Deals & Dollars: Real Estate Investors and Entrepreneurs
Welcome to the Deals & Dollars Podcast, hosted by David Choi, Eric Panecki, and John Libretti, three real estate executives from the New York City metro area. Every week, they bring on the best real estate investors and entrepreneurs they know to learn about how they got started, how they source their deals, and -- most importantly-- how they make their dollars.
If you're interested in being on the show or want to receive exclusive invites to our networking events, you can reach out at (http://www.dealsndollars.com)
Deals & Dollars: Real Estate Investors and Entrepreneurs
How to Close +1,000 Deals by 27 Years Old w/ Tyler Smith
Ever wondered what it takes to turn an initial debt of 50k into a real estate empire of 200 apartment units? Wonder no more. As we bring you an inspiring journey of relentless grit and determination with Tyler Smith, a real estate tycoon who created a robust empire without any external capital. Delve into the world of real estate as Tyler shares his strategy of starting from humble beginnings of flipping houses to owning a portfolio of apartments and maintaining control over his investments through vertical integration.
Does having an addictive personality sound like a barrier to success? Tyler provides a refreshing perspective on how this trait, coupled with childhood trauma, can indeed fuel the thrill of entrepreneurship. We discuss Tyler's struggles and the crucial role they played in his success, making him resist the allure of new projects and focus on what truly matters for his business. Additionally, we dive into the profound impact of joining a mastermind group to share invaluable insights, scripts, and advice that helped Tyler multiply his wealth.
Tyler's journey is not just about real estate. It's about leveraging innovative marketing channels, cold calling, and aggressive follow-ups to generate deal flow. He emphasizes the importance of persistence in sales and how it has been a cornerstone of his success. He also candidly shares his recent deals, including a 114 unit deal off of a text campaign and a 30 unit deal with a $1.8 million mortgage, giving you nothing but real, raw lessons from the field. So, gear up for a whirlwind of inspiration, motivation, and practical strategies from the master himself!
Join the Deals & Dollars community today. If you're interested in becoming a guest on the show or receiving exclusive invites to our networking events, sign up on our official website.
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You don't have to sell to me today. You don't have to sell to me tomorrow. You don't have to sell to me next year, right? But listen, I'm gonna call you fucking once a quarter, once a month, until you sell me this shit. I don't care if it's three years, five years, ten years, I don't care. I want this deal and when you're ready to sell, you're gonna sell it to me, right? And at the end of the day, it's like dude, if I'm calling you for three years straight and you're ready to sell, who you gonna?
Speaker 2:call me.
Speaker 3:All right, today we have the king of Connecticut, tyler Smith. Let's ride, baby, let's go. All right we got, we got a really special guest. When I say king of Connecticut, I'm not joking. This guy is an absolute savage from real estate syndications, wholesaling, lending. I mean, he's a top. He's a top G for real. Johnny, this is your homeboy. Why do you give a little inch?
Speaker 4:on me and Tyler. Go way back. I think, back to the days when we were in your, the Acura rsx blasting music down the main strip of Quinnipiac.
Speaker 4:Yeah, bro came a long time. I'll never forget one time. Tyler calls me. He's like yo the breadies, like you want to make some bread. I'm like, yeah, let's go. He's like we're gonna go move a thousand cinder box from this guy's backyard to his fucking basement. Came a long way. But, tyler, I think it'd be good if you kind of give a little background on you, kind of how you got started and how you got to this guy taught by the way.
Speaker 2:Every time I see him doing stuff on Instagram, I'm like man, he's getting after it like I got a work, dude, I love this shit. Yeah, I know you could tell like you're, you're every day, you're getting after it, bro, like just it's awesome to see, it's awesome.
Speaker 1:Thank you, bro, I appreciate that. Yeah, I mean, listen, I could start from the top. Give you like the quick rundown of like how I started, so obviously, met John Quinnipiac, was going through college, putting myself through it. Two years in they pretty much told me hey, listen, no more student loans, right, you're beat, we're not giving you anymore. So I'm sitting there, right, 50k in debt, right. And thankfully I was always hustling, always bartending, always waitering who said no more loans.
Speaker 2:The government, the government right Quinnipiac's also bread it was like they cut you off in a year.
Speaker 4:Yeah, they cut me off.
Speaker 1:They were like you're done, okay, right. Which I'm super thankful at this point, right. But at that time it's like, oh shit, like now, what do I do? Right? So thankfully, I had some money saved up. I ended up hiring a mentor, right, and they told me about real estate wholesaling, right. So it took me nine months to do my first deal, right. And then I did my first deal and then I did another one, and another one, and then I started buying houses, start flipping them, right, started to scale that business.
Speaker 1:Um, you know, got to the point where I was making really good money. But you know, I was doing everything myself, right. And you have to realize, once you get to a certain level, you have to start building a team if you want to go farther, better, faster, stronger, right. And that's when I started building my team and I grew it up to 35 employees. We were doing 30 to 60 deals a month. We were pretty much sourcing deals for all the hedge funds across the Sunbelt and we were buying and selling them the same day as I was doing that, flipping a ton of houses. I think last year I fixed and flipped maybe like 30 houses. Um, right now I have a portfolio of almost 200 apartments, right that we own 100%, with no investors, no outside capital. We have an uh, we have a A lending company, we have a brokerage, we have property management company, we have a construction company, so pretty much like a one-stop shop Real estate Company is really what our goal is, so it's.
Speaker 2:It's cheesy, because people say it all the time. But the vertically integrated, yeah bro, but but it's, it's legit.
Speaker 1:I mean, dude. I think it's important right, because, like, especially when you're buying and stabilizing assets, it's super important to maintain control right the second that you hand it off to somebody else. They don't give a fuck about your investment, they don't care right, they just want to catch their check, they just want to make their money. So, in my opinion, I thought it was super important to keep everything in house Right, just so that way you can make sure that every part of the deal is like streamlined and on point.
Speaker 3:Yeah, you're Tyler, just for the audience. I'm looking at a relatively young man right now, probably as young as me. How old are you? 27?. This guy is a savage, an absolute animal. 200 doors with no investor capital Yep, thank god, brother. How many hours a week are you working?
Speaker 1:dude a lot, you know, but at the end of the day it comes down to like uh, really, what I was doing is I was just, you know, buying, buying, buying, and I wouldn't spend any of my money on anything Except for real estate. So I was either spending on marketing or more deals, right, and eventually it just kind of kept leveling up, leveling up, leveling up. And that's kind of how I eventually got to to where I am now.
Speaker 3:Gotcha, I'd love to hear, like the Genesis story, right.
Speaker 2:Yeah, like what, like where, all of a sudden you're like, all right, I hired a mentor and then all of a sudden I was doing you know 30 deals a month, like, yeah, there's a, there's something's missing here. Well, where did you, you're? I?
Speaker 3:mean, you're going to college with John? This was not an overnight. Yeah, yeah, no, of course not.
Speaker 2:I know You're going to college with John. I know you are not. You know, you know, studying every night and getting straight is so. So what, what? Where's the motivation come from? And how, like how did you get?
Speaker 4:What was like the epiphany moment.
Speaker 1:Yeah. So I think that like at the end of the day, first off, like my upbringing wasn't necessarily that great Right. It was kind of like if you want something, you got to go and get it right. So even at a young age is like, dude, you want that, figure out how you're going to make it happen, right.
Speaker 1:So, that's really what I was doing is like by any means necessary. I was just trying to grind, I was trying to make money, I was trying to do whatever I can, but you know, what really like set the fire into my ass is like, right after college, right, I got into a lot of trouble and I was potentially facing jail time, and I think that's what ultimately like lit the fire under my ass because at the end of the day, I was like dude, listen, I'm gonna be successful by any means necessary. And like, if shit hits the fan, right, and I end up doing time like it is what it is, but I at least know like everything happens for a reason, right. So if that was the case, right, I know that it was for the greater purpose, but at the end of the day, like you know, that was really what sparked the fire under my ass, because it was like do or die, almost. You know what I mean.
Speaker 3:Listen, I'm glad that you were super transparent about that, because it was the same thing that happened to me. I got into trouble, I almost faced some prison time right, and at that moment is when I found God. And God was like you better get into real estate right now. And without that traumatic experience, without trauma and childhood, then I really wouldn't be where I am today. It required it to be a successful entrepreneur. I believe you need to go through some shit.
Speaker 1:Yeah, dude, you got to hit rock bottom.
Speaker 3:Yeah.
Speaker 2:I think every one of us has somewhat of a similar story. I mean, I was getting in trouble all through college. I'm sure you might have skated by, I don't know how I got away with some things.
Speaker 4:But you know, everybody has some events that you're like. You're like, oh shit, that I didn't get to that point but it could have gone that way, and it makes you think like, oh fuck, you know, now I got to kind of not walk the straight narrow, but I know there's more for me. Like I can't you know, can't work this up.
Speaker 2:What was that Instagram quote I sent you today? I think it was like if you're not facing bankruptcy every four years as an entrepreneur, you're not going hard enough. Yeah, I don't really want to face bankruptcy, but I mean you're risking it all right and you're really, and you had your back against the wall. It's like it can't get worse than where I'm at today, so why not go all in?
Speaker 1:right, exactly, and I think, dude, at the end of the day, it's just like how bad do you want it Right? It was like what are you willing to do to get what you want? And like, I think, for me at that point it was like, yeah, whatever it takes, you know what I mean. So I was working all day, every day, banging the phones in real estate trying to source deals, and then I was working in the restaurants all night, right, and then I would take all my extra money and I would just spend it on marketing to generate more leads. And I did that over and over and over for like nine months. You know, most people would quit, right, but like my back was against the wall and I was like yo, by any means necessary, like I'm going to make this shit happen.
Speaker 1:And you know, it's funny because, like a lot of people, especially when they're starting their entrepreneurial journey, there's like so many people that are like, oh, that's not real, you can't do that, you're wasting your time, you're this, you're that, like whatever, and that's something that, like, so many people face, right, but people have to understand that, like when people are giving you the type of feedback like they mean well, they just don't know, right, like, how are you going to take advice from someone that hasn't done what you want to do, it hasn't been to where you want to be, you know? So I think it's important, especially like, if you're a newer entrepreneur, you're just getting started. Like you're going to have family friends that like, yeah, they doubt you, they try and talk you out of it, right, and it's not necessarily like a malicious thing. Or they're trying to, like you know, talk down to you, but more so, they're like they've never traveled that path, right, so they're scared for you to do that. And right, they want to almost kind of keep you on that straight and narrow.
Speaker 1:But like, at the end of the day, it's like, dude, we got big dreams, we got big goals, right, like you got to take some risks. So did you have a partner?
Speaker 2:No, wow See, because me and Dave, I feel like our story is almost exactly the same, but at least we had each other, you know. Yeah, and for that nine months where we made no money and we're in the office the one in the morning. It was like I got you, bro, I believe in you, and he's like I believe in you too. We're going to figure this shit out. For you to do that on your own, bro, like that's a lonely place.
Speaker 1:Yeah, I feel like I mean, dude, it's hard, right, but at the end of the day it's like, you know, growing up like my father was an alcoholic, right? So it just like being in that type of environment at a young age like just really made like my mentality just like rock solid, like I don't give a fuck what's going on around me, I just know what I want and where I'm going and I just stay focused on that and regardless of what happens, right, like, especially when you're starting a business, dude, there's tons of ups and downs and emotions are like roller coasters, but it's like, dude, as long as you keep your eyes on the prize, right, and you know what you're going after, dude, nothing else fucking matters, literally nothing else matters, right, as long as you know in your brainwashing yourself like yo, by any means necessary, like you could throw anything at me.
Speaker 2:I don't figure that, that's it.
Speaker 1:Yeah, that's it right, but that's how you have to be If you're going to be a successful entrepreneur, if you're going to be successful in business. You're going to be successful in real estate, right? Like you have to be okay with taking L's. You have to be okay with, like that up and down roller coaster because, like, that's what business is, right and I love that shit. Right. But you have to like. You have to like be prepared to go through that right and just say yo, by any means necessary, like we're going to get to where we want to go.
Speaker 2:So to me it's really just confidence, right Like confidence, I'm going to figure it out, no matter what.
Speaker 1:Yeah.
Speaker 2:Right and like I actually think it's an addiction. At some point you get so used to solving problems and you get so good at it. You're like where's the next fucking problem? And then like, when things are going I don't know about you, when things are going too good, I'm like I'm going to break some shit because, like this is too easy. What's going on? Like why is it like everything running smoothly? Like I'm so used to solving problems.
Speaker 4:Yeah.
Speaker 1:And probably you had the same Dude. I have a super addictive personality. Like, if I do something, like dude, I go balls to the wall, crazy with it. Right, all in. Yeah, you know what I mean. But that's kind of like what you need, that's kind of mentality that you need. Right, like dude, I can close a deal. Right, 150k spread, 200k spread, I don't even care, dude. Next deal, where's it at? Yeah, you know what I mean. I'm on to the next one. Right, Because for me, dude, like making money is cool, right, like that's all great, but I get a thrill from doing deals.
Speaker 1:Right, there's nothing I love more than calling somebody 25 times them telling me you know, and on the 26 call they're like Dan Tyler, like you're persistent, let's fucking do it. You know what I mean. I love that shit. I live for the deals. Right, and I think that's part of it is you have to really love what you do, right, because the money is great, but that's really just a bonus, right, for me. I love doing deals, I love putting together, I love fucking closing people. That's like my most favorite thing, it's like. That's like my high right, I don't do drugs, I don't do any of that shit, but like dude, I get high off closing deals and I love that shit.
Speaker 2:I love that. You're the same way, dave, I love that. I'm way happier than when he just closed somebody oh dude, it's like such an adrenaline rush.
Speaker 3:We closed in deal today.
Speaker 2:Yeah right.
Speaker 3:It's the best feeling man. I will say right, that addiction to chaos is something that it's in me, it's definitely in you, right? It's in a lot of art, it's innately in entrepreneurs, because they found they found direct correlation between entrepreneurship and childhood trauma, right? Yeah, so you know all this growing up with a bunch of trauma, dealing with stress. The parents are fighting at night. That kid has got cortisol levels spiking every single night. That changes the human chemistry, right? So you're now you're an adult. You're like where's my, where's my stress?
Speaker 2:Yeah, I gotta.
Speaker 3:I gotta break something, right, and so that itself is like a beautiful thing for entrepreneurs, like we are always chasing the next bag, we're going after next deal. But it could also lead to shiny Audrey syndrome, absolutely. And so that's the way. Right, I'm making a ton of money on the wholesale side. We're making, we're ripping, we're growing, we're crushing, right, eric. And then what do I do? I'm like, damn, this is getting kind of boring, it's too easy. Let me go flip some cars. Right, like why am I flipping cars when I'm making 10 times more per deal on a wholesale deal? Right, so it's it. We have to be, I think, as entrepreneurs, we have to just be conscious of that addiction and say, listen, if I take that addiction and just, instead of a, take talk advertisements, instead of Instagram ads, my call center is working. Let me double down on that. Let me improve the scripts. It's less chaotic and less stressful, but I know I'm going to make money in that right.
Speaker 3:So I look, I think it's like super, super important Something I struggle with for the first time ever. I'm hyper focused and, bro, I'm seeing, I'm seeing mountains move right now.
Speaker 1:And dude, I deal with that shit all the time. Right, because like I want to do everything. But at the end of the day, for me it's like I have to focus on like all right, what's going to move the needle the most for the business? Right, because obviously I could be going putting together deals all over the place, but like that's not necessarily going to move the needle. So for me, right, as I know I can do loans, I know I could broker, I can fucking, you know, I mean do wholesaling, I could do acquisitions, I could do dispositions, I can do, I could do it all right.
Speaker 1:But the question is is, like you know, as an entrepreneur and like the CEO of the company, it's like what do I have to do to move the needle the furthest Right? And I think that kind of like goes to the shiny objects in them, because it's like yo, I see this, I'm like yo, I want to do this, I want to jump in that, oh, they're closing the deal, let me jump in there. But it's like you got to take a step back and be like all right, well, like what can I do to move the needle the farthest for the company?
Speaker 2:I've talked about this on the pot a couple of times now. This book I'm reading is 10x is easier than 2x, yeah, and it's all. It's basically the 80 20 rule, right. It's like, what is the 20% of things that you can do? That's really going to move the needle, right, like if you want to go to 10x, right, there's probably like two, three things you could do to 10x your business Right. But if you want to just 2x and generate some more revenue, yeah, you could. You could start a real estate agency, you could bring on some agents, you could do. But if you're going to go to 10x, what do you got to do?
Speaker 1:You got to, like, take on big fucking deals, right, like something right, and that's kind of where I'm at now, right, because I obviously built out all these other little smaller companies. But like I'm realizing that, like now that I have so many companies, it's like they all require attention from me, right, and they all require, like me, to put some time there. And at the end of the day it's like I'm starting to realize, like dude, that's not the best use of my time. It's like, dude, that's great, like starting another business making more money, but like it kind of comes back to like yo, what can I do to move the needle the most? And that kind of comes back to me buying more apartment buildings, right. Start taking on investors to really scale. Start bringing on bigger deals, right, so we can kind of really take it to the next level.
Speaker 2:There's only like a couple of few things you can do to really 10X yeah, and for me that's useful because if I put it in that mindset, it's like, yeah, right, like we could probably, you know, in-house manage our Airbnb's and scrape a few more dollars, right, but like, is that gonna really 10X us? Like, should I be trying to figure that out with our? No, like that's a waste of time. So you get to a point where you're successful in business and you know how to grow business, and that's almost a detriment because you're like oh, I could do that, I know I could do that, I know how to grow business, but you gotta say like no.
Speaker 1:Exactly, and one of my mentors said too. He was like listen, you don't have to say like it's not a no, it's just a not right now. You know what I mean. It's like you know, I know we could do that right and I think there's potential there. But, like, what I'm saying is not saying no, but not right now. It's not something that you should be focusing on right. So, focus on what's gonna move the needle, Really, gonna take you to that next level.
Speaker 3:What's you brought this mentor up, and I think if you listen to any business podcast, you're gonna hear the word mentor over and over again. What did this mentor do for you?
Speaker 1:Dude. So I think, first and foremost, like I'm a big fan of paying for speed, right, Like, if I can learn from you and get to point A to point B significantly faster, it's 100% worth it, Right. At the end of the day, like, mentors are super important. Every successful person has one right and in my opinion, it's like, why am I gonna go and make all the mistakes myself and have to learn from it, when I could pay you five grand, 10 grand and learn from all your mistakes, 20 grand, whatever it is Right? So for me, I think it's super important to have them right, Because they can kind of get you to where you wanna go significantly faster. Right, Money is really just a tool, right. So it's like, if I can pay you, right, A certain sum of money and you can get me from point A to point B like way faster than I would by myself, it's 100% worth it, right. So I think mentors are super important. I think everybody should have one and I think that, like you should constantly look for more right, Because, at the end of the day, we're always leveling up. Right, and it's like, if you're gonna continue to grow, it's like you gotta keep finding that next person. You gotta find that next mentor and you gotta find the people that have done what you wanna do right, Like dude, nowadays there's so many fucking gurus and people trying to sell courses and mentors online, but half of them aren't even really doing anything right, they're not really doing what they're saying. Right, they maybe did in the past, but now they're not. You know what I mean. So I think mentors are super important and even today you know what I mean I spend hundreds of thousands of dollars a year on just mentors, networking groups right, Just being around the right people.
Speaker 1:And I think not only from a learning perspective, right, as like a direct mentor, but also a mentorship group. Right, Because we can kind of lean on each other's connections. Right, you might know somebody that could benefit me, I might know something that could benefit you. Right, and it's like we can kind of work together to take it to the next level. And it's like when you're in a mastermind group, right, With all high level people, it's like you're gonna give it. One of the things I like about like the mastermind groups too, is that, like it gives you a different perspective. Right, Cause, like when you're like, for example, I'm from Connecticut, right, there's not a lot of people that are really big players, right. So it's like when you start getting in rooms with other really big players, it kind of gives you a different perspective, like yo, what can I actually accomplish? Like what else is out there, and like also like learning from other people. So I think mentors, mentors are huge, mastermind groups huge. If you're not a part of them, you're crazy.
Speaker 3:If you're not a part of them, you're absolutely nuts. The amount of money mastermind groups have made our company, yeah for sure. We couldn't even calculate. I don't even know if we'd be in business if we didn't have some masterminds, because, dude, they not only help this, like, I mean calculably generated over a million dollars of wealth. Right, I think the business strategy that we have now on our wholesale side, listing everything on the MLS, the scripts that go involved, Are you doing that?
Speaker 2:by the way? Are you doing no vacations?
Speaker 1:I just did a novation. It was like, I think it was like a 65K spread, so it was, like you know, decent.
Speaker 3:It's yo, I'm telling you, bro, after we get up, after we get up this meeting, it is insane, it's crazy. It is insane, like you know how. Like you don't go on in person appointments unless the guy's asking, like I don't know, 20% below Zillow or something like that. Bro, every freaking motivated seller is now a potential deal and there's a simple way to get that done. I'll walk you through it.
Speaker 1:It's like the white glove experience of like hands off. You just get what. You're the number of your promise and we do everything else.
Speaker 2:Exactly, and you don't have to deal with anything, any repairs. We're going to take care of that sort of thing.
Speaker 3:And it's honest man. You're just saying listen, I can't pay that, bro, I'm going to lose money if I buy it at that price. Let me find you a buyer.
Speaker 4:Yeah.
Speaker 3:And it's as simple as that. Right, you don't have to pay commissions, you don't have to deal with repairs. We have, you're getting the same service I would provide as an investor, except now we're going to be able to get you full market value and actually make you more than you potentially would have selling it on the open market. Showing you 15 times with a realtor. How do you? How do you say no?
Speaker 1:to that.
Speaker 3:You cannot, you cannot. And the spreads be thick. It's crazy, the spreads be thick.
Speaker 2:It's like 50K per no matter what.
Speaker 1:Yeah, I fucking love that.
Speaker 2:But getting back to kind of the point, we wouldn't be doing that at all. If we're in this mastermind group, it's called Collective Genius and I mean, I think what is it? 35gs a year, something like that. Everybody across the country is doing this right now and we were like we were slow to adopt. We're like, ah no, we don't need to do that Because I don't know why. Why are we cocky, like I don't understand?
Speaker 3:why we think we're no, we're doing, no, we're a nation, baby, but these guys are.
Speaker 2:We're crushing and we're seeing everybody's numbers on their CRM and they're making a million dollar a month. We're like, what, what? Like? All right, we got to try this and now we're doing it and it's we are going to make so much money off of just literally this mastermind group showing us like this is what everybody's doing. And then they give you the scripts, they give you everything you need, and it's been like that For you know, there's been market shifts and changes and every time, these guys are always ahead of the game and it's just like wow, all right, so let's just do what they're doing right. Or like who's doing this? Well, let's call them up Like and it's so freaking valuable, oh yeah.
Speaker 1:I definitely need to start doing more innovations and, to your point, I was kind of slow to adopt because, like when we were doing the traditional wholesaling, we were doing million dollar months, right, but like dude, it was fucking crazy. You know what I mean. When you're doing 40 to 60 a month, it's like dude, that's insane Dude it's wild, that's insane.
Speaker 2:What did the transactions team look like at that point?
Speaker 1:Well, at that point we had like an in-house transaction manager, we had two, but that's the thing. It was like a fucking shit show. You know what I mean.
Speaker 2:But also, dude when you're doing it was probably fun as hell, though.
Speaker 1:It was right, but at the same time, like dealing with the hedge funds, like they were just tough to deal with because like there was no bending, you know what I mean. It was kind of like yep, that's what it is Like they'd be like oh, our max rehab budget is 45K and this came in at 46. Dead the deal and I'm like come on.
Speaker 1:Dude what the fuck Like just take it, Stop. Sorry, I can't do it Right, so it was tough, right. But I think to your point like it's super important to like get ahead of the curve and start implementing stuff before other people do right.
Speaker 2:These guys were doing the hedge fund stuff too before we were and they were all ahead of the game and then, like that, went away and then it went to Novations and so, like it is, I wish we were in a market that we could have done the hedge fund. That seemed like an awesome opportunity, yeah.
Speaker 1:I mean, listen, I'm in Connecticut, right, but we were operational in 12 states, 25 different markets. So what we basically did is like I read a book called the pumpkin plan, right, and basically what it is is about the guy who grew the world's largest pumpkin. And what did he do? He figured out what worked and only focused on that right. So, like when I first started my business, right, like, my main client was a fund right Out of New Haven and they were buying anything that hit a 10 cap, right. So what I did for my wholesale business, I just started acquiring for them, right, and that's how I was able to scale it, because I started doing a ton of deals right.
Speaker 1:So when we started going, like, across the country, I was like, all right, let's refer back to the pumpkin plan, right, and figure out, okay, like, what's the main thing that's working? Hedge funds are buying, right. So what I did is we found all the hedge funds that were buying right and we just started sourcing deals for them right. So we stopped working with traditional cash buyers. We stopped working with mom and pops, right, when we were only sourcing deals for them, and it was dude, it was fucking crazy. We were making so much money for a while, right, and then obviously interest rates went up. Shit hit the fan. Everything stopped right. But you know, I think to your guys' point, it's like you have to be in those groups, right, so that you could be ahead of the curve, yo.
Speaker 3:Joe Tyler, you got. You have a vertically integrated company from property management to lending, to wholesaling, to syndications. I mean you got a brokerage right. What else you say? You got a title company.
Speaker 2:You got a car wash too. Yeah, yeah, yeah, he's flipping cars too on the side.
Speaker 1:You must have massive ADD, just like me I do?
Speaker 3:It's fucked up. What would you identify? Because look what.
Speaker 2:I want to do what is your pumpkin plan? You got to beat you to it or are you going to ask him no, you just caught me off.
Speaker 3:that Just get out of here.
Speaker 2:I want to know what is the pumpkin? What's the pumpkin? What's the next?
Speaker 1:So I think right now, it's a good question, right, because I haven't really thought about it. In today's business, right, I think for right now, like, the biggest thing is like figure out what works right. What works for me is buying apartment buildings, stabilizing them right, and then moving on to the next one, right. So like, obviously, I was flipping a bunch of houses, I was doing all these wholesales right, and it was great. But the problem with flips is like, dude, there's so many moving parts, right From the contractors to the fucking town, to everything else, right. And like, my aha moment was when I bought my first apartment building right, it was a 15 unit in Black Rock, connecticut, in Bridgeport. Right, I bought it for 745,000. I spent 250 on the rehab and in under a year I praised out for 2.16 million. Wow, right. So that's sick, yeah, dude.
Speaker 1:So like that was when I was like what the fuck? Like, why am I flipping 20 houses to make the same spread? Like that's where I want to put my focus right. So I started doing a lot more of those. Like the most recent deal that I brought full circle, it was a 21 unit. I bought it for 2.1 million, I put in 500 grand and it just appraised for 5.6 million and that was in 11 months. Wow. So I brought full stabilization. I pulled out my original 500K, I pulled out a million dollars worth of tax free profits right, and that asset still cash flows $120,000 a year and I get to depreciate it.
Speaker 2:So it's like you doubled your money and not like a small yeah, I got my money back and then I doubled it. You're not a small amount of money. You doubled your money Two and a half. Well, if you just bought a cash two and a half million, you're all in right.
Speaker 1:Yeah, it's worth 5.6.
Speaker 2:In 11 months? Yeah, that's sick.
Speaker 1:Right, but that's how I was able to scale my portfolio right. It was like that first deal. I pulled out that money back, I refinanced it, I bought more. I did that with the next one, and the next one, and the next one. Now I'm at like 200 units, so Okay.
Speaker 3:This is I'm glad you actually asked him the pumpkin plan Okay, because now this brings me to You're welcome for cutting you off, thank you.
Speaker 2:Sometimes you cut me off.
Speaker 3:It's very good, okay, sometimes very good, okay. So now you got the pumpkin plan. You're making a lot of money. You're gone. You're making a lot of money on buying buildings.
Speaker 2:Right, you're syndicating You're buying the it's not syndicating. Oh, you're self-funding.
Speaker 3:You're buying these things like 50 cents on a dollar.
Speaker 1:Yeah.
Speaker 3:You're stealing these deals like grand slam home runs. Right yeah, how are you doing that?
Speaker 1:Dude, bang the fucking phones, bro. That's what it is. You just got to bang the phones, right? Like? At the end of the day, the way that I source deals is I'm not buying on market, I'm not buying from brokers, right? The way to get the absolute best deal is to get in front of somebody who's not looking to sell and pull them into the sellers market, right? So the best thing is reaching out to say John, hey, john, listen, I'm calling about your property at 122 Main Street. Just wanted to see if you can send an offer on it, right? No, not really, dude, listen, john, I'll give you $2 million cash. He bought it for 300 grand 20 years ago. You think he's going to think about it, probably right, but what he doesn't know is it's worth 2.5 or 3. You're saying that on the first call.
Speaker 1:I mean, listen, you got to feel it out right At the end of the day, you always want them to say the number first, right, because some of the best deals I've ever bought in was they just threw out their number A lot of times. You want to put some feelers out there, right? So it's like John, listen, I don't have your T12. I don't have your rent rule, but, Ballpark, would you consider something around here? Right, because, listen, nobody knows what they want until you throw out a fucking number. And then they're like no, I want this. Right. So it's like listen, john, would you take 705 a door? Oh, no way, I want closer to 90 a door. It's like OK, cool, we're in the. I mean, we're talking, now we're talking.
Speaker 1:And this guy wasn't even thinking about selling right. He had no interest in selling, but he had an idea of what it's worth or what he would want if he were to sell right. So that's how you get the absolute best deals is by getting in front of people that aren't necessarily looking to sell right and pulling them into the market prior to them, speaking to the brokers prior to them to get multiple offers right and like that's really how, and also building relationships with people over time. Yeah, right, because it's like listen, eric, dude, you don't have to sell to me today, you don't have to sell to me tomorrow. You don't have to sell to me next year, right? But listen, I'm going to call you fucking once a quarter, once a month, until you sell me this shit. I don't care if it's three years, five years, 10 years, I don't care. I want this deal. And when you're ready to sell, you're going to sell it to me right.
Speaker 1:And at the end of the day, it's like dude, if I'm calling you for three years straight and you're ready to sell, who are you going to call Me? You're gonna call me right Cause you're like dude. This fucking guy has been following up with me relentlessly and I've just been shitting on him the whole time and he doesn't care, he just keeps going back. For me, it's like a no is not a no, right. For me it's just not right now. A no is a no until it's a yes, exactly 100%. That's really what it is. A no is a no until it's a yes. Right, and like dude, I thrive on that shit, like I like that, literally, like fuels me, like I love it. Like talking to somebody getting them on the phone and like yeah, yeah, no, not really interested. I'm like, yeah, but you will be, eventually you will be. And guess what? I'm going to buy that shit when you're ready to sell.
Speaker 2:So you're, you're, you're. At one point you were on Instagram Tyler Smith that buys houses, right? When did it switch to Tyler Smith buys buildings?
Speaker 1:When they started buying buildings.
Speaker 2:How long ago was that?
Speaker 4:After the first block black rock deal.
Speaker 1:So I think I was probably maybe about seven units deep, and then I was like I'm gonna go bigger.
Speaker 2:I want to buy buildings.
Speaker 4:So let me ask you this question that black rock deal that you bought, because I remember when you posted that was like a seven cap and you were like, look at this, I just fucking built in a million three of equity in like less than a year. When did you buy that deal? How long did it take you to get to 200 units?
Speaker 1:Uh, probably about three, three years, three, yeah, about three years, because I bought that building in maybe less, actually, I think I bought it in 20. You see that ended 2020. Yeah, I think. Actually I think it was the end of 2020. So, not even three years, and right, we were able to scale it up to that.
Speaker 3:Wow, okay, I got to. I got to ask now because you got my, you got my Asian senses going on. Got to ask what is um? People do the cold calling, people do the texting, the direct meal. What, what are your? What are your marketing channels look like to generate deal flow?
Speaker 1:I mean, listen, dude, at the end of the day it's like you got to have a a good balance of a little bit of everything. Right, but like, for me and this is like what I've always told my guys is like the best way to get the best deals is through cold calling. Right, bang the phones right, get in front of them. Can you see? Here's the thing. Right, like dude, people get direct mail all the fucking time. People get texts all the fucking time. Super easy to ignore If I'm calling you and I'm like in your face saying, hey, I want to buy your building, let me make you an offer.
Speaker 1:You're going to get the tension right and at least you know kind of where their heads at right. And it's also like, once I have your number, I'm not losing it right, I'm always going to follow up, I'm always going to call right. So obviously it's super good to have texting, it's good to have cold calling going, but also at a certain point, like you know, if you're using VA's to cold call department buildings at a certain level it just doesn't work right. But that's when you have your in-house team doing it right, it's like texting, it does work. Like, I've closed 114 unit, deal off off a text campaign, right. But the problem is is obviously nowadays they're putting so many more restrictions on the texting right. So it's like as soon as the text goes out, it's like at the bottom it always says say reply, stop to opt out.
Speaker 2:Yeah, it's horrible.
Speaker 1:And people are like ah, spam, ignore it, right. So it's like nowadays it's like you have to figure out you know what is going to really get the attention right. Because, like I was like again, text you can ignore, Ignore Direct mail everyone's doing that shit. You can ignore it. Now, not saying that that doesn't generate deals right, because it does right. But for me, like dude, I want to be in your face, I want you to know who I am and I want you to know that, like I'm calling and I want it right, because that's like what people like right, business people, dude, they like people that are aggressive, they like people that are persistent, right, and it's not like I'm like aggressive to the point where I'm like calling you every day, right, but there's like a certain level of like persistence and aggressiveness. You got to find that like middle ground where it's like you're persistent enough and you're aggressive enough, but you're not like too aggressive.
Speaker 2:You know what I mean. Almost like where it's like funny. You're like this guy's fucking crazy.
Speaker 4:Yeah, exactly, but now you're staying top of mind. Like you said, maybe he doesn't want to sell today, tomorrow or next week, but when he does, who's he going to think of?
Speaker 1:Exactly, and it's like John, listen when you already saw, dude, I'm going to be here to buy it.
Speaker 4:Yeah, you know and even if that takes two years, I'm going to call you 30 times between that and that 100% dude and we're going to build that relationship right, and I think that's why it's important.
Speaker 1:And then, when you get to the end of that cycle, they want to give you a great deal, because they're like, ah, this guy, you know, I mean, I have an ideal that I actually just got this morning. It's a 30 unit and this deal is fucking sick. I'm super excited about it, right. So I've been working this guy for dude like fucking, probably two and a half years right, so I did one deal with him and this is the second deal.
Speaker 1:It's a 30 unit complex and basically he built it right and it's like a tax credit chaff, a deal little complicated, but basically he made his money on the build, he got tax credits and then he cash flowed on the property for the last 30 years. So basically what I'm doing is I'm assuming the mortgage right, it's like a $1.8 million mortgage at 4%, right. And he pretty much was like Tyler. He's like just give me a hundred grand and I'll walk away. What Right? Hundred grand down right. And I'm assuming the loan and he walks away. Right, that deal. Year one cash flows $120,000 without any stabilization.
Speaker 3:Wow.
Speaker 1:If I only raise the rents $150 per unit, which is like still way below market, the cash flows $170,000.
Speaker 2:Noi, right, that's not even that's net, right you get a hundred percent return of capital, more than a hundred percent return.
Speaker 1:It's a hundred and like 20% cash on cash going in.
Speaker 2:That's ridiculous, stupid, that's just stupid right.
Speaker 1:But the thing is, it's like persistence, right. And when I was on the phone to his attorney, he's like the attorney's like you know, john, you could probably get more than this. And John's like you know, tyler, I've done a lot of work, I probably could get more. I was like dude, listen, I hear you. So what are we gonna do? It's like I hear you, he's like I could probably get more. I was like dude, I hear you. He's like all right, let's do the deal. And he was like all right, let me think about it. He called me. He's like you know, Tyler, he's like if I were you, I would want to get a great deal. So this is what I'm gonna do. I'm like say less.
Speaker 1:That's sick so but like that goes to the power of like following up and building relationships. Like it's super important, like a lot of people like they downplay that right where it's like you know they don't really see the value in it. But it's like, dude, if you're persistent, right, like you'll get those home run deals right. And like, surprisingly, like I've gotten a good amount of those right just because it's like, dude, I'm persistent, right. And it's like when you build a relationship with somebody over a longer period of time, like they want you to get. You know what I mean. Like if, if you're just going through a broker into some random buyer, you're like, fuck it, I want as much as I can, yeah, right. But if you have, like now you have a personal relationship with somebody, you're like yeah, and, like you said it, I want that guy to win.
Speaker 3:I like that guy.
Speaker 2:Yeah, I'll take a couple dollars less, just like he's a good guy.
Speaker 1:But that's why it's super important to build a strong relationship right.
Speaker 1:Whether it takes one month, three months, a year, three years, five years, right, like. I have people that I've been working for years, right. But I think that's like the important part, cuz, like dude, when they are ready to sell, it's like you're already gonna have an established relationship with them where they want to see you win, yeah, right. And also like dude, a lot of the deals that we're buying, like dude. When COVID hit dude, everyone fled New York, right? So many people came into Connecticut and what that did is that drove the rent prices up like crazy, right. So there's a lot of mom-and-pop landlords that really are not Running their assets the way that they could, be right, so they have any, only realized they don't have no fucking clue, right.
Speaker 1:So, they have two bedrooms, right, they're renting out for 950. So I could come in, I could pay a seven cap, right, but I could take that 950 apartment, spend 20k, right, renovate it and bring those up to 1600, right, and like. What I tell my guys is like, listen, a property is worth where to produce is an income, right. So my big thing is forced appreciation, right, if I could go in and double the NOI, the value of the asset is naturally gonna double. Yeah, right, so you could go in and pay a fair price for these assets, right, bring the rents all the way up.
Speaker 1:And now, in under a year the property went from 2 million to 5 million, right, but like, that's the other thing. So it's like you're still going in, giving them a good price. But since their assets are, you know, maybe need renovation, maybe the rents are low, right, you can go in there, pay a good price but still get a home run on it. So it's like still a win-win for everyone. And they know they can get more rent. They know the fucking rents low, but they're like. You know, johnny's been with me for 20 years.
Speaker 4:You know, I don't know, I'm full every night.
Speaker 1:You know he's a good tenant. I don't want to raise this round. I'm like fuck it raises, right. I Watch this kids club.
Speaker 3:Yeah.
Speaker 2:Yeah, you know.
Speaker 1:But listen, that's like Some people. I go into the deal and obviously you know, at the end of the day it's like you tell people, listen, you've been getting a great deal for a long time. You should be thankful for that. You know, obviously you want to. You know, take care of certain people, yeah, you know. But at the end of the day it's like business is business and you got to do. You got to do so.
Speaker 2:Absolutely dude. I got two observations. One, like if I was talking to you on the phone, dude, you're smiling the whole time Like I. I'm like happy just talking to you. I can only imagine seller on the other end feels the same way. And then to like to me your CEO, that's coming. You got how many employees?
Speaker 1:right now. We scaled it back to, I think, 18.
Speaker 2:Okay, so your CEO, this company, got all these verticals. You got 18 employees, but you found your 80, 20, your 20%. You're still talking to these apartment building. I love it.
Speaker 1:I fucking love it, though, but you do. There's one thing you have to understand is like if you're talking to somebody on the phone with like low energy, low Vibration, right, and I'm like, hey, eric, you want to sell your property, like dude, get the fuck off the phone. But I'm like, eric, bro, what's going on? Dude, I'm calling you about your property. You're gonna be like, oh yeah.
Speaker 3:Who's this guy Like?
Speaker 1:you know, I mean I'm immediately gonna catch your attention and like to your point, like if I have energy I'm smiling. Dude, people don't realize that like that shit translates through the phone 100% I mean, if I'm sitting here like smiling, like bro, you could almost hear that shit, right, and that like people like that, right, you want to be somebody that somebody wants to talk to, right? If I hear one of my acquisition guys on phone like, hey, John, I'm calling about your property.
Speaker 1:I might someone calls me that I'm like bro, get me the fuck off the phone. Like don't call me, yeah right. But if you call me and you're like hi, energy in my face, I'm like whoa, okay, dude, like what's up, like what do?
Speaker 2:you got. So when we started out, I sat Across literally like looking at Dave. It was we're in a shoebox, basically, but it's me and Dave and Dave has exactly what you have. It's this the energy, right? And I picked it up from him hey, steve, how's it going right? And I could call, call anyone now, but I didn't have that at first. But I got it from him and you got whatever. You guys got that energy that it's just like it's in, it's contagious.
Speaker 1:Yeah, it really is also like a learned skill, right, cuz like growing up like dude, I was in sales, right. I was working in the restaurant industry, you know what I mean. So, like dude, as soon as you get to the table, you're like, you know. I mean, you got to put on a totally different tone, you got to put on a totally different personality, right. But it's the same thing. When you're talking on the phone to people, right, it's like you want to get on the phone, you want them to feel that energy, you want them to feel that excitement, right, you want them to be like yo, this dude like loves this shit, right.
Speaker 1:And I just told him to fuck off you know, I'm like yo, it's all good, like I'll call you in a month. They're like wait, what? Like yeah, I call them and I'm like yo, what's up, john, it's me again. And they're like hey, tyler, what's going on?
Speaker 2:This guy fine, I'll give him a chance.
Speaker 1:Yeah, I never said you know I mean, but, like dude, it's super important, you know I mean, but that's the thing. It's not only about taking the action right, but having the energy and like the passion and like loving what you do behind it right, because people can feel that right. And like when people feel that right, they naturally want to work with you. Right, they naturally want to like build that relationship right. Like when I call someone, like they naturally want to talk. Right and listen, I'm not sitting there keeping you on the phone, right, but at the same time it's like for that 30 seconds that I'm on the phone with you, you're like that dude's got energy.
Speaker 1:Yeah you know what I mean. I'm gonna remember 100%, but that shit goes so far Right, like dude. People call me with no energy. I'm like bro, like please stop.
Speaker 3:Yeah, you almost got it. You almost got to come in with so much enthusiasm that they think that they know you and they're like, do I? I get this all the time? Like do I? I'm sorry I didn't save your number. Yeah, I go.
Speaker 3:Oh, tyler no worries, but this is David, and then I go into the. To the script. Right, but if you're going, I Remember getting off the like getting into a full-blown argument with my, my ex-girlfriend. She was one of, she was I one of our early partners. Yeah, I mean, eric and we would be just, we would just get off like a raging fight and I see the phone starts ringing.
Speaker 3:I go hold on, hold on and I would answer phone and put a huge smile like, hello, this is David, and it would just go right into you. You just got to put yourself into character every single time.
Speaker 3:Before you go on appointment, before you hit the phones, it translate right. What is it? Sharpest attack, enthusiastic as hell, expert in your field 100%. That's really good advice, man I. I got to dig in because, look, you're a phenomenal salesperson. You'd make money hand over fist in any sales Organization, right. But over time you didn't just build out your sales scripts, right, you built out some serious Tech, serious marketing platforms that enabled you to be successful and be able to spend your time on 20% of activities.
Speaker 4:That make you a lot of money, absolutely so.
Speaker 3:As far as apartments go, I hear I hear like man, it's hard to get the data. How do I even manage it?
Speaker 1:There's so little records, what's secret sauce, tyler, I mean dude Honestly. I think, at the end of the day, it is good data, right, like you have to have good softwares, you have to have that, that good information, in order to get in front of these people, because obviously, like it is hard to get in front Of them.
Speaker 1:Right, you want you up the ball, drop the ball I mean, I got you listen at the end of the day, like I can give you everything Right, but if you don't do anything with it, like, oh, but I'll do it, it's not good. No, listen, like internally, like we use reotomy right, super popular right. A lot of people know what it is Right but most people don't utilize it right. But the prop, because the problem is like dude, cold-cold is hard right.
Speaker 4:It's draining.
Speaker 1:It's like a tedious process, right, the numbers aren't always accurate, but guess what? Right, if I find Eric and he owns the building for 30 years, right, and I try all those numbers and I don't get him, guess what? I'm fucking googling him. I'm calling his fucking brother, his mother, his sister, his daughter dude, I don't fucking care. Like I'll call anybody just to get in front of him. Right, and I think that's the biggest thing. It's like some people, they just run through the list and that's it. Right for me, dude, I'm fucking hunting yet your resourceful dude, I'm hunting right like that's what it is.
Speaker 1:It's like yo. By any means necessary, I'm finding this motherfucker Wow. I'm gonna ask him if he's gonna sell his shit, and when he tells me no, I'm gonna follow with him for another 25 times until he does so?
Speaker 3:so, reotomy, is this master database for you, sure? And you're going one record at A time, you're calling every single number until you get the right point of contact. If you, if it's not there, you're gonna skip tracing it.
Speaker 1:Tlo, lexus, nexus, whatever you have to do the family Colin, I don't like dude, I really like I don't care, like I'll call, I'll call whoever right just to get, just to get that number, just to get in front of them and once I have your number, Now, that's your mouth, that's your life.
Speaker 1:Oh yeah, you gotta get that guy yeah and then you get him on the phone, you hit him with the energy and it's like, even if they're not ready to sell, they're gonna be like whoa. You know, I mean, you get on the phone, they're like whoa, who's this guy?
Speaker 1:right, it's like oh, no, I'm not interested. And it's like, okay, cool, dude, I'll call you in a couple months, yeah, and they're like what dude, promise? Most people stop there. Yeah, right, even internally some my guys who like, oh, he wasn't interested, I was like how long goes like three months, like, oh, dude, fucking call him again. Right, like calm again, right, timing is everything we have a saying office, ctfg.
Speaker 2:Call the fucking guy yeah, that's it. Or girl, yeah, all the fucking girl.
Speaker 1:Dude, that's what it is dude, just fucking call right. Because at the end of the day it's like you know, timing is everything, right. It's like this guy can tell me he's not interested, right, but at the end of the day it's like, are you gonna follow up with him and see if anything's changed? Because what people have to understand is like, dude, shit can change at the drop of the hat, right, Something can happen. And then just like, fuck this. Right, like you can have a great building, and then you know, you have to one one you get?
Speaker 1:you get a couple shitty tenants, they wreck the place and then the guy's like oh my god, I'm over this, I don't want to deal with it anymore, absolutely.
Speaker 3:But if you didn't follow up, dude, you're not gonna fucking deal call them till they die, or call them till they buy, or they fucking die and then call the family. Ty, listen man, this was it. This was an absolute bombshell of a episode. I I started off the King Connecticut. I've now rebranded you the Wolf of Connecticut.
Speaker 2:Absolutely savage, by any means necessary. I don't know how many times you said that to you, but that is that is it.
Speaker 1:Dude, it's the truth, right, and it's like when you're starting out in entrepreneurship, in real estate, like dude, you have to brainwash yourself, right, because, like I said, dude, there's so many ups and downs, right, deals dying, right, like shitting the fan, like things falling apart last Minute. But it's like, dude, by any means necessary. It's like, how bad do you want it? Yeah, like, what are you willing to do to reach your goals? Right, and if you could brainwash yourself like yo, I don't give a fuck what what.
Speaker 4:I mean, I don't care what it takes.
Speaker 1:Right like I'm gonna make it happen. Right, you will be successful and that's what it comes down to at the end of the day.
Speaker 3:That's it and with that folks. That is a wrap. Thank you, tyler. So much, brother. If the people want to invest with you, the people want to send you deals or just connect, get mentorship. How do you find you?
Speaker 1:I'd say probably the best place is hit me up on Instagram. Tyler Smith buys buildings and then we can go from there. You know we're gonna have some opportunities to start investing with us in the future. Right, we're not putting it out there yet, but if you want to get on our list right when we do start taking on capital, it's gonna feel quick, right? So hit me up and say investor.
