WEBVTT
00:00:00.080 --> 00:00:01.840
Guys, AI is an awesome tool.
00:00:02.000 --> 00:00:04.400
We use it in several areas of our business.
00:00:04.559 --> 00:00:14.640
But, you know, someone, an executive at some of the really big company, you would know the company, I'm not going to share it, but uh a friend of mine, his dad, is an executive at a very, very, very big organization.
00:00:14.720 --> 00:00:16.719
And he's actually part of the tech department.
00:00:16.960 --> 00:00:21.359
And he has been saying for the last few years that garbage in is garbage out.
00:00:21.600 --> 00:00:28.399
If you assume the data going in is good and the data coming out is good, then you're going to make poor decisions.
00:00:33.439 --> 00:00:39.119
Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
00:00:39.280 --> 00:00:40.320
I'm Tiffany High.
00:00:40.560 --> 00:00:41.439
And I'm Josh High.
00:00:41.679 --> 00:00:52.799
And this is the Results Driven Podcast, where we share proven strategies to build systems, master sales, grow your team, and create a self-sustaining business with predictable income.
00:00:52.960 --> 00:01:01.359
Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset shifts you need to succeed.
00:01:01.600 --> 00:01:02.799
Let's dive in.
00:01:06.239 --> 00:01:10.239
You're spending hundreds of thousands of dollars on buying houses and you're trusting a tool.
00:01:10.400 --> 00:01:13.519
You're trusting AI to make the most important decision for you.
00:01:13.680 --> 00:01:23.040
If ChatGPT or Cloud are is the one that's running all the comps, pinning your ARV, estimating your repair estimates, you better watch this before you make another decision.
00:01:23.200 --> 00:01:24.000
Let's dive in.
00:01:24.159 --> 00:01:25.920
All right, I'm going to share a case study with you guys.
00:01:26.079 --> 00:01:30.959
I had a property here in Columbus, Ohio that uh was in an area that's being gentrified.
00:01:31.040 --> 00:01:34.000
Okay, so to put this into perspective, there's Children's Hospital.
00:01:34.079 --> 00:01:43.280
And when you look on the map, if you go south of the hospital or if you go, if you go west of the hospital, then you're in a great spot.
00:01:43.439 --> 00:01:48.239
Okay, there's one million dollar homes, one and a half million dollar homes, some even that are$2 million.
00:01:48.640 --> 00:01:50.000
It's a higher price point.
00:01:50.079 --> 00:01:53.120
It's a historic district, very, very, very old buildings.
00:01:53.359 --> 00:01:58.480
Then you cross one street, cross one street and you go east.
00:01:58.719 --> 00:01:59.040
Okay.
00:01:59.359 --> 00:02:03.519
Once you cross that main road, it's a completely different part of town.
00:02:03.680 --> 00:02:07.599
That part of town has been under like gentrification over the last 10 to 12 years.
00:02:07.680 --> 00:02:13.039
And so the values have significantly increased, meaning they used to be worth like 20, 30, 40 grand.
00:02:13.439 --> 00:02:17.360
And then now they're worth, you know, mid 200s, low 300s.
00:02:17.439 --> 00:02:28.240
And so, you know, part of our process is we'll always go through and we'll pin what we think an ARV is, but then we'll reach out to our real estate agent who has an automated system that helps them pinpoint ARVs.
00:02:28.319 --> 00:02:31.039
Now they'll come through it with some of their knowledge of the area as well.
00:02:31.199 --> 00:02:37.840
So we sent this over to our real estate agent, and our real estate agent shoots it back at uh with an ARV of about 270,000.
00:02:37.919 --> 00:02:39.919
Now, this house is in pretty rough shape.
00:02:40.080 --> 00:02:44.479
It's gonna need every bit of$120,000 to$140,000 worth of work.
00:02:44.639 --> 00:02:48.639
Now, seller was wanting to get about$130,000 for this.
00:02:48.960 --> 00:02:52.800
AI pinned the ARV of this, not knowing the separation of this street.
00:02:52.960 --> 00:02:55.919
AI pinned the ARV on this one at$270.
00:02:56.080 --> 00:02:58.960
So$130 plus$120 already puts you at$250.
00:02:59.039 --> 00:03:00.800
So all of a sudden that deal is not a deal.
00:03:00.960 --> 00:03:07.759
But here's what I knew: I knew the area pretty well, and I knew that this street was a clear borderline depending upon values.
00:03:07.919 --> 00:03:11.360
And I had reason to believe that this thing could be worth in the 500s.
00:03:11.520 --> 00:03:13.520
And so I challenged our real estate agent.
00:03:13.599 --> 00:03:16.240
I said, hey, send me the comps that your system's pulling.
00:03:16.319 --> 00:03:19.919
And of course, it pulled comps from the other side of the road, which is the bad area.
00:03:20.080 --> 00:03:21.360
And so I challenged him.
00:03:21.439 --> 00:03:23.360
I said, hey, Parsons is a cutoff here.
00:03:23.439 --> 00:03:26.560
Let's look at everything that is west of Parsons and only pull those in.
00:03:26.719 --> 00:03:30.080
And sure enough, value came back in the low 500s.
00:03:30.159 --> 00:03:31.599
I believe it was like 535.
00:03:32.080 --> 00:03:35.520
That one thing could have ruined this opportunity for us.
00:03:35.599 --> 00:03:39.120
Guys, this is looking to be about a$70,000,$80,000 assignment.
00:03:39.439 --> 00:03:39.759
Okay.
00:03:40.240 --> 00:03:51.520
Now that's not our typical deal size, and I sure can't guarantee that that's going to be a typical deal size for you, but it just goes to show you our generally our average profit per c uh per deal is around$20,000.
00:03:51.759 --> 00:04:01.840
So the fact that this is a$70,000,$80,000 spread is just showing you right there that if I trusted AI to make this decision, I would have walked away from this deal and someone else would have closed this opportunity.
00:04:01.919 --> 00:04:02.800
So just be careful.
00:04:02.960 --> 00:04:07.680
Another thing, guys, we've been uh really focusing on, you know, one of our goals was always become a private lender.
00:04:07.759 --> 00:04:14.000
We wanted to build the real estate business, build the team, magnify our results, build this nesting that we could then go be the bank, right?
00:04:14.159 --> 00:04:20.399
Live with passive income, allow our passive income to exceed our lifestyle expenses.
00:04:20.639 --> 00:04:25.439
And luckily, Tiffany and myself, over the last uh few years, few years ago, we were able to hit that target.
00:04:25.519 --> 00:04:27.040
And now we get to do things, right?
00:04:27.120 --> 00:04:29.120
We get to jump on and share these types of things with you.
00:04:29.199 --> 00:04:29.839
We don't have to.
00:04:29.920 --> 00:04:31.519
And um I think that's something that's really important.
00:04:31.680 --> 00:04:38.879
Anyway, because of that, we've become private lenders and we have people submitting deal reviews to us, their deal analysis.
00:04:39.040 --> 00:04:44.720
It's very clear to see the people that are leveraging AI and the ones that are actually doing the work still themselves.
00:04:44.879 --> 00:04:51.920
You know, I in fact I had someone send me a deal review, and it just so happened to be that one of the deals was a deal that we were dispositioning.
00:04:52.160 --> 00:05:06.160
Their ARV, I think they had like 340 R penned ARV on the specific property going through our process, the thing that we've done for the last 10 years that has helped us build what we've built was around 230,$110,000 difference.
00:05:06.480 --> 00:05:08.560
That individual could have lost it.
00:05:08.639 --> 00:05:15.680
Like they could have lost their shirt and more in that scenario, because that house would have never sold for$340,000.
00:05:15.839 --> 00:05:23.920
You know, I guess if you're a wholesaler, maybe you will appreciate that other people are underwriting deals that way, because then they're gonna buy deals at insane prices for you, I guess, right?
00:05:24.000 --> 00:05:26.240
But if you're a rehabber, you don't want to be that person.
00:05:26.399 --> 00:05:37.519
And if you're a wholesaler, you don't want to be marketing a deal that you think because your AI bot or whatever told you that this thing's worth$340,000 and you're pricing it at$230 when it really needs to sell for$130.
00:05:37.600 --> 00:05:39.199
You're just wasting your team's time.
00:05:39.360 --> 00:05:40.399
You're wasting resources.
00:05:40.560 --> 00:05:45.279
If you're paying for inspections on those, you're wasting hundreds of dollars every single deal.
00:05:45.519 --> 00:05:49.600
So make sure that if you're using AI, that you're going back and you're just validating.
00:05:49.680 --> 00:05:51.040
Just sweep through it real fast.
00:05:51.199 --> 00:05:55.839
Leverage your knowledge, leverage other experts, find a real estate agent, double check this for you.
00:05:56.000 --> 00:05:59.279
The last thing you want to do is trust a tool like this, where it's not valid.
00:05:59.680 --> 00:06:01.360
Guys, AI is an awesome tool.
00:06:01.519 --> 00:06:03.920
We use it in several areas of our business.
00:06:04.160 --> 00:06:14.160
But, you know, someone, an executive at some of the really big company, you would know the company, I'm not gonna share it, but uh a friend of mine, his dad, is an executive at a very, very, very big organization.
00:06:14.240 --> 00:06:16.240
And he's actually part of the tech department.
00:06:16.480 --> 00:06:20.879
And he has been saying for the last few years that garbage in is garbage out.
00:06:21.120 --> 00:06:27.519
If you assume the data going in is good and the data coming out is good, then you're gonna make poor decisions.
00:06:27.680 --> 00:06:32.160
He said you should trust, yes, trust the tool, but always verify.
00:06:32.240 --> 00:06:35.439
It's a saying we have in our office: trust, but verify.
00:06:35.600 --> 00:06:38.240
Verify the data going in, verify the data going out.
00:06:38.399 --> 00:06:41.120
It takes not as much time to do a full analysis, right?
00:06:41.279 --> 00:06:44.720
Because a lot of legwork is being handled by the AI agent, right?
00:06:44.800 --> 00:06:48.319
Or the AI tool, but make sure that you're verifying that it is accurate.
00:06:48.480 --> 00:06:53.519
Guys, these are the kinds of conversations that Tiff and I are having every single week inside of our free community.
00:06:53.680 --> 00:06:58.399
Real deals, real numbers, and what we're actually seeing in today's real estate market.
00:06:58.560 --> 00:07:01.199
And we go live every single week to answer your questions.
00:07:01.360 --> 00:07:05.519
If you're an investor and you want to be part of these conversations, I'll put the link in the description here.
00:07:05.600 --> 00:07:06.480
I'll see you there.
00:07:06.720 --> 00:07:13.040
If this hits home and you know you need to go deeper, I want you to download the free resource that I recently just built.
00:07:13.199 --> 00:07:16.560
It's at www.rdebook.com.
00:07:16.639 --> 00:07:20.240
Again, that's www.rdebook.com.
00:07:20.480 --> 00:07:24.160
It's called 26 Mistakes I Made as a Real Estate Investor.
00:07:24.319 --> 00:07:36.240
You'll get the playbooks, the stories, and the breakdowns so that you can shortcut all the mistakes I made while building this multiple seven-figure real estate business and start doing deals way smarter than I ever did sooner and faster.
00:07:36.639 --> 00:07:39.519
And hey, if you got value today, it would mean a lot to me.
00:07:39.600 --> 00:07:41.199
It actually would mean the world to me.
00:07:41.360 --> 00:07:50.800
If you left a five-star review on Apple or Spotify and left me a review and share with a friend who you think is stuck doing it all themselves right now.
00:07:51.040 --> 00:07:55.519
Because one shift in strategy could be six figures or more.
00:07:55.759 --> 00:07:58.160
Talk soon and see you on the next episode.
00:07:59.040 --> 00:08:02.959
This episode has come to an end, but your journey continues.
00:08:03.199 --> 00:08:06.399
Subscribe to the podcast so you never miss an episode.
00:08:06.560 --> 00:08:12.480
If you want direct help from us, join our free community by visiting the results driven podcast.com.
00:08:12.639 --> 00:08:16.079
That's the results driven podcast.com.
00:08:16.240 --> 00:08:18.800
We'll see you next time on the results driven podcast.
00:08:18.959 --> 00:08:21.920
We'll see you next time on the results driven podcast.
00:00:00.080 --> 00:00:01.840
Guys, AI is an awesome tool.
00:00:02.000 --> 00:00:04.400
We use it in several areas of our business.
00:00:04.559 --> 00:00:14.640
But, you know, someone, an executive at some of the really big company, you would know the company, I'm not going to share it, but uh a friend of mine, his dad, is an executive at a very, very, very big organization.
00:00:14.720 --> 00:00:16.719
And he's actually part of the tech department.
00:00:16.960 --> 00:00:21.359
And he has been saying for the last few years that garbage in is garbage out.
00:00:21.600 --> 00:00:28.399
If you assume the data going in is good and the data coming out is good, then you're going to make poor decisions.
00:00:33.439 --> 00:00:39.119
Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
00:00:39.280 --> 00:00:40.320
I'm Tiffany High.
00:00:40.560 --> 00:00:41.439
And I'm Josh High.
00:00:41.679 --> 00:00:52.799
And this is the Results Driven Podcast, where we share proven strategies to build systems, master sales, grow your team, and create a self-sustaining business with predictable income.
00:00:52.960 --> 00:01:01.359
Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset shifts you need to succeed.
00:01:01.600 --> 00:01:02.799
Let's dive in.
00:01:06.239 --> 00:01:10.239
You're spending hundreds of thousands of dollars on buying houses and you're trusting a tool.
00:01:10.400 --> 00:01:13.519
You're trusting AI to make the most important decision for you.
00:01:13.680 --> 00:01:23.040
If ChatGPT or Cloud are is the one that's running all the comps, pinning your ARV, estimating your repair estimates, you better watch this before you make another decision.
00:01:23.200 --> 00:01:24.000
Let's dive in.
00:01:24.159 --> 00:01:25.920
All right, I'm going to share a case study with you guys.
00:01:26.079 --> 00:01:30.959
I had a property here in Columbus, Ohio that uh was in an area that's being gentrified.
00:01:31.040 --> 00:01:34.000
Okay, so to put this into perspective, there's Children's Hospital.
00:01:34.079 --> 00:01:43.280
And when you look on the map, if you go south of the hospital or if you go, if you go west of the hospital, then you're in a great spot.
00:01:43.439 --> 00:01:48.239
Okay, there's one million dollar homes, one and a half million dollar homes, some even that are$2 million.
00:01:48.640 --> 00:01:50.000
It's a higher price point.
00:01:50.079 --> 00:01:53.120
It's a historic district, very, very, very old buildings.
00:01:53.359 --> 00:01:58.480
Then you cross one street, cross one street and you go east.
00:01:58.719 --> 00:01:59.040
Okay.
00:01:59.359 --> 00:02:03.519
Once you cross that main road, it's a completely different part of town.
00:02:03.680 --> 00:02:07.599
That part of town has been under like gentrification over the last 10 to 12 years.
00:02:07.680 --> 00:02:13.039
And so the values have significantly increased, meaning they used to be worth like 20, 30, 40 grand.
00:02:13.439 --> 00:02:17.360
And then now they're worth, you know, mid 200s, low 300s.
00:02:17.439 --> 00:02:28.240
And so, you know, part of our process is we'll always go through and we'll pin what we think an ARV is, but then we'll reach out to our real estate agent who has an automated system that helps them pinpoint ARVs.
00:02:28.319 --> 00:02:31.039
Now they'll come through it with some of their knowledge of the area as well.
00:02:31.199 --> 00:02:37.840
So we sent this over to our real estate agent, and our real estate agent shoots it back at uh with an ARV of about 270,000.
00:02:37.919 --> 00:02:39.919
Now, this house is in pretty rough shape.
00:02:40.080 --> 00:02:44.479
It's gonna need every bit of$120,000 to$140,000 worth of work.
00:02:44.639 --> 00:02:48.639
Now, seller was wanting to get about$130,000 for this.
00:02:48.960 --> 00:02:52.800
AI pinned the ARV of this, not knowing the separation of this street.
00:02:52.960 --> 00:02:55.919
AI pinned the ARV on this one at$270.
00:02:56.080 --> 00:02:58.960
So$130 plus$120 already puts you at$250.
00:02:59.039 --> 00:03:00.800
So all of a sudden that deal is not a deal.
00:03:00.960 --> 00:03:07.759
But here's what I knew: I knew the area pretty well, and I knew that this street was a clear borderline depending upon values.
00:03:07.919 --> 00:03:11.360
And I had reason to believe that this thing could be worth in the 500s.
00:03:11.520 --> 00:03:13.520
And so I challenged our real estate agent.
00:03:13.599 --> 00:03:16.240
I said, hey, send me the comps that your system's pulling.
00:03:16.319 --> 00:03:19.919
And of course, it pulled comps from the other side of the road, which is the bad area.
00:03:20.080 --> 00:03:21.360
And so I challenged him.
00:03:21.439 --> 00:03:23.360
I said, hey, Parsons is a cutoff here.
00:03:23.439 --> 00:03:26.560
Let's look at everything that is west of Parsons and only pull those in.
00:03:26.719 --> 00:03:30.080
And sure enough, value came back in the low 500s.
00:03:30.159 --> 00:03:31.599
I believe it was like 535.
00:03:32.080 --> 00:03:35.520
That one thing could have ruined this opportunity for us.
00:03:35.599 --> 00:03:39.120
Guys, this is looking to be about a$70,000,$80,000 assignment.
00:03:39.439 --> 00:03:39.759
Okay.
00:03:40.240 --> 00:03:51.520
Now that's not our typical deal size, and I sure can't guarantee that that's going to be a typical deal size for you, but it just goes to show you our generally our average profit per c uh per deal is around$20,000.
00:03:51.759 --> 00:04:01.840
So the fact that this is a$70,000,$80,000 spread is just showing you right there that if I trusted AI to make this decision, I would have walked away from this deal and someone else would have closed this opportunity.
00:04:01.919 --> 00:04:02.800
So just be careful.
00:04:02.960 --> 00:04:07.680
Another thing, guys, we've been uh really focusing on, you know, one of our goals was always become a private lender.
00:04:07.759 --> 00:04:14.000
We wanted to build the real estate business, build the team, magnify our results, build this nesting that we could then go be the bank, right?
00:04:14.159 --> 00:04:20.399
Live with passive income, allow our passive income to exceed our lifestyle expenses.
00:04:20.639 --> 00:04:25.439
And luckily, Tiffany and myself, over the last uh few years, few years ago, we were able to hit that target.
00:04:25.519 --> 00:04:27.040
And now we get to do things, right?
00:04:27.120 --> 00:04:29.120
We get to jump on and share these types of things with you.
00:04:29.199 --> 00:04:29.839
We don't have to.
00:04:29.920 --> 00:04:31.519
And um I think that's something that's really important.
00:04:31.680 --> 00:04:38.879
Anyway, because of that, we've become private lenders and we have people submitting deal reviews to us, their deal analysis.
00:04:39.040 --> 00:04:44.720
It's very clear to see the people that are leveraging AI and the ones that are actually doing the work still themselves.
00:04:44.879 --> 00:04:51.920
You know, I in fact I had someone send me a deal review, and it just so happened to be that one of the deals was a deal that we were dispositioning.
00:04:52.160 --> 00:05:06.160
Their ARV, I think they had like 340 R penned ARV on the specific property going through our process, the thing that we've done for the last 10 years that has helped us build what we've built was around 230,$110,000 difference.
00:05:06.480 --> 00:05:08.560
That individual could have lost it.
00:05:08.639 --> 00:05:15.680
Like they could have lost their shirt and more in that scenario, because that house would have never sold for$340,000.
00:05:15.839 --> 00:05:23.920
You know, I guess if you're a wholesaler, maybe you will appreciate that other people are underwriting deals that way, because then they're gonna buy deals at insane prices for you, I guess, right?
00:05:24.000 --> 00:05:26.240
But if you're a rehabber, you don't want to be that person.
00:05:26.399 --> 00:05:37.519
And if you're a wholesaler, you don't want to be marketing a deal that you think because your AI bot or whatever told you that this thing's worth$340,000 and you're pricing it at$230 when it really needs to sell for$130.
00:05:37.600 --> 00:05:39.199
You're just wasting your team's time.
00:05:39.360 --> 00:05:40.399
You're wasting resources.
00:05:40.560 --> 00:05:45.279
If you're paying for inspections on those, you're wasting hundreds of dollars every single deal.
00:05:45.519 --> 00:05:49.600
So make sure that if you're using AI, that you're going back and you're just validating.
00:05:49.680 --> 00:05:51.040
Just sweep through it real fast.
00:05:51.199 --> 00:05:55.839
Leverage your knowledge, leverage other experts, find a real estate agent, double check this for you.
00:05:56.000 --> 00:05:59.279
The last thing you want to do is trust a tool like this, where it's not valid.
00:05:59.680 --> 00:06:01.360
Guys, AI is an awesome tool.
00:06:01.519 --> 00:06:03.920
We use it in several areas of our business.
00:06:04.160 --> 00:06:14.160
But, you know, someone, an executive at some of the really big company, you would know the company, I'm not gonna share it, but uh a friend of mine, his dad, is an executive at a very, very, very big organization.
00:06:14.240 --> 00:06:16.240
And he's actually part of the tech department.
00:06:16.480 --> 00:06:20.879
And he has been saying for the last few years that garbage in is garbage out.
00:06:21.120 --> 00:06:27.519
If you assume the data going in is good and the data coming out is good, then you're gonna make poor decisions.
00:06:27.680 --> 00:06:32.160
He said you should trust, yes, trust the tool, but always verify.
00:06:32.240 --> 00:06:35.439
It's a saying we have in our office: trust, but verify.
00:06:35.600 --> 00:06:38.240
Verify the data going in, verify the data going out.
00:06:38.399 --> 00:06:41.120
It takes not as much time to do a full analysis, right?
00:06:41.279 --> 00:06:44.720
Because a lot of legwork is being handled by the AI agent, right?
00:06:44.800 --> 00:06:48.319
Or the AI tool, but make sure that you're verifying that it is accurate.
00:06:48.480 --> 00:06:53.519
Guys, these are the kinds of conversations that Tiff and I are having every single week inside of our free community.
00:06:53.680 --> 00:06:58.399
Real deals, real numbers, and what we're actually seeing in today's real estate market.
00:06:58.560 --> 00:07:01.199
And we go live every single week to answer your questions.
00:07:01.360 --> 00:07:05.519
If you're an investor and you want to be part of these conversations, I'll put the link in the description here.
00:07:05.600 --> 00:07:06.480
I'll see you there.
00:07:06.720 --> 00:07:13.040
If this hits home and you know you need to go deeper, I want you to download the free resource that I recently just built.
00:07:13.199 --> 00:07:16.560
It's at www.rdebook.com.
00:07:16.639 --> 00:07:20.240
Again, that's www.rdebook.com.
00:07:20.480 --> 00:07:24.160
It's called 26 Mistakes I Made as a Real Estate Investor.
00:07:24.319 --> 00:07:36.240
You'll get the playbooks, the stories, and the breakdowns so that you can shortcut all the mistakes I made while building this multiple seven-figure real estate business and start doing deals way smarter than I ever did sooner and faster.
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And hey, if you got value today, it would mean a lot to me.
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It actually would mean the world to me.
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If you left a five-star review on Apple or Spotify and left me a review and share with a friend who you think is stuck doing it all themselves right now.
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Because one shift in strategy could be six figures or more.
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Talk soon and see you on the next episode.
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This episode has come to an end, but your journey continues.
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Subscribe to the podcast so you never miss an episode.
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If you want direct help from us, join our free community by visiting the results driven podcast.com.
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That's the results driven podcast.com.
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We'll see you next time on the results driven podcast.
00:08:18.959 --> 00:08:21.920
We'll see you next time on the results driven podcast.
