Real Estate Investing Advice for 2026

[00:00] Good advice for the whole room and I'll

[00:01] shut the heck up.

[00:03] [music]

[00:05] 2021 and 2022 I bought 300 sub 2 deals

[00:09] all over the country and I spread myself

[00:12] into markets that I didn't really plan

[00:15] on

[00:16] expanding it. I just got I was like oh

[00:18] 2% 0% 1.9%. Like I have one sub two deal

[00:22] on the beach in Hawaii. It's the only

[00:24] one I have in Hawaii. That was dumb.

[00:27] Why? Cuz I didn't build it. I I didn't

[00:29] have it. I don't have enough houses

[00:30] there to build a team around. And so

[00:32] what I'm currently doing right now is

[00:34] over the last 12 months, I've sold about

[00:35] a hundred of my single family houses and

[00:36] we're 1031ing either into RV parks or

[00:39] 1031ing into stuff in Arizona. So in 24

[00:43] months, my single family portfolio will

[00:45] be less than 100 rentals and they will

[00:46] all be in Maroba County. So Sacramento's

[00:49] awesome. The two sub two deals I have

[00:50] here perform well. They, you know, net

[00:52] me probably 5,600 bucks a month. But um

[00:56] I just wish they were in a market that I

[00:58] had more teams and more resources to

[01:00] even care about them if that makes

[01:01] sense. And it's not even about the

[01:02] management cuz I don't I know a lot of

[01:05] people that are just starting out what

[01:06] they'll do is they'll self-manage a lot

[01:07] of their assets. I started out in the

[01:10] business saying I will never do that. I

[01:12] will never in my life do that. This is

[01:14] my personality.

[01:15] Some people go, I want to quit my

[01:17] nineto-ive job so bad that I'm going to

[01:20] go buy a dozen rentals, manage them

[01:22] myself, and that savings I have on the

[01:24] management basically allows me to quit

[01:25] my job. I went deep enough that I bought

[01:29] 40 rentals, had somebody else manage it,

[01:32] then I started phasing out of my

[01:33] construction business. From day one, I

[01:36] never managed a single thing. So, when

[01:37] people ask me like, "How do you manage

[01:38] your assets?" I'm like, "I have an asset

[01:39] manager. Always have." The team manages

[01:42] them here, but the team's like, "Man, we

[01:44] have to we have to deal with Sacramento

[01:46] stuff." And cool thing about Sacramento

[01:49] is you guys know about they they're

[01:51] putting grants out to do more co-l

[01:52] livingiving here.

[01:53] >> They're just printing your government's

[01:55] going to start printing money for you

[01:56] guys to do more co-living properties.

[01:57] And so I'm enticed. I'm encouraged to be

[02:00] like, "Let's go double down in

[02:01] Sacramento." But I've already made a

[02:03] commitment mentally that we're getting

[02:04] rid of any single family house that's

[02:06] not in Maroba County. So good advice for

[02:08] the whole room and I'll shut the heck

[02:09] up.

[02:11] Take a Clifton Strengths test. If you

[02:13] haven't taken a Clifton Strengths test,

[02:15] skip your next three days of Starbucks

[02:16] and go spend $59. Clifton Strength. So,

[02:19] it's this is psychologists that spent 50

[02:22] years doing the opposite of what most

[02:24] psychologists did. What which was

[02:26] everybody else is trying to figure out

[02:27] like what's wrong with everybody? What's

[02:28] wrong with everybody? This guy goes, I'm

[02:30] going to find out what's right about

[02:31] people. Like, why are people winning?

[02:33] Like, and this is why I'm so good at

[02:35] understanding you. I can see the way

[02:36] you're sitting. I can see the way you're

[02:38] dressed. I can see the way you do your

[02:39] hair. I can see the watch you're

[02:40] wearing. I can see everything about you

[02:42] and understand your personality. But

[02:44] also, you bro, you exude energy. You

[02:46] exude energy in a in a really cool way.

[02:48] And everybody does, just a different

[02:50] wavelength.

[02:52] This will teach you more about human

[02:54] behavior than anything else on the

[02:56] planet. Clifton spent 50 years figuring

[02:59] out what are the top 34 characteristics

[03:02] that every human being has and he

[03:04] divided them into top 10, middle 10,

[03:07] bottom 14. Okay, top 10, whatever one

[03:11] they're categorized for you, the top 10

[03:13] are turned on in you all the time. You

[03:16] wake up that way. You breathe that way.

[03:18] You sleep like everything in your life

[03:20] shows up that way. And I can tell you

[03:22] what your top 10 are. Not in order, but

[03:24] I could tell you which ones are in your

[03:26] top 10. For me, I my number one

[03:29] characteristic is um it's called um

[03:32] activator,

[03:34] which I love to activate people into

[03:36] their best version of themselves. I'm

[03:37] obsessed with see pushing somebody

[03:39] else's button and watching them grow and

[03:41] stepping back and not taking any credit

[03:42] for it. I just like I love Okay, next.

[03:44] Boom, boom, boom. Number one personality

[03:46] trait. Number five is includer. It's why

[03:49] I build the largest community in the

[03:50] world. The largest I have the large

[03:52] Nobody's even onetenth of my size.

[03:55] Number five is includer. I love

[03:57] including everybody and I love doing

[03:58] this stuff. I mean, think about I just

[04:00] did a 100 cities and 100 is the

[04:01] stupidest thing ever. But I woke up that

[04:03] way going, I'm doing this and I can't

[04:05] turn that off. I have an idea. I can't

[04:07] turn it off. So, the way you show up and

[04:10] those thoughts you have, that's your top

[04:12] 10 personality traits. And if you don't

[04:13] know those, my friends, you're going to

[04:15] flounder around your whole life.

[04:16] >> Why? Why do I feel pulled this way, but

[04:19] everybody's telling me to go this way,

[04:20] but I'm pulled this way? If you

[04:21] understood your top 10 characteristics,

[04:23] your life would change dramatically.

[04:25] Your middle 10, okay, your next 10 are

[04:28] ones that you can turn on yourself.

[04:30] Like, you ever have to tell yourself,

[04:32] especially with like slower people, like

[04:33] be nice. [laughter]

[04:36] Okay, that's a switch I have to turn on

[04:37] sometimes right?

[04:39] >> So, [laughter]

[04:40] the ne the the next 10 characteristics

[04:43] are buttons that you can turn on for

[04:46] yourself with exerted effort. The bottom

[04:49] 14, this is the most interesting thing.

[04:52] Okay, the bottom 14 can only be turned

[04:54] on by somebody else. So somebody else,

[04:58] your friends, like you guys challenge

[05:00] each other. You're bros. You turn other

[05:02] buttons on of each other and you turn

[05:04] each other into like better versions of

[05:05] yourself, right? Best friends do that.

[05:07] It's the craziest thing ever. Clifton

[05:09] Strengths, $59. And if you're a

[05:11] gangster, go to Clifton Strengths

[05:13] website and pay $200 to have somebody

[05:15] give you a one-on-one and go through

[05:17] your Clifton Strengths. When you walk

[05:19] out that, take your Clifton Strengths.

[05:22] If you're ultra black belt gang

[05:24] gangster, take that and the recording,

[05:26] throw it into chat GPT and go, I'm

[05:28] currently doing this, this, this, this,

[05:29] and this in my life. I don't like these

[05:31] things about my life. Give me a 30-day

[05:32] game plan based on everything I just

[05:34] gave you, bro.

[05:37] [music]

[05:39] Sacramento. [cheering]

[05:41] Yo [applause]

[05:44] dude, it's like 20° colder in here than

[05:47] the room I was just in. Guys, thank you

[05:48] so much for being here. I'm so grateful.

[05:50] Um, wow. We got best guess I'd say 450

[05:55] people in here. This is pretty cool.

[05:58] >> Um, if you're in a room like this, what

[05:59] do you what do you think is in here? Do

[06:01] you think that there's deals in here?

[06:03] >> Do you think there's money in here?

[06:05] >> Yes.

[06:05] >> Okay. I'm I'm in the middle of an RV

[06:07] park with like three people in this room

[06:09] that are closing in the next 30 days.

[06:10] So, you have people that are finding a

[06:11] lot of deals. I believe that the sub 2

[06:13] community, we're about 30,000 people um

[06:15] globally. We're in 29 countries. I

[06:18] believe that. Here's an interesting stat

[06:21] before I say what we I believe in

[06:23] Phoenix, Arizona, when I started

[06:25] teaching people how to do sub two deals

[06:27] about seven years ago. Um, and verse

[06:30] today, the amount of foreclosures that

[06:34] make it to all the way to auction has

[06:36] decreased by 60%. No matter what the

[06:38] market's doing, up, down, left, or

[06:40] right, 60% less um foreclosures are

[06:44] happening just in Maroba County, which

[06:45] is where I'm from. Why is that? It's

[06:47] because we now have tools and more

[06:49] people have tools to help these sellers

[06:50] that are in foreclosures, which is which

[06:51] is awesome. That's the same stat

[06:53] nationwide, which has been a lot of fun.

[06:56] But the thing I'm like just really

[06:58] really proud of is that we get to help

[07:01] people solve affordability. Is

[07:03] affordability a problem in Sacramento?

[07:05] >> Cool. So, what are you going to do about

[07:06] it, you greedy landlords? [laughter]

[07:09] >> Right. Are we going to go do more

[07:10] Airbnbs? Sure, Airbnb works, but is that

[07:13] going to solve affordability?

[07:14] >> No.

[07:15] >> No. And look, it's great because I know

[07:16] a lot of people love the the tax

[07:18] benefits if you're a W2 employee, but

[07:20] you're not really solving any problem.

[07:22] You're really just not. And I I didn't I

[07:24] don't want to get into a business where

[07:25] I make a lot of money that I feel icky.

[07:27] Like I don't want to sell soap for a

[07:29] living. You know what I'm saying? Like I

[07:30] don't That's a reference to a job I used

[07:33] to have. So, [laughter]

[07:35] I really wanted to be in a business that

[07:37] I can help people. And I've done

[07:38] thousands of transactions. There's never

[07:39] been a seller I did not help. And

[07:41] there's never been a a tenant that I did

[07:43] not help um make sure it's affordable.

[07:45] You know what? Let's do a couple Q&A. I

[07:46] feel like Mullet Man has a question. Do

[07:48] you have a question? Do you need help

[07:49] with anything, Austin? Yes. The only

[07:51] thing risky about investing in

[07:52] California is single family traditional

[07:55] rentals.

[07:55] >> Small multif family.

[07:56] >> Okay. Small multif family. But what kind

[07:58] of tenants are you going after?

[08:00] >> Section 8, COC, HUDVASH.

[08:06] >> Okay. One suggestion I would have is

[08:08] that everybody I talk to nationwide

[08:10] that's doing California deals, their

[08:12] biggest problem is tenant rights.

[08:15] >> And so if you're I have two I by the way

[08:17] have two sub two deals I own here in

[08:18] Sacramento. Thank goodness I I made them

[08:22] into co-l livingiving so I don't have

[08:23] tenant issues. But whatever you're going

[08:25] to do my friend small multif family I

[08:27] would go co-l livingiving section 8

[08:29] continuation of care. I would go to

[08:31] Oxford House. I would do anything but

[08:33] traditional rentals if you want to like

[08:36] your your investment strategy.

[08:40] >> You say premium h housing.

[08:41] >> Yeah, that's what I want to do.

[08:42] >> Like midterm rental. Is that what that

[08:43] is?

[08:44] >> Yeah.

[08:44] >> Okay. Midterm rental. Hillary says too.

[08:46] >> Can you name this again?

[08:47] >> Yes, I can name them again. So Oxford

[08:50] House section 8.

[08:53] Um Hudvash. Hudvash is section 8 for

[08:56] veterans. And then COC, which is

[09:00] continuation of care. It's the same

[09:01] department as section 8, but they it's

[09:04] way better.

[09:06] >> Um, who who wants to do section 8 at

[09:08] some point?

[09:09] >> Okay, I'll tell you why you shouldn't do

[09:11] section 8.

[09:13] Section 8's amazing. It's a 10 out of

[09:15] 10, but I'm going to give you section

[09:16] 8's a 10 out of 10. I'm going to give

[09:18] you an 11 out of 10. Okay. When section

[09:21] 8 tenant comes into your house, they

[09:24] have to pay first and last month's

[09:25] deposit. They also don't pay the full

[09:28] rent. Like section 8 won't pay the full

[09:29] rent. The tenant has to pay some of that

[09:31] rent. Correct. When the tenant moves out

[09:34] of that property, who pays for the

[09:36] repairs on that property?

[09:38] >> You.

[09:38] >> Right. This is the weirdest thing. The

[09:41] money comes from the same place. It goes

[09:42] into section 8 or it goes into HUDVASH,

[09:45] which is section 8 for for veterans or

[09:47] it goes into something called

[09:48] continuation of care. Continuation of

[09:51] care is another program. You can find

[09:53] incredible resources on a website called

[09:56] padmission.com.

[09:58] 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.