Ep #1,009 - From Bartender to $250M+ in Real Estate

[00:00:00] [SPEAKER_00]: Welcome, this is the Lifetime Cash Flow Through Real Estate Investing Podcast.

[00:00:06] [SPEAKER_00]: This is where you'll learn strategies to help you achieve lifetime financial freedom through

[00:00:10] [SPEAKER_00]: real estate investment.

[00:00:13] [SPEAKER_00]: Your host Rod Khleif has owned over 2,000 homes and apartments.

[00:00:17] [SPEAKER_00]: And he brings experts in all aspects of real estate investment and management onto

[00:00:21] [SPEAKER_00]: the show.

[00:00:24] [SPEAKER_00]: Here's your host, Rod Khleif.

[00:00:27] [SPEAKER_01]: Welcome back to Lifetime Cash Flow Through Real Estate Investing.

[00:00:29] [SPEAKER_01]: I'm Rod Khleif and I am thrilled that you're here and you do not want to miss this episode.

[00:00:34] [SPEAKER_01]: Okay, I'm interviewing one of my best friends, Kevin Bup.

[00:00:38] [SPEAKER_01]: And Kevin and I, if you don't know who he is, have so much history together.

[00:00:41] [SPEAKER_01]: In fact, he's the reason I have this freaking podcast.

[00:00:44] [SPEAKER_01]: I remember he reached out to me, I don't know what, eight, nine, how long have

[00:00:49] [SPEAKER_01]: I've been doing my podcast for 10 years now.

[00:00:50] [SPEAKER_01]: 10 years ago and said hey, he reached out to me 10 years ago and said do you

[00:00:54] [SPEAKER_01]: want to do a podcast?

[00:00:55] [SPEAKER_01]: I'm like at that time it wasn't video, it was like on a phone.

[00:00:58] [SPEAKER_01]: I'm like hell no, I can't sit there on a phone and talk and do a podcast.

[00:01:02] [SPEAKER_01]: Now of course it's video.

[00:01:03] [SPEAKER_01]: But he's the reason I did this one.

[00:01:06] [SPEAKER_01]: And so anyway, it's great to have you here my friend.

[00:01:08] [SPEAKER_02]: Yeah, thanks for having me brother.

[00:01:09] [SPEAKER_02]: Good to see you as always.

[00:01:10] [SPEAKER_01]: Yeah, it's been way too long.

[00:01:12] [SPEAKER_02]: In fact, you say 10 years, I say 10 years, I mean like, I don't think half the people

[00:01:16] [SPEAKER_02]: probably listening right now knew what a podcast was 10 years ago.

[00:01:18] [SPEAKER_01]: Right, right, right.

[00:01:20] [SPEAKER_01]: God, I can't, you know, so what's the name of your, you still two or one?

[00:01:25] [SPEAKER_02]: They're both out there.

[00:01:26] [SPEAKER_02]: One that I do on a regular basis, real estate investing for cash flow.

[00:01:29] [SPEAKER_01]: Real estate investing for cash flow.

[00:01:31] [SPEAKER_01]: You were like number one or two for a long time.

[00:01:33] [SPEAKER_02]: I was and there was an Apple blip years back and I never found my way back to the

[00:01:36] [SPEAKER_02]: top.

[00:01:37] [SPEAKER_02]: Me too, me too.

[00:01:38] [SPEAKER_02]: Same thing.

[00:01:39] [SPEAKER_02]: And then we have the mobile home park investing show.

[00:01:41] [SPEAKER_02]: I did, I ran that show for about three years, recorded 140 or so episodes and

[00:01:46] [SPEAKER_02]: it was too much.

[00:01:47] [SPEAKER_02]: So it's out there.

[00:01:48] [SPEAKER_02]: It's out there, great information.

[00:01:49] [SPEAKER_02]: It's still relevant.

[00:01:50] [SPEAKER_02]: It's still down, a lot of downloads on a regular basis.

[00:01:53] [SPEAKER_02]: I mean it's got a thousand plus five star reviews.

[00:01:56] [SPEAKER_02]: It's still, it's information that can be used but we're just not, we're not producing new

[00:02:00] [SPEAKER_02]: content for it.

[00:02:01] [SPEAKER_01]: Gotcha, gotcha, gotcha.

[00:02:01] [SPEAKER_01]: Well check out his podcast because you do all asset classes on that podcast, right?

[00:02:06] [SPEAKER_01]: That's right, yep.

[00:02:06] [SPEAKER_01]: Where this one, I'm starting to do more of that and bring in other stuff just to

[00:02:11] [SPEAKER_01]: change things up a little bit.

[00:02:12] [SPEAKER_01]: But you guys obviously know that my focus is multifamily.

[00:02:16] [SPEAKER_01]: So let's just pretend we've never interviewed and why don't you give the listeners just

[00:02:21] [SPEAKER_01]: a little background on who you are and what you do because you've done a lot of different

[00:02:26] [SPEAKER_01]: things.

[00:02:27] [SPEAKER_01]: And so let's start there.

[00:02:28] [SPEAKER_01]: I mean we've got so much history.

[00:02:30] [SPEAKER_01]: I was there when you met your wife, remember that?

[00:02:33] [SPEAKER_01]: So Kevin and I actually worked together like 18, 19 years ago, 20 years ago when

[00:02:37] [SPEAKER_01]: we were doing single family houses.

[00:02:40] [SPEAKER_01]: Kevin and I worked together back then.

[00:02:42] [SPEAKER_02]: Yeah, it's been a long time.

[00:02:43] [SPEAKER_02]: Wow, it's been a long time.

[00:02:43] [SPEAKER_02]: I moved here in 2002.

[00:02:44] [SPEAKER_02]: I met you and your brother sometime within that first year span.

[00:02:48] [SPEAKER_02]: And so 2003 range and fast forward, I mean that's a long time ago.

[00:02:52] [SPEAKER_02]: Holy cow.

[00:02:53] [SPEAKER_02]: I know, I know.

[00:02:54] [SPEAKER_02]: 20 years.

[00:02:54] [SPEAKER_02]: You've done some amazing stuff since then.

[00:02:56] [SPEAKER_02]: 20 years.

[00:02:56] [SPEAKER_02]: I think it's a little different.

[00:02:57] [SPEAKER_02]: I mean we both have a little more gray hair.

[00:02:59] [SPEAKER_02]: A little bit more than me but I have a lot more than you.

[00:03:01] [SPEAKER_02]: Yeah, a lot more gray hair than you.

[00:03:05] [SPEAKER_01]: So guys, he's a guru in the mobile home park space but just tell your story a

[00:03:10] [SPEAKER_01]: little bit.

[00:03:11] [SPEAKER_02]: Yeah, no.

[00:03:11] [SPEAKER_02]: So I think similar to you, real estate has been most of my life.

[00:03:15] [SPEAKER_02]: I always joke and say that real estate found me.

[00:03:19] [SPEAKER_02]: I didn't find it back when I was 19 years old and I lived in Pennsylvania, grew up in

[00:03:24] [SPEAKER_02]: Pennsylvania, so I have all my family up there and was tending bar, going to

[00:03:28] [SPEAKER_02]: community college, having fun, not really knowing what I wanted to do with my life.

[00:03:32] [SPEAKER_02]: I was taking classes because I didn't know what else to do with my free time.

[00:03:36] [SPEAKER_02]: And again, I didn't know where to really harness the energy and excitement I had

[00:03:39] [SPEAKER_02]: in life because I didn't know what I wanted to do when I grew up.

[00:03:42] [SPEAKER_02]: But I was having fun bartending.

[00:03:43] [SPEAKER_02]: I was making good money there.

[00:03:46] [SPEAKER_02]: During that time, I met a girl.

[00:03:47] [SPEAKER_02]: I started dating a girl and that girl, her name is Jessica.

[00:03:51] [SPEAKER_02]: Her mother had recently gone through a divorce and she started dating a guy by

[00:03:54] [SPEAKER_02]: the name of David and David happened to be a local real estate investor.

[00:03:56] [SPEAKER_02]: And so just going to visit her at her mom's home.

[00:04:01] [SPEAKER_02]: She was going to school as well and lived at home and I became friends

[00:04:04] [SPEAKER_02]: with David over a period of a couple months.

[00:04:06] [SPEAKER_02]: Just got to know him.

[00:04:08] [SPEAKER_02]: One of the things that really stuck out with David was that I grew up in a,

[00:04:13] [SPEAKER_02]: my mom and dad were wonderful but very blue collar family.

[00:04:17] [SPEAKER_02]: Both parents worked.

[00:04:18] [SPEAKER_02]: My mom worked like a third shift because we couldn't really afford a babysitter.

[00:04:21] [SPEAKER_02]: So they kind of switched up their shifts.

[00:04:24] [SPEAKER_02]: My mom and dad didn't see each other that much during the week.

[00:04:27] [SPEAKER_02]: But we never went without.

[00:04:28] [SPEAKER_02]: We had Christmas happened one vacation a year.

[00:04:32] [SPEAKER_02]: But didn't have a lot of excesses.

[00:04:34] [SPEAKER_02]: We didn't have a lot of extra.

[00:04:35] [SPEAKER_02]: There was always money struggles.

[00:04:37] [SPEAKER_02]: There was always car payments and just, if there was any tension in our household,

[00:04:42] [SPEAKER_02]: it was always about money.

[00:04:44] [SPEAKER_02]: And that's just all I knew.

[00:04:45] [SPEAKER_02]: I didn't know any business owners.

[00:04:47] [SPEAKER_02]: My family weren't friends with any business owners but I met David then.

[00:04:50] [SPEAKER_02]: And what I recognized very quickly is number one,

[00:04:52] [SPEAKER_02]: how he dressed was a little different.

[00:04:54] [SPEAKER_02]: Type of car he drove was very different.

[00:04:56] [SPEAKER_02]: And he seemingly was at my girlfriend's house or her mother's house.

[00:05:00] [SPEAKER_02]: During the day when most old people were supposed to be working.

[00:05:02] [SPEAKER_02]: Like that's what really stuck out to me.

[00:05:04] [SPEAKER_02]: That caught my attention.

[00:05:06] [SPEAKER_02]: So I got to have really good conversations with him.

[00:05:10] [SPEAKER_02]: And spend quality time with him when others weren't around.

[00:05:12] [SPEAKER_02]: Just because he seemingly was there just odd times of the day.

[00:05:15] [SPEAKER_02]: And so anyway, long story short,

[00:05:16] [SPEAKER_02]: I didn't know much about real estate at all actually.

[00:05:18] [SPEAKER_02]: I knew nothing.

[00:05:20] [SPEAKER_02]: I had a basic understanding what his business was.

[00:05:23] [SPEAKER_02]: He bought properties, turned them into rentals.

[00:05:26] [SPEAKER_02]: And he owned about 35 of them at that point in time.

[00:05:28] [SPEAKER_02]: Up in Pennsylvania.

[00:05:30] [SPEAKER_02]: He'd been doing it for 20 years.

[00:05:32] [SPEAKER_02]: He had a lot of flexibility in his lifestyle.

[00:05:35] [SPEAKER_02]: And this seemingly lived a good life.

[00:05:36] [SPEAKER_02]: And so fast forward a couple months,

[00:05:40] [SPEAKER_02]: he invited me to a conference down in Philadelphia.

[00:05:44] [SPEAKER_02]: Ron LeGrand.

[00:05:44] [SPEAKER_01]: Ron LeGrand.

[00:05:45] [SPEAKER_01]: Ron LeGrand.

[00:05:46] [SPEAKER_02]: So David had bought a $3000 conference for him and his business partner.

[00:05:51] [SPEAKER_02]: His business partner couldn't go.

[00:05:53] [SPEAKER_02]: He said hey, you wanna come with me to this thing?

[00:05:57] [SPEAKER_02]: Lots of information over three days.

[00:05:58] [SPEAKER_02]: Lots of people are doing big things.

[00:06:00] [SPEAKER_02]: And again, I didn't understand what I was getting myself into.

[00:06:04] [SPEAKER_02]: What I was raising my hand for.

[00:06:05] [SPEAKER_02]: But I was like, well shit, he just spent three grand.

[00:06:07] [SPEAKER_02]: I gotta pay for it.

[00:06:08] [SPEAKER_02]: It's a two hour drive to Philadelphia in a hotel room.

[00:06:10] [SPEAKER_02]: I'm like, I'm in.

[00:06:11] [SPEAKER_02]: Let's go, let's do this thing.

[00:06:13] [SPEAKER_02]: And so you remember Ron LeGrand?

[00:06:15] [SPEAKER_02]: I mean-

[00:06:15] [SPEAKER_01]: Guys, if you don't know who Ron LeGrand is,

[00:06:17] [SPEAKER_01]: he's been around forever.

[00:06:18] [SPEAKER_01]: He's funny cuz he's very crusty.

[00:06:21] [SPEAKER_01]: He is crusty.

[00:06:21] [SPEAKER_01]: He is a crusty old guy.

[00:06:24] [SPEAKER_01]: And in fact, one of the things that I teach that I got from him

[00:06:28] [SPEAKER_01]: was a negotiation tactic.

[00:06:30] [SPEAKER_01]: Let me share the negotiation tactic with you.

[00:06:33] [SPEAKER_01]: So when someone gives you, what you wanna do

[00:06:37] [SPEAKER_01]: when you're talking to a seller

[00:06:39] [SPEAKER_01]: or buying anything for that matter is you say,

[00:06:43] [SPEAKER_01]: if I could close right away, what's the least you'd take?

[00:06:46] [SPEAKER_01]: And regardless of the answer,

[00:06:49] [SPEAKER_01]: even if you wanna do back flips

[00:06:51] [SPEAKER_01]: cuz the price is so good, you go,

[00:06:54] [SPEAKER_01]: is that the best you can do?

[00:06:55] [SPEAKER_01]: Now I will tell you, that phrase has made me millions, okay?

[00:07:00] [SPEAKER_01]: Myself and that came from Ron LeGrand

[00:07:02] [SPEAKER_01]: but kudos to Ron LeGrand.

[00:07:03] [SPEAKER_01]: It's uncomfortable.

[00:07:05] [SPEAKER_02]: Yeah, that scenario is uncomfortable.

[00:07:06] [SPEAKER_02]: Yeah, I agree, it gets you some great deals.

[00:07:09] [SPEAKER_02]: No, what's the lowest you can take

[00:07:11] [SPEAKER_02]: if I paid cash and closed quickly?

[00:07:13] [SPEAKER_02]: That's what it was.

[00:07:14] [SPEAKER_02]: If I paid cash and closed quickly, okay.

[00:07:16] [SPEAKER_02]: So fast forward, I went to this seminar

[00:07:18] [SPEAKER_02]: and I met a lot of people that were doing

[00:07:19] [SPEAKER_02]: in my mind just huge things.

[00:07:21] [SPEAKER_02]: It was basically wholesaling

[00:07:22] [SPEAKER_02]: or learning to fix and flip homes.

[00:07:23] [SPEAKER_02]: That was what the conference was about.

[00:07:25] [SPEAKER_02]: I forget what he called it back then.

[00:07:26] [SPEAKER_02]: That's what he teaches, yeah.

[00:07:27] [SPEAKER_02]: Yeah, and he had a pre-house boot camp as well.

[00:07:29] [SPEAKER_02]: This was basically wholesale and fix and flip.

[00:07:31] [SPEAKER_02]: I met a ton of people

[00:07:33] [SPEAKER_02]: that I didn't feel were any smarter than I.

[00:07:35] [SPEAKER_02]: They just knew a little bit more than what I did

[00:07:36] [SPEAKER_02]: and they were doing seemingly big things

[00:07:38] [SPEAKER_02]: talking about wholesale checks of five and 10K a piece

[00:07:40] [SPEAKER_02]: or making 30, 40, 50 grand on flipping houses.

[00:07:44] [SPEAKER_02]: And I was overwhelmingly excited

[00:07:46] [SPEAKER_02]: and spent the three days there,

[00:07:48] [SPEAKER_02]: came back home and knew that

[00:07:51] [SPEAKER_02]: if I didn't put that excitement to use

[00:07:54] [SPEAKER_02]: and do something with it,

[00:07:55] [SPEAKER_02]: then it would just fizzle out

[00:07:56] [SPEAKER_02]: and I'd go back to attending bar

[00:07:57] [SPEAKER_02]: and meet girls and having fun.

[00:07:59] [SPEAKER_02]: But so I basically went to David.

[00:08:02] [SPEAKER_02]: He was about 25 years older than I

[00:08:04] [SPEAKER_02]: and I just made him an offer.

[00:08:05] [SPEAKER_02]: I basically went to him and asked

[00:08:07] [SPEAKER_02]: if I could help him in his business.

[00:08:08] [SPEAKER_02]: Like literally come,

[00:08:10] [SPEAKER_02]: in between classes, I had classes three days a week.

[00:08:12] [SPEAKER_02]: I was only taking 12 credits

[00:08:13] [SPEAKER_02]: so I had a lot of free time

[00:08:14] [SPEAKER_02]: and I didn't attend bar until seven o'clock at night

[00:08:16] [SPEAKER_02]: when I went in.

[00:08:17] [SPEAKER_02]: So I basically went and worked for him for free

[00:08:19] [SPEAKER_02]: for about 14 months.

[00:08:20] [SPEAKER_02]: And just whatever he needed.

[00:08:22] [SPEAKER_02]: Whether it was pick up coffee,

[00:08:24] [SPEAKER_02]: go to Home Depot, get some supplies

[00:08:26] [SPEAKER_02]: with my contractor, forgot a couple of two by fours,

[00:08:27] [SPEAKER_02]: drop off leases, pick up leases, anything.

[00:08:30] [SPEAKER_02]: Return a couple calls.

[00:08:32] [SPEAKER_02]: It didn't matter.

[00:08:32] [SPEAKER_02]: Basically I went and worked for him

[00:08:33] [SPEAKER_02]: just so I could be around him

[00:08:34] [SPEAKER_02]: and hear how he did.

[00:08:36] [SPEAKER_01]: Guys, this is what we call a clue.

[00:08:38] [SPEAKER_01]: Okay?

[00:08:39] [SPEAKER_01]: All right, keep going.

[00:08:40] [SPEAKER_02]: Yeah, so that was the start of it.

[00:08:42] [SPEAKER_02]: So I got to be around his network.

[00:08:43] [SPEAKER_02]: So again, there's power in proximity

[00:08:46] [SPEAKER_02]: as you like to say, right?

[00:08:47] [SPEAKER_02]: So his network was already there.

[00:08:49] [SPEAKER_02]: He had established it over 20 years.

[00:08:50] [SPEAKER_02]: So I got introduced to private lenders

[00:08:53] [SPEAKER_02]: that he had established relationships with.

[00:08:56] [SPEAKER_02]: Realtors that were, back then,

[00:09:00] [SPEAKER_02]: realtors that understood the investment world

[00:09:02] [SPEAKER_02]: were few and far between.

[00:09:03] [SPEAKER_02]: So he had a few that like,

[00:09:05] [SPEAKER_02]: you could make multiple offers

[00:09:06] [SPEAKER_02]: and they would actually submit them for you.

[00:09:07] [SPEAKER_02]: Lowball offers and things.

[00:09:08] [SPEAKER_02]: So he just introduced me to all these people

[00:09:10] [SPEAKER_02]: in his network that were critical.

[00:09:13] [SPEAKER_02]: And so fast forward,

[00:09:14] [SPEAKER_02]: I had seven grand of bartender money I had saved up

[00:09:16] [SPEAKER_02]: and found a property in a really rough neighborhood

[00:09:19] [SPEAKER_02]: in Harrisburg, Pennsylvania

[00:09:20] [SPEAKER_02]: and bought that first investment property.

[00:09:22] [SPEAKER_02]: Used all $7,000 plus the private lender

[00:09:24] [SPEAKER_02]: that he had hooked me up with

[00:09:25] [SPEAKER_02]: to help fund the purchase and the renovation.

[00:09:28] [SPEAKER_02]: And that was it.

[00:09:30] [SPEAKER_02]: However, I would say that there was a small wrinkle.

[00:09:33] [SPEAKER_02]: I didn't want to reinvent the wheel.

[00:09:35] [SPEAKER_02]: His wheel was basically buy and hold.

[00:09:37] [SPEAKER_01]: Right?

[00:09:38] [SPEAKER_02]: I know that's what you've always preached as well.

[00:09:40] [SPEAKER_02]: Buy and hold, buy and hold.

[00:09:41] [SPEAKER_01]: And I hate most properties I've ever sold.

[00:09:43] [SPEAKER_02]: But I agree with you.

[00:09:45] [SPEAKER_02]: I agree with you.

[00:09:45] [SPEAKER_02]: However, one wrinkle in that plan was that

[00:09:48] [SPEAKER_02]: I used all the money I had

[00:09:50] [SPEAKER_02]: and that $300 a month of cashflow

[00:09:51] [SPEAKER_02]: that I was gonna receive

[00:09:53] [SPEAKER_02]: was gonna take quite a bit of time

[00:09:54] [SPEAKER_02]: before I could save up enough money

[00:09:56] [SPEAKER_02]: to go do another deal.

[00:09:57] [SPEAKER_02]: And I just didn't have a deep enough relationship

[00:09:58] [SPEAKER_02]: yet to truly use OPM or other people's money.

[00:10:02] [SPEAKER_02]: And so I morphed it to whole selling a few homes,

[00:10:07] [SPEAKER_02]: keeping one.

[00:10:07] [SPEAKER_02]: And I did that up there for about two years.

[00:10:09] [SPEAKER_02]: And then I moved down to Florida

[00:10:10] [SPEAKER_02]: and that's when I met,

[00:10:12] [SPEAKER_02]: luckily met you and your brother.

[00:10:13] [SPEAKER_02]: Yeah.

[00:10:14] [SPEAKER_01]: It's all downhill since then.

[00:10:15] [SPEAKER_02]: But yeah.

[00:10:16] [SPEAKER_02]: So fast forward to where we're at today.

[00:10:21] [SPEAKER_02]: Started buying mobile home parks in 2011.

[00:10:22] [SPEAKER_02]: I know you and I looked at them.

[00:10:24] [SPEAKER_02]: Oh yeah.

[00:10:25] [SPEAKER_01]: We were gonna work together one time.

[00:10:27] [SPEAKER_01]: You were teaching mobile home park investing to people,

[00:10:30] [SPEAKER_01]: went to one of your seminars.

[00:10:32] [SPEAKER_01]: And remember doing a bus tour with you in Florida?

[00:10:35] [SPEAKER_01]: That's right.

[00:10:35] [SPEAKER_01]: Was in Orlando.

[00:10:36] [SPEAKER_01]: Yep, yep.

[00:10:36] [SPEAKER_01]: It's one of our parks.

[00:10:37] [SPEAKER_01]: And I used the example of that park there

[00:10:40] [SPEAKER_01]: in Orange something.

[00:10:41] [SPEAKER_01]: It was Orange City.

[00:10:42] [SPEAKER_01]: Orange City.

[00:10:42] [SPEAKER_01]: And I used that example because it's a great example

[00:10:47] [SPEAKER_01]: for a ninja trick for finding deals.

[00:10:49] [SPEAKER_01]: Cause you found that deal through a residential broker.

[00:10:53] [SPEAKER_01]: That's right.

[00:10:53] [SPEAKER_01]: That, cause you know, guys,

[00:10:55] [SPEAKER_01]: you know here's a little trick for finding deals.

[00:10:58] [SPEAKER_01]: You know if a person owns a,

[00:11:01] [SPEAKER_01]: well in this case a mobile home park,

[00:11:02] [SPEAKER_01]: but even like a multi-family 10, 20, 30, 40 unit.

[00:11:05] [SPEAKER_01]: You know, if they worked with a realtor

[00:11:07] [SPEAKER_01]: when they bought their home,

[00:11:10] [SPEAKER_01]: they very often will go to that realtor

[00:11:12] [SPEAKER_01]: to sell their multi-family property

[00:11:13] [SPEAKER_01]: or in Kevin's case a mobile home park.

[00:11:15] [SPEAKER_01]: Who haven't, and they'll take the listing

[00:11:17] [SPEAKER_01]: but they haven't got a clue what to do with it.

[00:11:18] [SPEAKER_01]: So they'll throw it in the residential MLS

[00:11:21] [SPEAKER_01]: where nobody's looking for mobile home parks

[00:11:23] [SPEAKER_01]: or multi-family.

[00:11:24] [SPEAKER_02]: That's right.

[00:11:25] [SPEAKER_01]: And you can get great deals that way

[00:11:26] [SPEAKER_01]: if you develop a relationship

[00:11:28] [SPEAKER_01]: in the market that you're interested in

[00:11:30] [SPEAKER_01]: with a residential broker or agent and say,

[00:11:33] [SPEAKER_01]: hey, if a multi-family deal shows up

[00:11:35] [SPEAKER_01]: or in Kevin's case a mobile home park

[00:11:36] [SPEAKER_01]: or whatever other asset class you're looking for

[00:11:39] [SPEAKER_01]: and it shows up, let me know right away

[00:11:41] [SPEAKER_01]: you'll get the commission, maybe I'll bonus you as well

[00:11:43] [SPEAKER_01]: and you'll find deals.

[00:11:45] [SPEAKER_01]: I tell you that you won't find otherwise.

[00:11:46] [SPEAKER_01]: In fact, this happened to my brother up in Georgia.

[00:11:48] [SPEAKER_01]: He bought a farm that was listed in the wrong place

[00:11:52] [SPEAKER_01]: and got a screaming deal on it

[00:11:54] [SPEAKER_01]: because it was listed in the residential MLS.

[00:11:56] [SPEAKER_02]: Well, I mean, so most of residential MLS

[00:12:00] [SPEAKER_02]: whatever, you know, the regional organization

[00:12:04] [SPEAKER_02]: that kind of oversees it,

[00:12:06] [SPEAKER_02]: most of them have a commercial division

[00:12:07] [SPEAKER_02]: that people don't know.

[00:12:08] [SPEAKER_02]: I mean, and sometimes you can access it through

[00:12:10] [SPEAKER_02]: if you go to like Century 21's website

[00:12:13] [SPEAKER_02]: in that local region like Tampa Bay,

[00:12:14] [SPEAKER_02]: you might be able to find like an actual portal

[00:12:16] [SPEAKER_02]: to the commercial side.

[00:12:17] [SPEAKER_02]: So they have their own commercial division.

[00:12:20] [SPEAKER_02]: Most of them do.

[00:12:21] [SPEAKER_02]: It's not tied to LoopNet or Craxi

[00:12:24] [SPEAKER_02]: or any of the other popular sites

[00:12:27] [SPEAKER_02]: where commercial gets listed.

[00:12:28] [SPEAKER_02]: And so to your point, that was one day

[00:12:31] [SPEAKER_02]: we found out the very first park I ever bought

[00:12:34] [SPEAKER_02]: was in a similar manner.

[00:12:35] [SPEAKER_02]: It was on LoopNet.

[00:12:36] [SPEAKER_02]: However, it was listed by a residential agent.

[00:12:39] [SPEAKER_02]: He was two hours away, didn't know a thing.

[00:12:42] [SPEAKER_02]: He had never listed a commercial property before.

[00:12:44] [SPEAKER_02]: The listing was horrific.

[00:12:45] [SPEAKER_02]: It had missing information left and right,

[00:12:47] [SPEAKER_02]: no financials whatsoever.

[00:12:49] [SPEAKER_02]: But it was a screaming deal.

[00:12:50] [SPEAKER_02]: It was an absolute home run.

[00:12:51] [SPEAKER_01]: And guys, when you find a listing like that

[00:12:53] [SPEAKER_01]: that's got little or no information,

[00:12:54] [SPEAKER_01]: get excited because everyone else gives up at that point.

[00:12:58] [SPEAKER_01]: And if you dig deeper, you can find screaming deals.

[00:13:01] [SPEAKER_01]: So just so my listeners know how successful you've been,

[00:13:05] [SPEAKER_01]: how many pads have you owned so far?

[00:13:08] [SPEAKER_01]: You've probably sold some, bought some.

[00:13:10] [SPEAKER_02]: Yeah, so we've actually sold quite a bit

[00:13:12] [SPEAKER_02]: over the last three years.

[00:13:13] [SPEAKER_02]: But at present time, we've got about 3,300 lots.

[00:13:17] [SPEAKER_02]: And so outside of mobile home parks,

[00:13:18] [SPEAKER_02]: we also own parking.

[00:13:19] [SPEAKER_02]: So we have just over 2,000,

[00:13:22] [SPEAKER_02]: I guess you could say parking stalls

[00:13:23] [SPEAKER_02]: or however you wanna categorize that.

[00:13:25] [SPEAKER_01]: So you've done mobile home parks and parking?

[00:13:28] [SPEAKER_01]: Parking lots, okay.

[00:13:30] [SPEAKER_01]: Parking garages and parking lots.

[00:13:31] [SPEAKER_01]: Parking garages and lots, okay.

[00:13:33] [SPEAKER_02]: But I think we've gone full cycle

[00:13:35] [SPEAKER_02]: at this point in time on 16 mobile home parks.

[00:13:37] [SPEAKER_01]: By the way, full cycle guys means bought and sold.

[00:13:41] [SPEAKER_01]: So you've bought and sold 16 mobile home parks.

[00:13:43] [SPEAKER_02]: Regret probably 12 of those 16.

[00:13:45] [SPEAKER_01]: Selling 12 of them, regret it?

[00:13:47] [SPEAKER_02]: Well, I mean, as you know, your brother Al,

[00:13:50] [SPEAKER_02]: him and I own a number of parks together

[00:13:52] [SPEAKER_02]: and we no longer, we sold our last couple

[00:13:54] [SPEAKER_02]: just a couple years ago.

[00:13:56] [SPEAKER_02]: And probably the last ones that we sold

[00:13:57] [SPEAKER_02]: were the biggest regrets.

[00:13:58] [SPEAKER_02]: Should have absolutely kept them, phenomenal markets.

[00:14:01] [SPEAKER_02]: Do the cash out refinance forever.

[00:14:04] [SPEAKER_02]: And just they're not making new mobile home parks,

[00:14:07] [SPEAKER_02]: especially in phenomenal markets.

[00:14:08] [SPEAKER_02]: That was in the Raleigh-Durham market.

[00:14:10] [SPEAKER_02]: I mean, irreplaceable.

[00:14:12] [SPEAKER_01]: Yeah, nobody wants mobile home parks in their backyards.

[00:14:14] [SPEAKER_01]: You just really can't build them anymore.

[00:14:16] [SPEAKER_01]: My brother Albert worked with Kevin for a long time

[00:14:18] [SPEAKER_01]: and still owns some parks I think.

[00:14:21] [SPEAKER_01]: Maybe he's cashed out.

[00:14:21] [SPEAKER_02]: No, we just sold the last couple that we had.

[00:14:23] [SPEAKER_01]: Oh so he's out too, he's completely out.

[00:14:24] [SPEAKER_01]: I didn't know that, wow.

[00:14:26] [SPEAKER_01]: That's crazy.

[00:14:28] [SPEAKER_01]: So, wow.

[00:14:29] [SPEAKER_01]: So what do you actively do?

[00:14:30] [SPEAKER_01]: You're still buying parks.

[00:14:31] [SPEAKER_01]: You just bought a really big one.

[00:14:33] [SPEAKER_01]: I was asking you about it before I started recording.

[00:14:35] [SPEAKER_02]: The end of last year,

[00:14:36] [SPEAKER_02]: we bought the largest single asset we've ever purchased

[00:14:39] [SPEAKER_02]: as far as I guess sheer size.

[00:14:41] [SPEAKER_02]: 738 lots.

[00:14:42] [SPEAKER_02]: Holy cow.

[00:14:43] [SPEAKER_02]: So it was a beast.

[00:14:43] [SPEAKER_02]: That's a monster.

[00:14:44] [SPEAKER_02]: Basically a city.

[00:14:44] [SPEAKER_02]: Wow.

[00:14:45] [SPEAKER_02]: Bought that at the end of last year.

[00:14:47] [SPEAKER_02]: Where at?

[00:14:48] [SPEAKER_02]: Fort Wayne, Indiana.

[00:14:49] [SPEAKER_02]: Okay, okay.

[00:14:50] [SPEAKER_03]: Yeah so.

[00:14:51] [SPEAKER_03]: Good market.

[00:14:51] [SPEAKER_02]: Last year was a great year for us.

[00:14:53] [SPEAKER_02]: We actually did just shy of $100 million

[00:14:55] [SPEAKER_02]: of acquisitions last year.

[00:14:57] [SPEAKER_02]: And in a time when a lot of others weren't buying

[00:14:59] [SPEAKER_02]: and I think that was the opportunity for us.

[00:15:01] [SPEAKER_02]: Like that particular deal,

[00:15:02] [SPEAKER_02]: it's owned in a market where

[00:15:04] [SPEAKER_02]: all of our biggest competitors,

[00:15:05] [SPEAKER_02]: Sun communities, ELS, Yes communities.

[00:15:08] [SPEAKER_01]: These are big mobile home park competitors.

[00:15:10] [SPEAKER_01]: Publicly traded companies.

[00:15:11] [SPEAKER_02]: They all own the large assets in that marketplace.

[00:15:14] [SPEAKER_02]: But they were pencils down last year.

[00:15:16] [SPEAKER_02]: Oh yeah.

[00:15:16] [SPEAKER_02]: Stock prices were down.

[00:15:17] [SPEAKER_01]: Pencils down means they're not buying.

[00:15:19] [SPEAKER_02]: Yeah and so like we,

[00:15:20] [SPEAKER_02]: the vacuum in the marketplace was there

[00:15:22] [SPEAKER_02]: and yeah we took advantage of it.

[00:15:24] [SPEAKER_02]: So the seller that owned it

[00:15:25] [SPEAKER_02]: was a larger institutional seller.

[00:15:26] [SPEAKER_02]: They had some liquidity issues on other projects

[00:15:29] [SPEAKER_02]: and were exiting out a few of the projects

[00:15:31] [SPEAKER_02]: and we were there to accept the opportunity.

[00:15:35] [SPEAKER_02]: Hello, hello.

[00:15:36] [SPEAKER_01]: Thank you very much.

[00:15:36] [SPEAKER_01]: We're gonna take a break from this great episode

[00:15:38] [SPEAKER_01]: for a word from our sponsor

[00:15:40] [SPEAKER_01]: which is the multifamily bootcamp.

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[00:15:50] [SPEAKER_01]: So if you know real estate is the vehicle for you,

[00:15:53] [SPEAKER_01]: you're crazy not to spend a couple days with me

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[00:16:04] [SPEAKER_01]: I don't sell anything at this event

[00:16:06] [SPEAKER_01]: so it's basically 16 to 18 hours of training

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[00:16:09] [SPEAKER_01]: Kind of a no brainer if you're serious about this.

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[00:16:17] [SPEAKER_01]: Again text LINKS to 72345

[00:16:19] [SPEAKER_01]: or go to rodslinks.com.

[00:16:22] [SPEAKER_01]: I promise you'll be glad you came.

[00:16:23] [SPEAKER_01]: Let's get back to it.

[00:16:24] [SPEAKER_01]: Thank you very much.

[00:16:25] [SPEAKER_02]: Yeah so I mean anyway so.

[00:16:27] [SPEAKER_01]: So on that note let's shift to a minute

[00:16:29] [SPEAKER_01]: and guys don't leave.

[00:16:30] [SPEAKER_01]: We're gonna talk about some amazing stuff here

[00:16:32] [SPEAKER_01]: so don't leave.

[00:16:33] [SPEAKER_01]: On that note economically are you seeing,

[00:16:36] [SPEAKER_01]: you're in mobile home parks.

[00:16:38] [SPEAKER_01]: I'm in multifamily.

[00:16:40] [SPEAKER_01]: We are seeing a hit in the multifamily space right now.

[00:16:42] [SPEAKER_01]: First of all there's a lot of operators

[00:16:44] [SPEAKER_01]: that got bridge debt.

[00:16:45] [SPEAKER_01]: My partner, ex-partner got me into a couple as well.

[00:16:47] [SPEAKER_01]: I'm struggling with some of those as well.

[00:16:50] [SPEAKER_01]: Doing loan mods and everything else

[00:16:51] [SPEAKER_01]: but there's a lot of guys in serious trouble.

[00:16:54] [SPEAKER_01]: Are you seeing that with parks?

[00:16:56] [SPEAKER_01]: Probably not huh?

[00:16:56] [SPEAKER_02]: Not so much and I don't think bridge debt

[00:17:00] [SPEAKER_02]: your formal bridge debt was as prevalent in our sector.

[00:17:04] [SPEAKER_02]: I mean when I say that we got a bridge loan in place

[00:17:06] [SPEAKER_02]: typically what that means to me

[00:17:08] [SPEAKER_02]: and a lot of other operator spaces

[00:17:09] [SPEAKER_02]: we're gonna get a bank loan.

[00:17:11] [SPEAKER_02]: It's a five year loan with a probably 25 year am.

[00:17:15] [SPEAKER_02]: No balloon.

[00:17:16] [SPEAKER_02]: Five year it's gonna either reset

[00:17:19] [SPEAKER_02]: or it might balloon more than likely.

[00:17:22] [SPEAKER_02]: But that's how we,

[00:17:23] [SPEAKER_02]: that's typically what we use as bridge debt.

[00:17:24] [SPEAKER_02]: We're closing a loan next week.

[00:17:26] [SPEAKER_02]: It's a local bank.

[00:17:27] [SPEAKER_02]: Right now the property is not exactly there for agency debt.

[00:17:30] [SPEAKER_01]: So let me ask you a question.

[00:17:32] [SPEAKER_01]: Are you analytical?

[00:17:34] [SPEAKER_01]: Now I know many of you that listen to my podcast are.

[00:17:37] [SPEAKER_01]: Are you the type of person

[00:17:38] [SPEAKER_01]: that's been listening to my podcast

[00:17:39] [SPEAKER_01]: and maybe other podcasts for months or even years

[00:17:43] [SPEAKER_01]: and you've been considering

[00:17:44] [SPEAKER_01]: and exploring this multifamily space

[00:17:46] [SPEAKER_01]: but you really haven't taken any other action.

[00:17:49] [SPEAKER_01]: Let me say this

[00:17:50] [SPEAKER_01]: and I understand that anything new is intimidating

[00:17:53] [SPEAKER_01]: and I'll tell you that many of my most successful students,

[00:17:57] [SPEAKER_01]: my warriors, my most successful warriors

[00:17:59] [SPEAKER_01]: are the ones that are analytical

[00:18:00] [SPEAKER_01]: or the ones that have aligned with someone

[00:18:02] [SPEAKER_01]: that's analytical like I have.

[00:18:05] [SPEAKER_01]: But even though analytical people are very often

[00:18:07] [SPEAKER_01]: some of the most successful people in this business

[00:18:09] [SPEAKER_01]: they're also the hardest to get

[00:18:11] [SPEAKER_01]: to actually take action or get started

[00:18:13] [SPEAKER_01]: because they have to check off every single box

[00:18:15] [SPEAKER_01]: before they make a move.

[00:18:17] [SPEAKER_01]: Now if this is resonating with you, please listen up.

[00:18:20] [SPEAKER_01]: It is time.

[00:18:21] [SPEAKER_01]: It's time to take action and really move forward.

[00:18:24] [SPEAKER_01]: Please stop fearing failure.

[00:18:27] [SPEAKER_01]: You wanna know what's much worse than failure?

[00:18:29] [SPEAKER_01]: Regret.

[00:18:30] [SPEAKER_01]: Regret's more painful.

[00:18:31] [SPEAKER_01]: So like I said, it is time.

[00:18:34] [SPEAKER_01]: With what's happening economically in this country,

[00:18:36] [SPEAKER_01]: incredible deals and opportunities are coming.

[00:18:38] [SPEAKER_01]: They're already coming right now.

[00:18:40] [SPEAKER_01]: Could be the greatest transfer of wealth

[00:18:42] [SPEAKER_01]: we see in our lifetimes.

[00:18:43] [SPEAKER_01]: So with that said, you can't afford to miss

[00:18:45] [SPEAKER_01]: the only live three day in-person boot camp

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[00:18:57] [SPEAKER_01]: with upwards of a thousand people.

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[00:19:27] [SPEAKER_01]: You will leave so juiced,

[00:19:28] [SPEAKER_01]: you'll be coming out of your skin.

[00:19:29] [SPEAKER_01]: So I promise you'll be glad you came.

[00:19:31] [SPEAKER_01]: Again, text boot camp to 72345

[00:19:35] [SPEAKER_01]: or go to rodinorlando.com right now

[00:19:38] [SPEAKER_01]: and I'll see you soon.

[00:19:39] [SPEAKER_01]: All right, let's get to it.

[00:19:41] [SPEAKER_02]: Like we'll be able to get there in about three years

[00:19:43] [SPEAKER_02]: pretty safely.

[00:19:44] [SPEAKER_02]: Right.

[00:19:45] [SPEAKER_02]: And so we're putting a bank loan on.

[00:19:46] [SPEAKER_02]: So guys, just so you know,

[00:19:47] [SPEAKER_01]: agency debt is Freddie Mac and Fannie Mae

[00:19:49] [SPEAKER_01]: and they're the largest,

[00:19:52] [SPEAKER_01]: and I don't even know if they actually do the lending

[00:19:54] [SPEAKER_01]: but it's a little complicated

[00:19:56] [SPEAKER_01]: but they're government related

[00:19:57] [SPEAKER_01]: and with that debt it's typically non-recourse

[00:20:01] [SPEAKER_01]: meaning if they foreclose

[00:20:02] [SPEAKER_01]: they can't come after you personally.

[00:20:03] [SPEAKER_01]: They just take the property

[00:20:04] [SPEAKER_01]: but so primarily it's bank debt with mobile home parks.

[00:20:08] [SPEAKER_01]: Yes?

[00:20:08] [SPEAKER_02]: No, I mean 90% of what we typically buy is agency.

[00:20:12] [SPEAKER_02]: Oh no kidding.

[00:20:13] [SPEAKER_02]: Yeah, unless it's not there today.

[00:20:14] [SPEAKER_02]: Maybe it doesn't have the right occupancy

[00:20:17] [SPEAKER_02]: or agency lenders don't like park owned homes

[00:20:20] [SPEAKER_02]: when the park actually owns the homes.

[00:20:22] [SPEAKER_02]: So if it has more than,

[00:20:23] [SPEAKER_02]: they've got a couple different thresholds

[00:20:25] [SPEAKER_02]: but normally if it's got more than 25%

[00:20:27] [SPEAKER_02]: of the units in there that are park owned homes

[00:20:28] [SPEAKER_02]: they won't do the deal.

[00:20:30] [SPEAKER_02]: So in this instance that is the case.

[00:20:34] [SPEAKER_02]: There's about, it's about 40% park owned home

[00:20:36] [SPEAKER_02]: right now and I know that we can sell off

[00:20:38] [SPEAKER_02]: at least 15% over the next three years

[00:20:41] [SPEAKER_02]: very comfortably and get it to the threshold

[00:20:43] [SPEAKER_02]: that will make them happy and by far agency loans,

[00:20:47] [SPEAKER_02]: it's the best terms that exist.

[00:20:49] [SPEAKER_02]: Best rates, best amortization terms.

[00:20:51] [SPEAKER_02]: It's fixed for 10 years sometimes up to 12 years.

[00:20:54] [SPEAKER_03]: Oh really wow.

[00:20:55] [SPEAKER_03]: Yeah, yeah so it's hands down.

[00:20:57] [SPEAKER_03]: You ever get any interest only in the first few years?

[00:20:58] [SPEAKER_02]: Interest only, so if you do a 10 year term

[00:21:00] [SPEAKER_02]: I think now they're starting to loosen up a little bit

[00:21:02] [SPEAKER_02]: but the quotes that we've seen recently,

[00:21:05] [SPEAKER_02]: we're only doing five year loans right now.

[00:21:08] [SPEAKER_02]: Even on agency we're only doing five year loans.

[00:21:09] [SPEAKER_01]: I say just because you wanna be able to get out

[00:21:12] [SPEAKER_01]: with the prepayment.

[00:21:13] [SPEAKER_02]: I don't have a crystal ball but I feel as though.

[00:21:15] [SPEAKER_02]: Rates are coming down.

[00:21:15] [SPEAKER_02]: That rates will come down at some point

[00:21:17] [SPEAKER_02]: in the next five years, right?

[00:21:18] [SPEAKER_02]: And so I don't wanna lock in for 10 years

[00:21:20] [SPEAKER_02]: and be stuck with that and have major prepayment.

[00:21:23] [SPEAKER_01]: Yeah so yeah guys when you do the longer terms

[00:21:25] [SPEAKER_01]: you'll have what's called step down prepayment.

[00:21:27] [SPEAKER_01]: It's really what's called yield maintenance

[00:21:29] [SPEAKER_01]: and defeasance but it's a prepayment penalty.

[00:21:31] [SPEAKER_01]: Bottom line and sometimes it's like 554433221

[00:21:35] [SPEAKER_01]: over a period of time.

[00:21:37] [SPEAKER_01]: That's the percentage of the loan that you're gonna pay

[00:21:39] [SPEAKER_01]: and it is, it's big money, big money.

[00:21:41] [SPEAKER_01]: And so no that's really prudent honestly.

[00:21:43] [SPEAKER_02]: A lot of times it would probably wreck the economics

[00:21:45] [SPEAKER_02]: of the deal if you had to get out of it early.

[00:21:47] [SPEAKER_02]: Right, right.

[00:21:48] [SPEAKER_02]: More than likely if you model that in

[00:21:49] [SPEAKER_02]: and say hey I might have to get out year seven.

[00:21:53] [SPEAKER_02]: More than likely it's gonna be a very hefty fee

[00:21:55] [SPEAKER_02]: that's gonna really crush the other returns

[00:21:57] [SPEAKER_02]: on the property.

[00:21:58] [SPEAKER_02]: So anyway so now we're just mostly doing five year.

[00:22:01] [SPEAKER_02]: Mostly agency but again bank loans

[00:22:02] [SPEAKER_02]: if it doesn't qualify for agency.

[00:22:04] [SPEAKER_02]: And then look to recap it

[00:22:06] [SPEAKER_02]: at the end of that five year mark.

[00:22:08] [SPEAKER_02]: Nice.

[00:22:08] [SPEAKER_02]: And then if it's a property you wanna keep long term.

[00:22:10] [SPEAKER_02]: If it's going as expected.

[00:22:12] [SPEAKER_02]: At that point we'll have to put 10 year debt on it

[00:22:15] [SPEAKER_02]: if the rates make sense.

[00:22:16] [SPEAKER_01]: Just for my own edification, sorry guys

[00:22:17] [SPEAKER_01]: this question is a little technical.

[00:22:20] [SPEAKER_01]: For conforming debt don't they have to have

[00:22:21] [SPEAKER_01]: like sidewalks and paved roads

[00:22:24] [SPEAKER_01]: because a lot of mobile home parks don't.

[00:22:25] [SPEAKER_01]: And what about the utility component?

[00:22:27] [SPEAKER_01]: Do you know a lot of these parks

[00:22:29] [SPEAKER_01]: have antiquated utilities.

[00:22:32] [SPEAKER_01]: Some even have like sewage ponds.

[00:22:34] [SPEAKER_01]: What do they call them?

[00:22:35] [SPEAKER_01]: Lagoons.

[00:22:35] [SPEAKER_01]: Lagoons.

[00:22:36] [SPEAKER_01]: Yeah it's like a big cesspool.

[00:22:37] [SPEAKER_01]: Yeah big cesspool exactly.

[00:22:39] [SPEAKER_01]: We've seen it all.

[00:22:41] [SPEAKER_01]: But what are their requirements in that regard

[00:22:42] [SPEAKER_01]: as it relates to the roads, the streets,

[00:22:45] [SPEAKER_01]: the paving and the services?

[00:22:46] [SPEAKER_02]: So the industry has changed quite a bit.

[00:22:49] [SPEAKER_02]: So when you and I were looking at the stuff

[00:22:50] [SPEAKER_02]: back in like 2009 and 10,

[00:22:54] [SPEAKER_02]: agency lenders would only lend on the primo.

[00:22:56] [SPEAKER_02]: I mean literally sidewalks, curbs.

[00:22:58] [SPEAKER_02]: Oh gotcha.

[00:22:59] [SPEAKER_02]: All double wides.

[00:23:00] [SPEAKER_02]: They'd have certain setbacks.

[00:23:02] [SPEAKER_02]: I mean they had to have beautiful

[00:23:04] [SPEAKER_02]: pole lights throughout the community.

[00:23:06] [SPEAKER_02]: It's just a clubhouse.

[00:23:07] [SPEAKER_02]: They only wanted the primo assets

[00:23:08] [SPEAKER_02]: because that's all they really understood.

[00:23:10] [SPEAKER_02]: They didn't really understand

[00:23:11] [SPEAKER_02]: the rest of the asset class.

[00:23:12] [SPEAKER_03]: So it's relaxed since then.

[00:23:13] [SPEAKER_02]: It's relaxed quite a bit.

[00:23:15] [SPEAKER_02]: To where they'll even lend on.

[00:23:19] [SPEAKER_02]: They're not as loosey goosey as maybe

[00:23:20] [SPEAKER_02]: like a CNBS lender or a local bank might be.

[00:23:24] [SPEAKER_02]: So long as it's majority 10 known homes.

[00:23:26] [SPEAKER_02]: They don't really care about the utilities

[00:23:28] [SPEAKER_02]: whether they're private or public.

[00:23:30] [SPEAKER_02]: Oh they don't?

[00:23:30] [SPEAKER_01]: They don't care about that.

[00:23:31] [SPEAKER_01]: By the way guys, that's a red flag

[00:23:33] [SPEAKER_01]: that you want to be really careful of

[00:23:34] [SPEAKER_01]: if you're going to think about

[00:23:35] [SPEAKER_01]: investing in mobile home parks

[00:23:36] [SPEAKER_01]: is if the utilities are private.

[00:23:39] [SPEAKER_01]: I remember you always told me

[00:23:40] [SPEAKER_01]: you always had an alternative plan.

[00:23:42] [SPEAKER_01]: It's gotta be connection nearby.

[00:23:43] [SPEAKER_01]: Connection nearby in case the sewage went out

[00:23:45] [SPEAKER_01]: or in case the well went out

[00:23:46] [SPEAKER_01]: because if one of those things happens

[00:23:48] [SPEAKER_01]: your base, everybody has to move

[00:23:50] [SPEAKER_01]: because they don't have utilities.

[00:23:52] [SPEAKER_01]: You better have a freaking backup plan

[00:23:54] [SPEAKER_01]: if it's private utilities like Well and Septic

[00:23:57] [SPEAKER_01]: or even a sewage plant maybe.

[00:23:59] [SPEAKER_01]: I don't know.

[00:24:00] [SPEAKER_02]: And even, we go more granular than that

[00:24:02] [SPEAKER_02]: because even if they're,

[00:24:04] [SPEAKER_02]: you can quickly look up and see

[00:24:05] [SPEAKER_02]: what the closest sewer line might be.

[00:24:08] [SPEAKER_02]: You know, sewer line but you gotta go

[00:24:09] [SPEAKER_02]: a lot deeper than that because it doesn't mean

[00:24:11] [SPEAKER_02]: that you can actually connect into it.

[00:24:13] [SPEAKER_02]: While you might be able to, there might be fees

[00:24:15] [SPEAKER_02]: but there also might be other restrictions.

[00:24:17] [SPEAKER_02]: There's an instance in Maryland where

[00:24:19] [SPEAKER_02]: we're right near the city.

[00:24:22] [SPEAKER_02]: We're in the county but we're literally

[00:24:24] [SPEAKER_02]: we're across the street from the city

[00:24:26] [SPEAKER_02]: and that's where the sewer line is.

[00:24:28] [SPEAKER_02]: But they want us to,

[00:24:31] [SPEAKER_02]: what's the terminology on?

[00:24:32] [SPEAKER_02]: Pay impact fees?

[00:24:33] [SPEAKER_02]: Not pay impact fees but they basically

[00:24:34] [SPEAKER_02]: want to absorb the community into the city

[00:24:38] [SPEAKER_02]: which will basically triple our taxes.

[00:24:39] [SPEAKER_02]: Annex it.

[00:24:39] [SPEAKER_02]: Annex it.

[00:24:40] [SPEAKER_02]: I'm sorry.

[00:24:40] [SPEAKER_02]: They want to annex it and get taxation to go up.

[00:24:42] [SPEAKER_02]: They will force us to annex in

[00:24:45] [SPEAKER_02]: in order to get, and our taxes,

[00:24:46] [SPEAKER_02]: literally taxes will triple.

[00:24:47] [SPEAKER_02]: Wow.

[00:24:48] [SPEAKER_02]: And so.

[00:24:48] [SPEAKER_02]: That doesn't work.

[00:24:49] [SPEAKER_02]: It doesn't work.

[00:24:50] [SPEAKER_02]: I mean maybe it works sometime down the road

[00:24:52] [SPEAKER_02]: but it doesn't work for us.

[00:24:53] [SPEAKER_02]: And so we actually have,

[00:24:54] [SPEAKER_02]: we have septics in that community

[00:24:56] [SPEAKER_02]: and when we bought it we knew that was a problem

[00:24:57] [SPEAKER_02]: and we actually underwrote as though

[00:24:59] [SPEAKER_02]: we might not ever be able to get connected

[00:25:01] [SPEAKER_02]: and these septics are old

[00:25:02] [SPEAKER_02]: and we even underwrote to where

[00:25:03] [SPEAKER_02]: if we lose a septic a year for the next 20 years

[00:25:07] [SPEAKER_02]: does the deal still make sense?

[00:25:08] [SPEAKER_02]: So like we went pretty deep.

[00:25:10] [SPEAKER_02]: Got it.

[00:25:10] [SPEAKER_02]: In the event we can't get connected.

[00:25:11] [SPEAKER_02]: Sure.

[00:25:12] [SPEAKER_02]: And in Maryland they're pretty strict about septics.

[00:25:14] [SPEAKER_02]: You literally cannot put new septics in.

[00:25:16] [SPEAKER_02]: Oh you can't.

[00:25:16] [SPEAKER_02]: No because of the Chesapeake watershed.

[00:25:19] [SPEAKER_02]: Oh geez.

[00:25:19] [SPEAKER_02]: Yeah there's all these restrictions

[00:25:21] [SPEAKER_02]: throughout the entire state

[00:25:22] [SPEAKER_02]: so they're trying to eradicate septics across the board.

[00:25:24] [SPEAKER_02]: Oh wow.

[00:25:25] [SPEAKER_02]: So anyway.

[00:25:26] [SPEAKER_02]: Wow.

[00:25:27] [SPEAKER_02]: You gotta go pretty deep with the due diligence.

[00:25:29] [SPEAKER_02]: The infrastructure is the killer in these things.

[00:25:30] [SPEAKER_01]: Right infrastructure really is.

[00:25:32] [SPEAKER_01]: Guys that's for my own edification sorry.

[00:25:34] [SPEAKER_02]: We just killed a three part portfolio

[00:25:37] [SPEAKER_02]: about two months ago and we went really deep

[00:25:39] [SPEAKER_02]: and on the outside looking in there in great markets

[00:25:41] [SPEAKER_02]: Kalamazoo, Michigan so lots of growth happening

[00:25:44] [SPEAKER_02]: in that immediate area.

[00:25:45] [SPEAKER_02]: From the outside looking in there

[00:25:46] [SPEAKER_02]: a little rougher on the edges but easily fixable.

[00:25:48] [SPEAKER_02]: Just aesthetic improvements.

[00:25:51] [SPEAKER_02]: We got engineers involved.

[00:25:52] [SPEAKER_02]: We sewer scoped all the sewer lines.

[00:25:55] [SPEAKER_02]: Three communities about 400 sites in total.

[00:25:58] [SPEAKER_02]: Did full blown inspections on all the well systems

[00:26:03] [SPEAKER_02]: and it's the worst condition I've ever seen.

[00:26:05] [SPEAKER_02]: We actually killed the deal.

[00:26:07] [SPEAKER_02]: It was so, the infrastructure was so bad

[00:26:09] [SPEAKER_02]: in all three communities.

[00:26:10] [SPEAKER_02]: The sewer lines where there was gaps

[00:26:12] [SPEAKER_02]: and joints missing and multiple locations

[00:26:14] [SPEAKER_02]: throughout all of the communities.

[00:26:17] [SPEAKER_02]: Just to the extent of it would have been

[00:26:19] [SPEAKER_02]: multi-million dollars of additional capital

[00:26:21] [SPEAKER_02]: that we hadn't budgeted for.

[00:26:22] [SPEAKER_02]: Even if they would have given us the deal

[00:26:23] [SPEAKER_02]: for that much of a reduction

[00:26:24] [SPEAKER_02]: it wouldn't have been worth the brain damage.

[00:26:27] [SPEAKER_02]: No it wouldn't have been.

[00:26:27] [SPEAKER_02]: We spent about 100 grand on due diligence.

[00:26:30] [SPEAKER_02]: And we're eating the cost.

[00:26:32] [SPEAKER_01]: Yeah you eat that.

[00:26:33] [SPEAKER_01]: Guys the reason you do due diligence

[00:26:35] [SPEAKER_01]: is sometimes the best deal is the one you don't do.

[00:26:38] [SPEAKER_01]: Like he just described.

[00:26:38] [SPEAKER_01]: 100,000 or three million.

[00:26:39] [SPEAKER_01]: Exactly and brain damage for freaking years.

[00:26:43] [SPEAKER_02]: It would have drained all the resources

[00:26:44] [SPEAKER_02]: from our operational team.

[00:26:46] [SPEAKER_02]: I mean it wasn't worth the energy.

[00:26:48] [SPEAKER_01]: Right, right, right.

[00:26:49] [SPEAKER_01]: Wow so what's next?

[00:26:51] [SPEAKER_01]: I know you got another mobile home park under contract

[00:26:53] [SPEAKER_01]: which is awesome.

[00:26:54] [SPEAKER_01]: You're raising money for one of those

[00:26:55] [SPEAKER_01]: and you're...

[00:26:58] [SPEAKER_01]: But I do want to shift gears to another reason

[00:27:01] [SPEAKER_01]: we wanted to get together.

[00:27:02] [SPEAKER_01]: So guys you don't know this but

[00:27:06] [SPEAKER_01]: I founded a 501C3 charity.

[00:27:10] [SPEAKER_01]: So and I don't really talk about it

[00:27:11] [SPEAKER_01]: on this show that much.

[00:27:12] [SPEAKER_01]: So I'm gonna give you a little background real quick

[00:27:14] [SPEAKER_01]: before we talk about why I wanted to talk to Kevin today.

[00:27:19] [SPEAKER_01]: So you know when I was

[00:27:22] [SPEAKER_01]: you know hell bent on making a lot of money.

[00:27:26] [SPEAKER_01]: Hell bent on proving to the world I was good enough.

[00:27:28] [SPEAKER_01]: You know I got picked on in school.

[00:27:29] [SPEAKER_01]: You know everybody's gone through this stuff.

[00:27:31] [SPEAKER_01]: I had to prove the world I was good enough

[00:27:33] [SPEAKER_01]: and you know I built this literally

[00:27:35] [SPEAKER_01]: what's now a 25 million dollar house on the beach.

[00:27:38] [SPEAKER_01]: It's literally right behind me across the bay here.

[00:27:41] [SPEAKER_01]: It gets kind of funny.

[00:27:43] [SPEAKER_01]: And I worked for it for 20 years

[00:27:47] [SPEAKER_01]: and I moved in.

[00:27:48] [SPEAKER_01]: So I worked for this for 20 years.

[00:27:50] [SPEAKER_01]: Two months after I moved in

[00:27:52] [SPEAKER_01]: and this house is magnificent.

[00:27:54] [SPEAKER_01]: Let me describe it okay.

[00:27:55] [SPEAKER_01]: It's a gulf to bay.

[00:27:56] [SPEAKER_01]: I own the beach on one side.

[00:27:57] [SPEAKER_01]: I had my boats on the back side.

[00:27:59] [SPEAKER_01]: It's like a slice through an island.

[00:28:02] [SPEAKER_01]: And again I worked for it for 20 years.

[00:28:04] [SPEAKER_01]: The big waterfall from the second floor

[00:28:06] [SPEAKER_01]: balcony of the pool.

[00:28:07] [SPEAKER_01]: You had to walk through the waterfall to get to the pool.

[00:28:10] [SPEAKER_01]: You know big spiral staircase

[00:28:11] [SPEAKER_01]: up through the middle of the house.

[00:28:12] [SPEAKER_01]: Wine cellar, elevator.

[00:28:14] [SPEAKER_01]: On the second floor I had aquariums

[00:28:15] [SPEAKER_01]: that I built that cost me almost 200 grand

[00:28:18] [SPEAKER_01]: to go around the staircase.

[00:28:20] [SPEAKER_01]: So this gives you an idea of the house.

[00:28:21] [SPEAKER_01]: Anyway, two months after I moved in

[00:28:23] [SPEAKER_01]: I'm floating in the pool at night

[00:28:26] [SPEAKER_01]: and I got depressed.

[00:28:28] [SPEAKER_01]: And I don't mean a little depressed.

[00:28:29] [SPEAKER_01]: I mean like holy shit depressed.

[00:28:32] [SPEAKER_01]: And you know I talk about this when I talk about goals.

[00:28:34] [SPEAKER_01]: You know I should never achieve a big goal

[00:28:35] [SPEAKER_01]: without having other goals lined up behind it.

[00:28:37] [SPEAKER_01]: Well that was one of the pieces of this okay.

[00:28:39] [SPEAKER_01]: The other thing is it's never about the freaking goals.

[00:28:42] [SPEAKER_01]: Happiness comes from progress and growth

[00:28:44] [SPEAKER_01]: and I didn't know what I was gonna do next.

[00:28:47] [SPEAKER_01]: And but you know and that's the year

[00:28:48] [SPEAKER_01]: I went and saw Tony Robbins.

[00:28:49] [SPEAKER_01]: Cause I'm like you know I gotta figure this out.

[00:28:51] [SPEAKER_01]: I went and bought some books

[00:28:52] [SPEAKER_01]: and one of them was Tony's book.

[00:28:53] [SPEAKER_01]: So I went and this is 25 years ago okay.

[00:28:56] [SPEAKER_01]: And I went to see Tony in Fort Lauderdale.

[00:28:58] [SPEAKER_01]: I was blown away.

[00:28:59] [SPEAKER_01]: I spent another 20 years following him around

[00:29:01] [SPEAKER_01]: just cause I was so impressed with his methodology,

[00:29:03] [SPEAKER_01]: his teaching and coaching.

[00:29:05] [SPEAKER_01]: And he was a big mentor of mine.

[00:29:06] [SPEAKER_01]: But I found that he fed families for the holidays.

[00:29:10] [SPEAKER_01]: And that really resonated me.

[00:29:12] [SPEAKER_01]: Like you know I'd never done anything for anybody else.

[00:29:14] [SPEAKER_01]: I'm embarrassed to admit that.

[00:29:15] [SPEAKER_01]: I was 40 at the time.

[00:29:17] [SPEAKER_01]: And so I went home and I called my brother Ed

[00:29:20] [SPEAKER_01]: who lived in Denver.

[00:29:21] [SPEAKER_01]: Cause I was already here in Florida

[00:29:22] [SPEAKER_01]: and I was going back for Thanksgiving.

[00:29:24] [SPEAKER_01]: I said Ed let's feed five families.

[00:29:25] [SPEAKER_01]: Let's just have some fun, feed five families.

[00:29:27] [SPEAKER_01]: And so he called his church,

[00:29:29] [SPEAKER_01]: found five families that really needed help.

[00:29:31] [SPEAKER_01]: And we went and had a lot of fun buying the food.

[00:29:34] [SPEAKER_01]: Frozen turkey, roasting pan,

[00:29:36] [SPEAKER_01]: toys for the kids if they had them.

[00:29:38] [SPEAKER_01]: And the third family changed my life.

[00:29:40] [SPEAKER_01]: You know we go up to this like a row house

[00:29:43] [SPEAKER_01]: where it's like four units,

[00:29:45] [SPEAKER_01]: like a fourplex.

[00:29:46] [SPEAKER_01]: But they were straight shots through to the back.

[00:29:49] [SPEAKER_01]: So it was like a one bedroom.

[00:29:50] [SPEAKER_01]: It was a shitty one bedroom.

[00:29:52] [SPEAKER_01]: Cause you had to walk through the bedroom

[00:29:53] [SPEAKER_01]: to get to the kitchen which had the bathroom off of it.

[00:29:55] [SPEAKER_01]: And there was a Hispanic woman in there with five kids.

[00:29:58] [SPEAKER_01]: And she comes out and she sees all this food

[00:30:00] [SPEAKER_01]: and stuff on the porch and she starts crying.

[00:30:02] [SPEAKER_01]: Her kids come out, two of the older ones start crying.

[00:30:05] [SPEAKER_01]: I start crying and I was freaking hooked.

[00:30:07] [SPEAKER_01]: And so the next year I fed 50 families.

[00:30:10] [SPEAKER_01]: Next year after that I fed 100 families.

[00:30:12] [SPEAKER_01]: So this was always for Christmas or Thanksgiving.

[00:30:14] [SPEAKER_01]: So I doubled it every year.

[00:30:15] [SPEAKER_01]: 50, then 100, then I did 200, then I did 400,

[00:30:18] [SPEAKER_01]: then I did 800, and then I did 1600.

[00:30:21] [SPEAKER_01]: I did 1600 in 2008.

[00:30:23] [SPEAKER_01]: And you all know what happened to me in 2008, right?

[00:30:25] [SPEAKER_01]: I lost $50 million.

[00:30:27] [SPEAKER_01]: But I paid for it all the way up to that point.

[00:30:29] [SPEAKER_01]: And then I formed a foundation

[00:30:30] [SPEAKER_01]: called the Tiny Hands Foundation.

[00:30:33] [SPEAKER_01]: And now I'm humbled and proud to say

[00:30:38] [SPEAKER_01]: that I think we've fed definitely well over

[00:30:40] [SPEAKER_01]: 150,000 children over the last 25 years.

[00:30:43] [SPEAKER_01]: We've done tens of thousands of backpacks

[00:30:45] [SPEAKER_01]: filled with school supplies.

[00:30:46] [SPEAKER_01]: We just did 2,000 six weeks ago.

[00:30:49] [SPEAKER_01]: Done thousands and thousands of teddy bears

[00:30:51] [SPEAKER_01]: to the local police departments for their officers

[00:30:53] [SPEAKER_01]: to keep in their vehicles if they encounter a child

[00:30:55] [SPEAKER_01]: that's been in a traumatic situation.

[00:30:57] [SPEAKER_01]: They can come put the child and bridge the gap.

[00:31:00] [SPEAKER_01]: And the reason I bring all this up in front of Kevin

[00:31:03] [SPEAKER_01]: is Kevin has raised hundreds of thousands of dollars

[00:31:06] [SPEAKER_01]: for this Tiny Hands Foundation.

[00:31:08] [SPEAKER_01]: That's the name of my foundation,

[00:31:09] [SPEAKER_01]: the Tiny Hands Foundation.

[00:31:10] [SPEAKER_01]: So Kevin does this annual fundraising, fun event

[00:31:17] [SPEAKER_01]: to raise money for my foundation

[00:31:19] [SPEAKER_01]: as well as another one or two if I recall.

[00:31:22] [SPEAKER_01]: This one, yeah.

[00:31:22] [SPEAKER_01]: Yeah, so can you talk about the event?

[00:31:25] [SPEAKER_02]: Yeah, no absolutely not.

[00:31:26] [SPEAKER_02]: Just backing up a little bit buddy.

[00:31:27] [SPEAKER_02]: I mean seriously, I mean just this,

[00:31:29] [SPEAKER_02]: what you've put together with the Tiny Hands

[00:31:31] [SPEAKER_02]: is truly a testament to your heart

[00:31:34] [SPEAKER_02]: and just your willingness to give and help others.

[00:31:36] [SPEAKER_02]: I mean like that when I met you,

[00:31:39] [SPEAKER_02]: I started volunteering and helping

[00:31:41] [SPEAKER_02]: with the food drive every year.

[00:31:43] [SPEAKER_02]: I had one of those moments myself.

[00:31:44] [SPEAKER_02]: We used to go deliver, remember we used to

[00:31:46] [SPEAKER_02]: deliver the baskets in person right?

[00:31:47] [SPEAKER_02]: Yeah, yeah.

[00:31:48] [SPEAKER_02]: You go load up the back of the truck,

[00:31:49] [SPEAKER_02]: you know like leave the center

[00:31:50] [SPEAKER_02]: where we were putting it all together

[00:31:51] [SPEAKER_02]: and go deliver these things.

[00:31:53] [SPEAKER_02]: And I had a similar encounter with a family

[00:31:56] [SPEAKER_02]: where they were just, I mean just in tears,

[00:31:58] [SPEAKER_02]: crying and just so thankful and grateful

[00:32:00] [SPEAKER_02]: that we had brought this to their door.

[00:32:02] [SPEAKER_02]: And you know, they ultimately weren't gonna have a,

[00:32:04] [SPEAKER_02]: I think that year was Thanksgiving.

[00:32:06] [SPEAKER_02]: They weren't gonna have a,

[00:32:06] [SPEAKER_02]: they didn't have money for a Thanksgiving meal.

[00:32:08] [SPEAKER_02]: And so it was just hugely impactful.

[00:32:11] [SPEAKER_02]: And so, you know, to your point,

[00:32:13] [SPEAKER_02]: you used to fund this all yourself.

[00:32:15] [SPEAKER_02]: You never took donations,

[00:32:16] [SPEAKER_02]: didn't accept any outside money.

[00:32:17] [SPEAKER_02]: And so when the crash happened,

[00:32:20] [SPEAKER_02]: I remember it went from,

[00:32:21] [SPEAKER_02]: you know the numbers,

[00:32:22] [SPEAKER_02]: and I do, you went from feeding thousands of families

[00:32:25] [SPEAKER_02]: to I don't know what that next year was,

[00:32:27] [SPEAKER_02]: an 08 or a 09, but it was a much smaller amount.

[00:32:30] [SPEAKER_02]: It was less.

[00:32:30] [SPEAKER_02]: Yeah, yeah.

[00:32:32] [SPEAKER_02]: And so I'm like shit,

[00:32:33] [SPEAKER_02]: but I was in bad financial situation as well.

[00:32:35] [SPEAKER_02]: Sure we were all dying.

[00:32:36] [SPEAKER_02]: Yeah, I was like I wish I could help.

[00:32:37] [SPEAKER_02]: I mean it was painful for me to watch it go from,

[00:32:41] [SPEAKER_02]: because folks need more at that point in the economy

[00:32:46] [SPEAKER_02]: than any other time, right?

[00:32:47] [SPEAKER_02]: Like everyone was having a hard time economically.

[00:32:50] [SPEAKER_03]: It was tough for everybody, yeah.

[00:32:52] [SPEAKER_02]: And so in 2010 is when I got married.

[00:32:56] [SPEAKER_02]: I got married in March of 2010.

[00:32:59] [SPEAKER_02]: And I was still trying to find my bearings,

[00:33:01] [SPEAKER_02]: trying to find my way

[00:33:02] [SPEAKER_02]: and what I was gonna do in this next phase of life,

[00:33:06] [SPEAKER_02]: like this journey.

[00:33:07] [SPEAKER_02]: I just got married, didn't have kids yet,

[00:33:09] [SPEAKER_02]: but didn't feel fulfilled.

[00:33:11] [SPEAKER_02]: I didn't know what I was,

[00:33:13] [SPEAKER_02]: real estate was just not on the radar at that point.

[00:33:15] [SPEAKER_02]: I'd started a couple other businesses to pay

[00:33:17] [SPEAKER_02]: for the roof over my head.

[00:33:20] [SPEAKER_02]: And I needed like a big, hairy audacious goal.

[00:33:22] [SPEAKER_02]: And so I decided to hop my bike,

[00:33:24] [SPEAKER_02]: told Joanna that I was gonna hop my bike

[00:33:26] [SPEAKER_02]: and ride to Washington DC.

[00:33:27] [SPEAKER_01]: That's right, I forgot about that.

[00:33:28] [SPEAKER_02]: And so we'd only been married for a couple months.

[00:33:33] [SPEAKER_02]: And when I proposed the idea to her,

[00:33:34] [SPEAKER_02]: I'd never ridden my bike more than 40 miles.

[00:33:37] [SPEAKER_02]: And now I was a fairly new bike rider.

[00:33:40] [SPEAKER_02]: And when she didn't respond back with,

[00:33:42] [SPEAKER_02]: no, you're crazy, you're absolutely not doing that,

[00:33:44] [SPEAKER_02]: she was like, are you serious?

[00:33:45] [SPEAKER_02]: I knew that there was a chance

[00:33:46] [SPEAKER_02]: that I might be able to convince her

[00:33:48] [SPEAKER_02]: in allowing me to do it.

[00:33:49] [SPEAKER_02]: So anyway, fast forward about four months later,

[00:33:52] [SPEAKER_02]: not that much time at all, from that moment,

[00:33:55] [SPEAKER_02]: I rode my bike over 11 days,

[00:33:56] [SPEAKER_02]: 1,154 miles from Florida to Washington DC.

[00:34:02] [SPEAKER_02]: Made it, felt somewhat fulfilled for a personal goal,

[00:34:05] [SPEAKER_02]: but felt even more empty than ever

[00:34:07] [SPEAKER_02]: because I attracted this large following

[00:34:10] [SPEAKER_02]: in the audience on Facebook.

[00:34:11] [SPEAKER_02]: I was just documenting what I was doing.

[00:34:13] [SPEAKER_02]: I wasn't doing it for a cause.

[00:34:14] [SPEAKER_02]: But I was just more so of my family and friends

[00:34:16] [SPEAKER_02]: who'd like kinda keep in the loop

[00:34:17] [SPEAKER_02]: of where the hell I was at that point in time.

[00:34:19] [SPEAKER_02]: I didn't have much of an agenda.

[00:34:21] [SPEAKER_02]: I literally had a paper map and I was just riding.

[00:34:24] [SPEAKER_02]: And I was just riding.

[00:34:25] [SPEAKER_02]: And so, and I got to the end

[00:34:26] [SPEAKER_02]: and realized I had all these folks,

[00:34:28] [SPEAKER_02]: like all these eyeballs that were watching.

[00:34:30] [SPEAKER_02]: And I did it for no other good than myself.

[00:34:32] [SPEAKER_02]: And so I felt very empty because of that.

[00:34:34] [SPEAKER_02]: And so came back from that,

[00:34:36] [SPEAKER_02]: was in really the best shape of my life.

[00:34:38] [SPEAKER_02]: And I figured, well shit,

[00:34:39] [SPEAKER_02]: I don't have any money to help Rod

[00:34:40] [SPEAKER_02]: and the Tiny Hands Foundation.

[00:34:42] [SPEAKER_02]: But I got legs.

[00:34:43] [SPEAKER_02]: And so I remember,

[00:34:45] [SPEAKER_02]: I literally remember the day I came to your office,

[00:34:46] [SPEAKER_02]: like hey, I got this idea.

[00:34:47] [SPEAKER_02]: I don't know if it's gonna mount anything.

[00:34:49] [SPEAKER_02]: But I'm gonna put together a bike ride.

[00:34:51] [SPEAKER_02]: I'm gonna go ride it next week with a friend

[00:34:53] [SPEAKER_02]: and see if it's actually a manageable route.

[00:34:54] [SPEAKER_01]: Oh, so you did it in advance?

[00:34:56] [SPEAKER_01]: In July of the summer.

[00:34:58] [SPEAKER_02]: Me and a buddy literally rode it over two days.

[00:35:00] [SPEAKER_02]: Well describe, describe where.

[00:35:02] [SPEAKER_02]: Yes, we start in Fort Myers Beach,

[00:35:03] [SPEAKER_02]: which is on the west coast of Florida here.

[00:35:05] [SPEAKER_02]: And then we basically ride south

[00:35:06] [SPEAKER_02]: and then get to the bottom

[00:35:08] [SPEAKER_02]: and then cross over the Everglades,

[00:35:09] [SPEAKER_02]: right across the Everglades

[00:35:10] [SPEAKER_02]: to the other side of Florida.

[00:35:11] [SPEAKER_02]: And then head south again all the way to Key West.

[00:35:14] [SPEAKER_02]: It's about 285 miles.

[00:35:16] [SPEAKER_02]: And we do it over three days now.

[00:35:17] [SPEAKER_02]: When I first rode it,

[00:35:18] [SPEAKER_02]: I did it over two days in middle of July,

[00:35:20] [SPEAKER_02]: which is horrific.

[00:35:22] [SPEAKER_01]: So all the way from Fort Myers,

[00:35:23] [SPEAKER_01]: which is just south of me,

[00:35:25] [SPEAKER_02]: to Key West.

[00:35:26] [SPEAKER_02]: Yep.

[00:35:27] [SPEAKER_02]: So anyway, we put the vent on that first year.

[00:35:30] [SPEAKER_02]: I think I donated maybe 300 bucks to tiny hands

[00:35:33] [SPEAKER_02]: after I said it done.

[00:35:34] [SPEAKER_02]: And the next year we ended up,

[00:35:36] [SPEAKER_02]: I think I had a real check of maybe 10,000.

[00:35:38] [SPEAKER_02]: And then every year thereafter at the third year,

[00:35:40] [SPEAKER_02]: from the third year on,

[00:35:42] [SPEAKER_02]: now we're on our 14th year.

[00:35:44] [SPEAKER_01]: 14 years?

[00:35:45] [SPEAKER_01]: 14 years.

[00:35:46] [SPEAKER_02]: Two hurricanes canceled two of them.

[00:35:47] [SPEAKER_02]: So we did have two times

[00:35:49] [SPEAKER_02]: where we couldn't do it due to hurricanes.

[00:35:51] [SPEAKER_02]: So I guess it'd be our 12th active year

[00:35:53] [SPEAKER_02]: of actually doing the ride.

[00:35:54] [SPEAKER_02]: 14 years into it.

[00:35:55] [SPEAKER_02]: I had no idea it'd been that many times.

[00:35:56] [SPEAKER_02]: So it's been a lot of fun.

[00:35:57] [SPEAKER_02]: I mean, again, it was one of those things

[00:35:58] [SPEAKER_02]: where like I don't have money to help,

[00:36:00] [SPEAKER_02]: but I got legs and like I've got my health.

[00:36:02] [SPEAKER_02]: And so I got other people rallied about the idea.

[00:36:05] [SPEAKER_01]: How large of a group do you typically have?

[00:36:08] [SPEAKER_02]: So we limit it to 75 riders.

[00:36:09] [SPEAKER_02]: 75 riders.

[00:36:10] [SPEAKER_02]: And I do it because of logistics.

[00:36:11] [SPEAKER_02]: Right.

[00:36:11] [SPEAKER_02]: You know, we're literally all rolling, you know.

[00:36:13] [SPEAKER_01]: There's cars following you,

[00:36:15] [SPEAKER_01]: there are trucks,

[00:36:15] [SPEAKER_01]: and you got the food,

[00:36:16] [SPEAKER_01]: you got the hotels.

[00:36:17] [SPEAKER_01]: Guys, if you ride a road bike,

[00:36:19] [SPEAKER_01]: is it called a road bike?

[00:36:20] [SPEAKER_02]: A road bike, yeah.

[00:36:21] [SPEAKER_01]: If you ride a road bike,

[00:36:23] [SPEAKER_01]: go to 72, the number 72,

[00:36:28] [SPEAKER_01]: 72hourstokiewest.com.

[00:36:29] [SPEAKER_01]: 72, the numbers,

[00:36:32] [SPEAKER_01]: hourstokiewest.com

[00:36:33] [SPEAKER_01]: and sign up for this thing.

[00:36:35] [SPEAKER_01]: First of all, it's a kick in the ass, okay?

[00:36:37] [SPEAKER_01]: Second of all,

[00:36:38] [SPEAKER_01]: you're raising money to help my foundation

[00:36:41] [SPEAKER_01]: and something else.

[00:36:42] [SPEAKER_01]: What's the other thing?

[00:36:43] [SPEAKER_02]: Yeah, starting right now.

[00:36:44] [SPEAKER_02]: It's an organization out of Pinellas County

[00:36:46] [SPEAKER_02]: and basically-

[00:36:47] [SPEAKER_01]: They're just St. Petersburg, Florida.

[00:36:49] [SPEAKER_02]: Yeah, unaccompanied youth.

[00:36:50] [SPEAKER_02]: So basically like homeless youth that

[00:36:51] [SPEAKER_02]: they kind of fall in the cracks of

[00:36:55] [SPEAKER_02]: having funding and support from

[00:36:56] [SPEAKER_02]: government localities and things like that.

[00:36:59] [SPEAKER_02]: So it's a phenomenal,

[00:37:00] [SPEAKER_02]: it's all self-funded as well.

[00:37:01] [SPEAKER_02]: They don't take any government money,

[00:37:02] [SPEAKER_02]: any funding,

[00:37:03] [SPEAKER_02]: and so just every dollar that goes to that organization

[00:37:05] [SPEAKER_02]: just like Tiny Hands

[00:37:06] [SPEAKER_02]: goes directly to the end user,

[00:37:09] [SPEAKER_02]: to the end folks that really, really need it.

[00:37:11] [SPEAKER_02]: Which is another impressive thing about Tiny Hands.

[00:37:13] [SPEAKER_02]: I mean there's no overhead.

[00:37:14] [SPEAKER_02]: No, I cover everything.

[00:37:15] [SPEAKER_02]: That's it.

[00:37:16] [SPEAKER_02]: Yeah, I cover everything.

[00:37:16] [SPEAKER_02]: Your staffing is the over,

[00:37:17] [SPEAKER_02]: and then volunteers as well,

[00:37:19] [SPEAKER_02]: but you know,

[00:37:20] [SPEAKER_02]: whereas if you're donating to the Red Cross

[00:37:22] [SPEAKER_02]: or whatever it might be like,

[00:37:25] [SPEAKER_02]: well they take-

[00:37:26] [SPEAKER_02]: Maybe what?

[00:37:26] [SPEAKER_02]: 20 cents of every dollar might be

[00:37:28] [SPEAKER_02]: going to where it really is needed.

[00:37:30] [SPEAKER_01]: That's right.

[00:37:30] [SPEAKER_01]: Yeah, no, I cover all the operating expenses

[00:37:32] [SPEAKER_01]: and then some still.

[00:37:36] [SPEAKER_01]: But guys, so if you ride a road bike,

[00:37:38] [SPEAKER_01]: for God's sakes check this out, okay?

[00:37:40] [SPEAKER_01]: This November, so yeah.

[00:37:42] [SPEAKER_02]: We still actually have a couple spots

[00:37:43] [SPEAKER_02]: and I'll make a spot for it.

[00:37:44] [SPEAKER_02]: If you reach out through the website,

[00:37:47] [SPEAKER_02]: even if registration's closed,

[00:37:48] [SPEAKER_02]: if you have an interest,

[00:37:49] [SPEAKER_02]: I will make a spot for any of the warriors

[00:37:51] [SPEAKER_02]: that are listening in here,

[00:37:52] [SPEAKER_02]: that have an interest,

[00:37:53] [SPEAKER_02]: I will make a spot for you.

[00:37:55] [SPEAKER_01]: Okay, so not just my 1700 plus warriors,

[00:37:58] [SPEAKER_01]: but any of you,

[00:37:59] [SPEAKER_01]: if you are interested in riding with Kevin,

[00:38:04] [SPEAKER_01]: wow, I can't believe you've done it 12 times.

[00:38:07] [SPEAKER_01]: I'm getting tired.

[00:38:10] [SPEAKER_01]: I'm just, my brain,

[00:38:11] [SPEAKER_01]: I just can't believe I-

[00:38:12] [SPEAKER_02]: I went and rode 50 miles this morning

[00:38:13] [SPEAKER_02]: before I got dressed to come here.

[00:38:16] [SPEAKER_02]: Oh, good job, man.

[00:38:16] [SPEAKER_02]: Trying to get my butt back in gear.

[00:38:18] [SPEAKER_01]: Yeah, so if you wanna know more about Kevin,

[00:38:21] [SPEAKER_01]: his website is investwithsunrise.com.

[00:38:25] [SPEAKER_01]: I hope that you'll consider riding

[00:38:27] [SPEAKER_01]: if you're a road biker

[00:38:29] [SPEAKER_01]: because what an awesome ride too

[00:38:31] [SPEAKER_01]: to go down the seven mile-

[00:38:33] [SPEAKER_01]: It's beautiful.

[00:38:33] [SPEAKER_01]: Seven mile bridge.

[00:38:35] [SPEAKER_02]: Go across seven mile bridge.

[00:38:36] [SPEAKER_02]: I think there's 42 or 43 actual bridges

[00:38:39] [SPEAKER_02]: that you cross going through the Keys.

[00:38:40] [SPEAKER_02]: You don't realize it when you drive it,

[00:38:41] [SPEAKER_02]: some of them are pretty short.

[00:38:42] [SPEAKER_02]: But there's 40 plus bridges that you cross over

[00:38:45] [SPEAKER_02]: with the seven mile bridges.

[00:38:47] [SPEAKER_02]: That's pretty amazing.

[00:38:48] [SPEAKER_01]: Oh, so there's more than seven.

[00:38:49] [SPEAKER_01]: Yeah, because seven miles doesn't sound like long.

[00:38:50] [SPEAKER_02]: You got the seven mile bridge

[00:38:51] [SPEAKER_02]: which crosses Marathon and it's seven miles long.

[00:38:55] [SPEAKER_02]: I mean, it's a really long bridge.

[00:38:56] [SPEAKER_02]: But then there's roughly 40 others of different lengths.

[00:39:00] [SPEAKER_02]: And so it's, I mean, you've been to the Keys

[00:39:01] [SPEAKER_02]: many times.

[00:39:02] [SPEAKER_02]: Oh yeah, yeah, yeah, but I don't know why

[00:39:04] [SPEAKER_02]: I thought that was it.

[00:39:05] [SPEAKER_01]: So there's, yeah, and the view,

[00:39:06] [SPEAKER_01]: I mean, you're riding

[00:39:07] [SPEAKER_01]: and you've got water on both sides.

[00:39:10] [SPEAKER_01]: Spectacular.

[00:39:11] [SPEAKER_01]: So, but you've raised a lot of money

[00:39:13] [SPEAKER_01]: to help out a lot of kids.

[00:39:16] [SPEAKER_01]: And I love you for it, brother.

[00:39:18] [SPEAKER_01]: That means a lot.

[00:39:19] [SPEAKER_01]: And like I said,

[00:39:21] [SPEAKER_01]: Kevin and I have known each other forever.

[00:39:22] [SPEAKER_01]: I've seen his kids grow up

[00:39:24] [SPEAKER_01]: and just a beautiful thing.

[00:39:27] [SPEAKER_01]: But listen, I appreciate you coming on, man.

[00:39:31] [SPEAKER_01]: And it's great to see you.

[00:39:32] [SPEAKER_01]: It's been a pleasure.

[00:39:33] [SPEAKER_01]: Same brother.

[00:39:33] [SPEAKER_01]: Love you.

[00:39:33] [SPEAKER_01]: All right, thanks.

[00:39:34] [SPEAKER_01]: See ya.

[00:39:34] [SPEAKER_00]: Thank you for listening to the lifetime cash flow

[00:39:37] [SPEAKER_00]: through Real Estate Investing podcast.

[00:39:39] [SPEAKER_00]: If you've enjoyed the show,

[00:39:41] [SPEAKER_00]: please take a minute to visit iTunes

[00:39:43] [SPEAKER_00]: and leave your comments.

[00:39:45] [SPEAKER_00]: For more resources or to connect with us further,

[00:39:48] [SPEAKER_00]: please visit our website at rodcleaf.com.

[00:39:53] [SPEAKER_00]: Tune in next week for our next show.