. But um
[0:56] I just wish they were in a market that I
[0:58] had more teams and more resources to
[1:00] even care about them if that makes
[1:01] sense. And it's not even about the
[1:02] management cuz I don't I know a lot of
[1:05] people that are just starting out what
[1:06] they'll do is they'll self-manage a lot
[1:07] of their assets. I started out in the
[1:10] business saying I will never do that. I
[1:12] will never in my life do that. This is
[1:14] my personality.
[1:15] Some people go, I want to quit my
[1:17] nineto-ive job so bad that I'm going to
[1:20] go buy a dozen rentals, manage them
[1:22] myself, and that savings I have on the
[1:24] management basically allows me to quit
[1:25] my job. I went deep enough that I bought
[1:29] 40 rentals, had somebody else manage it,
[1:32] then I started phasing out of my
[1:33] construction business. From day one, I
[1:36] never managed a single thing. So, when
[1:37] people ask me like, "How do you manage
[1:38] your assets?" I'm like, "I have an asset
[1:39] manager. Always have." The team manages
[1:42] them here, but the team's like, "Man, we
[1:44] have to we have to deal with Sacramento
[1:46] stuff." And cool thing about Sacramento
[1:49] is you guys know about they they're
[1:51] putting grants out to do more co-l
[1:52] livingiving here.
[1:53] >> They're just printing your government's
[1:55] going to start printing money for you
[1:56] guys to do more co-living properties.
[1:57] And so I'm enticed. I'm encouraged to be
[2:00] like, "Let's go double down in
[2:01] Sacramento." But I've already made a
[2:03] commitment mentally that we're getting
[2:04] rid of any single family house that's
[2:06] not in Maroba County. So good advice for
[2:08] the whole room and I'll shut the heck
[2:09] up.
[2:11] Take a Clifton Strengths test. If you
[2:13] haven't taken a Clifton Strengths test,
[2:15] skip your next three days of Starbucks
[2:16] and go spend $59. Clifton Strength. So,
[2:19] it's this is psychologists that spent 50
[2:22] years doing the opposite of what most
[2:24] psychologists did. What which was
[2:26] everybody else is trying to figure out
[2:27] like what's wrong with everybody? What's
[2:28] wrong with everybody? This guy goes, I'm
[2:30] going to find out what's right about
[2:31] people. Like, why are people winning?
[2:33] Like, and this is why I'm so good at
[2:35] understanding you. I can see the way
[2:36] you're sitting. I can see the way you're
[2:38] dressed. I can see the way you do your
[2:39] hair. I can see the watch you're
[2:40] wearing. I can see everything about you
[2:42] and understand your personality. But
[2:44] also, you bro, you exude energy. You
[2:46] exude energy in a in a really cool way.
[2:48] And everybody does, just a different
[2:50] wavelength.
[2:52] This will teach you more about human
[2:54] behavior than anything else on the
[2:56] planet. Clifton spent 50 years figuring
[2:59] out what are the top 34 characteristics
[3:02] that every human being has and he
[3:04] divided them into top 10, middle 10,
[3:07] bottom 14. Okay, top 10, whatever one
[3:11] they're categorized for you, the top 10
[3:13] are turned on in you all the time. You
[3:16] wake up that way. You breathe that way.
[3:18] You sleep like everything in your life
[3:20] shows up that way. And I can tell you
[3:22] what your top 10 are. Not in order, but
[3:24] I could tell you which ones are in your
[3:26] top 10. For me, I my number one
[3:29] characteristic is um it's called um
[3:32] activator,
[3:34] which I love to activate people into
[3:36] their best version of themselves. I'm
[3:37] obsessed with see pushing somebody
[3:39] else's button and watching them grow and
[3:41] stepping back and not taking any credit
[3:42] for it. I just like I love Okay, next.
[3:44] Boom, boom, boom. Number one personality
[3:46] trait. Number five is includer. It's why
[3:49] I build the largest community in the
[3:50] world. The largest I have the large
[3:52] Nobody's even onetenth of my size.
[3:55] Number five is includer. I love
[3:57] including everybody and I love doing
[3:58] this stuff. I mean, think about I just
[4:00] did a 100 cities and 100 is the
[4:01] stupidest thing ever. But I woke up that
[4:03] way going, I'm doing this and I can't
[4:05] turn that off. I have an idea. I can't
[4:07] turn it off. So, the way you show up and
[4:10] those thoughts you have, that's your top
[4:12] 10 personality traits. And if you don't
[4:13] know those, my friends, you're going to
[4:15] flounder around your whole life.
[4:16] >> Why? Why do I feel pulled this way, but
[4:19] everybody's telling me to go this way,
[4:20] but I'm pulled this way? If you
[4:21] understood your top 10 characteristics,
[4:23] your life would change dramatically.
[4:25] Your middle 10, okay, your next 10 are
[4:28] ones that you can turn on yourself.
[4:30] Like, you ever have to tell yourself,
[4:32] especially with like slower people, like
[4:33] be nice. [laughter]
[4:36] Okay, that's a switch I have to turn on
[4:37] sometimes right?
[4:39] >> So, [laughter]
[4:40] the ne the the next 10 characteristics
[4:43] are buttons that you can turn on for
[4:46] yourself with exerted effort. The bottom
[4:49] 14, this is the most interesting thing.
[4:52] Okay, the bottom 14 can only be turned
[4:54] on by somebody else. So somebody else,
[4:58] your friends, like you guys challenge
[5:00] each other. You're bros. You turn other
[5:02] buttons on of each other and you turn
[5:04] each other into like better versions of
[5:05] yourself, right? Best friends do that.
[5:07] It's the craziest thing ever. Clifton
[5:09] Strengths, $59. And if you're a
[5:11] gangster, go to Clifton Strengths
[5:13] website and pay $200 to have somebody
[5:15] give you a one-on-one and go through
[5:17] your Clifton Strengths. When you walk
[5:19] out that, take your Clifton Strengths.
[5:22] If you're ultra black belt gang
[5:24] gangster, take that and the recording,
[5:26] throw it into chat GPT and go, I'm
[5:28] currently doing this, this, this, this,
[5:29] and this in my life. I don't like these
[5:31] things about my life. Give me a 30-day
[5:32] game plan based on everything I just
[5:34] gave you, bro.
[5:37] [music]
[5:39] Sacramento. [cheering]
[5:41] Yo [applause]
[5:44] dude, it's like 20° colder in here than
[5:47] the room I was just in. Guys, thank you
[5:48] so much for being here. I'm so grateful.
[5:50] Um, wow. We got best guess I'd say 450
[5:55] people in here. This is pretty cool.
[5:58] >> Um, if you're in a room like this, what
[5:59] do you what do you think is in here? Do
[6:01] you think that there's deals in here?
[6:03] >> Do you think there's money in here?
[6:05] >> Yes.
[6:05] >> Okay. I'm I'm in the middle of an RV
[6:07] park with like three people in this room
[6:09] that are closing in the next 30 days.
[6:10] So, you have people that are finding a
[6:11] lot of deals. I believe that the sub 2
[6:13] community, we're about 30,000 people um
[6:15] globally. We're in 29 countries. I
[6:18] believe that. Here's an interesting stat
[6:21] before I say what we I believe in
[6:23] Phoenix, Arizona, when I started
[6:25] teaching people how to do sub two deals
[6:27] about seven years ago. Um, and verse
[6:30] today, the amount of foreclosures that
[6:34] make it to all the way to auction has
[6:36] decreased by 60%. No matter what the
[6:38] market's doing, up, down, left, or
[6:40] right, 60% less um foreclosures are
[6:44] happening just in Maroba County, which
[6:45] is where I'm from. Why is that? It's
[6:47] because we now have tools and more
[6:49] people have tools to help these sellers
[6:50] that are in foreclosures, which is which
[6:51] is awesome. That's the same stat
[6:53] nationwide, which has been a lot of fun.
[6:56] But the thing I'm like just really
[6:58] really proud of is that we get to help
[7:01] people solve affordability. Is
[7:03] affordability a problem in Sacramento?
[7:05] >> Cool. So, what are you going to do about
[7:06] it, you greedy landlords? [laughter]
[7:09] >> Right. Are we going to go do more
[7:10] Airbnbs? Sure, Airbnb works, but is that
[7:13] going to solve affordability?
[7:14] >> No.
[7:15] >> No. And look, it's great because I know
[7:16] a lot of people love the the tax
[7:18] benefits if you're a W2 employee, but
[7:20] you're not really solving any problem.
[7:22] You're really just not. And I I didn't I
[7:24] don't want to get into a business where
[7:25] I make a lot of money that I feel icky.
[7:27] Like I don't want to sell soap for a
[7:29] living. You know what I'm saying? Like I
[7:30] don't That's a reference to a job I used
[7:33] to have. So, [laughter]
[7:35] I really wanted to be in a business that
[7:37] I can help people. And I've done
[7:38] thousands of transactions. There's never
[7:39] been a seller I did not help. And
[7:41] there's never been a a tenant that I did
[7:43] not help um make sure it's affordable.
[7:45] You know what? Let's do a couple Q&A. I
[7:46] feel like Mullet Man has a question. Do
[7:48] you have a question? Do you need help
[7:49] with anything, Austin? Yes. The only
[7:51] thing risky about investing in
[7:52] California is single family traditional
[7:55] rentals.
[7:55] >> Small multif family.
[7:56] >> Okay. Small multif family. But what kind
[7:58] of tenants are you going after?
[8:00] >> Section 8, COC, HUDVASH.
[8:06] >> Okay. One suggestion I would have is
[8:08] that everybody I talk to nationwide
[8:10] that's doing California deals, their
[8:12] biggest problem is tenant rights.
[8:15] >> And so if you're I have two I by the way
[8:17] have two sub two deals I own here in
[8:18] Sacramento. Thank goodness I I made them
[8:22] into co-l livingiving so I don't have
[8:23] tenant issues. But whatever you're going
[8:25] to do my friend small multif family I
[8:27] would go co-l livingiving section 8
[8:29] continuation of care. I would go to
[8:31] Oxford House. I would do anything but
[8:33] traditional rentals if you want to like
[8:36] your your investment strategy.
[8:40] >> You say premium h housing.
[8:41] >> Yeah, that's what I want to do.
[8:42] >> Like midterm rental. Is that what that
[8:43] is?
[8:44] >> Yeah.
[8:44] >> Okay. Midterm rental. Hillary says too.
[8:46] >> Can you name this again?
[8:47] >> Yes, I can name them again. So Oxford
[8:50] House section 8.
[8:53] Um Hudvash. Hudvash is section 8 for
[8:56] veterans. And then COC, which is
[9:00] continuation of care. It's the same
[9:01] department as section 8, but they it's
[9:04] way better.
[9:06] >> Um, who who wants to do section 8 at
[9:08] some point?
[9:09] >> Okay, I'll tell you why you shouldn't do
[9:11] section 8.
[9:13] Section 8's amazing. It's a 10 out of
[9:15] 10, but I'm going to give you section
[9:16] 8's a 10 out of 10. I'm going to give
[9:18] you an 11 out of 10. Okay. When section
[9:21] 8 tenant comes into your house, they
[9:24] have to pay first and last month's
[9:25] deposit. They also don't pay the full
[9:28] rent. Like section 8 won't pay the full
[9:29] rent. The tenant has to pay some of that
[9:31] rent. Correct. When the tenant moves out
[9:34] of that property, who pays for the
[9:36] repairs on that property?
[9:38] >> You.
[9:38] >> Right. This is the weirdest thing. The
[9:41] money comes from the same place. It goes
[9:42] into section 8 or it goes into HUDVASH,
[9:45] which is section 8 for for veterans or
[9:47] it goes into something called
[9:48] continuation of care. Continuation of
[9:51] care is another program. You can find
[9:53] incredible resources on a website called
[9:56] padmission.com.
[9:58] Free. I don't get paid to promote them
[10:00] at all. I should padmission.com.
[10:04] What padmission.com does is it puts you
[10:06] in touch with nonprofits that gets
[10:08] government funding that they pay the
[10:10] first month's last month's security
[10:11] deposit for these tenants. They pay 100%
[10:14] of the rent so you're not collecting
[10:16] rent from two different places and and
[10:20] when the tenant moves out, they pay the
[10:23] repair of all the cleanup to get ready
[10:25] for the next tenant.
[10:27] >> That's cool.
[10:27] >> Okay. So, continuation of care, you'll
[10:29] be able to find those tenants on
[10:30] padmission.com.
[10:31] >> Thank you.
[10:32] >> padmission.com.
[10:34] >> Guys, that was probably worth just you
[10:35] coming here tonight. I promise you.
[10:36] [cheering] Okay.
[10:38] >> Yes, sir. Absolutely. Okay. So, I would
[10:40] focus on those types of things. Nothing
[10:42] against tenants, but I can tell you like
[10:44] a regular tenant is always going to be
[10:45] your biggest complainer. They're going
[10:47] to be the people like, "No, I'm not
[10:48] moving out. How dare you?" In
[10:50] California, I think you guys have a lot
[10:51] of weird counties that require you to
[10:53] pay a tenant to get out.
[10:55] >> Does Sacramento do that?
[10:57] That's like if I own a Subway sandwich
[10:59] franchise, somebody steals my sandwich.
[11:01] Like they order it at the beginning.
[11:02] They make my worker go through and do
[11:04] all the thing. Hey, make sure you toast
[11:05] that. Hey dude, put double cheese on
[11:07] there. And then they're told what the
[11:09] price is. And they go, "Yeah, I don't
[11:10] think I'm going to pay." And then as
[11:12] they're leaving, they go, "Wait, wait,
[11:13] wait. I think you need to pay me to
[11:15] leave the store."
[11:17] That is your government, just FYI.
[11:20] And y'all live here. I just want to let
[11:21] you guys know. [laughter]
[11:23] But that's only regular tenants. So, a
[11:26] lot of times you guys will hear me bash
[11:27] California online, but I am only talking
[11:30] about regular tenants. Okay? So, if
[11:34] you're going to do something like small
[11:35] multif family, small multif family with
[11:37] all of those types of tenants will work.
[11:39] Okay? Section 8, HUDVASH, COC, um, uh,
[11:44] Oxford House, [music] all of those types
[11:46] of things. Co-living is awesome. One,
[11:49] two 3.
[11:52] >> Sacramento, where you at? Well, we're
[11:55] here in Sacramento just wrapping up the
[11:56] day. What an incredible meet up. 550
[11:58] plus people. Lawrence, Wes, Art, thank
[12:01] you for being our leaders here in
[12:02] Sacramento for the Sub 2 community.
[12:04] Lawrence, proud of you, man. Three RV
[12:06] parks in the last 18 days. This is how
[12:09] you dominate. So proud of you. All of
[12:12] you guys that are [music] watching by
[12:14] basically by the time you watch this, we
[12:16] will be done with the door. You've
[12:17] missed out. We've done 100 cities 100
[12:19] days. [music] We've got five more cities
[12:21] to go. Actually, not. We got Fresno. No,
[12:23] San Francisco. Fresno, Los Angeles,
[12:25] Yuma, that's it.
[12:27] >> Tucson,
[12:27] >> and oh, Tucson. So, if we've got five
[12:29] more to go, creativation.com, come hang
[12:31] out with us. [music] We look forward to
[12:33] seeing you. And uh if you guys want to
[12:35] go back and watch all of them, go to
[12:36] creativation tour.com. You can watch the
[12:38] whole entire vlog list. [music] Shout
[12:40] out to all of our sponsors. Padsplit,
[12:42] Home Depot,
[12:44] all the people. We love you. We
[12:45] appreciate you. We'll see you in the
[12:46] next video.