by | 17, May 2022

6 Things We Wish We Knew Before Our First Deal

Wouldn’t it be great if you could back in time, and give yourself the best advice and tips?

What would you tell yourself? What would you do differently, with the information and knowledge that you have now?

Well… in today’s episode, Dan and Anthony are going to discuss just that! They are going to layout 6 things that they wish they knew before their first real estate deal. So if you’re thinking about getting into your first deal, you might want to listen in closely!

All of this and more on this week’s episode of Multifamily Investing Made Simple.

Tweetable Quotes:

Almost everybody cuts corners. And if you’re not careful, you are going to be the one that gets buried under an avalanche of sawdust and this one.” – Anthony Vicino

“In the world of real estate, you know, it’s going to take longer than you think.” – Dan Krueger

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five rules of investing

The Five Rules of Investing

** Transcripts

6 Things We Wish We KNew

[00:00:00] Anthony: hello and welcome to multifamily. Investing made simple to podcasts. It’s all about taking the complexity out of real estate investing. So they, you, you hit you and take actions. I’m your host, Anthony Messina oven. Victor’s capital joy. As always by Dan look at my Dunder reads, dung Dundee.

[00:00:32] Dan: I want to Dundee.

I, I think we should just that’s our topic. So I’m just changing. Course. I won the Dundee. Our listeners

[00:00:40] Anthony: are here to learn about six things. I wish I knew before doing my first deal. And you’re over here, like Bayton switching and being like, Nope, we’re actually here to celebrate my Dundee. This is a big deal.

Well done to you, so, okay. Oh God. I’ve got to explain this because people are allowed to. These people are crazy. Okay. So, um, [00:01:00] a number of months back, I can’t remember how long we’ve been doing this now, but I can’t, I can’t believe it’s taken you this long to win it. Um, remarkable considering there’s only four people in the office.

So a couple of months back, we w w we’ve been introduced, we, we do this thing called the opportunity meeting every week on Fridays, we bring the team together and we say, every week, you need to bring your top three opportunities that. For the business for us as individuals, the department, whatever, because we focus so much on like things going wrong and like solving problems

[00:01:27] Dan: and like day-to-day

[00:01:28] Anthony: fires.

What are the, yeah. What are the issues we need to solve? And not enough time always thinking about the opportunities, like where, where can we, where, where could we go and what could we do? So at this meeting Reed and Rachel decided at some point that they wanted to get competitive and they want to introduce an award.

And so they, they brought in. Not just any trouble, not

[00:01:50] Dan: just any trophy, a

[00:01:51] Anthony: w isn’t that from like a movie or T

[00:01:55] Dan: TCC series. So if you, if you’re not into the office just fast forward.

[00:01:58] Anthony: Okay. [00:02:00] So. What is the context of a Dundee that was like Michael Scott’s award that he would give to people at the end of the year, every year.

I think

[00:02:06] Dan: it was kind of the equivalent of like the, the whole, the whole like high school yearbook thing, like most likely to do this or that he had some kind of spin on that and then give out down lists. Okay. So each week

[00:02:16] Anthony: that episode, we take a vote on like, what was the best opportunity of that week, and then whoever wins gets it.

And there’s a couple of caveats. One you can’t vote for your own thing. And that’s pretty much the only caveat, but today, Dan one, I want to say

[00:02:30] Dan: read is one of the most in the past. Right? Here’s

the

[00:02:32] Anthony: thing. However, um, I don’t, I don’t think that has

[00:02:35] Dan: XL. I always vote for his, for

[00:02:37] Anthony: some reason. I don’t know why I actually think, I think

[00:02:39] Dan: I’ve won it the most.

You would. Yeah. I don’t know if that’s

[00:02:42] Anthony: accurate. I do know what factor cause I keep counting. No, I don’t actually have no clue. Who’s one at the most. I know that Dan has not, but today when Dan won it, I want to. That usually there’s four people, and this is just like the corporate office. This is you, me, Rachel [00:03:00] and Reed competing for this.

Rachel is out because she’s getting married this weekend. So really it was a watered down pool of competent. Or

[00:03:08] Dan: was it more pure? I don’t know. Was it more, I think what I’m extrapolating here is that Rachel has been against me.

[00:03:15] Anthony: Well, that’s absolutely true. Rachel, Rachel is the worst at the whole not voting for her, her own thing.

Like when it comes to like wrap it up and be like, okay, let’s, let’s Le let’s recap what we have. She’ll like, she’ll do the whole, like, my ideas were this, this and this. And then, and then also we had these, these, these, these. Yeah. Yeah. We see what you do. Rachel. We see

[00:03:36] Dan: it. Maybe it’s work. And if she’s been winning,

[00:03:39] Anthony: um, what do you say?

We talk about real

[00:03:40] Dan: estate, I guess. I mean, that is why I showed up today. So I’m here

[00:03:45] Anthony: for the real estate. Tell me about, um, things real estate related. Uh, I guess before we do the thing that we usually do, which is, uh, talking about. Let’s first do the other thing that we always do, which is [00:04:00] bad investing advice.

So are you ready, Dan? Of course. Okay. On the count of three, I’m going to change the camera so that all our listeners who are watching on YouTube at multifamily investing made simple can see your closeup face. Let me stretch. So if you’re listening to this, um, while Dan is stretching, just know you could go over to YouTube and watch Dan stretch, uh, right on the count of 3, 1, 2, 3.

Oh,

[00:04:22] Dan: and we’re on. Alright, bad investing tip of the week. I’ve got, I’ve got a couple here. I think the one I’m going to go with for this one is bigger, is better shadow to grant Cardone, uncle G or uncle. See? Yeah. Uncle G I think, uh, there’s a lot of people. I don’t know. It’s been a while since I’ve watched this stuff, there’s a lot of people out there that, that promote the bigger as better thing.

You’ve gotta be doing bigger, bigger, bigger deals. Cause little deals with waste your time. Uh, it’s called

[00:04:50] Anthony: bigger pockets for a reason, not little or pockets, maybe, maybe think

[00:04:55] Dan: about it. Um, but I mean, there’s some logic to it, right? There’s, there’s efficiencies that come [00:05:00] with scale and there’s a lot of, uh, there’s a lot of work that goes into any deal.

So even on a small deal going and getting it under contract and executing, it is going to be about the same amount of work. Um, so there’s some logic to that. But what I will say is that there’s actually some. Pretty great arbitrage opportunities in small deals. So, um, what you’ll find is that, uh, you’re dealing with less sophisticated sellers and buyers in the smaller deal market.

So this might be like a five unit,

[00:05:26] Anthony: or are you trying to suggest that they’re dumb? No. That what you’re saying

[00:05:30] Dan: less attuned to market

[00:05:31] Anthony: data. Ooh, that’s a nice way of saying.

[00:05:34] Dan: So you’re going to have less sophisticated participants. You’re not going to be competing with private equity. Um, and it’s a lot of deals, just kind of, a lot of people kind of poopoo the smaller deals and you’re going to mostly be getting sellers that may not really know exactly what they’ve got.

They might not be investors. They might just be somebody who has a small. So some great arbitrage opportunities and the actual returns you can get on a percentage basis are usually pretty darn good. It’s just the total dollars, a little bit smaller, but at the end of the [00:06:00] day, 50% is 50%, right? So he can make some pretty good returns.

There’s something to be said there. And it gives us a unique opportunity. To work with specific investors. We’ve got a lot of people in our investor pool that have some unique needs and sometimes those small deals are perfectly suited for those unique needs. It might be a tax thing at, or a 10 31 exchange investor or something like that.

So they give us some flexibility to partner up with one or two people create something unique to fit those needs. And also, like I said, there could be some extra opportunity down there. So don’t put poo the small stuff, no pool, a good deal is a good deal. So you’re saying

[00:06:33] Anthony: some of our investors are uniquely.

Yes.

[00:06:36] Dan: Okay. Okay.

[00:06:36] Anthony: So you’re telling me, calling them the sellers dumb big dumdums and now you’re saying our investors are uniquely needed. Okay. You’re just defending everybody

[00:06:43] Dan: today. If that’s how you want to

[00:06:45] Anthony: interpret it. Here’s the thing about bigger is better than always find. Is that bigger is entirely relative, right?

Like what I consider big at this point in my career is very different than if I went back five years. And if you go to grant Cardone, what he does these days [00:07:00] is like orders of magnitude bigger than what he used to do. Like to the point where he wouldn’t even sniff the stuff he used to do when he first started.

And here’s the other thing, grant Cardone. I see you. I know how you’d really started. I know you started small. You started with small single. And then he scaled. And at the end of the day, like if bigger is relative, then context matters a whole lot because yes, all things being equal. Wouldn’t it be great to have 10,000 units rather than just one unit, however, 10,000 might just not be feasible for whatever reason.

So you got to start where you are and find where the opportunity is. And that’s the thing. I’ve seen people who are like, I want to invest in real estate and then, but I want to buy a 200 unit complex and then they just sit on the sidelines for two years and do nothing because they just passed up on this 10 and this 20 and this 30 bed unit building.

It’s like, you could have been making really good money and investing in real estate instead. You’re just sitting on the sideline, talking about how bigger is better. So I followed

[00:07:59] Dan: [00:08:00] up yeah. To each other. Um, but then again,

[00:08:02] Anthony: bigger is better. So, I mean, that’s the thing they say for a reason, right? Yeah.

[00:08:06] Dan: It’s on a few.

[00:08:07] Anthony: T-shirts a few bumper stickers. I have it written down on my piece of it. My digital paper. That’s how, you know, it must be real.

[00:08:13] Dan: All right, let’s do it.

[00:08:15] Anthony: Let’s get into the episode topic this week, which is six lessons or six things. I wish I knew before getting into my first deal. And this one is going to be a lot of fun.

I’m going to just, I don’t want to, I’m going to say that right now. I have three right now, um, that are going to be really fun. So the first one, um, And I’ve told this story countless times, it’s about the bounty hunters. It’s just the bounty hunters lie. Like they’re like the big lesson that I took away from that whole experience.

And if you don’t know my story on this, like go listen to any other podcasts where I’ve talked about it or read the book where I go into an in-depth, but eventually effectively I was bamboozled by bounty hunters because I did not realize that they are allowed to lie and falsely [00:09:00] represent themselves.

And so there’s one thing you take away from, this is question. Doubt everything and do not believe bounty hunters because they are dirty liars.

[00:09:13] Dan: That’s good advice. I’d never would have known that. Yeah. Um, no, that is a good story. I feel like we should probably throw a link to our it’s. At least in our origin story.

It’s definitely in the origin story in that one. Multiple episodes. We’ve talked about some of those early horror stories. Yeah. I think it was also the horror story episode. We did that for sure. Definitely. That’s a good one. If you guys haven’t checked it out, definitely check it out. Um, I was having trouble getting this whittled down to three because I could list off at least a hundred things that I wish I had known on that very first deal, just because it’s, there’s just so much, there’s so many moving pieces in real estate, but I’ve got to, I’ve got to save one of the things that I took away.

It’s going to take longer, whatever your plan is, whether you’re going to do a value add thing, or you’re just whatever your, whatever your business plan. Ad [00:10:00] type. Right? My rule of thumb is when it comes to expenses and all that stuff, uh, time add, do, take, take, whatever you think it’s going to take. And then just add 30% just for the hell of it, because it is going to take time, my expectations, uh, going into this deal.

That everyone was just kind of leave when their lease was over. Uh, those contractors were going to get in immediately. I wouldn’t have to worry about coordinating anything. The word logistics never entered my brain. Um, and I, I assume that when somebody said it was going to take me X amount of days to do this thing, that that’s actually what it was gonna take.

Um, but in the world of real estate, so anyone who’s ever done something to their house and had a handyman or contractor come in to do something, or if you’ve done investment deals like this before, you know, it’s going to take longer than you think. And it’s, it’s just the way it is. So budget, more time plan on things taking longer, because almost always,

[00:10:52] Anthony: this is awesome because my next piece of advice is almost identical.

Uh, we did not obviously check each other’s notes before [00:11:00] going and talking about this, but mine is 24 hours is not enough time to turn. Um, it’s not simply not. I had that tenant when I had to deal with the bounty hunter, they were the worst tenants I’ve ever had the worst tenants in the world. They had a baby, like the, the month that, uh, that I closed on the property inside of this newborn.

And they, they were like, oh, the baby’s getting sick. There’s black mold in the bathroom. And like trying to put it on, on, on the property. Um, nevermind the fact that they smoked every single day. And then the, the day that they’re supposed to move out there, one of them got arrested for grand theft auto. He had the car keys with him in jail.

So the other one could not get into the truck. To get all their stuff and pack it up and put it in the truck and leave. And at this point in the whole, that’s why I, I was like, re listen to this. Like I was, I was like, I need you guys out. There is no way you’re staying. You got to go because I have new [00:12:00] great, awesome tenants come moving in, like in two days.

And I was like there, and I was like, Do I need to go rent a truck, I’ll pull, I’ll bring it over and I will help you. I will help you drag out all your stuff into that truck. And they’re like, no, no, no, we got this, we got this one. You sure about this. This is like at like 7:00 PM. And they were supposed to be out at noon that day.

And so I’m like, okay. They’re like, well, it also, by the way, this is in January in Minnesota. And it was like, we had an Arctic blast. It was like 30 below. It was so damn cold, like anyways. So I go to bed that night. I have a conversation with them, like seven or eight. And they’re like, no, no, we’re good.

We’re good. We’ve got this figured out. We’re going to go. We’re going to be out in the morning. I’ll just give us till the morning. I’m like fine. You can have, till the mornings I come back in the morning, it’s like 8:00 AM. They know their stuff. It’s like, they’re half moved out. I’m like, what is this? So the, the thing was because they couldn’t get a car and it was so cold outside.

I was like, you know what? Just take all your stuff and put it in the. Just put it in the [00:13:00] basement, I’ll help you like, and so we took all their stuff. We took like the next four hours or five hours and just moved all their stuff into the basement. And then they, they pieced out which then left me. With half a day to turn a unit, to paint it, to rip out all the carpet, put in new flooring to the, are you doing this?

I was doing all of this. Me and Jamie was doing all of this. I was saying she’s, she’s probably qualified. She’s way better than I was. I don’t know about you. I had, uh, my, my good friends, uh, Zach and Emily, they came over to help paint. It was a nightmare for beginning to end. And then you think, okay, this story can’t get any worse.

Here’s the worst part. They never came back for any of their stuff in my basement. And then when I went to sell the building, they were the new, the new buyers are like, yeah, you’re going to have to get all this out of here. So I had to move it all out myself. So that’s something I wish I had known. Yeah.

[00:13:56] Dan: Just said no about 50,000 times the entire [00:14:00] process,

[00:14:01] Anthony: but the things that you do, because you’re just desperate to get a bad tenant out. And sometimes you just got to jump through hoops and be like, okay, whatever, I don’t care. Who’s technically in the wrong here. Like we’re just going to get, we just got to get you

[00:14:10] Dan: gone.

I will literally, I’ve been there. Right to the point where I will literally do anything. If you just leave and exit my life, please,

[00:14:21] Anthony: it was, I was like, I was at the point where like, I don’t care, leave it all, burn it down. I don’t care. Just go. Yeah,

[00:14:27] Dan: I can relate. I can definitely relate. Um, my next one is going to be a little.

Like the first one. So, um,

[00:14:35] Anthony: which is a lot, like my second one. Oh yeah.

[00:14:38] Dan: It’s gonna cost more. And this one is, I think, I think this one needs a little more emphasis than the first one, because yes, contractors are slow. Yes. There’s delays, there’s weather. There’s things that pop up and delay your, your renovation plans.

Um, or in this case, you know, Person, just not leaving, uh, that stuff happens. But the really big thing, the one that I [00:15:00] think really kills people is the money part. Um, whether it’s underestimating the expenses or overestimating the wrench, you think you can get, uh, the really big one these days is I think the renovations, this is the big one that I think you’ve really got to take a good look at because materials are going up.

Labor’s going up, everything’s costing more than it used to significantly more. And on top of. Just in general with real estate, things are just going to run over budget. So you combine that with all the inflation and all the things that are going on these days. And you’ve really got. Put a lot of padding into the proforma with the expenses with the renovation costs, any costs that you’ve got, just assume that there’s going to be extra ones coming in because this will kill you.

Um, it might not just be running over budget. You might have a completely new thing pop up that you didn’t even know you had to deal with. Um, if you had listened to our, our nightmare episode, I talked about a story where we actually had to have armed guards. To a property for a period of time because our contractors wouldn’t even come to work there [00:16:00] because we had one of these lovely tenants who just loves to create a ruckus.

And so we did not have armed guards in the budget. Um, didn’t have that factored in, but there, it was, it was a problem.

[00:16:10] Anthony: And they don’t mention that on the, uh, in the books

[00:16:12] Dan: that you’re writing. Uh, that was not in the perspectives from the broker and we bought it now. Um, that stuff happens. You’re not always going to have to have bounty hunters showing up or hiring armed guards because you’ve got a, a crazy person.

Um, but there’s going to be something, uh, it might be a roof caving in, it might be a storm of some kind. It could be a just crazy tenant who completely demolished. That stuff’s going to happen. More deals you do, the more, the probability is that it’s going to happen. So you’ve got to have a big hefty budget built in there.

And then if you do that and your numbers still work, then more than likely, you’re probably going to come out favorable. But if all the things, all the crap hits the fan, you should still probably be

[00:16:52] Anthony: okay. Yeah. This one’s so important for business owners or real real estate investors. Just [00:17:00] expense creep.

It will kill you. And it’s real. Like it, everything is going to cost more always. Then you think it’s going to cost. So yeah, a hundred percent agree, which kind of ties into my last, my last one. The last thing I wish I had known is, um, a lot of the time when expenses creep up, it’s because of this one people cut corners.

Almost everybody cuts corners. And if you’re, if you’re not careful, you are going to be the one that gets buried under an avalanche of sawdust and this one. So I have my nightmare tenants. They leave, I have all their stuff in my basement. I got my great new tenants moving in the very first night they’re in there.

I get a call and they go. Hey in there. Very nice, very sweet couple young people that, Hey don’t I don’t want to be a bother. Um, but it smells like a fart in here. [00:18:00] And I was like, what do you mean by that? And they’re saying this like in a very nice way. Um, yeah, it just kind of, there’s a smell that comes and goes.

That means you should leave. And sometimes it smells like a fart in the attic. Cause it was like a two. A bedroom up there. And that was like the reason to hold that part. That unit was so cool. It was like the second floor attic bedroom. And I’m like, oh, interesting. I’ve the other tenant never said anything about this.

Well, the other tenant also live like a slob, so like they probably didn’t even notice. So for the next month, I every time they’re like, oh, it smells. I’m like, aye, let me come in here and smell it so I can understand what you’re talking about. Every time I’d go over there. I wouldn’t smell. And I was over there a lot and I was trying, I was like, I don’t, I don’t know what to tell you guys.

Like I it’s, you will hear. So here’s the thing. This turns into like a, kind of like a four month saga for these patients. Because we’re trying everything. We’re like, maybe there’s like a P [00:19:00] trap or maybe the toilet, or like maybe something is like giving off fumes in some way. Like, let’s try. And like, we tried everything we could think of.

It’s still happening and we’re bringing plumber after plumber, after plumber in. And eventually it gets to the point of like, We bring this guy in, who has a sniffer thing, this tool that like set and smells things, and then you can like triangulate. Yeah, I guess so. So he comes in and he’s like going around and then he’s like, oh yeah, there’s, it’s picking up something here.

And then he would drill a hole in the wall and he’d stick his arm through and he’d be like, okay, right here. And he ended up doing this in like five different places in the attic, like drilling holes in the wall. To try and triangulate what the heck was going on in one of our theories was that the, the, um, the sewer stack that runs up through the center of the building at some point is an old building, maybe had cracked and now maybe like the sewage stink was coming out.

And so we [00:20:00] were trying to get access to this thing to see is this thing actually cracked well in the process of doing this, he puts a hole in the wall on the other side of the bedroom. And he sticks his head through and he goes, I found it

[00:20:16] Dan: some sort of dead animals,

[00:20:17] Anthony: not a dead animal. No, no, no, because Arthur, no, if it was a dead animal, it would’ve stopped smelling.

That’s the thing, right? Like this was ongoing because at first, when, when they first said something, we had exterminators, we had a plumber come in and they were like, it’s probably a dead animal or like, okay, it’ll go away. And they’re like, it’s cool. Um, and it wasn’t like so frequent that there was a problem.

They were just like, it smells really bad. Um, and one day I did smell it and it was like, Hey, it was, it was gnarly. Um, they were way kinder. I would’ve been like peace out. I’d been done with this. What happened was the, the unit below it, the previous owners had renovated it and shifted the kitchen and they took the, the, the sewage pipe [00:21:00] from that sink in the kitchen.

And they ran it up into the. Not out through the roof. So it was just piping all of their kitchen stink into the attic. They just, you poked your head through and you just see this open pipe. Oh. And the plumber is like, yeah, that’s not up to code. I was like, no kidding. Wow. So that’s what they don’t tell you is that people cut corners and you’re going to end up with a stinky attic.

[00:21:30] Dan: That’s it? I mean, when you first said it smells like fart, my first thought was like some sort of. Like the kind that blows up, not the funny fart kind, but like an actual, like

[00:21:40] Anthony: natural gasoline. Yes. Nope. Well, we, we try to, we rolled that one out. Yeah, that’s good. Cause I knew they weren’t in danger. We just knew it smelled occasionally.

[00:21:49] Dan: That’s interesting. I guess that resolved a little bit better than it could have. I. My next thought would have been some sort of carcass, which hopefully it’s an animal, but you

[00:21:58] Anthony: know, uh, carcass would have been fun. [00:22:00] And this took us four months of concerted efforts. That’s crazy. Figure this out because the way that the roof, the walls in there were shaped, like it makes it hard to understand, but going through the walls was very problematic because this was a vaulted attic.

And so the walls were vaulted alongside the studs of the roof. And so there really was like no space between the wall and the, and the thing. So like you would drill a hole and you could poke your head in like, and all you could see as like a foot in front of you. So it just was like, it was a nightmare.

[00:22:32] Dan: Yeah. And then you had a bunch of holes you had to patch, which were not in your budget, so hopefully you budgeted generously. My last one is, uh, one of the, we’ve talked about quite a bit. In general, it’s a concept that I think a lot of people aren’t aware of when they get into real estate for the first time, but this one definitely rang true for me.

It’s it’s a business. Uh, if you want to be investing in real estate and you want to be the one, who’s a hundred percent owner and doing [00:23:00] everything, or at least in charge running the thing you’ve got to build a business around real estate is not going to be a passive endeavor. There’s a lot of people, myself included on that first deal.

The thought that picking up a property was going to be relatively passive. You just hire a property manager and that’s the end of your warriors. They do all the things. Not the case, especially now with value a child. No, no, no, no, no. If I feel go back in time, I’d be like, stop. Go do it yourself. That’s, that’s how this is going to end up and, you know, with a small property, when you’re first getting started, uh, it’s the best way to learn all the things that there are to learn.

Um, that’s one benefit to doing the management yourself, not an efficient use of your time necessarily, but it’s a great crash course in all the things that you should understand. And I think the biggest thing that I wish I had known is that is, is a full-time business. Even with a small little, just single property, a six unit in my case, Not a full-time job, not 40 hours a week, but also not something you can just outsource for [00:24:00] 6% of gross revenue collected and, you know, check that off your list of things to worry about.

You’ve got to actually build a business. You’ve got to have a contact of, or sorry, a roster of different vendors that you have that you want to use. You’ve got to have all these different people that you need to know, and you’ve got to be able to get things fixed quickly and provide really good customer service.

And that is a full-time job just being available. To respond to people to, to show the units to respond and coming leads efficiently and quickly. Uh, it’s a lot of work. And so even if you get a property manager, if your property isn’t just a turnkey, stabilized, you know, well-oiled machine from the get go.

If it needs a little bit of improvement to it, it’s going to require some work. Even if you do have a manager, you’ve got to insert yourself. So this is a business. Um, you could be passive. We provide that as well as money. Um, as you know, with the syndications that we do, we have limited partners.

Absolutely. I want to talk to you about our Bismal. Yeah, you could be passive, but if you want to just go buy a property, it’s going to be tough for it to be passive. If it’s something you just [00:25:00] own out. Right. And you don’t have a partner to help you with the work. It’s, it’s a lot.

[00:25:03] Anthony: Yeah. When we hear this over and over and over a hundred percent, a hundred all the time from investors who are like, I want to be passive and I bought this building and I thought it was going to be something it’s not.

And I was like, yeah. Um, Yeah. And most people aren’t, most people aren’t in, in, if you’re listening to this, maybe you’re, you’re one of the people who are interested in being an entrepreneur and being a business owner and like all the things that come with it. But if you’re the, if you’re the person who’s heard the story about the bounty hunter, about the stinky attic and about my, my tenant, like moving all their stuff to the basement.

And you go, I want to deal with that then. Cool. That you’re the right person for this job. Um, but if you hear any of that stuff and you’re like, Hm, hard pass, then there are other avenues available to you. I would highly encourage you to pursue.

[00:25:55] Dan: Yeah. I had a little bonus one. Oh, I had a few. They didn’t, I didn’t use just because there’s so many, but another one I was thinking [00:26:00] about, uh, was something along the lines of you better like puzzles and you better like solving problems.

So

[00:26:05] Anthony: I was going to say you better, like getting kicked in the kneecaps.

[00:26:07] Dan: Yeah. Yeah. Pretty much right. Luckily, I’m the type of guy who does like solving problems. I like to be the guy that, that solves the puzzle and I could satisfaction and saying, okay, yes, I, I was presented with a problem and they fixed it and we’re good.

Give me the next one. A lot of people aren’t like that. And real estate is just a constant string of little issues that need to be solved. And they’re all different than the last. They’re all unique. And, uh, it’s just a constant string of puzzles and issues and problems to be solved on a daily basis. So if that’s not something you enjoy, even if you think you want to start a real estate business, if you don’t like that, Type of dynamic then it’s probably still not a good fit for you, at least on the act.

So, and

[00:26:44] Anthony: go do something else. There’s so many other ways to make money easier, way easier. So, uh, all right. Let’s let’s let’s pivot. Let’s let’s uh, go to the next section.

[00:26:54] Dan: Doo doo doo doo doo doo. Here we are

[00:26:57] Anthony: at the next segment. Um, [00:27:00] uh, that’d be cool. We should be more game showy, like have like a soundboard with like sound effects, like, wow.

I mean our

[00:27:06] Dan: transitions and our pivots will be way better. I mean, that, that was

[00:27:08] Anthony: nice. That was room for improvement as well. Yeah. All right. Well, here’s your book recommendation for this week? Uh, it’s called the psychology of money. Have you read it? No, it’s on my list. It’s so good. It’s a quick read. It’s like 200 pages.

It reads really quickly, um, bumped up it, despite not being a very long book, it’s a very deep, deep, dense book and not in the way that it’s going to be hard to read, but dense with really good concepts that if you can get your head around, um, you are going to. Do a whole lot better in the money game, for sure.

Uh, so the psychology of money by Morgan Housel we’ll get it

[00:27:48] Dan: or do like what, what about, what does it talk about? Like the mindset stuff or is it, um, like, like group psychology type stuff or

[00:27:59] Anthony: a lot of it [00:28:00] is independent and individual, um, uh, psychology then also group psychology, like, but it’s, it’s a lot about understanding.

Um, the true variables of success when it comes to money. So I’m trying to think off the top of my head. And now that I’m on the spot, I’m struggling to think about what the last chapter was about, but it was really good. Oh, is this, is that nobody thinks they’re crazy. Nobody thinks they’re crazy. So nobody’s investing anything in thinking this is crazy, right?

Like everybody has a justification. Everybody has a perspective and a reason and rationale. Whereas you might look at that investment thesis and be like, that’s crazy. Just recognize nobody thinks they’re crazy. So there’s something to be either learned from that person or to be avoided from that person.

But like, that’s the, that’s the first one. And if, once you recognize that nobody thinks they’re crazy, then the next step is to realize that you might be crazy [00:29:00] and not realize it. Yeah.

[00:29:02] Dan: Take a second look. Perhaps somebody has to take a second.

[00:29:06] Anthony: Yeah. So, and then he talks a lot about taking the emotions out of investing, being very logical.

And I think you’ll resonate with that. So

[00:29:12] Dan: yeah, this is all just reinforcing things. I already think. I love that new information. Just confirm that what I say is correct? Yes. This is a blood print tan.

[00:29:21] Anthony: All right guys. And gals, we appreciate you taking some time out of your very, very busy life to sit here with us along, um, uh, around the, the fire, the bonfire, uh, And cook some marshmallows and have a good chat about, uh, six lessons.

We wish we had known or six things we wish we had known before we got into our first deal. Um, if you enjoyed this, you know, what’s coming next and it comes my very pitiful plea to go. Okay. That’s all for me. Now I go leave a review and please don’t tell anybody [00:30:00] that I’m .

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