when you start getting paid one group of
people leave the room and a whole new
usher in that [ __ ] is superficial as and
you love it they slid across a check
$525,000 for only thing was going
through my mind was how much of this can
I do she opened up the door to the P
it's like the sky open up within
36 months I would be in prison sitting
across from you in the show I born in
Brooklyn New York parents Jamaicans grew
up in the 80s man uh where [ __ ] was uh
crazy in the 80s in Brooklyn this was
you know the funny thing about growing
up in the ' 80s I tell people this all
the time where people kind of say oh uh
where we are you have to have a mean
fight game and you have to be able to
fight and kick some ass this is shoot no
it's true okay it's true the bullying
[ __ ] they talk about bullying The
Bullying that they were doing in the 80s
I mean today I mean I mean [ __ ]
are still traumatized from that [ __ ] you
know what I mean I mean you had to
literally come out your door and be
fighting like 10 [ __ ] people and I I
I think that that whole logic just
completely uh carried over it carried
over into I think I I think with me I
think with so many other people it
carried over into that Hustler's mindset
you know what I mean it was always the
fight the continuation of the fight the
continuation know the push and just uh
constantly having that uh you know I I
think people become embolden the more
you go the more you go and the more you
go so it leads to business to hustling
and then uh and then if you don't watch
it you know you can end up into criminal
activity which is a whole
another another um another dichotomy
your mom was in real estate wasn't she
so my dad was a real estate broker okay
my dad was a real estate broker good
memory Matt good me damn man I'm
flattered that you remember that damn
thing about your M no my D no no but
close my mother was a banker so my
mother was she had uh a master degree in
finance she was a banker with Chase uh
and my fa she was she was actually did
trust and did management for uh large
accounts and my father though was a real
estate broker and uh uh he would buy
properties he would buy houses and that
was my introduction in real estate I
remember being a little kid and I was
close to my father always I still am
close to my father and I remember you
know just driving around with my father
up and down Brooklyn this is like early
80s and me sitting here
and him driving through was miss miss
miss miss miss miss I'm how much would
you like for that house how much would
you like for I'll give you 100,000 I'll
give you 200,000 I mean he didn't have
the money but you know [ __ ] felt good he
sound good so that was my introduction
into um get in real estate my father was
a uh real estate broker so but
ironically though we he did we did make
a big push in real estate when I was
about 21 years old when I was 21 years
old I had uh came down to Atlanta I had
never done anything in real estate me I
didn't even like real estate my uh my uh
father cuz you know he was always
waiting on a closing I never understood
that [ __ ] like how are you always
waiting on a closing we're GNA get this
closing was like was like Christmas time
you know what I'm saying was like the
like we got a closing coming up next
month we got a closing but for right now
we're broke right but we got the closing
coming up you know what I mean so the
thing was was that um I never underst
said it but when I was 21 years old I
had come back you know I used to drink a
lot I haven't drink since you know I Dr
I was in my 20s but back then I was a
bit of a heavy drinker and I had come
back to uh Brooklyn from Atlanta 21
years old gotten a bunch of trouble and
he was starting a um real estate rental
business out of one of his Brownstones
so when I gone there to uh he told me
listen just help this lady Charmaine out
he has some lady named chain this is in
Brooklyn in the brownst the main Flor he
just said we're running a running
Apartments I'm like what the [ __ ] is
running Apartments how do you make money
off that he say listen just help
Charmaine out we know no problem and uh
you know we I'm going to give you $200 a
week and you'll be fine chamain was like
this uh what year was this this was like
1990 a week and that was not great
no he's hooking me up I was drunk got in
trouble in Atlanta ended back up in
Brooklyn I'm 21 years old and it's like
19 19 uh maybe 92 or some [ __ ] like that
and uh yeah he had Charmaine there
Charmaine was gorgeous one of you know
some chick he had rent apartments for
and I sat there and I'll never forget it
was one desk was a big you know they
have the shotgun Brownstones he own the
Brownstone and we're sitting there on a
main P floor and uh he said listen I
help her out they're going to be running
apartments and and I I said fine he
dropped me off there at 7 o'clock in the
morning he said wait here for her she's
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what what's yours today well about
came and I'm sitting there waiting for
her to show up December cold ass New
York day and um she came she kind of
brief me said listen just keep up with
me keep up with this process you'll be
fine she's like 35 years old fine as
hell I'm like oh yeah I'd love to work
with you no problem at all just
well-dressed Trinidadian chick fine as
hell and she said we open at 8 I said
okay 5 minutes into her telling me this
like going to to B Rings a she
says let him wait I said okay then then
hit and when hit it was and
she said okay let him in so I had to go
open these big wood doors and then go to
the main door when I opened the door
there was a line of women there must
have been about maybe 30 40 women from
the door down the steps going down the
other side of the steps cuz you know the
Brownstones kind of go up like that just
a line of women going through and I and
just women women of all ages and and and
someone fine as hell I said so I came
back I said okay I came back and I sat
down she said here's a clipboard here's
a pen she gave me like a stack of them
she said give everybody a clipboard I
ran out give everybody a clipboard and
these were people they were on Social
Services Public Assistance section8
Section 8 Public Assistance jigs they
had a age program called her at the time
they had a various array of these social
programs so I'm giving them the
clipboards giving the clipboards I'm
standing there e I'm trying to figure
out what the hell is going on well long
story short she go through and she as
they were filling the papers out she'd
be in the newspapers and calling up
landlords be in the newspapers and she
would be saying hey you got an apartment
front you got an apartment front you got
and they would just give her these
apartments and she would basically just
give them these apartments as they came
through and just kind of like assign
them an apartment well I was there just
helping out helping the process through
moving the papers through saying can you
sit over here can you move over here and
just kind of moving them through and she
was started like she started you know
maybe at 8 and she was done by like 12
well we had done this a few times
during the week I'm opening the doors
going back forth I kind of watched the
process and one day I said I I said to
her how do you get paid off of this she
said well I get 15% of the years rent is
split it with your father well the
average rent was uh uh about $1,000 a
month uh says $112,000 uh 15% of that
might have been I don't know I'm just
going to throw a number out like 1,800
bucks or something like that and she all
9900 so I said wait a minute you're
getting
$900 from all those people are coming
through every day how many are getting
an apartment though maybe even if 50%
are well how about this she was running
like an apartment a day and cutting out
at like right that's why she was
working for like 3 hours she's like
making damn near a th000 bucks and
cutting out like like like she's just
cutting out right away so I said okay
she said but you can't do it because you
need a real estate license I said be a
broker you have to be a broker sh I went
to my father and I told my father I said
hey Dad why don't you let me try a
couple these you know I knew my father
my father loved me to death I said dad
let me just try one or two of these he
said all right well I'll let you try one
or two of them let's see what you can do
so I'm there working with her so now I'm
working with her I said I'll just wait
for her to leave this chick would leave
at
well I just kept everyone coming I
just kept calling everyone back in [ __ ]
the first week I rented like four or
five of them then after that I rented I
just kept the whole process going week
after week after week then I just turned
the whole thing up so she would be
making probably realistically time she
did a split maybe 3 4,000 a week she I
was making $6 $7,000 a week just from
running rooms with this program and it
took off so I mean it it hit so hard
from these rentals with these government
programs I started calling my friends
down and I start call my friends next
thing you know we built my father and
the chick got so upset and so offended
by the competition she quit she
absolutely quit the job she just said
listen you have your son going through
here you know this is your broker he
shouldn't be doing this anyway and he's
creating competition for me now she's
ethical
now ethical issues she she looked at my
father my father looked at her and said
I understand how you
feel and and and and and I completely
understand your position and good luck
to you and she walked out the door and
man we blew that thing up and we were
running rooms literally I was probably
averaging $5,000 a week at 21 22 and we
were Absolut I brought in all my friends
like maybe five six of us and we
literally were just advertised we were
called 099 cuz the number was uh 718
36399 so everyone knew us as 0909 and we
would have and then the chicks I mean
you know the chicks man the this [ __ ]
was endless you know you know like you
know the only time you stop talking and
then the
chicks you know women are subsized
housing damn when you said it was all
women I thought section SE rented
section never rented to a always were
you getting the commissions off of it to
the the percentage off we own the houses
oh oh you own the houses we were just
brokering yeah yeah we were just bro we
Brokers do is they get they they
typically get like a percent I guess 15%
is they get a percentage of the the
annual whatever is made you know or
sometimes they'll get which is
basically it's basically like the first
month's rent you know typically
sometimes they'll do they'll get the
first month's rent or some I guess in
this case a little bit more than that
well I think it was a little bit more
than that because they were just
subsidized housing and it was just kind
of you have to convince the landlord to
take well take no the city was paying
the commission oh okay I thought she was
calling and convincing them I can get
you a tenant but you have to give us 15
no she was calling them convincing them
take this subsidized housing tenant okay
take the subsidized housing tenant we
file the paperwork through the case
managers downtown Brooklyn and they
would cut the check to us through my
father's broker's license and that's how
we were getting the Miss so the crazy
thing was was that that's why it was
such a all we did was just do we called
them breakdowns we just do the breakdown
send it down to the case manager and
they would cut the check the landlords
didn't have to give us the money we just
had to convince them she has Section 8
she's not going to her and her six kids
will not destroy your house it's going
to be okay don't worry about it the Glen
come on in and we're going to you know
guarantee you know that everything's
okay and they would uh Section 8 would
actually uh uh well the city would pay
us pay us the uh commission but that was
during David denin if you're familiar
with New York in the 90s David denin was
the mayor really liberal kind of guy
Rudy Juliana came in like after two
years D was up the party was over so the
party was over uh D slowly but surely
within I'm talking about like within a
month of him being in office those
breakdowns I mean that [ __ ] was dead so
that that was that's actually how I
ended up going down to Atlanta because
after wow uh we I couldn't make any
money up there my father's office just
pretty much closed and I ended up
transitioning moving down to Atlanta and
I want to get in the real estate
business I didn't know [ __ ] about the
real estate business but something
said something said that I was literally
you know it listen if you've got if you
have that real innate deep hustle in you
like that hustle you have to just really
let out in some type of real Hustle real
estate is always uh a great Outlet um
you know selling rock was before that it
was like a pre a pre detour you you
skipped that far yeah Rock was a pre
what was that when was let's go back to
that real quick well so I moved down to
Atlanta I moved out when I moved down to
so I moved Atlanta I was maybe 23 years
old 24 years old moved down to Atlanta
which was just you know I was excited I
thought I was going to make all this
money I thought it was going to jump off
I thought it was just going to be
Absolut Ely just through the roof but
you didn't take off that way you got to
remember something I was I was alcoholic
anyway I'd been drinking excessively
since I was you know night getting
[ __ ] up and then days going to work
trying to work trying to so I had a lot
of talent but you know like anything
else if you have these dependency issues
and you're a dependent on [ __ ] you
addiction is a [ __ ] right so I
was down here and I moved to Atlanta I
was like 23 by then and I'm trying to
get this thing off the ground with sales
trying to learn about real estate you
know partying drinking in Atlanta it's
not working ended up homeless so I ended
up homeless so the ironic thing was is I
ended up
homeless my uh
cousin uh uh who that's who I'm here
with now my cousin right he had like
houses like all across Atlanta so I went
to just literally go you know he's my
big brother right so I I'm like yo man
they kicked me out T he's like well [ __ ]
I mean I'm working out of this C but
there's a room upstairs is for you I'm
like all right no problem so I go up
there and uh literally just all this
activity all this traffic going on and
one day he just says Hey listen man he
says look um we're there and I'm just
there trying to get my [ __ ] together I
was doing a little telemarketing job
during the day he says um listen he says
uh yeah a customer now he says can you
just give yeah the customer like this
like a a tra right he got a customer he
says he was upstairs like doing watching
TV cutting up a bunch of other sh could
you give them these two dimes for me
just take it right downstairs just hand
to the two dimes like all right cool man
I go downstairs and listen I took those
two dimes and put it in that damn
junkie's hand and she gave me that $20
in exchange the transaction and I don't
know what happened it's like she got
hooked on a and I got hooked on that $20
man and after that I said to my go I'm
like do you have any of this [ __ ] that I
can uh sell as well to he looked he such
sure and the next thing you know said
I'm only going to do this for two weeks
well three years went
by three [ __ ] years went by and
you know three years of selling rock
really takes his toe you know and and
and you you you're selling rock to the
Junkies you know it's dangerous you know
yeah you uh you know you're getting into
these crazy ass um arguments or
situations situations I can tell you
situation that was crazy as uh this
cousin right here I great story I could
tell you so we're in like this rock
house right so they're like two size
like a duplex by the way this very house
that was the Rock House back in 1990
1991 92 this dilapidated house just sold
for about literally like7 800,000
through the generification that's a
whole another story I was listen I got
places in eor city that I was buying for
I bought for 40,000 I see them listed
for 6 and 800,000 it's like I bought
that house for
$40,000 20 years ago it's insane insane
how much these is going for and it's
amazing how these these uh houses
through gentrification just take on just
a whole just a whole new meaning huh
it's not all that g no it's not you got
you got you got to do the push-up place
is still not you got to do the big
pushup so we I got I get in a fight with
this guy uh this guy's harassing me
while I'm you know selling you know I'm
there you know reading the Wall Street
Journal while selling the rock on the
side you know what I mean trying to make
my money because I'm preparing for my
real estate exam but I'm selling rock
side so I'm no right so this was like a
temporary thing right so I'm down here
preparing for my real estate exam and
this is my cousin [ __ ] right so I'm I'm
there uh working out of there preparing
for my real estate exam and uh selling
rock and it was one of the junkies that
this guy just this guy just he I think
he just thought I was just kind of like
a a nerd under my cousin's kind of wing
which really I wasn't you know like like
I told the guy I'm gonna kick your ass
anyway this guy and I get in a fight my
cousin's there I'm there this guy gets
in a this guy and I get in a fight long
story short as we're getting into the
fight we have the fight at the house he
goes up the street instead of me
understanding listen he's coming back
just stop fighting I thought I ran them
off so I became incredibly confident I
said I I said listen I'm G really settle
this [ __ ] one last time we really going
to have this fight in the street in
front of everybody I go running up
behind this guy up the street this guy's
like running running but what he's
actually doing is he's pulling me away
from my family my crew the whole thing
right so we get up the street get Street
and there and I said I said I said yo
[ __ ] I am going to kick your
[ __ ] ass this final [ __ ]
time as he turns around this guy pulls
out a ice pick this long he pulls the
ice pick out and he I'm thinking to
myself oh god what have I done pulls the
ice piig out swings the ice piig as he
swings the ice pick I jump back by the
grace of God he misses me at the ice
pick I'm looking thinking to myself oh
my God I'm absolutely done swings the
ice pick again I'm thinking myself oh my
God I'm absolutely done the third
time the third time he brings this ice
pick up as he brings the ice pick up I'm
thinking to myself I am absolutely done
this is it for me the ice pit comes up
I'm standing in the street I'm looking
this guy's like right over me and comes
up with the ice p and I'm thinking oh
this is it and then as he comes up it's
like he sees a ghost when he sees this
ghost he turns around and takes off
running like literally Midway through he
just takes off I look behind me it's my
cousin he's got a gun pulled just like
this right behind me I'm thinking to
myself oh through the grace of God that
this whole thing has absolutely I I was
like absolutely mortified and that was
when at that point that's why I start
praying saying you know Lord I need to
find another line of work this is
probably not going to be the uh best
line of work for me you know this is I
probably need to find something else to
do the the the whole concept of this is
my cousin's thing I'm just helping him
out like the whole I feel like if the
cop showed up though I'm just an
employee it just it
just and the ice pick thing just really
just kind of just move just mve me up so
you went back to New York no no no no I
no believe it or not when that happened
I I I I literally prayed on the corner
uh I literally was on the corner I
prayed and I said you know God there's
got to be something better for me to do
clearly I have more talent to my life
there's got to be something else I can
do I said I want to job at McDonald's I
go rent a room I'm 27 years old let me
just kind of regroup I'm alcoholic let
me just get the drinking off my back the
whole thing just show me a pathway out
well saying that prayer about two days
later I met this uh really fond uh white
chick she was like a dancer at at one of
the highend strip clubs she wanted some
rock I said no problem I went with to a
hotel to kind of serve up well she set
me up and I ended up getting arrested by
an undercover officer so my way out was
actually me getting arrested so I get
arrested and I always said if I got
arrested I would stop doing this and I
would never do it again I would never
sell drugs again if I got arrested well
I got arrested bonded out I had a sell
case at this point and I didn't go by my
own model like literally two days later
three days I needed money CU I spent the
money all my money to get out I went
back it's right back to the same spot
started selling again and sure enough
sold to an undercover officer again mind
you I had gone like three years with no
problem suddenly I'm still caught
another case when I caught another case
bam bonded out by two sellc cases I
never had a record nothing I'm thinking
oh God this is this is this is bad this
isn't good um but while there went to a
club one night met a fantastic lady
beautiful woman she was Angelic she's
like an angel she was a nurse uh Lisa if
you ever see this uh I'm sorry about the
way things worked out I I I I should
have made better decisions going for and
I really mean that um and she took me
home to her house and I'm like literally
moved me in and when I moved in I said
I'm going to sit here I'm going to get
sober uh I'm going to take this time to
really re-evaluate the life I've been
living and I'm G to stop smoking I
smoking two packs of cigar I'm just
going to get myself together well I sat
there and sat there and sat there
started getting myself together got a
job uh uh doing gas deregulation where
you knocked back then it was do gas
deregulation where you knocked on doors
where uh the gas the Monopoly of gas com
being broken up and you had these
independent uh uh these independent uh
vendors that would give you the gas
resellers I would give you the gas so I
was knocking on doors and things of that
nature but the thing is is that as I'm
doing this and I'm like really drying
out and sobering
up I was at leisa's house one night and
like maybe my second month to really get
myself IM I'm makeing like $200 a week
again and and I love it I'm making 200
bucks a week but I'm sober I'm getting
together I'm you know I'm really like
the drug [ __ ] is going behind me I'm
really like evolving moving on so as I'm
doing this a friend of mine from New
York he calls me one day I'm at Lisa's
house he says hey man I got to leave
town the cops are looking for me I'm
thinking good luck get the [ __ ] out of
here right goodbye right so when he
tells me the cops looking for me could
not make this up he has like this black
beautiful synthetic Gator briefcase it
wasn't real but it looked real you know
what I mean some real but the Gat and he
has the locks on it the whole thing and
he says listen I got in this he says
just like this I could not make in his
briefcase it's something that's going to
make you
rich I said something's G to make me
Rich mind you I'm sobering up $200 a
week I said oh what's going to make me
Rich he
says in this
briefcase is a Colton sheets brochure so
you got me this is the '90s in the early
'90s colon sheets was like like like he
was like
he was like the [ __ ] wizard of
of real estate money right this is pre-
internet right so he says in this
briefcase is is is is cartton sheets and
he says this carton he says this once
you forgot how to unlock this because
it's locked right so once you figure out
how to unlock this you're going to go in
here and this program is going to make
you rich so I say sure man no problem at
all I said he said good luck take it he
put that briefcase at the at towards the
end of my girlfriend's bed I never got
it was kind of like the wall where you
know you could sit in the bed and it's
like against the wall I gave him dab
said good luck bro he leaves town and
that briefcase is there and I'm working
knocking on doors looking at the
briefcase busting my ass work and then
one day I looked at that briefcase Matt
for about literally for about a month
and a half that briefcase looked at me I
did that briefcase I was not going to do
I remember I still had uh uh uh my dad
and and the and the part I was renting I
still had that real estate exposure but
I didn't know [ __ ] about real estate I
was running Apartments I watch my dad go
miss miss miss and and really do his
cloes this but I didn't know [ __ ] about
real estate so one day I said one day I
just I just said something just said
open the briefcase I just felt compelled
I had no thought no nothing open and I
remember taking the hatchet cuz the
locks just snap on locks I had to pry it
open pry it open and I opened it sure
enough there was 12 CDs and booklets
and I read the booklets I listen about
five of the CDs and I
realized Caron she program was total
[ __ ] gave you no information no
nothing it was total [ __ ] this was
no secret formula there was no Miracle
information it was total it was a Griff
it was total [ __ ] that was in there
so but I did read one small paragraph
one little paragraph that resonated and
stood out to me what was that flipping
contracts oh yeah yeah so he gave he
gave a real brush over because you know
cross didn't know [ __ ] anyway he you
know he was a hustler right so he just
simply said flipping C I'm I'm G to
paraphrase for you broke [ __ ]
flipping who have bad credit and don't
got [ __ ] going on you go out there and
get a
contract and put a house under contract
he just give the details but basically
say you put out in the contract you sell
the contract for a profit in essence
that's what it was bird dogging bird
dogging so I called my dad up and I said
dad this flipping contracts s how he
said listen he said you just simply get
a property under contract called him up
in Brooklyn said get a property under
contract put it under below market and
then You' uh you mark the contract up
and you sell for a prop sell it to who
get the contract from who what is the
contract how's the contract work my dad
said listen I I I can't answer all these
questions my dad was a broker but he
wasn't flipping a whole lot of contracts
he did flip contracts though but he said
and he just didn't you know it just kind
of me going on and on he just said
listen uh if you get something call me I
and we'll take it from there I said all
right well I went back out that day and
of course I was doing gas and gas
deregulation so you're already knocking
on people's doors right already you're
already in a great position I was but I
that's the hardest part anyway you're
already doing the hardest part I'm
already doing the hardest part I'm
already doing the hardest part but it
really did get much harder
right it really got [ __ ] harder so
I'm knocking on doors knocking on doors
knocking on doors I say hey gasy
regulation would you like to sign up
because I got $10 for each one of these
gas forms I you know so I was getting my
$10 from the gas for and I would also
say well knock it on doors for gas hand
a piece of Pap for gas G I also say them
I'm also a real
estate say I'm a real estate broker real
estate investor I'm also a real estate
investor and I buy properties right and
uh if you ever have you want to sell
your properties please be sure to give
me a call like the guy knocking Endor
some $10 Gas forms I'm also a real
estate investor let me uh not a good
one let me let me
knock I knock on your door for gas
deregulation right uh uh but I also buy
real estate like I buy real estate in
ATL Landa I buy real estate all over one
and the people are going okay all right
okay we'll call you if you want to sell
our house and I just kept saying this
right no clue at all right didn't know
how a real estate transaction took place
so I'm telling them this right so I kept
doing this for like two three weeks
knocking door stoping doors and then one
evening I get a
call mind I'm like 27 years old doing
all this [ __ ] right I get a call phone
range just after like work I'm back at
my girlfriend like no car my girlfriend
have to come pick me up literally and
bring me back home like like I'm broke
broke her family's like looking at me
like where did you get this [ __ ] bum
from where did you get it's $200 a week
selling gas and I felt great cuz I'm
like oh I'm not drinking I'm a good guy
you know all this other [ __ ] real proud
of myself right she and she was so
loving and so B goodlooking girl too but
you know [ __ ] is bro right you you
ruined that I can tell right right I got
some money and I was like God right so
listen so she says um I I'm back one day
after work and I'm there and I get a
phone call phone rings I had this little
like cell phone that I would use and
phone's like ring ring ring
ring
hello hi Mr
dwon this is Mr Tyson you called my you
knocked on my grandmother's door about
buying a house I'm like oh [ __ ] so I was
like somebody's really calling about
this [ __ ] I said oh yeah absolutely do
you buy houses Mr Dawson I sure do
well my
grandmother has a house over here and I
like you see if you want to buy it I
said sure when you want me to come see
it come on down right now so I'll be
right I said I'll be right over so I
hung up the phone I called I told my
girlfriend I said listen you got to
drive me downtown there's a guy who
actually called me about buying a house
she said you don't have any Mone to buy
a house she's like you don't have any
she what are you talking about I'm like
the guy wants to something me out what
house she said he said he had a house I
just need to go see it she says I'll
take you there there she said do you
know anything do you know how much house
is worth I said I don't know let's just
go see the guy so I go I go to see the
guy I had this one yellow Tommy Hill
finger shirt that I would wear this was
like when I wanted to knock them dead
shirt right I like three shirts but the
yellow Tommy Hill finger shirt that was
the one right I put that yellow Tommy
Hill finger shirt on ironed it up real
quick threw it on my jeans my favorite
Tim boots back then and I jumped in the
car with her and sure enough we drive
down in the Grand Park there a section
of boots which really this is like one
of the early gentrifying areas of
Atlanta and we come up and we pull up
and he's sitting there in front of his
grandma's JY gave
and Mr Tyson was a black cowboy about 44
years old black hat cowboy hat and I'm
thinking jeans and and and some cowboy
boots and we pulled up and I my
girlfriend I pull up and I'm thinking to
myself as I'm pulling up cuz I'm from
Brooklyn you know I had never seen a
black cowboy before you know what I'm
saying he's like a black cowboy first of
all I had to get over that whole
Fascination on it he was like dark like
me cowboy and [ __ ] he's a little old
he's like 44 at the time and he says he
goes he says Hi Mr Daron I'm Mr Tyson I
looked I said I said hey Mr Tyson how
are you got call said I said is this the
house he says yeah this is the house
this is my grandmother's house and um
how much you give me for it and I looked
at the house I tried to look
professional I tried to posture I tried
to give some movement I looked at my
girlfriend I
said tell you what Mr
Tyson let
[Music]
me run some numbers because I heard him
say that before let me run
some let me run some numbers and I'm
going to come back and I'm going to uh I
I'll let you know he says when are you
going to get back to me I said tomorrow
at 11 a.m. he looks at me and he says to
me are you sure you're a real estate
investor like you just saw through my
whole Veil and I said yeah I sure am I I
I absolutely am jump in my girlfriend's
car I'm thinking where am I going to get
how would I sell this house how am I
going to buy this house as I'm saying
this as I'm driving with her I'm driving
through I look up and there's a sign
that says we buy house
back then they were on they were
everywhere we bu houses I see another
one that says We Buy Houses these [ __ ]
are everywhere we B I'm saying well
these guys obviously know what to do so
I start call I start calling them hey
this is DJ I'm a real estate investor
I've got a house for sale I called
another one hey this is DJ I'm a real
estate finally this this this one I say
I said listen I bring the deal to you
you can see the deal there one guy Tom
an just fin that guy Tom says uh I said
hey I'm DJ I'm R I have a house for sale
he says oh do you really I said yeah he
says when can I come see it I said well
I could take because we were still
downtown my girlfriend's car went to
maximize use of her car I said can you
come now he says yeah I'll come now this
guy Tom shows
up clean cut he looked like a doctor he
had like a some kind of class ring
on tall white guy you know the white guy
thing worked for me right tall white guy
and [ __ ] right and he came through real
clean cut and he says well let's go see
the house I said no problem I'll take
him by show him the house he absolutely
loves it uh and as he absolutely loves
the house I take him I said well we're
going to meet Mr Tyson tomorrow at about
10 11 o'clock why don't you come on down
and um look at house he said sure no
problem so the next day he comes down
just like he said he's gonna meet me he
meets me cuz Tom said he had the money
so when he has the money he comes on
back when he comes back we go to Tyson
said Mr Tyson this is my my colleague
Tom Tom is going to be putting up the
money for us to do this transaction
Tyson looks at me he says oh okay says
nice to meet you Tom Tom goes nice to
meet you Tyson and they're kind of both
looking so I kind of felt the energy
like they kind of looked Tom looked at
him he kind of looked at
Tom and something about me kind of felt
like the odd man out I couldn't quite
put my finger on it but but this is what
it got interesting they said he says
well how much you going to give me for
the house
Tom says I'll give you
$440,000 this is back in the early 90s
had you already worked out a deal with
him that hey whatever you're
offering tag 10 grand on to it for me
not at all because I trusted them he
doesn't know he offered where did you
think the extra money was going to come
from if he said 40 there's no extra
money for you Tyson wants 40 he's giving
40 and for you to say great I need you
to give me five he's going to be like
well you should have told me that
that but we have to remember something
very important you don't know anything I
didn't know what the [ __ ] I was doing
right I had no [ __ ] clue about what
the [ __ ] I was doing call my DBT I'm in
the middle of a deal how hard could this
be right right right right right right
the mindset right so so I I said to him
all right so Tyson says so he says to
Tyson uh Tyson says give me
44,000 I said uh to to uh cuz Tom said
40 he says give me
44,000 and they go t Tom goes You Got A
Deal Tyson goes great great no problem
at all and uh they look at me and they
say
uh Mr dosy do you want to do a
contract I said no I trust you guys why
would I need to do a contract oh you
really don't know what you're doing I
don't know nothing nothing at all green
Beyond green so I trust you guys why
would I need a
contract Matt they both looked at each
each other they looked at me they looked
at each other and that one connection
they made was this guy could not POS I I
felt the energy I mean it was poppable I
mean you could you could taste it when
they gave each other that look I I
didn't know what the look was but I felt
the look you know what I mean and and I
couldn't put it together so they both
looked at each other they said all right
no they look right called me said all
right no problem so sure enough we leave
and then we leave and then we go and I
said how long will it take you to close
Tom said I'll close it in 7 days no
problem no problem they said Mr do Ty
said Mr
Daron I'm going to call you once it
close by the way how much do you want
out the
deal I said Mr Tyson give me $122,000 it
was just a number I had
12 listen I felt 12,000 was the number I
had I dreamed at this point in my life
of having 12,000
at one significant time at one point
Tyson looked at me he said same look
again no problem Mr do no problem thanks
I walked away I looked at Lisa I said
Lisa we're going to be rich we're gonna
get this thing going we're going to be
loaded $112,000 I'm thinking oh I'm
going to show this whole [ __ ]
I'm gonna get myself a car I had the
whole thing going right so we leave I
think the Clos with seven
days seven days goes by
by 10 days goes
by I start calling Tyson no
answer about 15 days go goes by I called
Tom up I said Tom I haven't heard from
anyone what's going on I haven't heard a
thing what what happened he says Tyson
didn't call you I said no Tyson didn't
call
you he says let me call you right back I
said all right call him back after
thatle hours later no
answer then 20 days go by and I'm
sitting I'm like what the hell what I'm
talking to Lisa I'm talking to my cousin
I'm like I had a deal going with these
guys I had something happening what the
hell is happening so as this is going on
I started hanging around real estate
meetings real estate associations I met
this lady named Lucille in the interim
of me waiting to get disclosing lady
Lucille was about 70 years old she was
killing it in the real estate business
she was doing cash outs which I'll get
into what those were later on but she
was doing cash outs absolutely killing
it so her cash outs she's making 100,000
here 150,000 there you know where you
increase the price up create the equity
that was huge back then you know I mean
stayed alone she was killing that whole
[ __ ] right so she's making $100 kind of
took me under her Wing over this period
of time CU I took her interest so in how
old was she she was like 70 she was 70
and she looked she was sharp sharp and
she looked like she I swear she looked
about 40 okay right and um
and at one point I confided I said we
went to lunch and she invited me down to
lunch she said let me buy you a lunch
she just likeed me you know she was kind
of mentoring a little bit I sat there
and I said to her LC we're sitting at
this coffee shop I sitting at CHR and I
said
Lucille I did a deal says you did a deal
she says yeah I says I said where did
you she says oh where' you deal the deal
at she sipping her tea I said Grand Park
in the middle you did a deal in grandp
part I said yeah I said uh she
said she said uh how much how much did
you sell the deal for I said well we
sold it for $44,000 they're going to
give me $12,000 of it she says how did
you do a deal in Grant Park for
$44,000 I said uh that's the price I got
it for 40 she said houses in Grant Park
the after repair value are like
$350,000 she says that's the after
repair value on those properties she
said they need work I said yeah needed
work she says was it a big house I said
yeah it was big she says and you and she
she she how' you even get it that low
and she said how did you even s she says
let me see your
contract I said I don't have a contract
said you have no contract she says how
did you do a deal without a contract I
said oh well Mr Tyson and Mr Tom I
trusted them and they're going to set me
up with the deal and they're gonna bring
a whole deal back she says you're crazy
she says first of all a deal like that
we could have made you could have made
50 60,000 easy on that deal I'm like
what those are numbers I even heard of
she says oh no you got to call them back
I said I've been calling no one answered
I ran back she go back fine I go back I
call now we're into the 25th day now I
went to the third now I'm calling this
guy 10 times a day I'm like what the
hell have I done I'm calling calling
finally on like the 35th day I call
phone hello Mr Tyson this is Dary I've
been trying to reach you I haven't heard
from you I haven't heard about the deal
I need to talk to you about the kind Mr
Dary you call me more than my
[ __ ] excuse me Mr Tyson you call me
more than my [ __ ] Mr Daron now Mr Dar
let me be honest with you and let me be
frank with
you you're not getting $112,000 Mr Dary
I'm not no Mr Dary but what I am going
to do for you Mr Dary I'm want to give
you
$3,000 so you man $3,000 might as well
been 300 Grand to me at the time right
so literally I'm not bullshitting you
$3,000 like 300 Grand bro change your
life life changing money right three
grand right so he
says he says Mr Dy I'm leaving town in
about an
hour you need to meet me down at the the
wacovia bank on on Le
street I'm going this deal is already
closed and I'm going to give you
$33,000 if you are two minutes late Mr
Dawson you getting nothing and I'm going
back to
Alabama no problem Mr Tyson I'll be
right there boom he hangs with the phone
I hang up the phone I'm sitting here
like I'm sitting there I'm like I I see
leis ask if I can borrow a truck she
gives me a truck I jump in the truck I
on my way down like Lucille Lucille I Mr
Tyson oh did you did you rework the deal
no no no that's dead but he's giving me
$3,000 she goes oh okay I said I'm GNA
pick you up I want you to come with me I
run down pick her up real quick we're
going down to uh meet him at the W as we
pull to the wacovia I never forget this
Mr
Tyson has the pickup truck the back of
it pulled into the wacovia parking lot
in front of the bank packed with
boxes there was a a pit bll in a crate
within the boxes packed up also right
he's got this [ __ ] back and he's
standing there on the back of the pickup
like kind of leaned on it a brand new
beautiful cowboy hat he has a brand new
Cowboy but with this huge Silver Buckle
looking like [ __ ] new and
beautiful Cowboy boo he sees me pulling
up and he kind of leans on that truck
with the hat and he looks at me and he
goes I pull up I get out say hello Mr
Tyson how are you he says Mr dy I was
just about to leave
I
said Miss Tyson pulls it out he says
here's your $3,000 Cashers check I got
it just for you I said oh thank you
m Mr dson took me a lot of gas and time
to get down here I require $100 of this
$3,000 I said how am I supposed you I
have no money Mr Tyson no problem let's
go inside and cash it said okay Mr Tyson
we're walking in he's got the $3,000
check we give it to the cashier he's
standing in next to me standing next to
me the little cage back then this before
the Bulletproof the little cage and she
gives the the check and she gives a
check we're both standing there looking
at the cage and the cash is counting
she's cashing one two and I'm watching
each other I can't believe the flow of
these hundreds just hitting and hitting
three and these hundreds are coming
through these and they coming through
come and when he get to the last one uh
uh for the third 32900 three and he
takes his down one is mine he takes
$100 and I grabbed the $2,900 in my fist
and we're walking out the door to W Co
he's walking I'm like I got to get the
[ __ ] away from this [ __ ] but I
got the $2,900 we're walking through
he's behind me as we walk through at the
door the my car is over here my
girlfriend's car uh uh Lucille's sitting
in it and he's going to Crate that truck
with the dog and the pick up and all
that [ __ ] in there he's going to his way
and as we're moving away separ I'm walk
that truck I'm like oh God I got to get
the hell out of and he's on his car I
hear him say one more
time Mr
Daron I turn around and see yeah Mr
Tyson one more thing Mr dson what is it
Mr
Tyson Welcome to the Real Estate
business I said Thank you Mr Tyson true
story and that is my first deal I ever
did getting into the real estate
business it was the deal from hell now
you got the three grand I got at 2,900
29 2900 I didn't get three grand I got
2900 now hence let me just fast forward
this of course which y tell get into all
that my [ __ ] took off right I eat slip
breathe sleeping contracts right I
marketed the whole [ __ ] city signs
everywhere Dary Richard property
specialist uh property specialist we
buyes I [ __ ] put thousands of signs
through that [ __ ] I made myself
famous in that City two years not two
two years later two years later I'm
doing a deal up at my attorney's office
close the flip the deal get 90 grand off
the deal coming back out of office and I
told my team listen meet me down at the
at uh oh by by then I had the team oh
yeah but then by then I had the team can
I can I ask you a quick question real
quick sorry what happened with the the
um uh uh the sales
charges you got arrested twice for
selling did you get probation did you
get them thrown out so
did you just not go back to court no no
no so in that part of it as I went
through that two years of building the
business up yeah and building up the
entire business along that time I me I
started buying properties up and down
the city I literally started marketing
like a maniac I started doing deal after
deal flipping contract after contract
flipping a contract Machine by this time
flipping contracts I'm probably making
some we I'm probably doing a deal a week
right by by within the first 12 months
I'm prob 12 first year and a half I'm
doing about a deal a week so I'm making
anywhere from $3 to $10,000 a week by
then so as I'm flipping contracts now
I'm knocking on doors doing the calls
we're big on the telemarketing through
the process I meet a district attorney
an assistant district attorney and her
uh meet the assistant district attorney
and she not became friends we weren't
kicking or anything like that we were
just friends I was supposed to do a deal
on her house let me back up and along
the time with her I had done a deal with
the judge as well too I flipped her
property as well also so I'm making
myself a real name in the community
hence the district the assistant the
assistant district attorney I became
friends with at one point I confided and
I said
listen I know you work
downtown here's what I was doing prior
in my former life I was selling rock on
the corner I changed my life around by
changing my life around I got into real
estate she couldn't even see it she said
how long go was I was like this is like
a year and she says you've been flipping
I've been watching you flip houses left
and right how the hell are you and the
UN have going far I said well all I've
done is just focused on this day and
night night and day well when it time
came for me to go to court I end up
going down to court they went and spoke
to the
judge so she went and spoke to the judge
the judge that I flipped her contract
when they spoke to the judge and well
they spoke to the prosecutor the
prosecutor spoke to the judge let me
flip it that way right they actually
spoke to the prosecutor prosecut spoke
to so I went in front of the judge uh
this about a year and a half two years
later
he said Mr Richard i' I've heard about
what you've been doing and I've heard
about the remarkable way you've changed
your life around such a short period of
time people down here seem to know who
you are it was really two people but it
just kind of had that kind of uh uh
ubiquitous feel you know and she says he
says uh listen this is what I'm going to
do for
you I'm going to give you for two cell
cases of first offenders he says this is
going to be on your record for for a
year after that year we're going to
totally cut it off expunged expunged
nice but if you get any other trouble
I'm going to give you 40 years that's
what he told me and that's what happened
so you went the whole year you're good
yeah you I I had no problem i s in
contracts year yeah my problems came
later on but
but that's what I was doing I was
flipping those contracts day in day out
day in day out and the business just
took off so so I'm flipping contracts
okay so real quick for the purposes of
people watching flipping contracts is
he's going out and he's convincing a
homeowner who's selling their house to
sell him their house for $50,000 he
doesn't have $50,000 he's not buying it
for $50,000 he's then turning around and
going to an investor that's going to
sell that H or he goes and says look I
got a contract in this house for 50
Grand I'll give it to you for 65 guy
goes out he looks at the house says I'll
give you 60 he says okay no problem so
then the day of the closing sometimes
sometimes it's just an assignment fee
but sometimes it's called a simultan
closing same thing same thing well an
assignment would be different you
sometimes you can just assign the contct
they buy directly so what happens is
that guy buys a house for 60 he gives he
gives dosy $10,000 right so sometimes
you're just assigning it and at closing
you get a check sometimes you'll close
first on your $50,000 sale so you're
closing at 50 and then he comes in and
buys it immediately from you for 60
usually they buy it for 60 before you've
even bought it for 50 because it's the
same absolutely you know that's hard if
there's a mortgage company involved but
anyway that's what he's doing but he's
doing it there are guys that make
[ __ ] hundreds of thousands of dollar
and and you you don't license I'm just
saying the average guy if you're just
the guy buying and selling buying and
selling some of these guys that that's
all they do is knock on and that's that
and that that's hard it's it's grueling
work it just pay so if you have a talent
for knocking out that kind of grueling
work you can really take off with it if
you can if you can if you can take the
rejection and not let it basically make
make you want to off yourself you know
what I'm saying like you got to be able
to knock on the door and have them say
no I'm not interested and be like okay
thank you very much here's my card if
you change your mind and go the next one
go to the next one go to the next one
because you only need one to hit one
hits then boom 10 grand 15 grand 20
grand and it's a numbers game yeah cuz
ideaas you're making offer after offer
after offer after offer after offer it
is brutal it's intense and it's brutal
forget about having a social life but
when you're looking to come up and make
some money and you're broke like the way
I was broke are you kidding me you could
have told me work I was probably work
anywhere from 12 to 15 hours a day so
you're going for $200 a week to I was
making 10,000 put it this way by that by
that second year when I was in court I
bought a brand new S5 S500 back then
S500 Mercedes that ran me like 90 grand
and put like 710,000 rims on it I had
houses that that was renovated I mean
you know the whole story the idea was
was that again the beautiful part about
flipping the contracts was that I didn't
own anything I had nothing in it I just
needed the numbers to work and and
negotiating and negotiating and getting
as much Equity as I could in the deal
through negotiating that price down
allowed me to flip them quicker and
faster and I had a knack for it and the
idea was I would just call and call and
call and call and call hello hey this is
DJ property specialist just call to let
you know in the Atlanta area making a
number of cash offers on properties we
understand you're the owner of 222
challeng Street we'd like to let you
know we'd like to give you a call
tomorrow with a cash offer hopefully one
you may be interested in entertaining I
understand it's a three-bedroom correct
and that was the pitch I just kept
saying that pitch over and over and over
and over again and just start
negotiating deals so it took off I made
a ton of money suddenly I was
getting you know just just a lot of
recognition people love the fact that
the deals I was doing I was meeting
other people in the community my social
status so by this time it had to have
been I started 99 this is me in 2001
okay so I thought I was just at the
Pinnacle I just thought I was at the
Pinnacle I thought because I was making
like $10,000 a week I'm what's your D
I'm sorry what's your dad saying is your
dad like super oh everybody's proud
everybody thinks I'm doing great and
flipping conf is perfectly legal so it's
like so but and again I it was it was it
was just a miraculous story you know the
women you know unfortunately I left the
girlfriend you know uh and uh uh moved
into my house uh in West Den section we
worked out of there I started recruiting
people started building teams started
build by the way I ran it to Mr Tyson
again later on really when I was
successful and um yeah that was crazy
one day I like I told you I had done
that $90,000 deal uh I never getet that
more was a deal I mean 90,000 because
the deal had gotten bigger because we
started doing cash outs and things of
that nature which I get into that but I
was um I called it right said there was
a there was a uh a a restaurant with
that everybody used to eat I can't
remember the name of it I think it was
like Shan TRS or something like that I
said just meet me down there I said come
on down it's like 2 years later so as
we're coming through I come out the
closing I'm taking everybody to lunch
you know the lunch closing when you do
the closing take everybody lunch right
and I'm pulling in I got my Mercedes and
I pulling as I come but you got remember
my name is all over the city on those on
those signs it's like a billboard those
signs like free Billboards they're like
everywhere across the city so everyone
knows who I am by the name right so I
come I come in that store is I'm come
coming to the restaurant my friends are
there I'm walking the door I park the
car I'm excited I got I'm waving at them
through the glass the they like waving
back the little team and I walk through
as I walk through the door I go I'm like
hey is I'm walking I'm walking right
here oh my God stop the presses Mr Dary
listen as I stop the hears on my back
stood on my back I turned around and
look and that black cowboy had stood up
Mr Daron everybody everybody this is a
millionaire a millionaire Mr dson he
says Mr Daron he says I've been hearing
about you seen your signs all over the
place look at you Mr Dawson new hat new
shoes new clothes look at that car he
says Mr
Dy you should give me some money cuz
it's because of me why you got where you
are Mr daon I look I said you are
absolutely right Mr Tyson I'm thinking
oursel [ __ ] off but I'm think I said
you're absolutely right Mr Tyson you're
absolutely right good to see you Mr
Tyson he said Mr dson we need to stay in
touch with no thanks Mr Tyson enjoy your
lunch and I would have said that but I
did have that running from him
so I was flipping contracts and I I I
was killing flipping contracts and I
started doing you know I just always
made money at flipping cont then I
started doing what I called Cash outs
and that's where things
got that's where in questionable qu to
say the least so I don't know if your
audience knows about cash out so dur
so uh and I guess to explain you want me
to explain so during the uh height of
the uh uh of the real estate uh loose
lending cash outs essentially were uh it
was a practice that uh Real Estate
Investors had where you would increase
the price of the property right You'
increase the price of that property and
by increasing the price of that property
let's say the property was worth
hypothetically as is $100,000 appraises
would turn around and actually appraise
it at
$200,000 uh with that when the lender
when the seller only wanted $100,000 by
doing that allowed you to pull out
$100,000 in equity and increased value
and put it back in your pocket while the
seller took their 100,000 so the
property is really selling for 200,00 or
really selling for 100 you just got the
value of appraise at $200,000 you pulled
out the $100,000 by pulling out the
extra $100,000 in equity they got
$100,000 which was their base sale price
and then you took out the other $100,000
to many people the
novice they say oh what's wrong with
that well that's mortgage fraud yeah
yeah and the problem with the mortgage
fraud in that is that that's not the
actual value of the property then of
course you know the there was all the
paperwork being done to support that as
well too which just kind of adds to the
um [ __ ] across the board as well too
so the whole thing is just just but it
was a common practice it really was a
common practice across the board what's
so funny is that because typically a
seller has no clue what's happening when
you go in and say 200 I would go in and
I'd give them the contract for 200 Grand
and they they go it's 200 Grand I know
but we're we're going to be doing
renovations and because it's a
construction to permanent loan just if
which it's not right I'd say we're going
to we're going to cut 100,000 to the
construction company and I actually had
a construction company right so we go to
close I'd get the loan from the bank for
the $2 200,000 go to the closing we'd
close you get your 100 Grand the other
100 Grand would be cut to a construction
company there would be a provided
invoice and they would get to get that
money and we would provide an appraisal
to the lender saying that there had
already been a $100,000 in renovations
so it to everybody involved it looks
legit like the the seller thinks oh this
is for the that 100,000 is for the the
renovations that are going to be done
the bank thinks that 100,000 is to pay
back the contractors who have already
done the the work and nobody you know
because one hand doesn't know what the
other hand's doing and everybody
involved you'd have this free flowing
conversation where it looked a very
above board the the um the title company
knows about it they're cutting an
official check to this Corporation it's
being it was so it was so funny you'd
walk out there like I just committed
$100,000 in fraud and everybody's
perfectly aware of it and yet nobody
seems to understand that it's it's fraud
and the attorneys were happy with it too
attorneys did it all day long as well
the attorneys did it it was such a
common thing yeah illegal illegal well
you know it's it's it's like it's like
selling rocks it happens all the time it
is always illegal it's always illegal
and without a doubt about it and um yeah
and and you know the funny thing about
it was that it was so common but there
was just so much money and it was just
all around you and um well you know you
become embolden every time it goes
through I was just about to say that I
was just about to say you become
embolden and really you know what's
funny about is I get more into my story
about the real estate business and as I
go into the story about the real estate
business it is amazing how you could
have a legitimate business but it
becomes enamored and fraud by going a
little bit it's like how do you boil the
fraud frog slowly a little bit a little
bit a little bit incrementally it really
next thing you know your business is
just is just you're doing fraud as as a
you know and and the thing is with
Finance course and finance runs with
fraud Finance Wall Street the whole
gamut they so much fraud is based in it
that people are doing it as a full
course and then of course you know yeah
I I I was so comfortable in it it it was
perfectly okay like now I you know how
sick to my stomach the any one of my
transactions that I did that I thought
nothing about and I was bold walk in
argue yell everything the whole thing's
fraud I'm arguing and this and no give
me this and no well walk away then walk
away you don't have to sign I mean just
embold if I was were to do one of those
transactions to this day bro I'd be
puking in the parking could I'd be
terrified right nowe because you can't
do the time right
exactly can't do right you can't do the
time what it means same right then right
you can't right and once you get the
time and you're doing the time you're
like what the [ __ ] have I done to myself
absolutely and that is the that's just a
whole another story uh yeah so the thing
so so we started so we started doing the
cash outs so when I added the cash outs
in my business I was still flipping
contracts but I was flipping contracts
by also by way of cash out because my
income absolutely took off and that's
where the uh the women came in the the
the the the uh the fly Apartments came
in that's when my cars went from a Ben's
to a Bentley I swear the whole thing
just started uh taking off uh across the
board in in that respect so I have a
question for you too the other thing is
so you were making about 10 grand a week
no well no not not the cash I'm talk
flipping flipping those contracts right
so you're making roughly 40,000 a month
right 20 years ago 20 something years
ago right that's like half almost that's
let asume 40 that's almost half a
million dollars it and here's the thing
because I'm only asking you because I've
been asking so I know my answer I know
your answer is that is that you know
like like what and it was legal it was
legal flipping contracts you know why
wasn't that enough or did it I'm sorry
what I want to know your answer is you
know I think really happened I know this
sounds crazy what I'm about to say to
you I I've always been an Avid Reader
and I've always read a lot and I've
always read about people doing business
Hustlers on Wall Street it could be
anywhere from uh Sandy WS Michael milin
obious both by all these people in the
prison right it could be it could be
about all you know all the players right
and what happened with me is
that you start off saying I need $3,000
it's like $300,000 remember that three
grand that's the deal I will remember to
the day I die that's the deal that
sticks out but what happens is that
you're you're not on Boulevard anymore
that's where I used to uh sell drugs at
right you're not on Boulevard anymore
with crackheads anymore now you're uh uh
uh hanging out with Kim Porter at
Houston's on P Street uh you're you're
you're you're uh uh going you're you're
hanging out with with women that have
$2,000 boots on and and $22,000 purses
and here weaves that cost uh5 $600 your
crowd changes so when your crowd changes
your environment and again I was reading
about people who were making you know
$10 million a year so suddenly 10 Mill
and the more I kept reading it the more
kept saying you know if I can go from
here can I get there and it's just a
competitive driven greed based Edge just
it it it just it was it just that's
where my mind was
and that's what happens when you when
you when you get in that environment
because suddenly when you're hanging out
with someone that makes $40,000 a year
and you're making uh $10,000 a week or
$40,000 a month and then making $40,000
a year oh you're doing great the problem
is is that you leave that crowd you
leave that environment and the money
allows you go into another crowd and
that other crowd now you're the poor kid
now you're a poor kid $40,000 $40,000 is
uh um a a year is not such a a a month
uh excuse me a month is not such a big
deal you know um
so things things things things really uh
uh took off there was a I'll tell you
the when I got in cash outs and I saw
the power of cash outs I I'll tell you
what happened when I truly truly truly
truly
truly
truly saw the power of the cash
out um and this is where things just
really just again I had these points
where things where they were just like
these Pinnacle these game changers for
me right so as I'm doing these deals
flipping contracts flipping contracts
and mixing it with the cash I come
across this lady this lady's name was uh
uh I'm not gonna use her real name I'm
gonna say her name is Miss Barbara right
so Miss Barbara was a old school real
estate
investor that uh well she wasn't a real
estate investor her husband was real
estate investor so this is like that old
Atlanta kind of money type of thing this
woman by the way was just uh uh she's
like 75 years
old uh I called her one day to uh hey
how you doing this is DJ Richard
property specialist hey let you know the
whole pitch I like to take a look prop
she says yeah I have a property on
222 Ashby Ashby Road I said great I said
uh would like to make an offer on it D
now mind you is I'm making the offer
talking to on the phone she she says I
uh I'm looking at the comps the comps on
the property about 280,000 back then I
said to her uh what can I do uh uh do
all cash offers
um how much would you like for the
property I can close it in 10 days she
says will you give me
$112,000 so I'm thinking I'm I'm
like did I not hear her correctly right
I'm like so I pause I'm like I'm sorry
because we're on the phone never met I
said I'm sorry she says um um can you
give me
$112,000 I said um absolutely I can give
you $112,000 I said for a matter of fact
I can I can I said but what I'm going to
do for you is something special I'm
gonna close all cash and close this deal
for you all cash in 24 hours could that
work for you she said cuz I'm thinking
get this deal off the table now
some don't get the deal off the table
now she said sure no problem at all said
absolutely great I said again I said
what I like to do cuz I spend a lot of
time working with people in the market
and I always want to make sure that I do
have a relationship that is solidified
that I do make sure that we do create
that that relationship I'd love to come
by and meet with you and um bring over
the purchase and sales agreement and uh
we can endorse it there and I can
actually expedite this process very
quickly for you I says great I said well
can I come by she says sure here's my
address I go jump in my
car shoot right over there get there she
goes there this one was like 75 years
old but you could tell man when she was
younger you could tell she was she had
this long Indian hair she was like
really thick she's like I mean I mean
don't get me wrong I'm not chasing no
75y old woman but she was fine you could
tell she was like bad back in the day
I'm like oh [ __ ] she's fine back in the
day right so I said so good to meet you
Miss barbar I said hey my name you know
my name is d so good to meet you I said
Hey listen let's get this deal closed I
can get the deal closed for you very
quickly and she say sure no problem she
says to me cuz she's in kind of like
this so this's area called Kia Heights
that was like the old black
established Progressive upwardly mobile
black neighborhood in Atlanta in like
50s 60s she was still there so she was
kind of like a hold over from that era
in that property in those that
neighborhood right so you kind of get
the idea of this kind of Southern kind
of elite of the time that was there you
know so she's there she has a nice home
but it's an older home right so she says
but and it's an older house it's not a
big house Bungalow style Maybe 13,400
squ feet so we're there talking I'm get
still worth a couple hundred thousand
cleaned up right he still worth a couple
thousand cleaned up but it but I said
how do you get so I said to her she says
yeah my husband she we sitting down
there she says oh yes my husband he
died but he was a real he he was a was a
contractor and he just buy a house buy a
house buy a house and I'm rating AB
fantastic I said where's your husband at
now says oh he passed away l oh yeah he
bought over 100
houses so I'm looking I said is that
right really says yeah he bought over
100 houses she says so I've been selling
off a few of them I said that's
beautiful miss glass yeah Miss glass is
there with this shining silver hair
she's a old the woman just gorgeous
right and she says I sold the house last
week would you like to see what I bought
myself said we' like to see what you
bought your says yeah she says come on
let me show you said okay Never Been In
This Woman's house we stand up and we're
walking s's like 75 kid you not we start
walking through the living room we walk
into the kitchen as you walk into the
kitchen there's a window smaller window
in those older homes and it's over her
carport the car it goes right the
carports right there just take a look
and she pulls a curtain
back and sitting there is a brand new
fresh out the box BMW
M5 I said wow that's that's a beautiful
car she says oh yes it's the M5 I always
wanted it I said yes like I said I
always wanted it too it's like I said
it's beautiful it's like 80 grand it's
beautiful she says oh yes I said do you
get get to drive it often she says no
the young man down the street comes by
three times a week and he drives it to
take me to get my
groceries I said oh that's beautiful
miss glass very nice so we go back sit
down I do the contract sure enough to my
word 48 hours later we're there getting
the contract done pay her the deal
Deal's done as we're leaving the in the
parking lot of closing attorney I said
Miss glass do you happen to have
anything else I
clothes she
says well I have five
more but there's only one problem I said
what's that Miss glass you're going to
have to give me 15,000 for those my God
I said all right Miss glass I think I
could work I'm actually giving away a
real name now uh Miss Barber right Miss
bar Miss Barber right s Miss Barber I
said
um I said I said okay I said uh I said
would you allow me to own or Finance
those she say how much would you give me
down said tell you what I'll give you
$10,000 down and let me own and finance
them but I will give you the
$50,000 again in 48 hours say sure no
problem so what do you so you said they
were they were 15,000 are you 15,000 a
piece I'm get to $110,000 $10,000 and
there five of them okay oh okay sorry
right and a comps range anywhere from
was 75,000 total she's going to own her
Finance 25,000 you give her 50 she own
her Finance 25 five on each property yes
okay the average comp on those deals
were anywhere from $250,000 to
$350,000 that was the deal so her and I
we do the
deal get the properties I do the deal so
forth and get the deal under contract
for hour like so I've
got uh I've got uh 5 these uh uh uh
properties I've got five of them and I'm
thinking so back then you had some of
these people you know when you flip
contracts the you you always look for
this you always look for the sucker
money you know I mean dumb money right
people that don't really know the deal
but they're already they getting in the
business they're excited they're running
they so for they're s on across the
board right so I had these buyers that
bought Cash Out deals bought deals I
used to flip deals to they always
overpay
they always always overpaid so I so I
showed them the deal as soon as I got
the deal I said I'm flipping these I'm
flipping these off the rip so I had the
deals I said uh uh I said I need to you
know I want to do the deal I want to get
them sold call them up call my guys hey
I got these uh uh five deals I want to
turn around I want to sell these deals
through I want to get these deals sold I
said listen they're worth about $300,000
each they ran the comps they they got
excited they said yeah we got to get
these de this is what everybody friendy
got to get the deal we got to get these
deals we got to get these deals no
problem no problem no turn
around I sell them the deals for 100,000
each they turn
around they sell the deals for um
125,000 each they're making like 25,000
each one they don't know how much I'm
into the deal for they don't know how
much I'm into the deal at all for uh
they're rushing to get the deals done
I'm pushing get the deals done to get
Miss out the way cuz I closed with Miss
glass I still want to get her out the
way we go up we go up to the closing on
uh uh we do the we we go up to the
closing about maybe 30 40 days later
because they use conventional financing
with it I think with this deal that I
did with them by the time was all said
and done we went up there we did the
deal flipped the contracts to them sold
the deals to them they brought their
Buys in so I sold I closed owner finance
sold the sold the deal to them they have
a contract they went and just parsed it
out to their Network right they sold it
to their buyers I'm sitting up there at
the closing attorney's office it's just
signing just signing just signing just
Sig because because for each closing
that's taking place at the attorney's
office I'm sitting here signing signing
I'm at the conference table there people
because when I got there there people in
the waiting area everybody everybody's
there to Clos their piece of the deal
they've got the deal up there and I'm
sitting in I'm signing signing and as I
got through signing signing CL de at the
end of it I I'm sitting at the head of
the confers cuz they were ushering the
people in back and forth the attorney
came
in and all the people there you know uh
and they said uh thanks we appreciate it
you guys did a great job thank you so
much uh Mr Richard here's your
check and they slid across a check was
probably like
$525,000 man when they gave me the
[ __ ] check listen I said to myself I
said stay
calm stay [ __ ] calm I'm looking I'm
saying get the [ __ ] out this room now
I'm looking and at first thing I'm
thinking I'm like get out I'm looking
the the attorney's there the guys there
they smile now the guys are looking and
they realize CU they didn't know how
much they didn't know my payoff was when
they realizing what the payoff was and
what the check was across the board and
I've got that check from 500 and I'm
thinking now these [ __ ] are
look at me like K kin right they like I
got to get the hell up out of here right
I take that check and I slid the [ __ ] up
out that closing table and I went out
that
door I told everybody thank you so much
I appreciate every last one of you I
took that chick I went downstairs jumped
in my car went to Houston's restaurant
across the street which you know Houston
is really dark this is when it was on
West Pacers Ferry went into that
[ __ ] crawled like my ass into
the back of Houston's thought I blended
in the dark cuz you know they have the
dark them lights I'm dark I didn't want
anybody to see me right I'm in that
[ __ ] and I just looked at the
check and that was the time I got
$525,000 off of a deal probably in about
45 days but you have to remember this is
around two this is like 2001 I did this
this is like 2001 uh I turned around
took the uh uh turned around took the
check deposit ited the check in the
bank the bank I deposited the check in
there was a girl down there that I used
to have the hots for her name Candice if
you're watching this yes I'm talking
about you her name was
Candice and she would brush me over
brush fine mother back then she was
young she had the hair the look this was
bad [ __ ] right and she would
kind of brushed me you I was getting
some money but you know that but this
particular check with the money I put in
the bank and with the cash I had been
already accumulating for my deals this
kicked me over the million dollar mark
That's the other part about this that
was just symbolic CU I put the check in
with the other funds that had already
been accumulating this literally put my
account literally in my account I was
over a million dollars in my account
first time and I put the money in I said
by the way cand just here because I want
her to see me put it in they said uh no
she's not all right well just tell her I
wanted to say hi you know you know I try
to catch her and say hi she brushed me
up you know I got a boyfriend just I'll
put that check in the account it say
she's at
[Music]
lunch I went
home my phone rang hour and a half
later hello hey how you doing I said hey
what's going
on would you like to go to dinner
tonight
absolutely I
knew that that check that money was the
first time I saw what really the type of
women I wanted the type of crowd I
wanted to be around the type of funds I
wanted to be around and that was when
the mindset of I wasn't thinking in
terms of 10 50, I was thinking in terms
of millions always in a million always
in a million or so I need it just really
just accelerated my appetite accelerated
move forward and that was like my first
lick that put me over the million dollar
Mark and that's really what accelerated
me into upping my game and getting into
the next level of deals by the way the
next level of deals this is what landed
me in prison the the new era of deal
making that ushered into which was when
I got into the condo condo business
conversions condo conversions condo
conversions and that's what
really that but the point of that story
for me was just it just you know when
you're really hustling and you're you're
you're you know when you're like really
living that [ __ ] I ain't talking about
hustling and going home and [ __ ]
being home for dinner with your kids and
[ __ ] like that when you're like listen I
don't give a [ __ ] I want to get
seriously seriously paid I I I want to
put the points on the board it's like
being in the NBA going to play ball I
want to get on the court pass me the
ball I want to show you [ __ ] I
can dunk too right I want to show you
that my black ass can dunk you know what
I'm saying you want to really let them
see it you know it it the mindset and
the mentality it starts to really evolve
and go to another level
so I'm flipping contracts flipping
contracts flipping deals my whole deal
program is gone but I'm looking on how
to elevate this St but I'm really am I'm
at this point I really am killing I had
a girlfriend at the time uh another
girlfriend time ended up living Shar and
I were living together and when we were
living together um
things
just things were just going uh uh South
between us I was in the streets I was in
the street I was in the street the women
had changed the party Chang suddenly you
know the women were just G out the
friends the the the crowd and something
I was going you know I was I was the
first person in Atlanta uh uh uh in uh
uh in uh 2004 that bought I was like one
of the first people the brand new Bley
GT coup when they came out the two so I
CED one of those I still had my brand
new bands I was just rolling so my uh my
girlfriend and I we had like a really
nice contemporary
townhouse that
uh that uh yeah remember that L that
remember we had this really nice
temporary townhouse and you know [ __ ]
just wasn't working out she said listen
you're not coming home at night I said
why I pay the [ __ ] bills why would
you want me to come do I have to come
home I'm paying for this [ __ ] she said
what are you talking about I love you
this St the other of course I was
completely disconnected I'm like what
are you what the hell are you talking
about I'm I'm getting money I'm making
sure you straight
and my view was you wouldn't have been
[ __ ] with me anyway if I wasn't
getting paid any any houses so enjoy the
[ __ ] ride and she says no but I love
you okay so the [ __ ] so one day one day
I'm not working so what I'm not
work no I mean this I feel bad I feel
bad no you don't cuz the thing really is
is that when these [ __ ] you know when
you start you know when you start
getting paid and everything elevates
everything moves forward the the one
group of people leave the room of your
life and a whole new usher in and that
[ __ ] is superficial as [ __ ] and you love
it and you love that [ __ ] did you get
the
go I I wrote down Tik Tok I said when
you get paid Tik Tok But but so it it
completely it it so when she said I love
you I love you um you know I mean I
loved her too but as
a never been anything more insincere
said well well here's the thing as my as
one of my kids mothers once told me I
believe you love me the best way you
know how I believe you love that's way
you know right so I'm at work one day
again I wasn't coming back home wasn't
coming back home I'm living with the
girlfriend [ __ ] is rolling [ __ ] is
moving and she comes in one day cuz I
wasn't there and and I can't there I
guess she got frustrated I'm sitting at
the office and the office is maybe two
miles from my house and she come through
she walks through the door she
says look [ __ ] I'm sick of this
[ __ ] I'm not going to be taking care and
sh I'm not going to be doing this [ __ ]
yo [ __ ] I'm here for you and I'm
doing this for you and I'm doing that
for you and she's yelling in the middle
of the office you know people are there
you know I go back I'm like she said I
said to her calm down n [ __ ]
we're going tell I said listen do me a
favor just calm
down let's take a minute have a seat
I'll be right back says all
right walked up Walked Out jumped in my
car drove to the condo we at the
townhouse packed my [ __ ] up put it in
the car put it in the hotel came back I
was like listen this is not working out
we need to go a separate way I left when
I left that place I went and on 14th
Street to Mayfair I walked in the door
of the uh Mayfair the next
day and I asked the lady I always want
to live in the Mayfair if you ever been
in Atlanta hotel it looks like a hotel
was a condo but in in in 200
and three we're in 2003 by now the mayia
was the [ __ ] oh this was just like it's
just it's just had the the the all the
decadence and all the all the finishes
and what you know you had to use the key
to get in and all the concierge they
just had the whole the whole [ __ ] this
was oh this was you know the walk here
you know you're in the middle of the
city this [ __ ] look like Park Avenue
right and I just want I said actually at
one point Beyonce had a condo in it she
had sold it by time I got but this is
just the level of what it was for that
day for that day right so I go in there
and I walk into the Mayfield I was like
I looked I'm like this is where I need
to [ __ ] live this is where I I I need
to be I just CED the Bentley I said this
is where a [ __ ] Bentley needs to be
this is it this is so I said to I said
to her I said I walk into the E office
black [ __ ] comes out she's about my age
at the time we're both maybe at the time
like 32 and I said to her
how much is a two-bedroom condo on a
twoed she says oh the two-bedroom condos
in here are 260 you know she and she's
looking at me like
$260,000 I'm like
$260,000 says yeah these buildings are
highrise beautiful over this is like the
Pinnacle of the city says $260 like $260
she says yeah like I
said I said is that the biggest one she
says yeah so do you have anything nicer
she goes the
penthouse so I said well how much is
that she says that's
$800,000 a huge jump but okay I said I
said okay I said can I see it she looks
at me she
says all right well I'll show it to you
you know she's a little apprehensive and
[ __ ] mind you I got her jeans and [ __ ]
she can't see my car and all this other
[ __ ] and I got jeans I'm like all right
she like all right I'll show to you so
remember this is this is a [ __ ] I've
been dreaming about but I'd never been
in a penth house mhm and I and I'm just
asking thisit I'm meant to exploring the
250 I knew I had that but I said I could
pay more right so she goes we get an
elevator she pulls the key out beep to
go to the pen house that beep in 2004 uh
uh 2003 was serious [ __ ] in 2003 H man
that was like some serious [ __ ] B I get
in that [ __ ] we start we start uh going
up and I'm thinking as we're riding up
I'm like man if they could just see a
[ __ ] boy you know what I'm saying this
[ __ ] is crazy we're just riding up and
we're riding up and we get how many
floors 33 or 34 this was so remember
this is 2003 this is like crazy right
time there wasn't that many big build at
time was that this was like crazy we're
riding up we're riding we up there's
like a like four units there for each
corner right bro she opened up the door
to the penous she walks and she opened
that [ __ ] up it's like the sky opened up
in that [ __ ] Penthouse the the floor
the ceilings the hardwood floors the the
windows how they just kind of wrapped
and opened up it was just you know I
looked I said the kitchen the granite
the I said to I said the Terrace The
Terrace was just you the air was so
different than three three it was three
Terraces and the air was I just said
this is I looked at her I walked in
there and my heart racing I looked at
her I said I'll take it she said you'll
take
it I said I'm G to I said I I move I
said I'm taking I'm going to closeth on
it she says are you sure I said yeah she
says
uh okay let's go and do the contract so
we jump back in the elevator we go back
downstairs I'm excited as hell this
black chick you know good-looking girl
she's got her suit on she says all right
she says good we're going to so I could
tell by her disposition though she's
something about me just isn't quite you
know maybe my elk just isn't really uh
resonating with her you know what I mean
so as we kind of going back downstairs
and we're riding back down through and
I'm right there with her and we're
riding down and we come down back down
to the conci elevator she opens a door
and I I see the white people with the
dog come walking I'm like oh yeah the
white people with the dog this is the
[ __ ] right I said this is where the [ __ ]
I need to be they come walking through
and Sh their Coates and and we go into
the sales office and [ __ ] and we go
there and we sit in that damn sales
office I sit in front of her and she
says all right I'm gonna do the call for
I'm gonna do the contract for you now D
she says uh so this one is uh uh uh
$800,000 she says she says uh is that
your offer I said I'm fine with the
$800,000 she says good she says uh all
right how much earnest money you going
to leave I said
$1,000 not at this level you're not
she's like
what leave $1,000 I'm like yeah actually
W leave $1,000 she
says listen sir are you going to be here
to waste my
time I'm not letting you leave $1,000
earn this
money
and I'm not sitting here wasting my time
doing this papay work so says sir people
leave uh uh 1% uh uh uh earnest money
which would be about $8,000 but for
these properties they're leaving two
three% these properties on demand this
one of our last penth houses left I said
ma'am I'm going to close this deal I'm
gonna get this
Penthouse in three
weeks I'm going to leave you $1,000
earnest money I'm going to close all
Cash He says sir I'm not doing I'm not
figing out the paperwork I said Miss
just submit the offer to the seller
who's the seller she says it's the
company that built it this one of the
last units they have left I said good
even more so cuz you know when I heard
that this is one of the last units they
have left uh hold over I said Miss just
submit it to the owners and I'll do the
just see what they say she said no I'm
not submitting it to the offer I said I
said you're a licensed agent it's your
job to submit the deal she says I don't
care what kind of I'm not sitting here
running around with this perform Marine
I'm not doing it I said okay why didn't
you just put down give her 20 grand why
didn't you just say I'll give you 20
grand because I didn't want to put up 20
grand the reason I didn't want to put up
20 grand was that if my deal fell apart
and my idea didn't work out I didn't
want to lose the 20 grand oh okay I'm
sorry I was assuming you had the money
no I've got the money I don't want to
lose no no no I don't want to lose the
money no no no you're not going to lose
the money if it's escrow if it's
dependent on on financing right but
she's not going to let me do it well
they're not going to let you do that
kind of deal put you put down they want
your right right this is this is not at
a whole another level they want that
earnest money and their mindset is like
yours at that level you should be able
to lose it but you got to remember I'm
got [ __ ] I was five years ago someone on
Boulevard this there no way you know
what I'm saying I'm thinking $20 totally
differently so what I did was what I did
do was I went back I left I went back I
got my assistant uh smart ass girl Nam
brilliant lady named Teresa she went I
said yo find that [ __ ] company that
developed that she went downtown
researched the company through the tax
records that actually did the
development itself and who the owners
were of that unit which was the company
they were in Israel they did these
things all over the country these
Concepts all over the country she
reached out to a guy named udy udy if
you're watching this she reached out to
guy named
udy reached out to udy in Israel and
then got the and left a message for udy
to call me I called you I said udy look
tell me where I was I'm Dy Richards look
I can close this deal in three weeks how
long you had that property sitting there
he said we had a deal for like n like
nine months some some [ __ ] like that
sitting there I said udy look I can
close it's sitting there it's not making
you any money I said I give you the
800,000 I could close it in 3 weeks I've
got a program cuz I had a 100% stated
program
and I it was a jumbo type of deal but I
had it right and I already knew it
worked so I said let me just go ahead
get the finan make her take the earnest
money so for and so on he says he says
let me call you back he calls me back he
says listen I'll do it the way you want
to do it those terms he said but give me
825 I said no problem udy I'll give you
the 825 he raised the price on me I said
you do me a favor though I said what I
said when you come to closing and we
close two things number one I do not
want that lady that was there under any
circumstances to get a commission and
two I do not want under any
circumstances for her to be at the
closing he says you closed in three
weeks I still Clos cool went back got um
a a friend of mine Kine who I did
business with she was really successful
beautiful designer her and I were doing
a bunch of deals together told her
listen I got a deal here I need you to
put the property in your name I'll come
back I'll refinance gave her a few uh
bucks we went back there with uh we went
back she uh went in did the paper work
did the 103s did all our processing did
gave all the products in we had I
already had the loan product I knew what
the product was we sent it to my loan
officer he went and processed the deal
when he processed that deal two and a
half weeks we were sitting at a closing
with udy I think I still walked away
from the deal because the way it was
praised still pulled a little bit of
cash out because it was 100% financing
had maybe about another
$225,000 like25 to $40,000 I use that
towards decorating went to that deal
close the deal in like two and A2 weeks
two and a half weeks three two and a
half weeks give or take from there I am
walking through that lobby with my bags
me and Teresa walking through that Lobby
and we are walking through the door
brother the [ __ ] are here you know
what I'm saying coming through the door
going through that Lobby going through
that door coming through at as I as I
walk through the lobby the sales office
right here bro and she's sitting there I
said God how could you bless me like
this she's sitting there I had the bags
I looked at
her hi I wa you know you know you wave
the bag hi how you doing just want to
say hello to everybody uh I'm the new
owner of Penthouse 30 uh uh Penthouse 05
or some [ __ ] like that and she just gave
me the look of death I went and I moved
into that Penthouse and when I moved
into that penthouse
that's when [ __ ] got crazy that's when
[ __ ] just went another little moving
property levels Dro by 20% property
value believe me and the parties were
crazy it sure did the parties were nuts
we my cousin can tell you we have oh my
God got all white people picking up
their little dogs they were showing up
they would be in the pars I was shocked
that they would be in there off across
the street off was across the street
from the penth housee in in another high
the high across
so yeah so I had moved there so wait can
I ask you question who was the you said
me and Teresa who was Teresa my
assistant oh okay I thought it was the
girlfriend from the old no no the girl
from the old apartment was gone she was
done oh no it was a whole new crowd
again I went through like several new
this thing just kept see and and the
crazy thing was but you survived every
Purge is that correct um um I'm
[Music]
[Laughter]
and it it evolved and we were in that
Penthouse and this is when I went into
the condo business this is when I went
to the condo business so little did I
know going into the penthouse going to
the condo
business within 36 months I would be in
prison within 30
36 months I would be absolutely
broke in
prison life gone up in
flames and I would find myself sitting
across from you in the [ __ ]
show I you see as they're leading them
out in the handcuffs the the sales
assistant he's
like he s across from you in the ch well
so this is but so you got to remember
the condo business I was trying to make
money money I was making money like a m
I was making a I was I was making well
over a million dollars a year but I
wanted to get I was trying to get in
right and I knew how I so I'm reading
this I read all the time right so I'm
reading this book called great book by
the way but I'm going to give your
audience a book don't hurt yourself well
you got know what to do with this book
but the book is called Barbarian I read
two books one is called Barbarians at
the gate I remember this book I remember
you talking telling me about you have to
understand that this part of the story
is we've I've heard several times in
prison up to all this stuff I I I kind
of I didn't really never heard you know
what's so insane is like this is by far
is extremely entertaining and you
haven't even gotten to like this is even
real that's what I'm saying most of the
times we have the business guy if if we
have a business guy
SP it's boring yeah I mean these are up
to this point have all been business
stories but this is what just this alone
would be a great podcast yeah yeah so
yes it's going good I'm sitting here
think the whole time I'm thinking
Ching I'm like this is going to be a
good
one
so so yeah so I I move uh we we're
moving in and I'm really really trying
to get in so you got to remember by this
point I'm hanging out with uh Kim Porter
I'm hanging out with uh uh uh I become
friends with like people like and these
are people you might have heard of Curt
and Rashida what's up you know Curt and
Rashida they they uh right now they have
a they they uh they have hiip Hop
Atlanta all these different I'm meeting
all these people across the board I'm
hanging out with uh I'm at uh I'm with
uh uh uh Kenny Leon I'm I'm at that at
the theater with Felicia Rashad I
remember from The Cosby Show so this how
my crowd has like really changed right
so um as as we um as we go through as we
go so as I'm there I read a book called
Barbarians at the gate so when I read
the book Barbarians at the gate I read
another
book and the book was I don't remember
the name of it but the book was about a
guy named Sandy WS Sandy WS uh he he
started City Group uh well well he he
started he started um let's just say
City group but it it was City Bank he
bought prime America uh uh I think uh
shearon is is is it shearon and Leman it
was another brokerage house it was a it
was a it was a a conglomerate of
financial companies that did everything
from insurance hence prime America and
uh uh broken houses which was uh Sheron
and Leman and the City Bank was
obviously a bank it's a big Bank in the
northeastern United States I don't know
if you've heard of it I'm sure you I'm
sure you I some money right so what the
part that stood out to me in the book
about him was he goes into when he
bought prime America the owner of prime
America was like this gregarious
charasmatic kind of leader and he talked
about the business of prime America how
they sold Financial Insurance how they
sold the whole Insurance concept the
other book uh the other book I wrot is
Barbarians at the gate Barbarians at the
gate was a story about Michael M milin
when he left Dre subham and Lambert and
they focused on uh doing Corp he focused
on uh funding uh mer uh uh f f focus on
funding corporate Raiders and they're in
essence what they were doing buying
companies which again were conglomerates
and they were selling them off by pieces
so here's the problem I had I was I
would always have like a couple of a
million or two liquid but I I I just had
trouble renov renovating houses all over
the place especially back then I was
never particularly a great renovator but
the thing was when you're buying all
these houses you got a house over here
you got a house over there you got a
house over there you got and you're
trying to run these projects to double
let's say 2 million to take it to four
the the renovations you're a rehabber
yeah you're creative you're a creative
person and you're detailed like that but
for someone like me I cannot manage
those projects like that I'm not
detailed like especially way I was doing
them at the time and it just wasn't my
thing I was more of a of a sales deal
structur deal so I I could never turn by
with so what I realized
was wait a minute people are buying
houses I can still renovate but I need
to renovate in with a simpler process
that allows me to scale quicker and
faster you like an assembly line I like
an assembly line a ba ba ba so what I
realized was as I was uh thinking this
through I read the book Barbarians at
the gate where they were buying the
companies breaking them off and then at
prime America where they would had the
people doing the MLM for prime America
which is a multi-level marketing where
they bring you bring someone in they
bring someone in they bring they kind of
run it out like that so what I realized
was I I looked
at apartment complexes and I said wait a
minute these people are buying these
condo conversions I mean buying condos
all over it all people talking about
condos condos condos condos did I
thought I said wait a minute how much is
the average condo the average condo was
let's just say 250 at the time but you
had these other buildings that people
were buying where the average condo they
was like 150 well how much can I get the
apartments for uh 25,000 a unit I'm like
25,000 a unit if I get 25,000 a unit I
can renovate back then for let's just
say 50,000 a unit I could turn around
and sell you have soft cost you have
closing cost you have holding cost but
if I'm
netting 40,000 off a deal uh uh 40,000
off a deal 30,000 off a deal that could
work so we started looking for deals
well when we start looking for deals and
I started working with other bird dogs
and we were calling we're putting
together deals I started seeing
properties all over town back then where
I was getting them for like 20,000 a
unit 25,000 a unit I'm like oh [ __ ] that
was how many units uh anywhere my
smallest one was 20 my biggest one was
144 and then my uh then I was buying
tracks of land I was getting rezoned at
the time where I was building
uh50 four units I got that rezoned uh
and but I bought the land cash so I had
I had money I just had the money so the
money allowed me to get quick Fast
Access so I would buy like a a track for
like
800,000 here I would buy uh and then I
started buying the other properties and
bringing them together so what I did was
I I did a deal I did one condo deal it
was a 20 unit apartment building so I
bought the 20 uh unit apartment I got
the units for like 10,000 unit was
something no it was less than that it
was something crazy I got the building
for like 300 Grand I got the building
for like 300 Grand was 20 units by the
time I renovated I sold each unit in
there for like
13,000 I went I did the deal renovated
the deal got the property sold the
property to investors so what I did was
I created like a multi-level marketing
concept like same way Prim America did
it was called fire your boss so you
bring so you bring someone in they bring
someone in and prime America was giving
these people like 40 bucks or like 150
bucks for insurance P I said listen you
help me sell a condo you you get three
grand you bring someone in and they sell
a condo they get three grand you get 500
and then the third tier down was like
let's say 150 bucks right people loved
it it instantly took off so it took off
so fast that when I did the 20 units
after I PID I renovated it the place was
in great [ __ ] cost me like 40,000 unit
to renovate so give or take 40 50,000 I
did the renovation turn I sold I made
like $1.3 million in like 90 days profit
I was oh
[ __ ] this was like
this was just like it was just
unbelievable I got the building did the
renovation the hard floors I just
upgraded it brought my uh appraises in
uh you know and then they just did the
appraisal on it turn around the network
Marketing Group started selling it they
made all that money from the cell
bringing their friends their groups that
all we did was turn around and least
that was like their little own
investment property and the funding was
flowing easy funding some those people
getting 100% financing now I was
assisting some of them with the down
payment it's gonna happen so nothing
wrong with that everybody doing it
everybody's doing it so I was assist
with the down payment but the deal went
through great I made well over a million
dollars the first deal the first build
went through so on the first deal went
through for only thing was going through
my mind was how much of this can I do
that's the only thing I could think of
like how much of this can I
do so let me back up a little bit
relative to this story there was a uh a
guy named uh there was a guy named Joe
heresh I was going to tell you to tell
that story there was a guy named Joe
heresh is this the hard money lender
this is the hard money ler this is the
hard money ler this is the hard money
ler tell them what he did I would have
tell him tell him what you did
so right so right there's a couple of
things with judge rush I didn't remember
that part but thank you for reminding me
because I'm GNA tell that partner as
well also I'm GNA tell you the Jo so
hence pause right where I'm at on that
first part of the story we're going to
cat we're going to bring Joe heres so
you can understand how he played a part
in this when I got into doing deals and
I got into flipping contract flipping
deals one of my main customers was a guy
named Joseph R Joe was about a year
older than me Jewish guys super smart
super super smart uh uh just he just
understood how to do deals and he
negotiate deals and he had way more he
had a stronger knowledge based than I
did of the deals
but I would sell him the deals because
he had the money Joe had the Joe had the
dop so I would sell Joe deals I listen
bro I love Joe Joe was my I mean Joe was
just somebody I just really like it was
just something about his demeanor he was
he was uh real calm real cool had a
great family and we were hustling deals
you know I would sell him the deals I'd
find to I do all the leg work bust my
but again I Joe I was making $112,000 on
some deals I was making 10,000 I mean
this was great cash coming in on my so
this is like me when I originally
started flipping contracts coming
through Joe's my one of my best
customers so the thing was was that as
I'm as I'm doing these deals Joe's I'm
doing business but as I'm expanding in
my business so was Joe Joe ended up
opening Banks Joe ended up uh creating
these equity lines Joe had a process
where he had a group of bird dogs
bringing deals in he had a marketing
team that he that was marketing to bring
new investors in the birds brought the
deals in the Marketing Group brought the
the marketing the uh marketing people uh
brought the buyers in through seminars
and something and he had the bank
loaning him money at a low interest rate
and he was turning around and by using
credit lines to loan his buyers the
money to buy his at high rate to buy his
deals so he was doing it twice he was
catching the money off the deal because
he called himself now hard money lender
he was catching the money that way and
he was also selling the deal so he's
getting a spread on it as well also he
just made sure they qualify to refy out
the deal cuz he wanted them to be able
to exit off of the deal you follow me on
that so he wanted to be ex so he did
this so you got to remember they have
revolving credit lines of like 50
million they just they just had the cash
coming in so again his team will be
advertising deals through deals were
like 3% down because he was able to give
him low down payments he gave him a
great deal he had one group fing the
deal it was a printing press for money
when the market was good and when the
financing was good they brought the
buyers in the buyers would buy the deals
he had a team bringing the deals for the
buyers and guess what I'll loan you the
money so he was able to pay himself his
own spreads able to give himself
interest premiums because he also loaned
them the money to buy his deal to spread
the premium and then they refinance into
another deal I mean refinance another
loan and then get his money back and
start all over again so Joe was making a
fortune doing this this process so as
Joe was doing this process as he was
coming through doing this process Joe
was making millions and millions of
dollars through the years so I kind of
stopped finding Joe deals because my
process had picked up as well also so
now hence going into these deals moving
forward with Joe Joe's a big lender in
town Joe's dealing with some of the
major people like Omni National Bank
he's he's he's on that level he's doing
all these deals his name is just ringing
Bells all across the city everyone knows
who he is so me at this point myself I
am now doing condos so what I did was I
did the deal I made again I made a
killing on that first deal that I did I
had my guys found me a bunch of deals my
guys found me a deal that had 144 units
from the guy named M Moshe Moshe sold
Moshe had 144 unit apartment I got the
deal at
$25,000 a unit I turn around I had that
deal uh um I had another deal where I
was going to do where I bought the land
I was gonna do 100 excuse me I was gonna
do 35 uh uh houses there again I just
wanted to move the units and get
everything built and just move because
my goal was
$35,000 off everything $35,000 then I
had the land that I bought that got
reson for the 154 units I was going to
build the building from there and listen
and the people who set me up to do this
deal they had just done a $50 million
deal across the street they had set me
up uh uh and I was part of this big
Community they had this big tax credit
program that they did but the point is I
got the land grade I increased the value
by getting it rezoned I actually
increased the density of property I
created all this equity in it which made
it much easier for me to get finan I
created the density in it through the
resoning which was a big deal over there
so I got that deal I had that deal I was
going to do uh I owned the land I just
had to get it built that was my my few
new builds and then I had the homes
there and then I had the uh 144 unit
there and
then uh now I need to get the deals
financed so at the time I probably had
Li with at the time two and a half
million bucks
so the profit from these deals that I
had all together so all well I'm looking
for before I tell you that I I'm I'm
trying to get find the rest of the
finances take down the 144
unit the 154 unit and the 35 unit so I
go back so Moshe is trying to help me
get finan because he has his big
building as well too he gets a big
payday if he can get me finan he has a
big name in town he has a this guy was
like a a builder uh uh a Jewish guy who
was was a builder uh in Atlanta he had
properties up and down Pont he in
midtown Atlanta he's one that kind of
jumped off that Pont strip of building
those mid-rises so that's what he did he
was a developer like that and he was
getting me sent me he was go so he took
me to Omni National Bank which a place I
done hard money deals for years he took
me there to see if he could get me the
financing for his building mind you I
had these I had the equity with these
other deals so I the equity there with
these other deals I had some cash he was
trying to bring me into this deal they
um
they spoke to me really [ __ ] up in
that meeting you know went to the
meeting they knew me there was a guy
there uh I never forget a guy named Avi
and um you know he took me there because
he liked me and he had he had the big
name right and he said listen I'm
selling DJ to steal so I was always in
the hard money department so now they
brought me down to the Commercial
Banking Department this is private
banking these are like Hustlers who who
got some serious [ __ ] money so they
knew me from the hard money they did all
but they had a private banking section
as well too so he takes me down this is
his area the private banking section
where they do for developers and
developments so he's introduced me a guy
Nam OB say yeah D's gonna do and the guy
sitting he has this big picture of like
uh uh like like [ __ ] uh alucino like
a painting of alucino there and these
[ __ ] look like gangsters you
know what I mean like they're Bankers
but they look they look and feel like
gangsters this like they how as their
team is it and I'm sitting there and I
knew who um OB you was I'm see him
passing by up upstairs so he's sitting
there he looks he
says he starts speaking in
Hebrew right to
Moshe so as he's speaking of Moshe in
Hebrew Moshe is looking at him and then
Moshe looks at me and then he's looking
at him and he's speaking and but I could
tell by his body language you know the
huist the arrogance yeah it's rude first
of all it's rude just to [ __ ] have
that conversation and his body Lang
which really was like yo [ __ ] this [ __ ]
right that's that's what I got from this
[ __ ] right just [ __ ] this [ __ ] so but
I'm sitting here and I'm with Moshe I'm
here with Moshe Moshe is the man you
know what I'm saying so I'm sitting here
and Mos so I hear Moshe saying so Moshe
Moshe spoke a little bit in Hebrew then
he came back and he said nah he could
buy the deal he's got some money so I
see him calmly walking the street B
about a deal he got some money you know
he could do this he could do that
so obious says no uh never looked at my
never I mean I had some plans and [ __ ]
like that never really looked at the
plans never really gave me a shake just
kind of super dismissive but not only
super dismissive gave me the K kin look
if you're black you know the K kin look
right it's like [ __ ] get the [ __ ] out
of here you know what I mean that sort
of look right so I sat there with Moshe
and I said Moshe said listen let me talk
to the guy a little bit further right by
this time you got to remember I wasn't
sh and I wasn't Avi but I was getting
money like a [ __ ] too you know
what I mean so I was like [ __ ] him I'm
like first of all I don't [ __ ] [ __ ] him
I'm like I'm not gonna see it from this
guy I mean I'm sure he was get making
money but I'm like [ __ ] him you know so
I went I went to M I said look MOS I
know
somebody I know somebody who's
loaded
and he likes me a lot you know what I'm
saying he's like I was talking about
Joseph haresh so I go back I called Joe
I said Joe look I got these deals I'm
doing this I'm doing that I've got this
going I need this going I got these
deals I I need the financing do the
construction I need the finance to do
this I need the acquisition money I need
the construction money I had the deals
blah blah so I'm telling Joe the whole
deal I'm show I showed them what I made
off the other building showed them my
HUD statements showed them my accounts I
went D he said so he's there with his
Partners at their meeting this so this
is what me just kind of running through
them so as partners they looking cuz the
money sounds crazy I know that they're
like is this guy real is this real so
Joe sits and Joe says Nah this is this
is this is my guy he says Nah this is
this is my guy now he said I know this
guy he said this guy is telling you the
truth he said first all I'm looking at
stuff he said I already know what he
does he says nah he's really getting
like this
so he
says they go back they talk he calls me
calls back for another me he says listen
tell you
what out fund your
deal but this is what you have to do the
process that you have I love it I've got
an apartment building I need to get rid
of run my apartment building through
your system as well
also so I said all right so he says
here's how much I want to give here's
how much I want for it boom I said I
said all right so I looked at the deal
I'm like well I'm going need like 8.5 we
did numbers like I'm like 8.5 million to
do all this stuff right to get it going
get it moving to get it moving across
the board the money was recycling so the
way it kind of worked is the the money
kind of came for some of the
Acquisitions cuz the one the 154 like
four and a half million itself but then
to get the project renovated and get the
so was the point of it getting renovated
to a point point where the sales start
feeding the deal itself but it had to
get the momentum and get it up to that
point so it's about 8.5 million eight
eight8 8.5 million give a take to get it
to that point so you had the
Acquisitions and you had a certain
amount of development that had to get
done so we could start cash off the unit
that's so so I said all right cool so I
went and I brought Moshe I said Moshe I
going to bring you back to Joe we're
going to put this whole deal together I
said Joe's my guy so we go in the room
we sitting there and it's me Joe MOS
Moshe we start talking back and we talk
talking about the deal I this time now
I'm in the room I'm in control of the
conversation because Joe's my guy mhm
and we're going back and forth we're
talking about the deal I'm explaining
the deal Joe's explaining the deal we're
explaining back back and forth Jo Play
So Joe starts going to detail about the
deal so remember I'm a I'm hustling I'm
getting money I'm making this whole all
these deals work I understand process
but
Moshe and Joe had a more indepth
understanding about real estate Finance
about real estate uh sales and on the
financing side in terms of how what the
impact of interest rates relative to a
loan relative to uh because it was a
crewing because I didn't have to pay out
at first it actually would be sales
coming in the cells coming through but
there would be an acrel but they had
that acrel
compounding you see what I'm saying so
it becomes a very difficult nut to it's
kind of compounding on itself so they so
they just really uh Moshe really
understood the impact on it but I was
hungry to do the deal I said [ __ ] it I
can out sell and outpace it you know
what I'm saying
so we left that deal myself and Moshe
and we left that deal Moshe looked at me
Moshe said yo man listen you know I
really like you he says I want to sell
you this deal he said but I don't like
that guy man he said I think that guy's
gonna screw you I said
Joe are you kidding me Joe screw me I'm
like nah why would he screw me Joe hares
Joe's like a year older than me and
we're all about the same age M's about
year older I said I've worked with Joe
through the years get the whole stength
he says yeah he says but I don't like
that deal he gave you and I just I just
wonder why would somebody give you that
deal the way it was I said but I've seen
those rough deals before so I said I can
get through it that he said he said all
right cool we put together the deal we
do the offer letter of intent we do the
whole deal so now the deal is cross
collateral cross collateralizing all my
other assets remember I have free and
clear assets in that deal as well also
so it's the 8 8.5 million but remember I
bought that property where the warehouse
was building 154 units I got that
property below market value I created
that Equity that prober worth like 1.8
million at the time so I put that
property up I put the uh I had the land
deal up and I think he had me put like
another million dollars so I was getting
like 8.5 million but I was still into it
for like three million myself right then
but that's just but that that but that
puts you in a bad position if you're in
a position where you need to tap the
equity if anything goes wrong how do you
tap the equity of the if all these other
Parcels are are encumbered by the deal
you know what I'm saying like if you got
an asset here like at least if I get
into a crunch where I need money I can
go to that asset I can go to this he's
tied up all your assets what if
something goes wrong something did go
wrong
right right you also have to you also
said you had a couple million and you
were in liquid right but remember is he
lending you the money for the
renovations or are you using your money
or you using your money to do all your
other deals so remember I still have to
run the company I still put up like
another million give or take in it I
still use my other assets up in there so
remember he loan me a 8.5 million I
really went out with my cash on this
damn deal I had a few bucks left but I
really a deal between my team my staff
getting the deal together going through
zoning getting Z it literally just
sucked up my cash construction well we
didn't get to the construction
so I was in this deal all the way in but
Joe's my guy and Joe did theone and I
looked up my numbers on the deal I was
making profit on the deal profit I was
making somewhere between somewhere
around $7 million off the deal off all
those properties together I was walking
away with like 7 million bucks A lot's
got to go right A lot's got to go right
and but I knew the pace I could sell
that I said I could out sell this
[ __ ] let's just get this [ __ ]
going
we go in what year is this right now I
am in
2004 oh okay we put the deal together as
we put the deal together across the
board I start getting going go after the
first project which was the 154 unit
yeah that's why blue sky right went
after that one first blue guy went after
there first so we go in my cousins
running the projects down there got love
devel we're all down and we go in we
start renovating St so we start
renovating star you got this is an
apartment building so so we're these
have like a this is a massive apartment
on four acres so we're taking so these
each each building has maybe what 10
apartment 15 Apartments something like
that eight apartments or 12 12
apartments for good but we're taking
across we're doing full gut Renovations
the whole thing across the board so I'm
having trouble getting my uh so I go I
put in for the
drawer I can't get a drawer from Joe
slow no let me back up no we did Bradley
we did Bradley first we did Bradley
first we did Jo Joe said do my building
first right so Joe says do my building
so his building was in prime location I
own the building now but his money is in
the building they already started doing
the granite countertops the the the base
the this the that all this [ __ ] across
the floors the whole thing looks great
we didn't get to the other ones yet
so we're trying
to get to the other get we're trying to
get through the renovations trying to
get through the renovations so as we're
getting through the renovations we're
trying to get through the
renovations um we're renovating them
they start selling so we start getting a
sell here we start getting a sell there
it starts picking up the MLM team is
coming through coming through so as
they're coming
through we start trying to get the money
for the drawers this guy won't give the
money for the draws he's moving slow on
each draw I'm like Joe we have the
momentum going I don't understand you
know Joe's Joe and Joe's doing all these
other deals so we go we we're renovating
renovating again Joe won't do theal so
finally I'm like yo joe what the [ __ ] is
going on you've got me in this thing for
millions of [ __ ] dollars I need the
drawers to finish the construction the
building looks great people want the
build they're buying the building he's
getting the payoff cuz he CU he funded
it so he's getting the payoff money I'm
like where the [ __ ] is the [ __ ]
where's the draw for us to finish the
renovation yo we call him down it's once
oh I couldn't reach you um busy you know
the spin oh I couldn't do I could so now
it's killing me cuz you know I can be an
aggressive person so it's killing me I'm
like oh my God Joe don't do I just the
thought of my relationship going there
with him is just it's just and I
realized something Joe and his attorney
had an attorney named John they took
they wouldn't give me the money they
were running me to [ __ ] around I'm
calling like yo listen I've got uh
$50,000 Contracting bills what the [ __ ]
so but again he had a lot of units
already done beautiful gr these
buildings were selling for 265 they were
done they were nice people wanted them
we just had to finish finally this
[ __ ] I realized I said oh this
[ __ ] is not paying me this
[ __ ] really is just not [ __ ]
pay me so I said let me teach Joe a
lesson so we called Joe down there one
day we said Joe listen we want you to
come through [ __ ] come take a look at
the um
property see the progress he say sure no
problem he comes down there when he
comes down there he comes down he walks
into the uh walks on the property I said
oh yeah Joe let me show you the unit I'm
sitting there he says all right cool we
get up I said it's right in here we I
said look at the progress we have we
open the door when we open the door up
[ __ ] it as we open the door Joe steps in
soon he stepped in somebody was right
behind him locked the door cut off the
lights three mask guys come out with
[ __ ] sled hammers boom boom boom boom
boom destroy a
$265,000 unit boom boom boom boom and
they y next time it's going to be a head
[ __ ] give us our [ __ ] money
right so they destroy the units Destro
boom boom boom boom give us our [ __ ]
M he's standing there like literally
pissing on himself right don't [ __ ]
around and I'm standing right there next
to him I'm like Joe stop trying to rip
me off you're G to end up you not going
to end up on the wrong note right he
leaves he leaves we go back he calls me
to his office that Monday he says all
right I'm going to play nice I want to
play fair says I want to start paying
you your money I said okay one or two
deals we keep these deals going we keep
these deals going he starts pulling the
money out again he starts he won't pay
he won't pay the construction now mind
you I've got I'm in a I've I've
collateralized all of this stuff then it
Dawns on me Joe can foreclose on me if I
don't meet my deadlines right for these
deals and then I'm kind of thinking I'm
kind of looking at it again I put up all
of these properties the land for the 35
homes the the the rezoning I did for the
154 unit the cash is cross
collateralized and Joe is giving me like
30,000 here 20,000 there uh 50 I'm like
I'm like what the [ __ ] if I got myself
into I me this guy's gonna just wipe me
out you know and I've appealed to him
every which way possible I just I'm like
I can't get this [ __ ] done this is I'm
like he's going to Fork I already know
this is is he's ominous his intentions
are [ __ ] you know what I'm saying I mean
this [ __ ] is just and then went
back to Moshe Moshe said this guy's I
remember thinking back in my head Moshe
said this guy was going to [ __ ] screw
me so I came up with an idea I never
forget I was standing on my Terrace in
my penthouse and it just dawned on me
listen bring your guys back in what
we're going to do is we're just going to
run cash outs on the whole property and
come back and fix the units we'll
circumvent Joe I already knew my
attorneys they were my attorneys were
crooked as the day was long right and
then I had the appraisers which would
mark up anything under the sun and so we
did was I got the MLM team pumped all
the way up we started doing the means
hey come on down buy
condos what we're going to do is we'll
sell you the condo once we get the cash
off the condo we'll go back and we'll
fix the condo and then once we fix the
condo we'll take off that way right and
you've already got several of them
rented so you can show them we had show
we had a model model we had model units
all we had model units on each property
we had the model units from there if
we're in partying the model units if you
know what I mean right you had the model
units there we had the uh H they had the
the whole thing from there so what we
started doing was selling the people
we're selling people in Florida with the
MLM we're selling the people up and down
Cali we they partying our ass off from
San Francisco [ __ ] signing condo
docks up and down uh was it Highway one
and C whatever that desert is top off in
all these correction offic they buying
the condos left and right so we're
selling cond up and down California some
in New York and they're behind them so
what happens that the attorney's like
look I'm getting a few extra dollars and
what they're doing is they're not even
letting Joe know they sold because Joe
has the note on them they're just giving
me the money to go back and fix it so
now by this case we're so if we're
selling three condos a week we're
picking up like 300 Grand a week to come
to come back and fix to come back and
fix to come back and fix to come back
and fix so we're going back and we're
fixing them
now are they always getting fixed quick
enough on time no they weren't it's just
when when you you got the cash coming
out you got to get through the
construction I bid off way more than I
could chew because of how to deal with
structure I didn't have the space I
didn't have the time and and now I'm
doing these damn cash outs we're getting
them fix get people in but we just are
not moving quick enough so these
properties are going in they're getting
appraise but they're not done and
they're not moving quick enough to get
them done across the board it's just a
slow machine and I've got issues with
the contractor because these are my
first projects of that size right so you
got to remember these are big apartment
complexes we're we're trying to blow
right through them so but again I'm
making uh you know in the process of
course I'm seeing a shitload of cash
like literally from just gross cash off
literally like 300,000 a week it just
gets crazy literally we're going to the
bank picking up the the
money they didn't even unpack the money
they used to take the money money in
Banks come in big plastic bags and start
you have the smaller bags which are
maybe like 40,000 30,00 and they are bag
and they come in a big bag and they put
them in a big bag and that's you get 250
that's what it was it's 2 I remember he
go pick them up 250 they would just
weigh the bag they don't even count at
that point they just weigh so then we
come there and they just drop our weight
on our back boom we just snatch a bag of
money be like two a quarter million
dollars so that's how this [ __ ] was
rolling right that [ __ ] just coming in
at that point Point flowing through so
we're roll and then of course you
know I was buying Ferraris and normal
trappings and [ __ ] like that but we're
going through the project across the
board and failing quickly so as we're
getting the projects done we're getting
them done we're moving them through
we're trying to bring the other projects
online we're getting these other deals
done we're bringing uh trying to get
this stuff C Joe has no [ __ ] clue he
thinks every now and then we tell him oh
Joe we closed one
he's like oh great he says this is
really moving slow yeah he's think he's
thinking this guy's gonna go under he's
think this guy's gonna go under he
doesn't know I closed 30 I already got
three million three million off this
[ __ ] already I'm trying to play it back
in but at least I got three million out
you see what I'm saying and you know my
mentality back then I didn't give a [ __ ]
about anybody but Sav my own neck right
so I'm thinking we go through we're mve
through move through so he doesn't
realize he doesn't realize so as he's
going
through we're pulling the cash out we're
pulling the cash out but I still have
the momentum of the banks cuz we're
closing really fast we're closing really
quick so I'm I'm still getting there but
I'm not as quick as I should be but
they're getting there man they're slowly
moving there I'm trying to
refine uh uh uh my closing ability so as
my team so the way we were is that we
were in two of my condos at another
property on Bradley we had two offices
there and we'd be the team there was a
closing room of closes that was there
and we had closing boards up there we
Mark all of our deals through the
closing room then we had a team in the
back processing everything through the
contractors bookkeep and we're going
through this process closing closing
close and we're getting I'm like yo we
could win this thing we could bring this
thing off and the money's coming in like
because at the end of the day there's
millions of dollars to be had if we
could just get there and we're really
moving through we're trying to get
through and as we're going through the
process this is we're like two years
into this now two years into this
process but it's moving it's starting to
get a little bit
better we had like seven or eight loan
off is closing
and the loan started getting a little
delayed so we process process yo how
come this [ __ ] deal isn't closed
we're down here trying to
close well the lender HJ
Wilson
mortgages they went out of business what
they went out of business what the [ __ ]
are you talking about and what year is
this we now up to 2006 right and we're
doing the loans doing the loans we had
like 20 lenders we're doing the loans
doing another loans come through again
this thing is
like how come this deal hasn't closed
here we get we
done 30 deals with these
guys they just went out of
business what the lender they just went
another one they just went out of
business they just went out of business
and I remember sitting here looking at a
board with 253 deals on the board orle
you're talking about Millions literally
in
closings every
[ __ ]
lender was closed the only one that was
hanging in there they slowed up
significantly was Countrywide I knew you
were going to say Countrywide too
country was the only one barely hanging
in there and I remember sitting here
looking they were they were like they
were like it was a [ __ ] IV drip
country was like the ID drip slowly
keeping us alive they close here close
here so I'm looking at this and I
remember you're talking about every
lender in the secondary Market [ __ ]
gone and I'm thinking to
myself how come this isn't on the
news this is this is I'm like the whole
secondary Market just closed how come
this is on news so we're still trying to
hang on with the deals by this time I
say to Joseph I'm like uh by I'm like
Joe I need to move this property I need
to sell because the banks are gone we
need to sell this property Joe says all
right well let's get the property going
then he says um he says uh I said well
look
um I need to get this deal sold off uh
and he s he says all right he says well
you got you got all these deals left you
said well deal Joe those deals really
aren't
there he said what do you mean they're
not there he says well they're not there
no I said I need to pay you off to get
you out this deal so we went through the
deal went through how many was really
there how much is really there across
the board he found out that everybody
was undercutting them because I had to
tell them because I had to pay him out I
said if I could just get them free and
clear I can kind of move it through so
we make a deal where for the building
that was uh he would release my other
properties M and the building that was
left there for yourself those units I
had to give him like uh because of the
interest acred and he was killing me and
I just wanted to get him out the way and
I didn't know what the repercussions
were for what I was doing I had to give
him like $2 million something like that
and I had the two it was like my last $2
million the bill because the bank I
slowed up I had the $2 million we
counted up this $2 million like the $2
million I had a million dollars of it
was in my house right the $2 million
right a million was in my house had to
get the rest of the money out the bank
and we're packing up we boxing and we go
to the lendon and at the Lend
uh we close it and we get Joe out the
way well while we're doing this and
getting Drive the way I said all right
now I can sell these deals over I called
this guy uh riding up I said listen I
need an assistant I need an assistant
I'm [ __ ] getting my ass kicked here
uh I got to get these units sold off uh
I I'm trying to get I've got these units
left I said even go
now it's on the
news lenders are banks have closed all
over that the market is crashed the bank
finance now It's All Over The Firestorm
if ranks are closing D this is this is
like the Great Depression do da D A year
later it hit the news when they
announced that the that the mark second
market closed this really happened a
year prior right yes they they waited a
year and then they announced it it
really happened the year before
so as they're saying as as as as they're
saying all this I asked them I said I
need some help I need some help with
what's going with what's going on says
I'm losing these properties I the
properties the market is in the toilet
all the values are shot down all the
banks are closed I gave Joe all my money
I you know the where I thought the
bottom was I wasn't remotely
close the bottom was at this point where
it felt like infinite everything lost
its value I couldn't sell [ __ ] yeah well
nobody wants to lend nobody's lend
nobody's lending and nobody wanted [ __ ]
the value uh the value went went
suddenly a cond were 250 is now worth
10,000 bucks literally 20,000 that's
what they were doing in the hood that's
what was going on
so I was wiped out and D this this this
lady we're trying to do we getting a
cash out done here we're pull he sent me
over this this new lady that came
through that's really doing well she's
helped me out she's really supportive in
the process and she's moving money back
and forth with me you know what I'm
saying she's helping put money in my
mother's uh uh sing money to uh uh uh uh
I had uh s my mother some money to help
her out money family members to help
them out make we have money coming
through you know just to make sure [ __ ]
is going through
and as we're doing this but I'm broke
and suddenly I can't pay my mortgage my
mortgage was $7,000 a month I pay my
mortgage fine for years suddenly I
couldn't even pay my mortgage I'm like
this is [ __ ]
crazy and I'm sitting here I had to go
live in my with my girlfriend at a house
that she had owned on Mor Avenue I'm
sitting there in that house I'm like
what the [ __ ] is going on the whole [ __ ]
is falling apart it's like at
night my whole world is [ __ ] falling
apart and as I'm sitting here thinking
what I can't get out of this [ __ ] and
I've got a bunch of cash outs that are
unrenovated I now I'm thinking if the
feds ever see this [ __ ] I am done I'm
going to [ __ ] prison as I'm [ __ ]
I'm like if they see some [ __ ] like this
it's as I'm doing that the phone
rings 10 o'clock at
night I look
over it's j Joseph's Loy here calling me
I'm like this could not be good that's
all went through my mind this could not
be good R ring I answer the phone
hello Hey DJ this is
John I think myself you [ __ ] piece of
[ __ ] while I'm in this problem hey John
what's going on hey he just wanted to
inform you Joseph just blew his he just
off
himself I'm like
what Joseph just 45 minutes ago sitting
at his desk pulled out a 9mm out his
drawer and blew his brains out
wh why
Joe had in that process remember I told
you he had leveraged all that money that
he was loaning to other people to buy
properties and I'm the only one that
performed everybody else failed failed
okay I wasn't even thinking that
thinking you paid him back no he lost
like he lost like $50 million in that
whole [ __ ] [ __ ] I'm the only one that
[ __ ] paid him back so he loses like
$50 million he killed not only did he
himself the only thing that was going
through my mind at the time
was this is not going to work out well
for you this whatever is going on here
it was in the air it was the energy my
nerves I mean every Instinct I had said
this is not going to work out so we're
still we're still doing doing the deals
and I'm working with the the chick she's
trying to really push for me help me
assistant and she says you know I'm
trying to show her the business I'm
trying to show how to do the cash out so
she can do something on her own she's
like listen just explain it to me show
me up I said let me show you she says
just show me the basics I can really
help you so I'm teaching her to how to
do the cash up we're going through the
whole process and it's just her and I
fighting through she's like listen I got
you we're gonna make this whole thing
work I said listen let's just keep
pushing this thing through we're trying
to get down we closed like one but we're
still fighting and fighting and fighting
and one night we're just going through
all this [ __ ] just like uh two months
after Joe himself I'm laying on my
girlfriend's
couch as I'm laying on the
couch there's a window right here with a
curtain and just I I was so depressed I
couldn't even sleep with her you know
what I'm saying I was just [ __ ] up you
know what I mean mentally emotion I was
gone just [ __ ] my whole this [ __ ] is Up
in Smoke I got this building it's going
to be a problem I can feel the problem
coming on my ass you know the whole and
it's I'm laying on a couch if you sleep
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and as I'm thinking is you know you kind
of in that R roam between that interim
sleep between you're awake and you're
sleeping as I'm laying
there I hear
like five o'clock in the morning I'm
thinking I need to get up and take my
son to school because my kids me and a
girlfriend broke up I had a son that I
would take to school and I'm just kind
of thinking to myself you need to get a
prot take your SK I'm saying out
here is I heard that I had this
Vision a vision came to me in this
Vision I saw
men in green flap jackets all across the
lawn with
M16s that said FBI that's what I saw in
that moment in that vision and I woke up
moved the curtain back and I knew when I
move that curtain back whatever I see is
going to absolutely change my [ __ ]
life it will never be this again I
pulled that [ __ ] curtain back it was
the [ __ ] vision
person for person cross the lawn what I
saw in my head was right there they were
right there FBI open up open up I jumped
up grabbed my [ __ ] ran to the [ __ ]
back of the house to go out the back
door I [ __ ] I [ __ ] open the back door
[ __ ] was standing there just
like this I said oh
[ __ ] the [ __ ] FBI [ __ ] they come in
there I open the door up they [ __ ]
said hey the [ __ ] came through
the door grabbed me by my shirt he
looked at me grabbed me like right he
grabbed me he said listen I know you I
know you're in shock I know you in shock
what's going on this is what I need you
to do for me you have seconds to [ __ ]
do this white guy home glasses look like
a [ __ ] doctor he [ __ ] he says
listen where you're going is going to be
extremely cold I need you to get some
pants on right now get your shoes on
right now put a sweater on right now
you've got seconds to do this where's
your clothes at I said right over in the
back he rushed me to the back said put
them on I'll put them standing with an
M16 [ __ ] backed up they like
this in they looking on the hallway they
got uh uh Candace and the sister pushed
it back they like all right P they put
my [ __ ] on I put my [ __ ] on they said
come on come on come on come on we get
to the front he says I'm putting your
cuffs on he says come on he say he I'm
I'm going to Cuff you in the front he
said you good I said I'm good he put the
cup in the front boom set me in the car
they put the um the uh uh they was not
one cup car there they were just all
unmarked cars we jump that we take off
we take off we go down to the Russell
building we go in that [ __ ] we
go upstairs it was freezing we go it was
freezing he was not lying we go in that
building we go through the chains we go
downstairs we go upstairs we go up
through the door we go we sit down and
as we sit down as I get there I see my
whole team the lawyer my the lawyer the
appraiser I see uh a couple of people
that did docs could be their paperwork I
everyone's there everyone's right there
and I sit there and they give you a kind
of they give you it's not the indict
it's the complaint in the complaint
there quotes in the complaint so they
sitting there with the complaint I'm
sitting at the I'm like who the [ __ ] did
this how the [ __ ] did this happen I'm
the what the [ __ ] is going on so one of
the mortgage brokers who work with me
smart poish dude real sist you know pish
dude love to marry women from Brazil who
the [ __ ] does that right but he love to
do that can I say that that's whole
story right so he sits there we're there
we're all Shackled at the knees we're
all there you know we're dressed there
we're all sitting there like all right
what the f pretend we don't know what
the [ __ ] is going like what's going on
they're like yo he goes through the [ __ ]
he reads it he's reading a complaint
he's reading the quotes in the statement
he we're like who the [ __ ] do that he
looks at me he says I know who did
this I said who who the [ __ ] did
this he said
Kim I said Kim my
assistant he says yes your assistant
and then it just went right back through
my head like just teach me the system
just show me how to do it just mov with
the paperwork just Kim was wearing a
wire to work every [ __ ] day
Kim because I didn't understand how the
feds worked I was completely ignorant to
it Kim had a open
case Kim's open case which I didn't even
know what that meant she actually told
me she had a case with offense I didn't
understand it I didn't understand how it
worked Kim had to open case with Kim's
open case Kim kind to deal with the FBI
they were actually paying her literally
to come work for you so I'm paying this
[ __ ] the FBI is paying this
[ __ ] she's wearing a wide to
work every day and she is slowly ENT
trapped me and Tra me and Tra me and
trapped me in the process and sure
enough feel like she was just
documenting your fraud but go ahead
actually I didn't mean to tra me I meant
documenting she was documenting that's
what I meant documenting let
me I actually didn't mean to trap me I
really meant documenting so you're right
she is documenting my fraud so as she um
documents my fraud right
literally
uh she flipped out her case for me and
flipped me out for that case they let
her off completely I think she or you
think she just got she did three months
oh three months okay but no she had a
big case herself oh yeah yeah she had
just knocked off the whole thing I was
the big I was a big you probably you
know what if
Joe if without without
her there probably Their Fear is you
could have blamed Joe I did try I did
try to blame Jo and listen I tell you a
funny story when I um went into uh to uh
oh that's debrief with the US attorney
I'm sitting at the conference table
shackle down this is like after she
comes in and we walk in and I'm my turny
I got this whole plan in my head she
walks through the door she comes through
there she says hey everybody how's
everybody doing D she looks at me she
says dossy how are you I'm like I'm fine
she goes good she says good we're about
to get started so but first I want to
just make a few things clear we're not
blaming this on the dead guy I said oh
[ __ ] I plan to blame the whole thing on
Joe she the rip we're not blaming this
on the day guy is this Gail McKenzie no
this is Barbara neand oh okay okay did
you ever hear of Barbie neand no I know
Gail McKenzie was um come on uh uh
what's his name Kelsey oh Kelsey Kelsey
yeah Kelsey that was Kelsey it was
somebody else's too what I I you had
Kelsey had her and somebody else had her
yeah what's his name Troy heroy Troy
Troy used to say that she loved him he
like wait how did do his invitation what
let me how how does she sound no who try
Troy or Troy yeah Matt you just don't
know I've got Gil g they they trust me
they love me down yeah right he would
say like I go up to Gil I Le G what are
we doing what are we doing here what are
we doing here stop by the way he said he
said for you to call them when you he he
said he said tell he said tell Matt to
call me uh yeah
so that
was how I got busted
and that was I thought I would they told
me I was charged with two
condos I looked at my lawyer when he
came to see me I
said uh can you get this worked out he
said yeah I'm G to get this worked out
for you he says uh they charge you with
two illegal condo sales nothing I said
all right that's nothing he says yeah
you probably do a little bit of time for
that I said okay I said I said I said
how much he said you might do two years
I said two years
I said how the [ __ ] am I going to two
years are you [ __ ] kidding me he says
yeah two years like is he's telling me
this in the court for the
arment he says uh prosecut he says
excuse me could you to my Lord you know
I'm say says hold on let me see I can
work I ha
talking and the lawyer is looking at me
like this now while she's talking to
he's looking at me he's going like this
looking at her looking at me me I'm I'm
like you know it's like what he's like
looking at her looking at me he's like
and she's in his
ear and then he walks back over like
deflated and [ __ ] and he's just looking
at me like I'm dead man walking and he
says
okay there two
condos what you have was called a
superseding
indictment I said what the [ __ ] is that
he says apparent you've owned a lot of
property and apparently you've sold a
lot of condos they've got your money
count right now at 30
million and I'm sitting there like okay
what does this
mean sh you could get like 20 years I'm
like what 20 years what the [ __ ] are you
talking about he says 20 years he says
yeah he says you get like he says I said
well how much are they really going to
give me
he said it could be 20 years I'm like
what the [ __ ] are you talking about I'm
like what I'm like and when you're in
that situation that's the thing about
crime especially when you're committing
crimes and you know some of us we're in
denial about like you just said when I
said uh entrapment which is not what I
was not the term I meant to use but the
point is is that you really don't
realize a you're a [ __ ] criminal
number one and B the consequences are
brutal
the consequences are unspeakable mhm and
you keep thinking you know what's funny
the moment you get away with it I think
that one's done got away with it no no
no didn't get away you got away with it
for now and you yeah you forget about it
and then when they come to you and they
catch you for this one that you know
they have you for and then they stack
everything else up all you're like oh
forgot about that oh forgot about that
oh forgot next thing you know you start
to realize like oh oh no this is getting
bad I I thought I got away with those
that was over a year ago that was 2
years ago doesn't matter doesn't matter
right and next thing you know it's
overwhelming and your lawyers trying to
convince you how much trouble you're in
you're thinking I just filled out some
paperwork I say that all the time Colby
hears me say that like how can I get 26
years I I just filled out some paperwork
it seems innocent it does I didn't hurt
anybody I didn't kill anybody I didn't
do it you know but you know it's it's
it's you know I love it when people oh
White Collar CRI criminals don't get any
don't get any time no they they get a
ton of time they typically cooperate
they they get decent lawyers they try
and talk it down they try and Whittle it
down if you're lucky you you can
cooperate against a bunch of people and
you can get your 20 years whittel down
to 4 years or something if you're lucky
yeah but if you're not
lucky then you they'll Crush you and
they make you sound like a monster
you're a monster but the truth is if you
sit there and lay down exactly what you
did to the average person person they're
like that's right yeah you just feel
that listen listen not only
that let me tell you to the degree that
everybody was doing this and and I'm
saying that as a cliche I just want to
tell you this this this quick thing I
tell people I've told this story in in
at
seminars I'm
s I'm in
jail waiting to get sentenced M right uh
I'm going back and forth to court right
why would I be going back and forth to
court in the feds but I'm going back and
forth to court with jail right s to
explain the drug dealers already in
the
law my lawyer again I'm going back over
with the court right
so I'm all all over the [ __ ] news I'm
going to jail I'm going to prison like
these [ __ ] have me as a pariah
you know what I mean I'm going to jail
I'm I'm I I got to go to court I'm
sitting there like God I'm hoping now
reality is set in I'm hoping and praying
for 10 years this is where we're at the
[ __ ] around me in the jail I
was and they're getting 30 40 45 I'm
like oh [ __ ] and you're thinking to
yourself what have I done to myself so
they come Richard you got to go to court
I'm like all right I start walking out
uh uh uh do it I hear that girl [ __ ] you
going Richard you know I'm going to
court right going to court right so they
take me downstairs they take me
downstairs as I'm coming downstairs to
go to court you have to walk through the
uh tunnel at love joy I come through
there's a van that pulls up when the van
uh pulls
up two Marshalls come out vest T what is
a woman maybe about 5 fo with two
another guy comes through uh uh comes
out as well to know with the Blue
Jackets the Blazers as she comes through
she says uh face the wall I'm like all
right I turn around the wall chain goes
around your waist Chase go around your
ankles Chas hand they put me in the van
they're riding as they're riding they're
driving I'm sitting there Shuckle on my
way up to court the Marshall she looks
at me from the back turns around and
looks at me once thinking nothing of it
we're still driving to the cour she sent
me again it makes eye contact again and
then turn around real quick again so I'm
thinking nothing of it we go in we go
into the the building go through
downstairs where the courts are to take
me upstairs to the jail take me upstairs
walk down the right hor open up the big
steel door put me in open the cage put
me in there I'm Shackled take the Cuffs
off I'm Shackled by the legs God and I'm
waiting to go to court as I'm waiting to
go to court they have their own Marshals
in a prison that actually take you up to
court these are the transport
Marshals so I'm sitting there waiting go
go to court but but I'm behind the gate
behind a steel door in a jail so it's a
cage within a a cell and another cage in
it but you can't see on the side I hear
somebody say but you can hear Hey
where's Richards I'm looking for
Richards they want him upstairs in
court I said okay I hear I hear someone
say a woman's voice says she says I'll
take them I'll take him where's he
at okay I hit a pause he's right over
here D so
door opens up the Marshall comes out uh
uh the Marshall comes in it's the same
woman
again she looks at me she goes
Richard come on you got to go to court I
get up Shackles on she has me uh face uh
come out come out the cage the other
Marshall standing by the door she she
puts again uh uh chain around thing put
the handcuffs on she starts walking me
out she says as we walking out walking
down the hallway this white ster hallway
there's an elevator at the end which
takes you up is to the court as she
takes two steps she looks at The Other M
says I got him I'll take him from here
he says all right so now it's her and I
walking down the white hallway we're
walking down the hall walking down the
hall we get to the that
long hallway she opened up the door I've
been here several times I already know
walk in the elevator face the wall don't
turn around as we go in her and I go to
the
elevator now something's rubbing me as
weird about this whole thing just
why am I seeing the transport Marshall
again why am I in this H by something I
step on in La comes allev opens up she
says step in I step in boom I'm face in
the wall I'm looking at the wall she
standing by me she hits the button the
do as we're going as we're going up to
there as we're going as we're going uh
she hits another
button the elevator
stops I'm like what the [ __ ] she says
Richards turn around I turn around I'm
looking at now I'm looking at her it's
the same [ __ ] from the [ __ ] she says
Richards turn around turn around she
looks at me she says Richards listen
really quick I don't have much time I
have two deals at my attorney's office
about to close we're having we have
equity on the table I need you to show
me how do you get the cash out of the
equity how do you actually extrapolate
the cash off the deal what type of
paperwork do you file I think I said
this has got to be a [ __ ] setup right
this has got to be a I'm like I'm like
what the [ __ ] is going on so I'm sitting
here I'm playing the corol I'm looking
at I'm like is this
real she looks at me I look at her I
said I'd love to help you I really would
but I just can't she said riches I'm not
setting you up I know that's the [ __ ]
you're thinking I just got a deal I need
to get this $40,000 off the deal
I can't do it there's no problem
Richards turn around to face to wall
turn
around and we start walking off to the
cour this is to the degree of
how this everybody
everybody yeah everybody everybody um
Everybody bro I I hear listen I've done
I have done fraudulent loans for lawyers
for police officers for doctors for like
every every everybody out there that you
can think I did that you would think
cop's not going to do a a dirty deal the
[ __ ] they won't not only is he doing a
deal he's getting his wife to do the
deal you know we're doing multiple types
of deal a lawyer is not going to do I
got a lawyer where pulled out like 60 or
80 grand out of the deal so he's
bringing money we close we pull out a
100 so he can get his down payment back
and we give him like $60,000 I mean
completely fraudulent same thing doctor
exact same type of situation like I've
done so many corrupt deals and for
people that you'd be like that a lawyer
wouldn't do that yeah they would yes
they would I was in in prison with uh
with guys in prison and explaining what
are you talking about everybody was
doing this and they're like and I I was
like you didn't one for a lawyer one
time and the guy was like a lawyer
wouldn't do this like you're what are
you talking you we in prison right
now right you just got done telling me
how you're lawyer [ __ ] you right yeah
you're it was everybody everybody across
the board was doing it everybody well
you know I mean whatever no no no but
literally no no in this particular case
in the real estate business it really it
really was everybody like the
opportunity well I think too there was
just so much money
involved there was there was just
imagine at at that time too the whole
econom is collapsing so she's desperate
she had to be desperate to stop in the
elevator and have that conv to be stop
in the elev I I just knew and the truth
is I really wanted to help her out yeah
you know what I'm saying because I I I
understood the situation but there was
just no way yeah I was in uh the medium
one time and this is was wasn't fraud it
was literally it's like at night
I'm at the medium cop walks in you know
everybody's locked in this was the
medium two tiers they're watching TV
[ __ ] walks in looks around he goes [ __ ]
you know everybody looks at you and walk
out I'm like yeah what's up he goes come
here he go come here I'm like what's
going like nobody leaves at or 8 it
was like it was like probably 8 or 9 at
9's say it's 8 late they count you
know so I'm walking he kills come here
and I'm like what's up he walks over the
door it's got the sally port he opens
one walks in closes it opens the other
door I'm like what's going on is just
walk down to where a to a unit wh which
one A1 A2 go to the a units the building
and I'm like go and I'm like uh I walk
down to I'm it's [ __ ] dark bro I've
never been out I'm scared I've never
been outside when it's dark what I'm
saying it's 8 I walk down from I was in
B unit I walk down and there's a couple
of uh cos down there and I'm walking up
listen I was actually praying it was
like the [ __ ] FBI or something like
they needed to ask me a question I was
like please let me get out the cut the
cut yeah I walk down there I walk up and
the cop he [ __ ] and I'm like yeah
what's up what's up and he goes all
right listen he said I'm looking at a
condo I'm looking at a townhouse right
now he it's it's going for 195,000 the
entire complex he said half of them are
in foreclosure but this one's finished
so and I'm like okay and he he explains
the whole thing and I go how many of
them are actually owner occupied cell or
sold and occupied by own and not right
you know what I'm saying and he's like
oh this many he's like I can put down
the 20% I'm like he's like is it worth
it I'm like I don't know what are the
other ones selling we have this whole
comp and it's like 20 30 minutes in it
and a couple more guards come over and
they're standing there I'm sitting there
thinking this is some Shaw Shank
Redemption this is Andy duin doing all
the [ __ ] guys taxes for right and and
I'm teaching the real estate class like
it this would be hilarious if I wasn't
the guy in prison right now right but
yeah we talked until almost and he
was like and the other guys are asking
questions and they're like all right
listen you got to go you got to go back
and be you because you got to be counted
at 10 o00 so they they walk me back and
I just remember thinking like it is it's
surreal what's happening and un and and
I don't know if you had this Revelation
but the the what I realized and I really
realized at that point too and you know
sometimes you when you do the [ __ ]
like crime you really realize you know
what the resources I had legitimately I
could have really repurposed this to
really create another business or
another helping people giving people
information helping because the truth is
they really those cops were looking for
information all the time about
how to do business how to run you the
other thing because you've done because
you did all the flipping the contracts
because you had all the things You' done
you went from the most basic type of of
of uh of um of mortgage deal all the way
up through through the most complicated
you're taking you're
taking um apartments that are zoned as
apartments and you're turning them into
condom
you're going through the resoning
process you're going through um all the
things that make this thing an
individual unit you're you're having to
get them insured you're having to do uh
write up the condo documents you're this
is extremely complicated so you've gone
from one extreme to the other most real
estate agents who everybody considers
the expert you know what they've done
they went to school they pass their test
and now what they do is they go well
what's the address and they drive that
person to the house and they put him in
the back of the car and they get they
get him out of the car and they walk
over and they they punch in the code to
the lock box they open the door they go
this is a lovely two-bedroom or the
three bedroom they show them the place
they walk back they go oh I love it they
write up a contract and that's all they
know they don't know anything other than
I show a house I write up a contract if
you said hey hey can we do a S
multaneous closing on this I'm sorry
what hey can we do an an owner uh second
mortgage hold back I'm sorry I don't
know what that means could are these
people really to do owner financing I
don't understand what you're saying like
all of the can we do a wraparound
mortgage they don't have the ability to
know any aspect of anything other than
the one single thing they've been taught
but they're the experts but someone like
you because you've gone from knocking on
doors all the way up to the very top I
would say the only other thing as far as
residential real estate would have been
you know new construction of the condos
themselves which you'd already done the
rezoning you were already in the process
of that other than that I would say
there's
nothing that that you have't and really
the renovations are practically that's
practically new construction on some of
these things but anyway it's funny the
amount of knowledge that I had and that
you have and I know cuz we've had these
conversations um uh you know if you said
hey can we write this deal up we're I'm
GNA borrow the money can and can we have
a um a takedown Clause you ask a
realator they don't have a clue what
that is right you know so what's funny
is knowing all that whole Gambit gives
you such a wealth of information that
you could have that you could you could
utilize to your
advantage um there's just there's there
aren't people out there to answer those
questions and the people they think are
experts aren't AR experts aren't aren't
experts at all and the the thing is most
of them you go to a normal a normal real
estate agent you ask him how do I get
this deal done all that well go to your
bank you I know my bank has said no
right I'm sorry where you can sit there
and say hey can you get the seller to
hold back a second mortgage can you give
him to owner finance can we do a wer a
mortgage does he currently have a
mortgage can we do a subject to loan
like you know can he pay my can you know
how much money do you have down okay you
can do this and all of these are legal
instruments to buy the house real estate
Ed doesn't know any that not at all
they're clueless they don't even think
like that no no that's too complicated
it's not too complicated owner finance
deals are the easiest right they are the
easiest they are they are they are the
easiest and and to that point it it
really it really you know like I tell
people all the time the beautiful thing
about real estate and opportunity real
estate it allows virtually anyone to
there's a billion dollars with the real
estate outside of someone's door within
their city and there are opportunities
to to play in it at some level whether
it's a house a office property a strip
mall and it's one of the few
opportunities where you know you're not
going to be able to go in and buy a
company you know I mean just like that
person well you can but the point is
that real estate is right here it's
local where anyone can uh play the uh
access anybody has access access it's
access crack deal guy who's drapped out
of high school has very little education
has sold back has gone to prison has
gotten out if he has enough knowledge
can become a
multi-millionaire what never get
licensed you don't have to be licensed
no get licensed hurt you in terms of
that process sometimes oh yeah cuz you
it opens the liability liability and
disclosures you know a lot of the people
in prison I not a lot but you had
segments of these young guys that were
like out of Miami that like they were
Rock and just buying little houses with
the extra money that they had that they
bought they had three four proper they
like 24 25 years old three four houses
that they own that they just happened to
buy and just was with the extra crack
money that they had where they had them
where they were free and clear houses
which I saw a few guys with that as well
from the classes that um that um taught
across the um across the um board but
the idea is you
know look when I got
sentenced when I got sentenced um
ultimately I got in sentence I got nine
and a half years in prison might as well
R
up as well no
actually actually was nine years I doing
six and a half years in prison uh you
know prison
literally literally you know my life was
pre-prison then after prison but prison
actually was one of the more
enlightening uh uh you know just a say
you got to meet me I got to meet you
listen that that that's that was that
was a Pac that was four years that was
the height of it but prison really
really I I I it sounds crazy but prison
worked for me cuz you get to a point in
your life where you need a different
level of understanding in terms about
yourself in terms about your
[ __ ] about back to the con man thing
of D your comment oh no not get the [ __ ]
out of here you know n [ __ ]
you're a com man you're a criminal
you're doing criminal activity but it
takes uh but your mind but you have to
be around people that are going to tell
you n [ __ ] you're a com no but
it was interesting when we did uh meet
uh in in uh in prison but the thing like
like I tell people all the time what I
thought was really um see here's the
thing
and about interesting people in prison
and really learning from people in
prison
I thought what I thought was really
interesting about you and I tell people
this all the time
was just how you have everyone engaged
that and that's what I thought was
important just the whole engagement of
keeping everyone engaged and then
sharing the ideas and at the end of the
day we were constantly evolving sharing
ideas sharing thoughts and okay you know
I had smart rooms you had troville so
that's not that's a lie that is not what
happened you had chille not what
happened listen no I'm not going to let
you I'm not going to let you do do that
listen people would ask me what would
you invest in and and like if you were
getting out of prison like what would
you invest in and I was teaching the
real estate class and I used to tell
people look because this is an entry
level anybody could do it right like we
talked about this earlier I mean I know
it wasn't on on uh on this but was
earlier and it was like
look you know some of these guys would
teach these little classes right where
they talk about like you know here how
how do you build a mall build a mall
this guy's never had a job or he's the
best job most he's ever worked is like
he was a bus boy and then he started
selling drugs or he was robbing banks or
whatever like he's not going to build a
mall so don't try and teach this guy how
to build commercial uh buildings like
right what is accessible to everyone is
buying a single family home and so what
I was teaching people was like look buy
a single family home and actually I'm
going to tell you how this went wrong
for me
once um it was I was teaching the real
estate guys cuz one of the last classes
we did I said hey you can get out save
up 5% get yourself your credit in good
shape and you can buy a house owner OCC
owner occupied you know maybe you do
move in it maybe you move in whatever so
your intent is to move in right you buy
the property for let's say 100,000 I
know that's that's a round number what
maybe it's 300,000 maybe it's whatever
so you buy a house for $100,000 put
$5,000 down get the the owner to pay
some your closing cost whatever however
the deal works so for five grand down on
good credit you can buy a house you turn
the living room and dining room into
bedrooms right put up a wall cost you a
th000 bucks you know put that so now you
can rent out all five rooms for I used
to say 150 bucks and now would be
probably a couple hundred bucks what do
you charge right now uh so weekly weekly
we I average R for about $200 weekly 800
monthly if there's a bathroom like a
master bedroom they average 250 a week
1,000 a month okay so back then I was
saying like 150 cuz this was 10 years
years ago so I would say that and then
we do I do the math for them you know
boom here's your mortgage payment here's
taxes Insurance here's what the electric
is because you have to pay the entire
bill um you know you go we go through
the whole thing and then I how much it
and these things are making between
1,500 to $2,220 I mean they were making
a huge profit and that was at a buck 50
I know your is a lot more profitable but
that was back then so I would explain
all that to them and and I would say you
could buy one and then it doesn't take
long for you to be able to buy another
one and another and I had like kind of
like a three-year plan like it's it's
getting rich slowly right I would
explain that the thing is and a lot of
guys would say stuff like you know yeah
but a there a lot of turnover they like
yeah initially there's going to be some
turnover but you're going to get guys
that are going to be if you these aren't
these I wasn't suggesting you build SL
you know or sorry rent out slums these
are good clean rooms sure so where
they're safe and secure and so I I would
explain that and and I would say look if
you if you're concerned about high
turnover and that is when I said what
you might want to think about is all
these chos here and I'm in a class and
there's ch's in the class I'm like these
guys have nowhere to go you know they
were getting out of prison and they had
nowhere to go these guys are sleeping in
tense behind Walmart I'm like what you
do is you could rent to them because
when they move in they'll never leave
nobody wants to rent to them if you're
willing to rent to them you could rent
to them and so listen the and I would
say I go and you can charge them a
premium like you can charge them more
than the hundred bucks you can charge
them 150 because these guys are smart
and they're not really criminals they're
perverts right but they'll get a job
because they don't want to go back to
prison they're smart enough to know I'm
not going back to prison I'm terrified I
didn't have a good time so they'll even
though this guy's got a master's degree
he'll lay drywall because he doesn't
want to go back so I suggested that and
that turned into chville chville chville
chille
oh had so we had I remember we had like
mtown and we had chood Forest CH chville
we had all kinds of different I saw like
mascots running around juggling chille
on unicycle it became this huge running
joke guys are running we would come up
with these hilarious things but but the
the concept initially was grooming house
room houses and then you came in when I
had explain I remember too I remember I
remember this when I said listen and
what you could you could do you could
run into the ch's I'll never forget the
look of disgust on doss's face he was
like what I'm not going to do that it
was just just disgusted that I would
even suggest it and you know and like I
was telling you earlier I rent to CH uh
to to chose now now yeah yeah i r that
but I think I but I don't know if I was
disgusting I think I just did I no I
think you right I think when you said it
to me I was thinking and but again I
still shouldn't been discussed I didn't
understand the market uh
exclusively a Cho Community but Cho
communities make money they do they they
have what's called proximity so they
have to be a certain number of feet a
th000 feet from schools churches why
churches I never understood the churches
the schools churches yeah I the school
churches but but but I we I rent to them
now in um C location certain locations
in in Atlanta but you had take I
remember so we had this whole
conversation multiple times um and that
was just one aspect by the way that
wasn't my whole goal it was a whole it
was a comedy no no no no I got it but
then I remember 6 months later somebody
comes up to me and says yo
bro have you have you seen a he had like
a whole business plan written up um a
doy's business plan yeah bro he's doing
this whole Smart Homes thing I don't
know if you called this smart smart
rooms I you know whatever the it was I
was like what do you mean and he tell
yeah yeah he's talking about but you
were building you would all he'd already
got got a guy he got a
guy was name Charlie he was in your unit
wasn't he no he was in your unit he was
in my he was the um he was a A draftsman
or or an arch yeah he was good too he
had a whole he had he wasn't talking
about doing it with houses at that time
do it with a highrise he's talking about
building this yeah it was it was a
highrise yeah it was a highrise that we
did he yes you
had we had pictures drawing out the
whole thing yeah guys in there [ __ ]
with
rul and I'm like what is this oh smart
rooms and I'm thinking dude we I bumped
into him and he idea he just he just
took my little nugget of an idea and
ballooned and threw steroids on it and
boom it's blown up into something
completely different and I remember
thinking you know okay well you know
we'll see what happens with that and
then later I get out of prison and when
I get out of prison he's got a website
he's got multiple homes I'm to him on
the phone he's walking through the place
so yeah I'm in one right now we're
renovating right now look at this and
I'm like this bastard and he's on
probation we on probation you know the
thing was was that I was sitting in
prison I mean I never like being in
prison but when I would sit in prison at
Coleman I would sit there and the thing
I noticed in prison was two things which
I thought was strange I was never bored
in prison I'm thinking when I thought
you go to prison you get bored I was
never supped to be bored right right
right I was never bored and there was
always someone for me to talk to and
then and then you had the cubes the
rooms I was able to go to people's cubes
I was able to ask them for food I was
able to move out people for food I was
able to move back and forth and I
thought to myself how come these
communities that we have here in prison
how come they don't have these in the
street there you had the TV room you had
the microwave room people were cooking
you had the [ __ ] we laughed in my Cube
day and night night and day and it
worked it was functional it flowed it
made perfect sense and here was the real
thing because we had these focus groups
in prison it when I would read The Wall
Street Journal I would read about
housing prices and then we studied to
Mee an average ankko coming in it made
no sense how the hell is the rent
approaching at that time is maybe
approaching 17,800 nationally and the
average person is making 40 42 43
$44,000 here on average United States
the numbers didn't work yeah yeah how
you going to pay how you going to pay
rent or morgage how you going to pay to
rent or mortgage sheared housing is
residential housing this is and again
back to your point when you can have now
we have houses where you can have
literally seven eight n some cases 10
bedrooms in one house you have 10
bedrooms in one house you're if you're
running $700 a room that's $7,000 a
month coming in what's that $882,000 a
year if I'm not mistaken coming in
yearly from a house in the hood and if
you rented that house as a single family
house you'd make 3,00 3500 4,000 5 you
maybe maybe make a profit of 300 bucks a
month 300 bucks a month maybe maybe
maybe and you get one bad tenant that's
all wiped out yeah yeah bad tenant all
renovate it put it back on the market qu
it's at least a month or two months
before it's renovated I when when I have
landlords come to me and they're saying
they're running out of single family it
makes absolutely no sense why would you
buy a house where you're making 300 mind
you one bag tenant can kill your
positive cash flow for what two two two
years easy but that that's what's great
about you're taking a loser rental
property which is a single family home
and you're turning it into an extremely
profitable one and it's not just
profitable it's never vacant it's never
vacant CU all five or six of those
tenants are not moving out at the same
time and they rent out quick quick like
people think oh how do you get BR it's
easy you could put a put a in the front
yard you could run an ad in in
Craigslist I had a buddy and you already
know this so this is really just for
people because you already know this I
had a buddy when I was in the halfway
house I worked for him at at the gym and
I was telling him bro he's like I was
like listen because he was like man we
got to do something we got I was like
absolutely like you got about six months
with me so utilize me what do you want
to do you want to flip houses you want
to do whatever and and he was I was he
was like what would you do I was like if
I was you let's go buy some rehabs right
you've got the money let's buy some re
rehabs we'll renovate them to make them
rooming houses and we'll rent them out
um that didn't work out because I can't
even stomach the fact that he didn't
want he didn't want to do it like he
didn't want to get his hands dirty he
didn't want to get dirt under his nails
he's a raised Rich whatever um but I
explained to him and he was when I told
him the concept and did the numbers for
him he was like bro I I don't I I that
no nobody's nobody's goingon to rent a
room right and I was like listen you
grew up in Avala Avala your house was SP
the minimum house you can build 5,000
square ft it's a [ __ ] one23 million
house you've never not had a brand new
car like you don't understand people do
rent rooms and and so I'm explaining
this to him N I said you know what let's
do this let's put an ad on Craigslist
right so we created a little ad about
renting a room for like 175 a week 175
for your deposit um and then we we put
it up and he was picking the pictures
that he uploaded he he was trying to
pick like nice nice rooms like these
were I was like what are you doing bro
like what that's like a model home right
no let's find one that looks like oh
there this one looks like a the bed's
not made it's thrown together like
almost like a kids room put that one up
he's like nobody's going to rent that I
was like exactly you're saying this
doesn't work I [ __ ] you not within an
hour no within two hours he gotten 20
phone call absolutely he to take it down
guys are they don't even want to see it
absolutely bro you got I'll take the
room I'll take the room I don't even
have to sit there I'm sorry he had he
just started telling everybody sorry I
already rented it damn man I just seen
it too I'm you got anything else he
couldn't believe it absolutely uh it's
it's so crazy I do I I have a room
brokering program where we actually
broker rooms for other landlords so we
do is that I I show people how to take
uh landlords who are want to get into
the rooming business like your buddy and
how to bring them bring landlords and
peer them together and we take
commissions and fees and so forth and so
on but literally you'll you could like
off every off every you make a $1,000
,200 on the front
literally people will send money to my
website all they do is look online pick
a room literally they'll send you
thousands of dollars per week just from
looking at the rooms online another way
that they do it is people who call me
hey I'm looking for room I need to move
these are people SSI social security
working class these are people that uh
uh some of them professionals and
literally very often send them a video
of the room that's it a th000 bucks p
take that card right over the phone
literally you're making $1,200 right
there for the and you literally can do
this over and over and over and over
again is just started marketing they
have to take the room they don't have a
choice yeah it's so limited on their
ability to find something that
inexpensive that that they they have to
take them because if think about it if
you're trying to live somewhere for $200
a week where are you going to go you
going live for 200 bucks you're not
absolutely so if you can find it it's
like I'll take it right and there's 100
million Americans that make $4 to $500 a
week that's what they're making so all
they can afford is $200 a
week there are literally a 100 million
Americans are in some type of roommate
Arrangement it could be with your wife
it could be with uh family it could be
with a shared housing it could be in a
college Dawn could be seniors uh senior
housing $3,000 a month is what they have
senior housing is paying on average
nationally and they're backed up three
years backed up three years uh uh uh
people are looking for housing they're
they're they're there subdivisions where
there used to kind of be people couldn't
have guests you go to subdivisions today
you'll see cars double Park lined up
throughout the subis because people are
cramming into homes today now the idea
is taking houses converting them into
multi-units the house becomes an
apartment building literally you know I
mean you know it's a that housing is an
issue well
one inflation's just crushed people
right so but you know it's a it's an
issue when like in Cal in LA in Tampa
and a a lot of these the zoning is now
allowing you to build mother absolutely
yes absolutely they
were Happ absolutely well there's a
housing mandate there's a housing M even
when code enforcement comes into
properties I have a lot of landlords
that I I who I do their rentals with
where we do multi rooms they'll say to
me
hey code enforcement came by code
enforcement I've tell all the time don't
worry about code enforcement their main
concern is are you treating the tenants
well right but they'll never have a
problem with you providing housing
because that's where the Mandate is
going they have to you can't run a it
can't be a slum you can't be no not at
all and they want you to keep the
tenants they just want to make sure the
tenants AR and there was a time where it
was a different story but today they
want people in houses in units
especially people that are um that are
that are in the affordable housing space
but there's money in affordable housing
a lot of money in it there's a lot of
money in it they need to get these rooms
and again like you said we're taking
basements will be the house will be 1500
feet in the footprint we have a 1500
foot basement literally in the basement
we'll create literally seven rooms so
someone's basement at $800 a room you
have seven what's that four seven times
8 time 7 what's that 49 so you're
getting $4,900 a month just from the
basement you still have the upstairs
where you have the living room that you
can convert to housing to a rentable
room you have the uh dining room you
convert to a cash flowing room it has
three bedrooms you're still picking up
all those rooms you could build in
bathrooms and literally the cash flow is
unreal that comes from these so that's
really what we're putting people into
we're showing people listen you don't
you can you don't have to worry about
buying a multif family like you said
they're not buying a23 million multif
family they're not doing some of those
crazy ass deals I was doing but
literally you can take a house these
days with the uh cash room system and
you could turn it into a multi
unit cash flowing property each room is
a cash flowing furniture room so now the
rooms act like an apartment giving you
multi-units of cash flow and that's how
you build real wealth I was going to say
it right now if you wanted to BU to buy
you know
150 room or unit apartment complex well
you have to have you have to have taxes
for 3 years showing that you've done
this before that you know what you're
doing you have to buy a property that
can prove that it can pay for it like
the the the level of the entry level
there is no entry level to that it's
like the average person can't do it but
but Residential Mortgages are extremely
available for the average accessible so
if you're thinking hey I work at I work
at Walmart as a as an assistant manager
and I make you know whatever $55,000 a
year well guess what you can start
buying two or three single family
a year just by going to the bank
absolutely buy them turn them into
rooming houses one two three three years
later you quit your job I can quit my
job at and then just live off I've got
people quitting off of one or two houses
off of one and here's what's going on as
well too the last two deals I did with
two of my clients they actually had a
property where they were doing um
four-bedroom house they created about
another uh four bedrooms downstairs they
have eight bedrooms all together they
went to buy the house the house is it's
like a $200,000 house they needed uh
approximately $40,000 to get into the
deal they went got funding and uh uh for
160 of it other 40,000 they would to got
a unsecured uh uh loan which they got
right off the internet that unsecured
loan they gave them the $40,000 they had
in three days they just going to bought
the property now they have the property
they're setting up to refinance in about
six months but really the point is that
on the property itself right now the
property is currently generating a give
or takes uh uh give take on it probably
somewhere around a space of $7,000 a
month again uh real profits of about
$3,000 a month net profit that's $36,000
so you're making $36,000 a year you
don't get up and go anywhere the money
just comes and we call it magic money
the money just comes and comes from
rental residual income that comes in and
that's from those rooms so are you are
you teaching these guys to manage it
themselves or cuz my my ex-wife has a
bunch of these prop properties like that
and she has somebody she calls him a
houseman She'll always have one guy in
there that will collect the rent mow the
yard she'll give him a discount on his
mow the yard you know clean up
everything and then he she calls he
calls her like once a week and she
drives up and gets out and she goes I
might walk through the place but she
goes if I trust the guy he's been there
for you know six months or a year or two
she goes he'll come out and just give me
the payment or or cash app or whatever
well a lot of people will cash up her
but she said used to be they'd walk out
and give her the cash but um but she
would always have some guy so I'm like
so you're not you're not even she's like
I'm not doing nothing no they absolutely
and I got one better for her with our
system we teach them how to do autopay
so the money is automatically debited
from their account oh I don't know about
I think they all pay her like cash app
something like that right so this way we
have we have we look at the trajectory
of their uh income direct deposit so we
can see you get paid on the third you
get paid on the ninth you get paid on
the 15th so literally it debits on those
days because you have a history of those
debits taking place so this way as soon
as your money hit H it automatically
debits right soon as it hits autoa this
way they don't even have to think about
it so that's part of the management
system that we use the idea too is the
onboarding is a big part of it as well
too showing them how to qualify tenants
showing them how to use the managers uh
we have at one of my buildings we have a
lady named Crystal she's down there she
has the documents the paperwork she
literally she calls them I show our
process shows them how she does the
marketing she calls them down she rents
the room she qualifies them she calls me
up to do the processing we have our team
do the process and the money comes right
through but like like your wife they
they they cover the whole gamut of the
whole process so now it's cash flowing
it makes money you don't have to lift a
finger and that's a big part of it too
with the management you don't once it's
structured you don't need to lift a
finger like your wife um so who I mean
so are you are you teaching are you just
doing your own so what we do is that we
do our own we do properties that we
build and develop as well also but in
the same breath too what we do is we
teach people a how to acquire real
estate how to build out that real estate
how to get their bill estate financ
because a lot of people think they can't
do a deal they think they can't get it
fin we show them how to structure it we
show them how to use properties that are
subject too we show people how to do
lease purchases how to do rent to own
because a lot of times you really don't
need to own the property you can
actually rent the property and release
it we also showed them how to do work
with different programs how to work with
uh SSI how to work with seniors how how
to work with Travelers how to work with
students how to work with professionals
how to really Target your group for your
shared housing concept and then how to
convert additional space into Cash
flowing rooms CU once you're running
rooms you no longer need that living
room you no longer need that uh uh want
you don't want the room you don't want
and they're fine in their rooms you
don't want the the garage something you
know off a garage two rooms on there you
can make $20,000 a year off your
garage just the garage 20 grand a year
just for the garage then not to mention
other so we show you how to convert
those spaces as well how to have that
management structure and how to really
scale it because the idea is if you're
making $33,000 a month profit how do you
get three four five six of these while
working your job how do you have the
housan like your wife managing it while
you're going to work and suddenly you
got five of these crediting 3,000 a
month you're getting $155,000 a month
coming in in cash flow not to mention
Equity you're getting properties below
market value have real estate You're
Building real wealth through these
Assets in real estate as well too so
these are the things that we're putting
people into where we're giving them the
blueprint on how to structure this which
is a really big important part of
Building Wealth and it's right here
outside your front
door um I was going to say what happened
to CU when we were talking about this in
prison um well when you were telling me
about how you stole my idea um and and
and tweaked it just enough that you felt
good about it no no this is different
this is different all my houses are
going to be yellow oh it changes
everything but um you uh one of the
things I remember this was when you were
talking about building and I wonder if
this is still in your where you had
workspaces is that what did what did do
you remember that yeah I do remember
that I do remember that it was you know
what it was it was the smart offices
concept I a smallart office con or like
a or like a work from home type of thing
right yeah because it's like hey you can
live here and have a shared office space
which is kind of like what that we we
works we Works kind of like the Wei
Works thing but you were talking about I
think you were talking about that when
he was doing it before he went under
course what an idiot like he like he had
a great concept and he ruined it was an
Adam something something something I
remember him um but uh you had you were
basically saying that but they live
there right uh and and um I was going to
say so have you ever thought I actually
have two questions that's that's the
first one have you have you thought
about going back to that or no you're
just going to stick with what you're
talking well well so Here's My
Philosophy with rental properties and
running rooms the idea is how can you a
help people which is a big part of it
housing is a function that really helps
people in that process but B how can
you acquire these properties create the
rooms and scale as quickly as possible
how can how can Mrs Jones who's a nurse
working as a nurse how can she acquire
properties that allow her to make $3,000
a month profit so if she's bringing in
$7,000 a month she needs 10 rooms how
can get those properties quick scale and
quick well couple of things she need to
be able to understand how to get
financing that's one part of it so how
to pay for that so we show so again and
how do you buy these houses where the
square footage is there where you can
get 10 rooms so we know that a basement
would be great because you can cut the
basement up and create four or five
rooms at it we know garages are needed
we can cut the but once you start doing
that way living rooms bedrooms dining
like you said in-law suites wherever
those spaces for us to create rentable
cash flowing rooms we no longer have to
build we just have to build to suit that
market that market has a 100 million
Americans that really are in that space
so once we build it and we can create
that space St we can just cash flow them
quick cash flow them quick cash flow
quick cash flow quick buy these houses
cash flow buy these hous and we're
creating cash flow quickly and and
anyone can do it you're you're not going
to answer my question answerers we don't
focus on that we just focus on rooms we
just want to rain
robes I told you all time we only sell
cheeseburgers we don't sell hot dogs we
don't but I mean I remember at one point
you had different versions Lear I
learned about the market okay um the
other qu thing was and this is when
whenever I was talking to people about
it they were always like oh you're going
to get nothing but a bunch of but derix
in there yeah that's not true at all
because and I used to say this it's like
listen here's the thing the guy that
works at TI Kingdom that has two kids
he's divorced and he's got child support
payments like all he wants is to work
see his kids and have a place where he
can go to sleep and keep his stuff where
it's not going to be ripped off and he
doesn't have to listen to gunshots in
the in the street it's not you know it's
not in a horrible place and he he's safe
that hey when I'm done with work and
seeing my kids and doing whatever I can
go home my stuff's there I can go to
sleep it's a clean environment you see
what I'm saying oh absolutely that's who
unless it's in if unless it's next the
project and you're specifically selling
you're renting brooms to drug dealers
like you but if you're going lower
middle class areas or middle class areas
then you can you can pick good tenants
that are like listen man I just need
someplace to keep my clothes and sleep
that's that's affordable so what so
check this out really just just to
really uh elaborate on that part too
is rent has gone up four times the pace
of the average American Income literally
rents have gone up since 19 uh85
195% so the the the the people that are
renting rooms today if you rent under if
you make under $38,000 a year you are in
some type of room or you're in some type
of shared housing so the thing is is
that it's an economics thing if if you
make under $38,000 a year after taxes
that might be four four $500 a week the
average rent in United States today is
$2,000 a month you cannot move into an
apartment you have to move into a room
it's not an option so once you
understand that number and you
understand they're saying there're right
now they're 6 million units of
affordable housing houses needed or
affordable units affordable housing
needed by Americans today six million
they brought up at the uh uh vice
presidential debate they brought it up
so the thing is that people need and
they have to move into these rooms
that's why for landlords this is one of
the biggest wealth opportunities
landlords are getting Filthy Rich rents
beat out cryptocurrency rents beat out
stocks bonds rents rents beat inflation
there is no investment that will produce
for you what rental income will produce
and that is an explosive opportunity
because the house becomes an apartment
building hey you guys I really
appreciate you watching if you like the
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