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What's up, guys, and welcome to Episode 3 of Brand Up your Business Podcast.
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I'm your host, matt Jackson, and I brought on a special guest, thomas.
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We go back a few years from the beginning of our entrepreneurial journey together.
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We were in mastermind groups and networking groups and known each other through different parts of the process of our businesses.
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And now Thomas he's dabbled on a lot of things and now he's kind of doing like contractor work and you want to.
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You want to kick it off.
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Yeah, yeah, thanks for having me, matt.
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I appreciate the opportunity to spread my message, talk a little bit about business and life on your podcast.
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So I appreciate you having me.
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So so my story goes back.
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Uh, I've been in business now oh, probably about 10 years.
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Um been working for myself for about six years.
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Uh, working for myself full-time about six years.
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Um, let's see, it started.
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I really got interested when I, when I first started getting into, like interested in owning a business, I would say I had zero interest in owning a business up until I mean, through high school.
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And like no interest in high school, um, I was forced to go to college.
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Basically, my parents said that's the only way to be successful in life is to get a four year degree and get a good, safe job.
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It's the only way to be successful.
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So I went to college for about a year and hated every second of it.
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I'm not the type of person to enjoy college enjoy, you know, learning that way.
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So it didn't suit me one bit and because I hated it, you know, I looked for other outlets in college that you know were not so great and stuff like that.
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So I went down that path for a little bit um, and ended up leaving college after about a year and started working for a drilling and construction company.
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Uh, we were doing it environmental drilling, drilling water wells, stuff like that.
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It was a lot of like brute force labor work, um, but even though it was really difficult work like I finally, just like I enjoyed it.
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You know it was the first time that I was like you know what this is great.
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I'm out here in the middle of winter drilling with water.
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You know we're slinging water everywhere covered in mud, um, but I love this a whole lot more than I love being in college, no doubt.
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So I'm one of those people that you know I do better just working, yeah, and how my entrepreneurial journey started was one of the drillers I was working for.
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I was a rig hand.
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Underneath this driller, he was a business owner, he was a landscaping company, and he would just talk to me about business and stuff like that His landscaping company that he did on the side and he used to do full time, and it really opened my eyes to entrepreneurship.
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So I started listening to podcasts and the first one I listened to was Bigger Pockets podcast, which is a real estate podcast, and I was open to the idea of real estate.
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Uh, my dad had some rentals uh, when I was growing up, um, they were trash, they really were.
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He didn't have for very long.
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Uh, he never had good success with them.
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Uh, we worked on houses growing up with my dad.
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I worked on houses growing up with my dad worked on houses growing up with my dad I worked on houses growing up with my dad.
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The landlord that I was renting from was a is a family friend and he had some success in rentals.
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So that's kind of how I came into like bigger pockets and maybe you know rental properties, you know.
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And for the next, that's probably when I was like, I want to say when I was 20, I listened to a podcast from Bigger Pockets and this is a simple, a very simple line in the podcast.
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But I remember I mean I remember literally sitting in the bathroom, I think I was like you know, sitting on the toilet listening to this podcast.
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I remember this line where he said you can design your life any way you want it.
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Nice, and it's a simple line.
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It's, you know, a simple statement.
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But to me it was just like a aha moment, like no one ever told me that you could do that.
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You know right, you couldn't design your life, you.
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You went to school and you got a good job whatever the job that came your way.
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That paid the bills yep.
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And then you listened to school and you got a good job whatever the job that came your way.
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That paid the bills Yep.
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And then you listened to your boss and you worked your way up the ladder, you know, but you didn't actually get to design your life Exactly.
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If you wanted to go on vacation half the year, you couldn't.
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You know, you can't design, um, so anyway, this guy talking on the podcast said you can design your life any way you want, and he was in the middle of doing that through real estate, nice, and that got me really involved into learning about real estate and I went from driving, I went from working in construction to driving truck and I drove cross country for a while, which was really good money it was, it was great, it was really good.
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I was young, I was like 21, 22 years old, making over six figures Uh, that beats most college kids.
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Yeah, yeah, um, and I was, I was.
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I don't think I listened to the radio for almost probably eight months.
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All I was doing was listening to podcasts and listening to books about real estate listening to podcasts and listening to books about real estate.
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That's awesome and teaching myself how to, how to, you know, be a landlord, how to value real estate.
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And when I was 24, I want to say when I was 24, 24 or 25 years old that same driller that first talked to me about entrepreneurship said to me.
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He said we should buy a property together.
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He said, cause, you're interested in real estate, I'm interested in real estate, but we should do it.
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We should, and we were good friends we should buy a property together.
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And, um, I was like, yeah, let's do it.
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And for the next probably eight to nine months, we just walked properties.
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I remember every single Saturday going and walking properties and we were walking foreclosures.
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That was still, let's see back in in.
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I guess it was 24, because back in 2018 there's a fair amount of foreclosures, which actually was from the 2008 bubble.
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Nice, they were still foreclosures hitting the market, finally coming up for sale.
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Uh, in 2018, from the 2008 bubble, wow.
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So we were, we were walking for like probably two to three foreclosure properties every single Saturday, running the numbers on every single one of them.
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You know, does this work for a rental, does this work for a flip?
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Putting in offers, and we were very new to it, so our offers probably weren't the best day.
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In my opinion they were a little too conservative.
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But after eight months we finally found a property.
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That was not a foreclosure, it was an off-market deal on eight unit property where the numbers worked on it.
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So we put in an offer, negotiated a little bit and we bought.
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Um, we bought an eight unit rental property.
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Uh, my, between my partner and I, we put 20% down and uh, the bank financed the rest.
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I worked with a local bank on that, which I highly recommend for um real estate investors finding a good local bank.
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Um, and I wasn't done at that point.
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I was young and young and call it dumb, but uh, I was like you know what we can do more?
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I was, I was getting into the mindset of empire building, where I think this is where I started to get away from things.
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I recently had a reset Um, I, I started getting into empire building and less focusing less on uh, designing the life you want the way, designing life the way you want it.
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Um, so I start.
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So six months after he bought the eight unit, I bought an 11 unit as well.
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So in one year went from zero, zero to 19 units and I was self managing all of them, which was a huge reality check, coming from I don't want to say I'll say slightly sheltered.
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You know a very small rural town.
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You know they get out a whole lot to uh, managing 19 units with.
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You know they weren't in the ghetto but they were in some rough locations.
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Yeah, I imagine if you said they're going like more foreclosure or like more affordable, you're not buying.
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The 11 unit was definitely like low income.
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Yeah, um, the eight unit was it wasn't low income, but it also wasn't like grade a apartments yeah, it wasn't eight bucks, um, but uh, that was completely educational for me.
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you know, uh, it, uh it was.
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It was great.
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You know, I learned so much about not just um dealing with like the prop, like I knew how to deal with the properties and I could fix growing up with my dad I could fix the properties.
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That was the easy part.
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Yeah, Um figuring out.
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Okay, you know what to do when this breaks or this is going to break soon, so plan for that.
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Um, like that was the easy part of rental property investing.
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For me, the hard part was managing the properties.
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Um, I know there's plenty of property management companies out there, but um and most real estate investors will agree with me when I say that, say this uh, most property management companies suck, Like they suck a lot.
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I've noticed that from just dealing with them, from pressure washing.
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Yeah, exactly so have I.
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Yeah, and um, so anyway, uh, what my biggest learning curve was was the people aspect of it.
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Dealing with the people, uh, problem solving with people, even though technically it wasn't really my job to problem solve as a landlord and owner, I was there in charge of the building.
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You know, in collecting rent I wasn't in charge of the people, um, you know, and man I'd be getting.
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My wife always tells me I should write a book.
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Um, I'm sure every other real estate investor could write a book.
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You definitely haven't written lessons and stories.
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Yeah, like uh, one that sticks out to me that you know we had a diffuse was.
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Um, oh, lady from upstairs at the eight unit called me saying Mark from downstairs.
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Mark from downstairs called me and my daughter fat cows, and I'm like, oh man, I'm really sorry to hear that.
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You know that's, that's not nice, that's not a nice thing to say.
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I'll have to say something to Mark, you know that's not.
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And then she right idea either.
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And she's like, yeah, well, now the police, the police are on the way, so I'm getting out of here, okay, I guess.
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I guess this is where we're at, where we're at yeah and I was out plowing snow.
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I was out plowing snow, I was in the middle of winter, we were in the middle of huge snowstorm till uh, like we were getting like one to two inches an hour.
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Um, and next thing, you know, I get another phone call.
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Hey, the cops are here, they're banging on her door, they're gonna bust down the door if, uh, she doesn't come and answer the door.
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I was like, well, don't let the cops bust down my door.
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Don't break my door.
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I don't want to replace the door.
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I'll be there in like 15 minutes.
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I'll open.
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I have my keys on me.
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I'll open the door.
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Yeah, that's funny.
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So I get there and next thing you know she comes.
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She wasn't even there.
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After I get, after I pull into the property which we didn't plow the property yet.
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We always had our property blast, um, so the lot wasn't plowed.
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She comes into the.
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She comes driving into the lot, goes sideways in her little Volkswagen bug I mean, there's now six to eight inches of snow on the ground.
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She's out driving, this Volkswagen bug, uh, gets sideways, gets stuck on the Hill and she steps out.
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Man, she is not sober at in the list I bet there's cops beside me, I'm just like, oh man, this is, this is one, this is one for the for the books here.
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Um turns out her daughter was in the, her daughter was in the apartment and when the cops were knocking on the door, her daughter flushed a whole bunch of drugs down the toilet.
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Nice, which then backed up most of the septic in most of the sewers in the whole eight unit.
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Nice, because it blocked it.
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It blocked the main line going out to this, out to the city sewer line nice um, so then we had to call, uh, you know, a local plumbing company to come out in the middle of a snowstorm and wrote a route, you know, the whole way down to the sewer line, like 130 feet, uh it was huge yeah, that's, that's um tons of fun.
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Uh long, that was just.
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That's a fun story I love to tell, but, um, I learned a whole lot from it.
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Uh, learned a whole lot from it.
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Um, and while working at the rentals, uh, I was talking to my business partner.
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We were redoing a kitchen and I was like, dude, I got to make more money Cause I was.
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I now started.
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At that point I started driving truck for myself rather than driving for a company.
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So I had my computer bill and, man, it wasn't paying the bills.
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I quickly found out that's not an industry that you make a whole lot of money in.
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Like the owner operator side of it as driving for a company.
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Especially, especially when you're like leasing on to another company.
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So you own the truck and you lease on to a company and they give you the loads.
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I see, I was like.
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I was like, dude, I'm not making enough money here, I gotta figure out something to do, right?
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And he nonchalantly said to me you should, you should look into pressure washing.
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Those guys make dumb amounts of money.
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That's true.
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I was like, yeah, I love dumb amounts of money.
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Okay, I'll look into.
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Yeah, exactly, and that's literally how I got into pressure washing yeah, there you go and then I'll.
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You know I'll keep this short here, um, but my whole, as we got into pressure washing um, that I still had the focus on, like, empire building instead of designing the life that you wanted.
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Like, my original focus was designing the life you wanted, yes, and um, that's where it kind of got hazy.
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You know, I tried to scale too fast, um, in my own pressure washing business, then thought it was better to buy a business, uh, to scale even faster, so took on debt to buy a business.
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It wasn't a good buy.
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Unfortunately, um, I lost a lot of money, um, a lot of money in that.
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Unfortunately, um, unfortunately, um, we sold our rentals.
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Um, my partner and I sold our rentals.
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Um, we were both, we were both too busy in our own businesses.
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Yeah, and when you buy properties that are not turnkey, so they're not perfectly fixed up with perfect tenants in it, when you buy properties that are not turnkey, it is management intensive, so you need to have the time to focus on it to either fix up the house or place new tenants, but you need to have the time to focus on it.
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It's not, like I said, if you want to buy real estate, and it'd be truly passive, if that's possible.
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You got to be buying turnkey properties and we weren't.
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We wanted properties that we could value add and you know, increase, increase the value, increase our equity in the property, stuff like that.
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I guess, like when you see online everybody's pushing like, everybody pushes this, like, oh, just leverage somebody other people's money, get into real estate and you have passive income for life and you're building, you're you're having tenants pay off your mortgage, so you're saying there's there's a little bit more to that than what they're saying.
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Yeah, yeah, it's not.
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It's not as it's not as um picture perfect as that paints it.
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Yeah, so we ended up selling our selling our properties because neither one of us had the time, had the time, to um put towards it.
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We did sell at the peak of COVID, so we made some money.
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Luckily, we didn't make as much money as we could have.
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I will say that because, again, we didn't have the amount of time to put in these properties that they needed, so they weren't perfectly.
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Even though we fixed them up a little bit, they were still a work in progress.
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They weren't perfectly fixed up.
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They didn't have perfect tenants in it, so we didn't get top dollar for our properties, but we did make some money.
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I was happy with um and I was still focused on empire building and it took a major reset in my life to realize, hey, what am I doing here?
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Yes, and that major reset was extreme business failures with the business that I bought and stuff like that, and it spiraled into my personal life.
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Marriage was harder, raising kids was harder.
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It's a big distraction yeah.
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And I was like, man, this isn't, this isn't what it's supposed to be.
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Yeah, so that huge reset really made me think OK, what, what do I want out of business?
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What do I want out of business?
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Out of business, um, what do I want out of business?
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And it came to be is I want to be an entrepreneur, cause I want to control my life?
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And go back to that original line of the podcast you can design your life however you want to.
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Um, so I like, okay, well, what can I do?
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Well, I've always worked on houses.
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I've always been, you know, whether it be houses with my dad, my dad's friends, uh, being a handyman when I was in my early twenties, you know, just for side money.
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Um, I said, you know, let's, let's, let's try being a handyman, being a home improvement contractor.
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So I went back to that this time with the focus of um, designing the life how I wanted it, wanted to want it to be.
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And, uh, we have definitely found a lot more success with that.
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Um, yeah, in the past, probably year, year and a half uh, plenty of ups and downs.
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Plenty of ups and downs is always in business.
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Yeah, um, but I'm I'm enjoying it a whole lot more.
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I'm enjoying the business a whole lot more I think too.
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I like how you're saying empire building, because that's that seems like.
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Why else do you get in business to like build an empire and like put all this money on the books and and have like, oh, look at me, look at all this, and then it's like that's not the reality for majority of us.
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Yeah, unless you're a sociopath, most of us don't want that.
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Yeah, so like there's more to life than that.
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So like you're able to design like a business or way to make money around your life and provide yourself with freedom.
00:20:39.961 --> 00:20:54.347
It's funny I had bob on, who we both know, and he a lot of his story too is is similar to you and me where it's like, hey, we don't want to beat our dicks and say, look how big our businesses are, like, look how much nonsense, and look at us on social media.
00:20:54.347 --> 00:20:58.425
We're more trying to design our lives in the way that we want and create our own freedom.
00:20:58.645 --> 00:21:11.214
So and I've noticed too, as I've talked to more business owners and um opened up and been honest with more business owners that, like those people that are empire building, it's a house of cards.
00:21:11.214 --> 00:21:38.963
90% of the time it is a house of cards, and I've found that a lot of times the business owners that are doing that they're not the main breadwinner in the family yes, or if they are, they have family money to fall back on or that supplements their lifestyle and their life yeah, and or what's their relationship?
00:21:38.983 --> 00:21:39.645
with their family.
00:21:39.645 --> 00:21:40.729
That's a big thing too.
00:21:41.471 --> 00:21:42.232
Yeah, yeah.
00:21:42.232 --> 00:21:58.355
And the more I talk about that and talk with business owners and you know they open up to me or you know it's just wow, this is, it's the trend that the people who are trying to do empire building are not as well off as they make it seem, unfortunately.
00:21:58.355 --> 00:22:05.227
Yeah, and that was another realization for me.
00:22:05.227 --> 00:22:07.472
Uh, that was another realization for me.
00:22:07.472 --> 00:22:24.932
Like, okay, you should be focusing more on your building the life, the way you want it to look, rather than like that really solidified me, like I am happier than most of these guys right now and I'm making more money than most of these guys right now.
00:22:24.932 --> 00:22:29.105
Even though I'm making more money than most of these guys right now, Even though I'm not making a whole lot of money, I'm still making more.
00:22:31.200 --> 00:22:50.657
And so I would say a couple of things that I found out from that, a couple of takeaways, for that, you know, I would love to put to tell new business owners would be build it slow.
00:22:50.657 --> 00:23:13.406
Yeah, that's not the sexy way to to put it, Um, but if you're the main breadwinner, if people depend on you for an income, you know, or if you don't come from uh, uh, you know expensive, if you don't come from a very rich family um yeah you, it's harder for you to take that risk.
00:23:13.467 --> 00:23:19.461
So build it slow, uh, and watch debt, I know, uh.
00:23:19.461 --> 00:23:26.742
This is another one where business owners and gurus will tell you, like you just said, take on debt, leverage other people's money, make it work.
00:23:26.742 --> 00:23:30.258
We figured out, when we looked at it.
00:23:30.258 --> 00:23:40.319
You know the most we were ever in debt with our rentals and our business ownerships from buying the business, from buying a business, you know the most we were ever in debt was nine hundred thousand dollars.
00:23:40.319 --> 00:23:52.468
Yeah, and the year that we were in, nine hundred thousand dollars worth of debt, um, I made hardly any money, hardly any and there's probably a ton of stress with that over your head.
00:23:52.488 --> 00:24:00.023
Yeah, yeah, yeah, I mean, you know I just rough figures.
00:24:00.023 --> 00:24:02.788
You know it was over $10,000 a month over 10.
00:24:03.950 --> 00:24:21.920
Yeah, over $10,000 a month going out in just debt payoff you know, yeah, that's insane, you know yeah, that's um, so we figured that I make more money when I'm not in debt.
00:24:21.960 --> 00:24:25.506
The peace of mind as well you do, so I'm one I.
00:24:25.506 --> 00:24:27.368
I know I was listening to bob.
00:24:27.368 --> 00:24:32.553
I was listening to your, your and bob's uh podcast and I know bob said something about dave ramsey.
00:24:32.553 --> 00:24:35.162
So I chuckled to myself because I remember I wanted to say this.
00:24:35.162 --> 00:24:39.825
I said yeah, I'm more of a Dave Ramsey fan now that I'm not an empire builder.
00:24:39.825 --> 00:24:47.285
Yeah, because my life is less stressful now that you know we don't use a whole lot of debt, if any.
00:24:47.855 --> 00:24:54.595
Yeah, you seem a lot more calm and chill this go around than like a year or so ago last time we hung out in greenville.
00:24:54.595 --> 00:25:00.607
Yeah, yeah, oh yeah it's like hey, there's a lot of growth that has occurred in the meantime.
00:25:00.607 --> 00:25:09.618
As you've like, detoxed yourself from this empire building mindset that I think entrepreneurs can be like, really susceptible to catching yeah, sucked into.
00:25:09.659 --> 00:25:23.028
Yeah, yeah, um, I will say I'm not opposed to debt, but, um, the only debt that is and I've, I've, this is my conclusion the only debt that is good debt is debt that other people pay for.