WEBVTT
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Many people have a desire to enter
the world of investing, whether it be
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through real estate, stocks or entrepreneurship. However, people often face self doubt,
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a limited belief system, or simply
a lack of knowledge to put behind
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their ambition. It's easier than you
think to overcome these obstacles if you know
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exactly what's holding you back. Partner
with Andre to forge new neurological pathways that
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unlock breakthrough strategies for income generation,
reshape your belief systems, and construct your
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desired life. With over fifteen years
of experience in finance in a decade devoted
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to teaching wealth preservation, these achievements
are no mere coincidence. One thing is
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clear. If others have done it, you can too. Start your complementary
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action plan today at www dot Andrestewart
author dot com. Welcome to the Investing
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Uncensored podcast. If you've been searching
for ways to break free from the nine
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to five grind scale or start your
own business, generate passive income, or
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gain insights from others who have achieved
their desired lifestyle. Get ready prepared to
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be inspired as we provide you with
invaluable tips, resources, and first hand
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experiences from Andre and other industry experts
who have accomplished remarkable things in their respective
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fields. This is the Investing Uncensored
podcast, Your Roadmap to success. And
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now here's your host, Andre Stewart. Wellcompletely investing on. Since then,
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I'm your host, Andre Stewart,
and today we're bringing you guys a great
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guest, Mark Capleman. How are
you doing doing really well? Thanks for
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having me on, Andrea. Mark
has a good background. He has a
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mix of being an accountant in real
estate, which he'll get into elaborate on
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that a little bit more, and
then he also has a background he built
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his own real estate portfolio that he
currently has as well, so we're going
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to get into that. He has
an interesting background. He's in Chicago right
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now. Tell us a little bit
about this OREA logo right here. We
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talked about it earlier. But what
is that? Yeah, so ARIA and
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short for real estate Accounting. Kind
of the name says it. All.
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All we do is real date accounting. So we are outsourced accountants, outsourced
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bookkeepers for the property management industry.
All we do is property management. We
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started about, you know, five
years ago, and the quick story there
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is I started out my career at
PwC and Ert and Young. You know
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CPA thought I was gonna be a
partner there, decided, you know what,
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that's not my track, went to
work for a tech company. And
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once I did that, my wife
and I decided to start doing real estate,
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as you said, and we'll probably
get into that, and so started
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flipping houses and doing things. Got
so busy with the real estate and I
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was still at W two that I
outsourced my own accounty and it just came
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back really bad. They didn't know
what the capitalized versus the expense. They
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didn't know what a clothing stage it
was. They didn't know what closing cots
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credits were, you know, blood
best person and art. But they just
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did not know what they were doing. Came to the realidation, Hey,
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look, every industry have specialists who's
focused on realty accounting. That's got to
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beat Somebody looked online, couldn't really
find anybody really focused on that. And
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that was the genitus for why we
started the company. And that was you
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know, we started in end of
eighteen early nineteen and now we have you
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know, nearly one hundred and fifty
employees and all we do is accounting for
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property managic company, like we talked
about earlier. That's some crazy growth for
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a short amount of time to get
to that in any employees, right,
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So obviously if you had that many
employees, we have enough you know,
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clients to have the service, you
know what I mean with all those employees.
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So I guess real quick, give
us a little bit about your background
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of what made you even get into
accounting. Did you go to school for
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that? I know you said you
went to Arizona State. Yeah, things
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like that in Chicago. So great, it's a great question. So I
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went to Arizona State, grew up
with South Dakota. Didn't really know what
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I was, you know, doing, but I wanted to go to the
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worm had a good business school,
and I always knew I wanted to get
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into business. I don't know why. I think some people just think I
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wanted to make money or whatever I
wanted to do. I didn't really know
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which discipline. I had two uncles
that were accountants, and they said,
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hey, look, you don't know
what you want to do in business,
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go do it. Study accounting,
Go get your CPA. You'll have a
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designation next year name that will help
you get a good job. And you
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know, the one key thing they
told me was like accounting is the language
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of business, so you know,
at some level, once you become an
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executive, at some point you have
to understand how to read an income statement,
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a balance sheet, castle statement.
I actually think it was really good
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advice. At the time, or
in retrospect, I didn't. I wasn't
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super excited about accounting, but I
was always decent at math, and I
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liked when things kind of fit and
work together, and accounting kind of a
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puzzle. There's usually a right answer. Sometimes there's a couple of answers,
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but more often than not, there's
one right answer. And yeah, I
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enjoyed it and that's why I did
it. Okay, that makes sense.
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So then you're you went to Arizona
State for accounting or you went for a
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different major. No, no,
I I went for accounting. And then,
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you know, to get your CPA
nowadays you need one hundred credit hours
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in most of every state. So
I stayed and did a one year masters
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after the accounting and Information system and
then you know, took a job at
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urging young got my PwC or got
my CPA, and yeah, that was
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really where I got my start Okay, okay, so then you end up
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going to pww That was at Ernsting
Younes for a few years. Then I
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chased the girl to Chicago. Uh, and they always get w the PwC
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when I came up here, did
that for a few years, and then
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I decided, but I don't want
to be in accounting. I kind of
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want to do something more entrepreneurial.
So I joined the company and started flipping
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out. Okay, so let's let's
dive into that real fast. So you
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left PwC. So while you were
there, a lot of people that listened
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to this podcast always want to know, you know, how someone can transition
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from a W two to get into
real estate because they always assume I don't
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know, I don't know, like
did you grow up with a lot of
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money to just go out and bob
bunch for real estate or did you go
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get a good job and then build
your wealth and bob properties why you were
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working at PwC, or how'd that
go? Like how'd that process go for
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you? Yeah, definitely didn't have
a lot of money, to be simper
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clear. Uh, you know,
I was raised in a very middle class
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family. But I'm you know,
took out student loans to go to college.
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You know that gus up. My
parents thick pay for some of it,
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but not to go out of state
areas out to day. They weren't
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willing to pay for that, but
I thought it was worth it. But
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I'll tell you what when I was
I know it's cliche, but I was
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reading the book Ridge Dad, Poor
Dad, And there was a line of
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the book that does why climb the
corporate ladder when you could own the ladder?
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And I was like, I was
just cranking at the time, and
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I read the line and I was
like, it just turned me on my
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hand, and I'm just like,
oh my gosh. So at that point,
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you know, that book's all about
in nesting in real estate. At
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that point, you know, you
reached stories about so much wealth is made
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in real nate and so I'm like, I want to get into real estate.
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And how it really happened was my
wife was listening to Pandora V one
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day and then with one of those
ads that learned to flip real estate with
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no money down, you know,
one of those deals, and she she
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text me or called me and was
like, hey, you know right on
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my walk, hopen work. Hey, there's gonna be an event at the
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holiday end right on the walk open
work. You've been talking about, really
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it all the time. There's some
free event tonight. Do you want to
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go? So she really kind of
does heard it and Jo watch this thing.
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There's you know, Joe Schmoe up
on the stage and doesn't look at
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button up as me whatever that means, right, and he's like, I
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just made this much money wholesale and
a deal, and like what it's wholesale,
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you know. And then one thing
led to another and we were like,
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you know what, let's try to
flip it. Let's flip the hell.
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You know. Some things happened in
between, but shure up found a
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deal, bought them for one twenty. It was an order house, put
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a bunch of money into it,
but flipped it and we made about thirty
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grand and at that time, this
is the most money either of us had
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ever had. Like at one time, you know, we were just w
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two cranking away, getting our small
rais and maybe a bonus here and there,
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and it was like, wow,
we get it. Yeah, you
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know, we did it, and
this is our money. We're not giving
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this to anybody, you know.
We used hard bunny. We paid all
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the different things, but we still
netted, and from there we were like,
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okay, let's do another one and
then another one and that was it.
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But now, luckily, I guess
say on the money died. She
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lived at home for two years before
we moved in together, and so she
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was able to save a good bit
of money. So we always joked like
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she funded that first deal by chick
say but Alan's thoughways telling her, Look,
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you know, my value loaded day, but my future value is really
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high. You know, you're betting
on me and my PRIs of value or
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my pres of value high. But
anyway, yeah, that's kind of how
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we got going. So then just
curious, how'd you find that first lip?
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Craigslist put it? Put an out
out on Craiglist. Holvalor calls me.
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He's like, it's funny story.
I was at the Bear's game,
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literally at the Bear's game and it's
halftime or no, sort of like pouring
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and lightning. So they made a
phone go on to the stand, go
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under there. I get a call
from this guy and think, hey,
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look I haven't been able to close
this lady, but I know she wants
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to sell. And here's her information. I talked to him before. He's
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like, pay me a thousand bucks
if you're able to put this on her
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contract, you know, and I'll
give you the information. It was kind
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of like a handshake, you know, on the phone, and he gives
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me the number. I called the
lady and she's like, yeah, I'm
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being through the ready. So and
we literally left the I tolled my wife.
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I'm like, we gotta go.
It's our first great lead left the
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game. Literally this true story.
Drove to her house pouring out take a
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contract in there. I mean it
it's sad, but order house had her
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dog going to the bathroom in the
house and it was wretched and she was
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just she was terrified and go outside
and yeah, bought it for one five.
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I don't know if she had any
debt on it. I think her
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mom had gifted it to her.
Uh, And that's how we got our
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first deal. I mean, my
wife wouldn't even go inside until it got
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it spelled that bad. Yeah,
we've had houses where they go in and
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there's poop on the wall, like
I get it. Yeah, yeah,
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it was. We found like one
hundred dollars built buried like when we were
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doing the track. I mean it
was like, I forget how many dumpsters,
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but it was dad situation. But
I think it worked out great.
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Mid the house beautiful and full of
the old Chicago break bungalow pool building.
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Okay, okay, So then that
was her first deal. You were still
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obviously working. At what point did
you like the light bulb come on?
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Okay, we made it off this
flip. How many flips did you guys
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do before you felt like you could
transition out to doing your own thing.
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Well, it's interesting. I ever
went full time in real estate. We
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twenty thirteen, we sold we butught
it for sealing thirteen. We sold it
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in fourteen. I didn't quit by
W two until twenty twenty. Oh,
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so I was towards the end.
I negotiated a part time with my boss
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because yeah, I tell people that's
all the time too, which is like,
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if you're a really good employee,
they don't want to lose, you
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lose, And so if you do
truly want to take a little risk off
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the table, but take some risk, see if you can negotiate two three
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days a week. So that's when
I did it them. I said,
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hey, look I want to do
two days a week. I want to
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get into real estate development. He
knew I wanted to get into that,
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and he was willing to do that
because I had been with them for a
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long time and it just so happened
that instead of to y'all in the new
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rel fit inveolvement, I ended up
starting Ria. But like you know,
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it was deal and deals, and
I wanted to just kind of do it
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with a little bit of risks because
I had a mortgage and kid now,
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so I was like, look,
I need to have something something, But
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I think it's a pretty good way. Before he just wrecked the band aid
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to go all in. I mean, you can go all in, but
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I did it kind of in a
bath so delaborated. What on you said.
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I've read a book called seven Years
or seven Figures, and in that
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book it talks about a person having
a job, but two people that had
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jobs, and they just leveraged their
skill set within the job. I think
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one guy came up with a newsletter
for his company and that did really well.
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Again, somebody else came up with
an idea for a pair of jeans
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at a fashion company. So they
were able to you know, come up
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with something their value to that company
was much greater for them to stay there
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and work part time and then do
their own thing on the side to get
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to the point of where they did
having seven figures and they were able to
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leave or whatever the case was.
So I picked back up what you're saying,
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like, if you're that good,
if you add that much value and
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you can do it at a high
level of working four hours five hours a
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day, your employer will be okay
with you being able to be Like,
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you know what, as long as
you get your work done right, you
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can do that. That's like working
remote. There's really no different. Your
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employer has to trust you enough for
you to work remote, especially now they
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can make you come back for some
but that's it's really the same thing.
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Your boss has let you do it
a long time ago, versus like right
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now. You know, well,
it's fine because what I was doing real
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estate at the W two that was
before remote. That was constantly just like
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ducking into tall room, ducking in
the conference room when you're doing deals.
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You know, the architects don't want
to talk nights and weekend, do want
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to talk during business towers, right, So I'm like that that's so into
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challenge but I think being able to
do that remote, you can kind of
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hide out a little bit, for
sure. It's so one of the things
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about which is a great point.
I brought that up a couple years ago
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when it was like the thing to
work remote. You can do a side
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hustle now a lot easier than you
could but you could before. So I
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had a similar situation to you.
I had a job when we had like
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a little call room. I was
sneaking to that call room, and eventually
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they kind of got on to what
I was doing. Right, you know,
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you're supposed to be over here,
but you're in this call room like
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two hours a day at random times. What are you doing in the call
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room? It's just so much different
and it's less stressful too. When you
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can work remote, your back covering
over you. But like you said,
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I did the same thing, and
then when I transitioned out, I had
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a good amount of money when I
transitioned out, you know what I mean.
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So then you felt comfortable enough exactly. Yeah. I had deals in
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my pipeline that were coming in that
made it even easier for me to be
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like I got this deal closing,
and this deal closing in like two months.
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You know, it's kind of funny. Everybody kind of knew what I
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was doing exactly know. But the
even better thing was the PwC like your
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job like that, you got to
be all in. There's nobody has any
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other outside And I went to work
for this tech company. I actually had
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already flipped that first house. I
put at the top of the resume real
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estate developer, but underneath that,
and they loved that because they were the
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small entrepreneurial company. I have the
head of sales investing in one of my
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deals, so I was like pretty
open about it. Yeah, which so
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kind of a unique situation, but
I'm sure they still that loved me spending
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a lot of time at work working
on some other bits of No one likes
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that because that's obviously time that you're
focusing on something else versus making them money,
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you know what I mean. But
he goes back to what you're saying,
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like the letter, you know what
I mean? That's right. Yeah,
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So I think just having a pizzarship
and the super important what's going to
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take that it's pretty addicting. So
at that point in time, because of
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everyone that I know, they like
to do real estate flips, right,
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but then they always get the interest
in wanting to do development. How did
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you transition or what made you want
to transition? Which is long what made
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you want to transition into development?
Because some people go from are regular flipping
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to commercial, like they go to
sixteen units, they go to what made
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you go to development instead of going
the commercial up? Well, I'll tell
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you what we here with the process
we rehabbing houses. Now, our market's
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unique in that Chicago's the super old
city. A lot of the houses were
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built in the eighteen late eighteen hundred
is early nineteen hundred. So when you
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go to rehab these house to like
the whole carpet and paint flips, you
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can't do that because all the electrical
claw it's radiator heating. These houses are
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just like the foundations are messed up, they're leaning so like even our first
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couple of flips were like heavy,
heavy reacts. So that was part one
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and then two. You've done enough
rehabs, you know that it's like harder
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to scale every house to different There's
a million decisions that really keep this or
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we're not the architect plan never really
measure out exactly what the dimensions are of
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these houses, so when you're moving
walls, things are really smaller than they
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you know, we're in the plan, whereas we just knocked out into new
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construction. We know exactly what we're
doing. There's not a lot of gaswork
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for the plumber and the electrician,
and it's just like so I thought it
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was actually less rent, less risk
to just knocked out a new construction.
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So that's kind of how we got
into doing new construction. But I would
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say, you know, we did
end up kind of doing some commercial deals,
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you know, bigger than five unit
deals, and that's really where we
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bought a six unit property, bought
it in pork or the short tail,
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and did the Burr strategy. So
the sixth unit department literally drug dealing going
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on. They're growing weed in the
basement, like I found a plant of
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my guy ten in the South side
of Chicago were no, no, this
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was on the northwest side, and
you know there was there's a lot of
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shady characters in this building. But
we you know, we did cash or
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key. We got them out because
nobody at leads it. Half people were
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paying, but we were able to
get them out and then just turn it
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into a beautiful property completely gotted it
to the snud and you know, by
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the time we refight it and reappraised
it, the new loan we got was
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you know, that's the power of
you know, commercial is now you can
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go get any reready loans that is
non recourse and you know, in appraised
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the loan that we got was more
than we had invested in the money in
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the deal, So we got this
kind of cash out that was tax break
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because it was all dead. And
that's where the light just kind of went
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00:18:52.359 --> 00:18:56.359
off that we're like, wow,
look, single families are kind of great
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00:18:56.400 --> 00:19:00.720
to flip and do this, but
like the real money and then buy apartment
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00:19:00.759 --> 00:19:03.240
million they needed tle work, got
it, raise the rent, read buy
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00:19:03.599 --> 00:19:08.240
pull out month your cash. Now
start getting rental income and do another deal,
289
00:19:08.359 --> 00:19:15.319
and another deal and another deal.
Ever wished you had the opportunity to
290
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buy a stock like Facebook, Amazon
or Netflix before it went public, or
291
00:19:18.880 --> 00:19:22.920
was able to get shares in companies
like VC firms and angel investors, Well
292
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here's your chance. Go to invest
far dot com forward slash invest and reserve
293
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296
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297
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298
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Don't miss your chance. That's IV
as in Victor eest Far dot Com forward
299
00:19:57.480 --> 00:20:03.960
slash invest. So what you just
explained, like, that's what grand Cardon
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00:20:03.000 --> 00:20:07.839
does. So the idea that I
don't think people get, that's what most
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00:20:07.960 --> 00:20:11.599
rich people do, like because that's
how you avoid paying taxes. So you
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here's a good point when you when
you buy property and you add value and
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you raise the value and you go
do a cash our refinance. Another bank
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is basically buying that property, so
you're not really selling it. For one,
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00:20:23.519 --> 00:20:26.799
you have this other institution that's buying
this loan from you, you know
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what I mean, So you basically
get the difference. There's no there's no
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00:20:30.480 --> 00:20:37.039
there's no I would say, there's
really no gain in per se because you're
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not selling it to someone and they're
buying it. You're keeping it right,
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so you're really say no gain on
the TAXI turn, does a gain in
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00:20:42.200 --> 00:20:48.279
your bank account. It's all that
matter as long as you keep ten thirty
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00:20:48.279 --> 00:20:51.039
one yet correct, you'll ever pay
the game. You'll never pay the game,
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right, and so that's kind of
the the name of the game.
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But yeah, that was the kind
of the story of development. Let's this
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one thing I'll say about that too, just because people are listening, like,
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oh, I want to get a
development. You he had the background
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as a lender. I know,
you have to have an extensive background of
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doing a real hardcore rehab. You
can't do like a fifteen thousand dollars rehab
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and be like I want to go
do new construction. It has to be
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at least fifty thousand dollars or more, which I'm pretty sure your rehabs were
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at least fifty The first one was
eighty exactly. So that's the equivalent.
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You can go out and build a
house for like eighty thousand dollars if you
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go to Georgia and get some land. So that's the equivalent to basically building
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a new house. So if you're
thinking about getting in to the new development,
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you have to do extensive rehabs over
fifty to sixty grand for the count
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toward you having a development experience,
which is what he Yeah, and it's
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kind of interesting, you know,
like when they think about it too.
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My vote wife and I both had
good W two's, so like even though
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hard money letters are asset bath lenders, I think we probably looked like good
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barrowers, right because we had good
credit W twos. So then once we
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get a couple of those deals,
then we had a little money that we
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built a website, you know,
in a nice looking website that chugg pass
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projects. And that's really how we
were able to transition from hard money to
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community bank financing and really you know, bring on lending from like twelve percent
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to five percent. Is because you
know, we called this lady, we
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called the banker at a at a
small ed egg, you know, and
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consider our website. Wow, your
website looks so professional. I saw you
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a couple of paths projects. I
think I can get this proved. And
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that's how we got financing for that
six unit. And that six unit was
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00:22:37.480 --> 00:22:41.720
a that was a seven hundred thousand
dollars reab, but that was a very
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00:22:41.799 --> 00:22:47.799
large reab. Yeah, and we
got eighty percent loan to cost on that
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rehab. And that was after doing
like three heavy reabs right eighty thousand and
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then a couple six figure rehabs,
but it was mainly a couple of projects
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in a website, and we looked
legit now and again. As a lender,
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that's one of the first things you
ask for, you ex for someone's
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bio, right, And it's so
much better for them to be able to
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see you with link because I'm pretty
sure your link to your website had your
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00:23:12.480 --> 00:23:17.079
projects, they had your bio and
had your experience. That's exactly, so
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00:23:17.319 --> 00:23:18.920
exactly, that's just the easy way
to go about. So that's our credit
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cards were good and I think it
was just like Chuck check check correct early.
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It's low airsh risk and yeah,
thankfully it worked. So do you
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00:23:29.680 --> 00:23:32.480
mind giving people the website to look
at it just so they have it as
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00:23:32.480 --> 00:23:37.039
a as a or you took it
down let meet them on that. But
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you know, I'm just like,
as I'm telling you before, I don't
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transition out. That's right, you
guys, No, you can go,
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it's still activity. It's uh.
I can give it to you as t
356
00:23:49.559 --> 00:23:55.279
R I H O M E S
t O D A Y dot com.
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00:23:55.319 --> 00:23:57.720
So TRYS today. Maybe we can
put that in the show notes for sure.
358
00:23:57.880 --> 00:24:02.440
For sure. Yeah, that's the
site that the front page of the
359
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project that we did back in twenty
sixteen, So yeah, this is all
360
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or we started the accounting visits that
we were so we're going to be full
361
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time developers, and then we got
into this idea of a real day accounting
362
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and realized, wow, we really
like operating businesses and we've been full widens
363
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on this for the last five years. So did you think there was a
364
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major benefit in you being able to
what's your accounting background do the numbers on
365
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these projects? Dred percent? I
think yeah, absolutely. I mean,
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ultimately, all I was living in
Excel for the first seven to ten years
367
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to my career, and when we
were doing numbers, you know, the
368
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kind of an Excel model, so
we kind of knew. I mean,
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I think ultimately, you don't need
to be some finance wiz. What you
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really need to be able to do
is buy properties cheap, as you know,
371
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but then estimate rehabs pretty well.
And having a fin anthigree doesn't help
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you without intimating reabs. So that
just kind of comes to the experience.
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They think, But yeah, I
always felt I felt more confident kind of
374
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putting together financial packages for banks because
they always say like send us your underwriting
375
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and send us your comps. And
so I felt good about like doing due
376
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diligence on comps and pray, but
just still uncomfortable with the financial piece event
377
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and because two on all of our
deals we raised money from investors. You
378
00:25:30.359 --> 00:25:33.559
know, we had to gebt,
but then we had to come up with
379
00:25:34.400 --> 00:25:37.920
quite a bit of equity and we
didn't have all that cash, so we
380
00:25:37.960 --> 00:25:41.640
had to put together a pro forma
and something that looked professional for investors,
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and I think having a financial background
health So then we'll go two places with
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00:25:47.640 --> 00:25:51.319
this with you, because we just
had we have people coming on about raising
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00:25:51.359 --> 00:25:56.000
funds and syndication, so to help
out some of the listeners. Where did
384
00:25:56.000 --> 00:26:00.680
you source those people for your syndications? Yeah, So that first ever hard
385
00:26:00.720 --> 00:26:04.519
money deal we did, he brought
the he brought the equity guy. He's
386
00:26:04.559 --> 00:26:07.160
like, hey, I'll do that. He was a really entrepreneurial guy,
387
00:26:07.160 --> 00:26:11.279
and he's like, I got a
fund that'll do the loan, and I
388
00:26:11.279 --> 00:26:15.960
got a few guys that would invest
in the deal of equity. Okay,
389
00:26:15.119 --> 00:26:19.039
it was like the easy button.
We paid them an observer turn in hindsight,
390
00:26:19.079 --> 00:26:23.119
but like that's how we thought we
got the game. Yeah, and
391
00:26:23.160 --> 00:26:29.839
then after that it was really friend
and family. And I think part of
392
00:26:29.839 --> 00:26:36.000
that was again we were rubbing shoulders
with some pretty financially successful people being a
393
00:26:36.000 --> 00:26:38.319
PFC and then go to the tech
company, like I said, and that
394
00:26:38.400 --> 00:26:44.000
head of sale he was finen stroking
a check from fifty k because that was
395
00:26:44.079 --> 00:26:45.960
just you know what I mean,
Like he was an entrepreneurial guy, and
396
00:26:47.039 --> 00:26:52.319
so we kind of just had some
people in our sphere at that point that
397
00:26:52.000 --> 00:26:56.279
could could help fund us. So
then that's what made you start RIA,
398
00:26:56.640 --> 00:27:00.359
right because you hadn't started a yea, you went and did all these real
399
00:27:00.440 --> 00:27:03.400
estate deals and then you were like, because that's the part you try to
400
00:27:03.559 --> 00:27:07.440
You do all these deals, right, how do you keep that money?
401
00:27:07.480 --> 00:27:15.319
Because capital gain tax are what thirty
seven percent, twenty percent and twenty five
402
00:27:15.400 --> 00:27:18.200
I think now okay, okay,
So then so you do make that money,
403
00:27:18.359 --> 00:27:21.839
Now the idea is how to keep
it. So, like you said,
404
00:27:22.000 --> 00:27:26.480
the refinance is the way to keep
it. Learning how to do appreciation
405
00:27:26.920 --> 00:27:29.400
and all these other things. So
like this is the stuff that you were
406
00:27:29.400 --> 00:27:33.519
figuring out right obviously as you were
doing deals, you having your accounting background,
407
00:27:33.799 --> 00:27:37.599
and then you're looking online for someone
who had a real estate accounting background.
408
00:27:37.720 --> 00:27:40.079
Is that what led you to do? Aria? Like, you know
409
00:27:40.119 --> 00:27:42.039
what, I know all this stuff. I know the other people out there
410
00:27:42.039 --> 00:27:45.799
like me, So so go go
into that a little bit. Yeah.
411
00:27:45.880 --> 00:27:48.279
Yeah, And I think, you
know, the biggest thing is just like
412
00:27:48.039 --> 00:27:52.279
we have the problem. Yes I
was an accountant, but now I'm a
413
00:27:52.319 --> 00:27:57.160
real estate guy and I need my
accounting done and I try and having somebody
414
00:27:57.279 --> 00:28:00.079
do it, and it came back
great, poorly, and so now it's
415
00:28:00.119 --> 00:28:03.680
like, Okay, who does it
really well? Couldn't find anybody that did
416
00:28:03.680 --> 00:28:08.359
it really well. So we were
like, hey, let's get a website
417
00:28:08.400 --> 00:28:12.839
and started advertising and see if we
can get to lead and see if there's
418
00:28:12.880 --> 00:28:17.720
an opportunity there. And it turned
up to be a Veig opportunity. But
419
00:28:18.119 --> 00:28:22.359
you know, I think I would
tell people the best accountants are people that
420
00:28:22.559 --> 00:28:26.720
really understand the industry and the product, not just somebody that knows how to
421
00:28:26.759 --> 00:28:32.720
do devinth and credit, but somebody
that really gets it. And we've syndicated,
422
00:28:33.200 --> 00:28:36.640
we've raised money, we've sold deals, we've done bank dron's, we've
423
00:28:36.680 --> 00:28:41.319
done negotiations. We've done ten thirty
one, we've done CONTANCT, We've done
424
00:28:41.680 --> 00:28:45.000
you know, like ourselves. We've
done it. So while we're our clients
425
00:28:45.039 --> 00:28:49.240
doing these things, it's not just
like a concept we've read about online or
426
00:28:49.279 --> 00:28:52.559
in a book. It's we've actually
done it. Yeah, and so I
427
00:28:52.599 --> 00:28:59.640
think roughly sixty percent of our clients
both own the real estate and manage it.
428
00:29:00.240 --> 00:29:03.160
And that's because you know, we
are older operators. We've done it,
429
00:29:03.200 --> 00:29:06.880
so they're kind of we bet in
their shoes, maybe at a smaller
430
00:29:06.880 --> 00:29:11.960
scale, but it's more relatable.
And yeah, we just we kind of
431
00:29:11.039 --> 00:29:15.880
we know the industry and both sides
of it, both business and the kind
432
00:29:15.559 --> 00:29:19.160
So it's like what he's saying is
like, if you get an attorney to
433
00:29:19.319 --> 00:29:22.720
try to handle a real estate transaction, it's okay, it's not going to
434
00:29:22.759 --> 00:29:26.640
go as well as you get in
the real estate attorney. They're out of
435
00:29:26.640 --> 00:29:29.240
the real estate transaction. So like, if you go to a CPA,
436
00:29:29.599 --> 00:29:33.319
who's this a regular CPA, he's
not going to be able to get you
437
00:29:33.319 --> 00:29:37.319
as much money back as you go
into a real estate accountant. Like it's
438
00:29:37.359 --> 00:29:41.519
just not because he doesn't know what
to put or what depreciation are all these
439
00:29:41.559 --> 00:29:42.880
different He can look at a book
and say based on this, so he
440
00:29:42.880 --> 00:29:47.480
can look at a code, but
you're going to know exactly because you still
441
00:29:47.559 --> 00:29:48.920
might have your own deals. You
told me you have a development that you're
442
00:29:48.920 --> 00:29:52.039
working on, so you're still active
in what's going on in the market.
443
00:29:52.200 --> 00:29:56.880
You know, yeah, yeah,
we got we're building forward town homes in
444
00:29:56.920 --> 00:30:00.440
and fualified opportunities don't. So that's
another thing where exactly down in tamp at
445
00:30:00.440 --> 00:30:03.720
the moment. But you know,
when you work in urs and Young and
446
00:30:03.759 --> 00:30:07.519
PwC, damn a specialist for everything, there's noel and yeah special media,
447
00:30:07.640 --> 00:30:11.880
entertainment, real estate, and there's
a reading for that because kind of like
448
00:30:11.920 --> 00:30:15.599
you're saying, it's the same,
every industry has really unique issues. And
449
00:30:15.640 --> 00:30:18.960
the tax code, if it was
a book, it would probably be this
450
00:30:19.279 --> 00:30:23.839
ex right, and you kIPS know
everything well. And the real estate guys
451
00:30:23.880 --> 00:30:29.440
are focused on a few things that
affect everybody, and yeah, people like
452
00:30:29.480 --> 00:30:32.880
to work with specialists and that makes
sense. So then with you guys,
453
00:30:33.160 --> 00:30:36.400
since you guys do have the background
when you go to your website, which
454
00:30:36.400 --> 00:30:37.640
I'll get that at the end,
but when you go to your website.
455
00:30:37.680 --> 00:30:42.720
Is there a way for people to
ask consults, to get a consultation or
456
00:30:42.839 --> 00:30:48.240
just say, hey, you got
to do more than just real estate accounting.
457
00:30:48.240 --> 00:30:51.039
Will you give me advice on some
deals? Like what what does RIA
458
00:30:51.240 --> 00:30:56.200
do outside of just accounting or is
it strictly books? Pretty much expected the
459
00:30:56.240 --> 00:30:59.920
book? Okay, you know,
if you want us to talk to you
460
00:31:00.160 --> 00:31:03.359
about that, you go to our
website. We'll put that in the show
461
00:31:03.400 --> 00:31:07.599
notes. It's actually just r e
a dot co O. We used to
462
00:31:07.680 --> 00:31:11.119
have built in accounting dot co and
people kept misspelling it, so we went
463
00:31:11.160 --> 00:31:15.559
and bought RIA dot co from some
guy that in Bonnet to be in a
464
00:31:15.599 --> 00:31:18.400
band Bora but that you know five
note. But yeah, there's a green
465
00:31:18.440 --> 00:31:22.759
button on the website that contact us. You can go in there, book
466
00:31:22.759 --> 00:31:26.640
a meeting, be happy to shout
you and see if we're a good fit.
467
00:31:26.039 --> 00:31:32.519
And I'm pretty sure the pricing is
favorable. So do when you were
468
00:31:32.680 --> 00:31:34.759
so you you're you're not like obviously
day to day you guys have one hundred
469
00:31:34.759 --> 00:31:40.039
and fifty employees. So when the
people come through you get a consultant,
470
00:31:40.480 --> 00:31:45.079
are the accountant's gonna give information like, hey, you guys should do this
471
00:31:45.519 --> 00:31:48.720
to save more money here or do
you guys just take it upon yourself to
472
00:31:49.119 --> 00:31:53.799
structure that to where the person gets
the most money back. So we're you
473
00:31:53.839 --> 00:31:57.640
know, we're not We don't do
tax returns. We do the book keeping.
474
00:31:57.920 --> 00:32:02.079
So we you know, are real
bread and butter is property management company
475
00:32:02.599 --> 00:32:07.440
collucting a bunch of red charge,
reate black rent, You pay bill,
476
00:32:07.079 --> 00:32:13.759
distribute checks to owners, and you
deliver financial statements so that investors are comfortable
477
00:32:13.799 --> 00:32:15.839
that you know, they can see
the numbers or bank see the numbers.
478
00:32:16.039 --> 00:32:21.200
And at the end of the year
we give it to the TAXDPA to file
479
00:32:21.480 --> 00:32:28.000
do the K one. So you
know, we are not necessarily saying we
480
00:32:28.119 --> 00:32:30.519
might have a point of view with
them to say, hey, look instead
481
00:32:30.559 --> 00:32:34.640
of capitalite and the thought run through
repairs and maintenance and which is going to
482
00:32:34.680 --> 00:32:40.240
lower your tax liability? But are
is you know, we are Privately management
483
00:32:40.279 --> 00:32:44.599
companies have two options. Probably somebody
told this the other day. Provaby managed
484
00:32:44.599 --> 00:32:51.079
companies are glorified bookkeepers because so much
of them is just bookkeeping. And they
485
00:32:51.240 --> 00:32:54.039
have two options. They can hired
accountant and out and pay W two and
486
00:32:54.079 --> 00:32:59.000
pay self employment. And but you
know, FIKA and all those different things,
487
00:32:59.400 --> 00:33:02.000
or they can out source it to
a group like ours the ten ninety
488
00:33:02.079 --> 00:33:07.359
nine and don't payroll packed, and
you can kind of scale up and down
489
00:33:07.799 --> 00:33:10.119
as you event. A lot of
people don't need a full time account,
490
00:33:10.200 --> 00:33:15.000
they need a practical account, and
that didn't effect. What we provide is
491
00:33:15.039 --> 00:33:20.480
fractional bookkeeping services for property, medic
good good good, And then you guys
492
00:33:20.480 --> 00:33:23.759
can do forensic auditing and things like
that. We don't do a ton of
493
00:33:23.799 --> 00:33:27.720
auditing, but you know, I
was an auditor back in the day,
494
00:33:27.759 --> 00:33:32.559
and I like your clarmonton which makes
sense. A headache, yeah, a
495
00:33:32.559 --> 00:33:36.839
headache, yeah, yeah, yeah, yeah, I'm doing a forensic order
496
00:33:36.880 --> 00:33:38.079
right now. That's why I was
curious, like you can do it because
497
00:33:38.240 --> 00:33:43.759
yeah, I know that not really
on bread and butter. That's cool.
498
00:33:45.079 --> 00:33:49.000
So, you know, any advice
you can give listeners on like what they
499
00:33:49.039 --> 00:33:52.240
could do to transition from W two, I know you gave the advice on
500
00:33:52.400 --> 00:33:57.480
like being good at your job first
of all, right, and then leveraging
501
00:33:57.599 --> 00:34:00.039
your skill set and being good at
your job to being able to go part
502
00:34:00.079 --> 00:34:02.680
time. You have any kind of
books, I'll saw to, you know,
503
00:34:04.079 --> 00:34:07.440
a port ad or podcast as you
listen to that kind of got you
504
00:34:07.480 --> 00:34:09.559
on the path. I know,
I'm curious about this. Who was the
505
00:34:09.599 --> 00:34:14.239
guy that you went and saw to
get started in real estate? Do you
506
00:34:14.280 --> 00:34:19.480
remember his name? I don't remember
his name so many but I mean I
507
00:34:19.519 --> 00:34:22.079
did the same thing. So that's
why I was like, what if it
508
00:34:22.079 --> 00:34:25.639
was the same guy. I don't
remember, you know, books, books,
509
00:34:25.840 --> 00:34:30.239
I read so many books. I
just listened to Elon Mouth's book that
510
00:34:30.880 --> 00:34:34.719
not going to motivate to you your
real estate and gonna motivate you to think
511
00:34:34.760 --> 00:34:40.360
a lot bigger. The Email was
a great book and guy recommended to me
512
00:34:42.000 --> 00:34:45.039
and and that was big readings.
I outsourced my own accounting and it was
513
00:34:45.079 --> 00:34:49.679
all about focus on what drives the
revenue and outsource the admin. And that
514
00:34:49.800 --> 00:34:52.559
was an eye opening one. Yeah. I love all sorts of help help
515
00:34:52.639 --> 00:34:57.800
self help books like Think and Grow
Rich, all the classics. I'm a
516
00:34:57.840 --> 00:35:01.880
voracious reader. But I think,
you know, ultimately, you gotta go
517
00:35:01.960 --> 00:35:05.320
out there and you got to buy
a deal, and you gotta do a
518
00:35:05.360 --> 00:35:07.679
deal, and you got to start
going to reavengs, start meeting the whole
519
00:35:07.760 --> 00:35:13.440
dealers, and you start talking to
people. And I think, based on
520
00:35:13.440 --> 00:35:16.239
what you can do it on the
side and the risk and yeah, it's
521
00:35:16.239 --> 00:35:20.320
it's gonna be busy. I started
or I had kid. But even if
522
00:35:20.360 --> 00:35:23.320
you have kid, it's just another
thing you gotta work around. But I
523
00:35:23.360 --> 00:35:28.920
think if you're hungry and you're super
dedicated, it's just all about like how
524
00:35:28.960 --> 00:35:30.599
bad do you want it? If
you want to badden up, you'll wake
525
00:35:30.679 --> 00:35:36.519
up early in your work late to
underwrite deals and you know, go buy
526
00:35:36.559 --> 00:35:39.440
something eventually. In my opinion,
like you said, it all comes down
527
00:35:39.480 --> 00:35:43.119
to you obviously have to be in
the right mindset, you know what I
528
00:35:43.119 --> 00:35:45.320
mean at the end of the day, did you have a fear when you
529
00:35:45.400 --> 00:35:49.679
first jumped out, which or you
were like, you know what, okay,
530
00:35:49.679 --> 00:35:52.920
okay, r tons of fear.
But the discussion I had with my
531
00:35:52.960 --> 00:35:57.360
wife, wud hey, look this
totally failed. I can always go back
532
00:35:57.360 --> 00:36:00.119
to public accounting. These these accounquerts
have been around for ever ever, and
533
00:36:00.760 --> 00:36:06.719
you know they all are growing and
need people. And even if the firm
534
00:36:06.760 --> 00:36:09.840
that I want says, you know, like resent me for leaving or something,
535
00:36:09.840 --> 00:36:14.599
which they didn't, I don't think, but like there's plenty of others
536
00:36:14.800 --> 00:36:16.239
that would be like, oh,
we'd love to have an experienced guy to
537
00:36:16.280 --> 00:36:21.920
come back then, so I saw
it as kind of rescue, but not
538
00:36:21.960 --> 00:36:27.800
really so guys, like he says, he gives you a bunch of tips
539
00:36:27.800 --> 00:36:30.679
that a lot of our guests come
on here and give, so it would
540
00:36:30.679 --> 00:36:32.880
be your best interest too. I
always talk about going to seminars because you
541
00:36:32.960 --> 00:36:37.400
learn so much from those seminars.
It just leads you into a U.
542
00:36:37.559 --> 00:36:39.880
I guess you know. I'm pretty
sure you're a lifelong learner like most people
543
00:36:39.960 --> 00:36:43.239
that are entrepreneurs, right, you
just kind of got to be in there.
544
00:36:43.239 --> 00:36:45.400
You're always reading books. That's the
that's the thing, that education is
545
00:36:45.440 --> 00:36:49.559
the key. That's completely what it
is. Right, he got into a
546
00:36:49.599 --> 00:36:52.679
space that he never knew. He
was an accountant who just went to a
547
00:36:52.719 --> 00:36:55.920
seminar, and now he's full blown
into real estate with accounting, right,
548
00:36:55.960 --> 00:36:59.079
so he can do both at the
same time. It's not gonna be that
549
00:36:59.119 --> 00:37:01.480
hard that kind. I would always
say, like, if you know something,
550
00:37:01.719 --> 00:37:05.559
stick with that, right and then
like you did, you pivoted from
551
00:37:05.599 --> 00:37:07.280
accounting, but you're still doing accounting
with real estate and you do them both
552
00:37:07.320 --> 00:37:10.599
at the same time. Yeah,
And I literally got back from a seminar
553
00:37:10.719 --> 00:37:15.239
last night. I was, I
still do all this stuff, so I'm
554
00:37:15.280 --> 00:37:20.079
in a mastermind now. I was
down in Georgia from Monday to Thursday,
555
00:37:20.599 --> 00:37:24.239
Like last Wednesday, I got to
hear Tim Grover speak. He's the guy
556
00:37:24.280 --> 00:37:29.880
that trained Jordan and trained Kobe,
and I'm sitting in front row listening to
557
00:37:29.880 --> 00:37:32.880
this guy, and I'm just like, I'm just jacked up right now because
558
00:37:32.920 --> 00:37:36.760
I'll come out of the high up
this event, like i still go to
559
00:37:36.760 --> 00:37:40.000
all this stuff. I think it's
all about my His whole thing was mine
560
00:37:40.400 --> 00:37:43.840
great, And what you said just
kind of read the name with me,
561
00:37:44.119 --> 00:37:49.320
just like he made this comment like
you think Jordan was just interested in winning
562
00:37:49.400 --> 00:37:53.760
championships. He was like he was
obsessed, was interested and he was like,
563
00:37:54.159 --> 00:37:58.119
no, that heroes got a funny
like the first time he met Jordan,
564
00:37:58.239 --> 00:38:01.519
Jordan hired him. Jordan like,
you better keep up. That was
565
00:38:01.559 --> 00:38:07.079
the first thing you said, Like
you better be able to keep up with
566
00:38:07.159 --> 00:38:09.320
me, And he was like this
one is just like working out just like
567
00:38:09.559 --> 00:38:14.599
his whole life. You better be
able to keep up because I'm going places.
568
00:38:14.760 --> 00:38:17.440
So it was to your point,
I'm still going to seminars, I'm
569
00:38:17.480 --> 00:38:22.360
still learning because it gets you fired
up. You learn something new every time,
570
00:38:22.719 --> 00:38:25.199
and then you're around a bunch of
people that are super motivated and want
571
00:38:25.199 --> 00:38:30.840
to do the same thing. So
it's the energy and it was energizing.
572
00:38:30.639 --> 00:38:34.039
I wrote a book called it Pitime
of the Mind, and it talks about
573
00:38:34.079 --> 00:38:37.679
that. It's like anybody like you
or anybody that's made it to a very
574
00:38:37.760 --> 00:38:42.960
high level, they were obsessed.
It was an healthy obsession. But it's
575
00:38:43.280 --> 00:38:46.199
and some people will be like,
okay, obsessed is like it's just high
576
00:38:46.559 --> 00:38:50.199
like highly focused. It's basically what
it is, you know what I mean.
577
00:38:50.199 --> 00:38:52.599
But obsessed might be like a strong
word, but it's just a person
578
00:38:52.599 --> 00:38:57.880
that's highly focused that nothing's going to
stop them from reaching whatever that goal is.
579
00:38:57.920 --> 00:39:00.280
And that's just kind of what it
is. Like you consider him like
580
00:39:00.360 --> 00:39:02.199
this is holding me back, this
is this, this is this, But
581
00:39:02.599 --> 00:39:07.880
even with all these barriers, a
highly you know, motivated person or a
582
00:39:07.920 --> 00:39:10.039
highly focused person, it's not gonna
stop them, right at all. Yeah,
583
00:39:10.280 --> 00:39:15.719
that was his That was his whole
thing. So what else they they
584
00:39:15.840 --> 00:39:22.079
like the Rundown Paradise starts and hell
uh yeah, so many good blood liners.
585
00:39:22.119 --> 00:39:24.239
So anyways, that was really fun, man Mark, thank you for
586
00:39:24.280 --> 00:39:29.360
coming on. Man got to have
you back and trap Mere. We do
587
00:39:29.440 --> 00:39:31.559
something called investing Guns into the Roundtable
where we bring on a lot of guests,
588
00:39:31.679 --> 00:39:34.639
you know what I mean. We
talk about real estate and talk about
589
00:39:34.639 --> 00:39:37.639
different things going on in the economy. So it'd be great to have you
590
00:39:37.719 --> 00:39:42.519
on because you know, bringing on
people like minded to give their energy just
591
00:39:42.599 --> 00:39:45.119
fees and and it keeps it going. Play it just let me out,
592
00:39:45.599 --> 00:40:00.320
all right, Mark, thank you
for coming on. All right. Thanks. Yeah,
1
00:00:00.960 --> 00:00:04.559
Many people have a desire to enter
the world of investing, whether it be
2
00:00:04.599 --> 00:00:09.960
through real estate, stocks or entrepreneurship. However, people often face self doubt,
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00:00:10.160 --> 00:00:13.720
a limited belief system, or simply
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their ambition. It's easier than you
think to overcome these obstacles if you know
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exactly what's holding you back. Partner
with Andre to forge new neurological pathways that
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unlock breakthrough strategies for income generation,
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desired life. With over fifteen years
of experience in finance in a decade devoted
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00:00:34.159 --> 00:00:38.960
to teaching wealth preservation, these achievements
are no mere coincidence. One thing is
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00:00:39.039 --> 00:00:43.079
clear. If others have done it, you can too. Start your complementary
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action plan today at www dot Andrestewart
author dot com. Welcome to the Investing
11
00:00:50.880 --> 00:00:55.000
Uncensored podcast. If you've been searching
for ways to break free from the nine
12
00:00:55.000 --> 00:00:59.240
to five grind scale or start your
own business, generate passive income, or
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00:00:59.280 --> 00:01:03.920
gain insights from others who have achieved
their desired lifestyle. Get ready prepared to
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00:01:03.000 --> 00:01:07.959
be inspired as we provide you with
invaluable tips, resources, and first hand
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00:01:08.000 --> 00:01:14.319
experiences from Andre and other industry experts
who have accomplished remarkable things in their respective
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00:01:14.359 --> 00:01:19.560
fields. This is the Investing Uncensored
podcast, Your Roadmap to success. And
17
00:01:19.640 --> 00:01:23.840
now here's your host, Andre Stewart. Wellcompletely investing on. Since then,
18
00:01:23.840 --> 00:01:27.680
I'm your host, Andre Stewart,
and today we're bringing you guys a great
19
00:01:27.760 --> 00:01:32.920
guest, Mark Capleman. How are
you doing doing really well? Thanks for
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having me on, Andrea. Mark
has a good background. He has a
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mix of being an accountant in real
estate, which he'll get into elaborate on
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that a little bit more, and
then he also has a background he built
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his own real estate portfolio that he
currently has as well, so we're going
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to get into that. He has
an interesting background. He's in Chicago right
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now. Tell us a little bit
about this OREA logo right here. We
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talked about it earlier. But what
is that? Yeah, so ARIA and
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short for real estate Accounting. Kind
of the name says it. All.
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All we do is real date accounting. So we are outsourced accountants, outsourced
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bookkeepers for the property management industry.
All we do is property management. We
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started about, you know, five
years ago, and the quick story there
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is I started out my career at
PwC and Ert and Young. You know
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CPA thought I was gonna be a
partner there, decided, you know what,
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that's not my track, went to
work for a tech company. And
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once I did that, my wife
and I decided to start doing real estate,
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as you said, and we'll probably
get into that, and so started
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flipping houses and doing things. Got
so busy with the real estate and I
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was still at W two that I
outsourced my own accounty and it just came
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back really bad. They didn't know
what the capitalized versus the expense. They
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didn't know what a clothing stage it
was. They didn't know what closing cots
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credits were, you know, blood
best person and art. But they just
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did not know what they were doing. Came to the realidation, Hey,
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look, every industry have specialists who's
focused on realty accounting. That's got to
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beat Somebody looked online, couldn't really
find anybody really focused on that. And
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that was the genitus for why we
started the company. And that was you
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know, we started in end of
eighteen early nineteen and now we have you
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know, nearly one hundred and fifty
employees and all we do is accounting for
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property managic company, like we talked
about earlier. That's some crazy growth for
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a short amount of time to get
to that in any employees, right,
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So obviously if you had that many
employees, we have enough you know,
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clients to have the service, you
know what I mean with all those employees.
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So I guess real quick, give
us a little bit about your background
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of what made you even get into
accounting. Did you go to school for
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that? I know you said you
went to Arizona State. Yeah, things
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like that in Chicago. So great, it's a great question. So I
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went to Arizona State, grew up
with South Dakota. Didn't really know what
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I was, you know, doing, but I wanted to go to the
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worm had a good business school,
and I always knew I wanted to get
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into business. I don't know why. I think some people just think I
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wanted to make money or whatever I
wanted to do. I didn't really know
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which discipline. I had two uncles
that were accountants, and they said,
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hey, look, you don't know
what you want to do in business,
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go do it. Study accounting,
Go get your CPA. You'll have a
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designation next year name that will help
you get a good job. And you
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know, the one key thing they
told me was like accounting is the language
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of business, so you know,
at some level, once you become an
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executive, at some point you have
to understand how to read an income statement,
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a balance sheet, castle statement.
I actually think it was really good
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advice. At the time, or
in retrospect, I didn't. I wasn't
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super excited about accounting, but I
was always decent at math, and I
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liked when things kind of fit and
work together, and accounting kind of a
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puzzle. There's usually a right answer. Sometimes there's a couple of answers,
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but more often than not, there's
one right answer. And yeah, I
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enjoyed it and that's why I did
it. Okay, that makes sense.
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So then you're you went to Arizona
State for accounting or you went for a
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different major. No, no,
I I went for accounting. And then,
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you know, to get your CPA
nowadays you need one hundred credit hours
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in most of every state. So
I stayed and did a one year masters
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after the accounting and Information system and
then you know, took a job at
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urging young got my PwC or got
my CPA, and yeah, that was
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really where I got my start Okay, okay, so then you end up
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going to pww That was at Ernsting
Younes for a few years. Then I
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chased the girl to Chicago. Uh, and they always get w the PwC
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when I came up here, did
that for a few years, and then
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I decided, but I don't want
to be in accounting. I kind of
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want to do something more entrepreneurial.
So I joined the company and started flipping
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out. Okay, so let's let's
dive into that real fast. So you
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left PwC. So while you were
there, a lot of people that listened
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to this podcast always want to know, you know, how someone can transition
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from a W two to get into
real estate because they always assume I don't
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know, I don't know, like
did you grow up with a lot of
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money to just go out and bob
bunch for real estate or did you go
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get a good job and then build
your wealth and bob properties why you were
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working at PwC, or how'd that
go? Like how'd that process go for
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you? Yeah, definitely didn't have
a lot of money, to be simper
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clear. Uh, you know,
I was raised in a very middle class
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family. But I'm you know,
took out student loans to go to college.
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You know that gus up. My
parents thick pay for some of it,
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but not to go out of state
areas out to day. They weren't
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willing to pay for that, but
I thought it was worth it. But
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I'll tell you what when I was
I know it's cliche, but I was
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reading the book Ridge Dad, Poor
Dad, And there was a line of
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the book that does why climb the
corporate ladder when you could own the ladder?
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And I was like, I was
just cranking at the time, and
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I read the line and I was
like, it just turned me on my
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hand, and I'm just like,
oh my gosh. So at that point,
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you know, that book's all about
in nesting in real estate. At
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that point, you know, you
reached stories about so much wealth is made
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in real nate and so I'm like, I want to get into real estate.
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And how it really happened was my
wife was listening to Pandora V one
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day and then with one of those
ads that learned to flip real estate with
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no money down, you know,
one of those deals, and she she
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text me or called me and was
like, hey, you know right on
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my walk, hopen work. Hey, there's gonna be an event at the
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holiday end right on the walk open
work. You've been talking about, really
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it all the time. There's some
free event tonight. Do you want to
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go? So she really kind of
does heard it and Jo watch this thing.
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There's you know, Joe Schmoe up
on the stage and doesn't look at
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button up as me whatever that means, right, and he's like, I
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just made this much money wholesale and
a deal, and like what it's wholesale,
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you know. And then one thing
led to another and we were like,
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you know what, let's try to
flip it. Let's flip the hell.
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You know. Some things happened in
between, but shure up found a
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deal, bought them for one twenty. It was an order house, put
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a bunch of money into it,
but flipped it and we made about thirty
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grand and at that time, this
is the most money either of us had
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ever had. Like at one time, you know, we were just w
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two cranking away, getting our small
rais and maybe a bonus here and there,
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and it was like, wow,
we get it. Yeah, you
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know, we did it, and
this is our money. We're not giving
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this to anybody, you know.
We used hard bunny. We paid all
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the different things, but we still
netted, and from there we were like,
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okay, let's do another one and
then another one and that was it.
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But now, luckily, I guess
say on the money died. She
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lived at home for two years before
we moved in together, and so she
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was able to save a good bit
of money. So we always joked like
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she funded that first deal by chick
say but Alan's thoughways telling her, Look,
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you know, my value loaded day, but my future value is really
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high. You know, you're betting
on me and my PRIs of value or
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my pres of value high. But
anyway, yeah, that's kind of how
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we got going. So then just
curious, how'd you find that first lip?
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Craigslist put it? Put an out
out on Craiglist. Holvalor calls me.
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He's like, it's funny story.
I was at the Bear's game,
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literally at the Bear's game and it's
halftime or no, sort of like pouring
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and lightning. So they made a
phone go on to the stand, go
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under there. I get a call
from this guy and think, hey,
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look I haven't been able to close
this lady, but I know she wants
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to sell. And here's her information. I talked to him before. He's
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like, pay me a thousand bucks
if you're able to put this on her
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contract, you know, and I'll
give you the information. It was kind
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of like a handshake, you know, on the phone, and he gives
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me the number. I called the
lady and she's like, yeah, I'm
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being through the ready. So and
we literally left the I tolled my wife.
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I'm like, we gotta go.
It's our first great lead left the
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game. Literally this true story.
Drove to her house pouring out take a
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contract in there. I mean it
it's sad, but order house had her
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dog going to the bathroom in the
house and it was wretched and she was
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just she was terrified and go outside
and yeah, bought it for one five.
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I don't know if she had any
debt on it. I think her
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mom had gifted it to her.
Uh, And that's how we got our
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first deal. I mean, my
wife wouldn't even go inside until it got
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it spelled that bad. Yeah,
we've had houses where they go in and
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there's poop on the wall, like
I get it. Yeah, yeah,
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it was. We found like one
hundred dollars built buried like when we were
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doing the track. I mean it
was like, I forget how many dumpsters,
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but it was dad situation. But
I think it worked out great.
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Mid the house beautiful and full of
the old Chicago break bungalow pool building.
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Okay, okay, So then that
was her first deal. You were still
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obviously working. At what point did
you like the light bulb come on?
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Okay, we made it off this
flip. How many flips did you guys
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do before you felt like you could
transition out to doing your own thing.
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Well, it's interesting. I ever
went full time in real estate. We
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twenty thirteen, we sold we butught
it for sealing thirteen. We sold it
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in fourteen. I didn't quit by
W two until twenty twenty. Oh,
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so I was towards the end.
I negotiated a part time with my boss
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because yeah, I tell people that's
all the time too, which is like,
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if you're a really good employee,
they don't want to lose, you
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lose, And so if you do
truly want to take a little risk off
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the table, but take some risk, see if you can negotiate two three
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days a week. So that's when
I did it them. I said,
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hey, look I want to do
two days a week. I want to
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get into real estate development. He
knew I wanted to get into that,
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and he was willing to do that
because I had been with them for a
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long time and it just so happened
that instead of to y'all in the new
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rel fit inveolvement, I ended up
starting Ria. But like you know,
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it was deal and deals, and
I wanted to just kind of do it
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with a little bit of risks because
I had a mortgage and kid now,
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so I was like, look,
I need to have something something, But
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I think it's a pretty good way. Before he just wrecked the band aid
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to go all in. I mean, you can go all in, but
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I did it kind of in a
bath so delaborated. What on you said.
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I've read a book called seven Years
or seven Figures, and in that
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book it talks about a person having
a job, but two people that had
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jobs, and they just leveraged their
skill set within the job. I think
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one guy came up with a newsletter
for his company and that did really well.
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Again, somebody else came up with
an idea for a pair of jeans
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at a fashion company. So they
were able to you know, come up
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with something their value to that company
was much greater for them to stay there
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and work part time and then do
their own thing on the side to get
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to the point of where they did
having seven figures and they were able to
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leave or whatever the case was.
So I picked back up what you're saying,
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like, if you're that good,
if you add that much value and
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you can do it at a high
level of working four hours five hours a
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day, your employer will be okay
with you being able to be Like,
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you know what, as long as
you get your work done right, you
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can do that. That's like working
remote. There's really no different. Your
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employer has to trust you enough for
you to work remote, especially now they
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can make you come back for some
but that's it's really the same thing.
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Your boss has let you do it
a long time ago, versus like right
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now. You know, well,
it's fine because what I was doing real
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estate at the W two that was
before remote. That was constantly just like
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ducking into tall room, ducking in
the conference room when you're doing deals.
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You know, the architects don't want
to talk nights and weekend, do want
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to talk during business towers, right, So I'm like that that's so into
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challenge but I think being able to
do that remote, you can kind of
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hide out a little bit, for
sure. It's so one of the things
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about which is a great point.
I brought that up a couple years ago
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when it was like the thing to
work remote. You can do a side
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hustle now a lot easier than you
could but you could before. So I
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00:14:07.480 --> 00:14:11.159
had a similar situation to you.
I had a job when we had like
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a little call room. I was
sneaking to that call room, and eventually
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they kind of got on to what
I was doing. Right, you know,
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you're supposed to be over here,
but you're in this call room like
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two hours a day at random times. What are you doing in the call
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room? It's just so much different
and it's less stressful too. When you
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can work remote, your back covering
over you. But like you said,
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I did the same thing, and
then when I transitioned out, I had
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a good amount of money when I
transitioned out, you know what I mean.
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So then you felt comfortable enough exactly. Yeah. I had deals in
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my pipeline that were coming in that
made it even easier for me to be
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like I got this deal closing,
and this deal closing in like two months.
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You know, it's kind of funny. Everybody kind of knew what I
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was doing exactly know. But the
even better thing was the PwC like your
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job like that, you got to
be all in. There's nobody has any
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other outside And I went to work
for this tech company. I actually had
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already flipped that first house. I
put at the top of the resume real
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estate developer, but underneath that,
and they loved that because they were the
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small entrepreneurial company. I have the
head of sales investing in one of my
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deals, so I was like pretty
open about it. Yeah, which so
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kind of a unique situation, but
I'm sure they still that loved me spending
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a lot of time at work working
on some other bits of No one likes
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that because that's obviously time that you're
focusing on something else versus making them money,
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you know what I mean. But
he goes back to what you're saying,
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like the letter, you know what
I mean? That's right. Yeah,
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So I think just having a pizzarship
and the super important what's going to
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take that it's pretty addicting. So
at that point in time, because of
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everyone that I know, they like
to do real estate flips, right,
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but then they always get the interest
in wanting to do development. How did
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you transition or what made you want
to transition? Which is long what made
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you want to transition into development?
Because some people go from are regular flipping
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to commercial, like they go to
sixteen units, they go to what made
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you go to development instead of going
the commercial up? Well, I'll tell
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you what we here with the process
we rehabbing houses. Now, our market's
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unique in that Chicago's the super old
city. A lot of the houses were
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built in the eighteen late eighteen hundred
is early nineteen hundred. So when you
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go to rehab these house to like
the whole carpet and paint flips, you
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can't do that because all the electrical
claw it's radiator heating. These houses are
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just like the foundations are messed up, they're leaning so like even our first
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couple of flips were like heavy,
heavy reacts. So that was part one
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and then two. You've done enough
rehabs, you know that it's like harder
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to scale every house to different There's
a million decisions that really keep this or
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we're not the architect plan never really
measure out exactly what the dimensions are of
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these houses, so when you're moving
walls, things are really smaller than they
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you know, we're in the plan, whereas we just knocked out into new
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construction. We know exactly what we're
doing. There's not a lot of gaswork
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for the plumber and the electrician,
and it's just like so I thought it
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was actually less rent, less risk
to just knocked out a new construction.
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So that's kind of how we got
into doing new construction. But I would
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say, you know, we did
end up kind of doing some commercial deals,
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you know, bigger than five unit
deals, and that's really where we
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bought a six unit property, bought
it in pork or the short tail,
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and did the Burr strategy. So
the sixth unit department literally drug dealing going
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on. They're growing weed in the
basement, like I found a plant of
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my guy ten in the South side
of Chicago were no, no, this
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was on the northwest side, and
you know there was there's a lot of
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shady characters in this building. But
we you know, we did cash or
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key. We got them out because
nobody at leads it. Half people were
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paying, but we were able to
get them out and then just turn it
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into a beautiful property completely gotted it
to the snud and you know, by
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the time we refight it and reappraised
it, the new loan we got was
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you know, that's the power of
you know, commercial is now you can
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go get any reready loans that is
non recourse and you know, in appraised
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the loan that we got was more
than we had invested in the money in
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the deal, So we got this
kind of cash out that was tax break
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because it was all dead. And
that's where the light just kind of went
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00:18:52.359 --> 00:18:56.359
off that we're like, wow,
look, single families are kind of great
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00:18:56.400 --> 00:19:00.720
to flip and do this, but
like the real money and then buy apartment
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00:19:00.759 --> 00:19:03.240
million they needed tle work, got
it, raise the rent, read buy
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00:19:03.599 --> 00:19:08.240
pull out month your cash. Now
start getting rental income and do another deal,
289
00:19:08.359 --> 00:19:15.319
and another deal and another deal.
Ever wished you had the opportunity to
290
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buy a stock like Facebook, Amazon
or Netflix before it went public, or
291
00:19:18.880 --> 00:19:22.920
was able to get shares in companies
like VC firms and angel investors, Well
292
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here's your chance. Go to invest
far dot com forward slash invest and reserve
293
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a position for the next one to
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296
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x or ten thousand x your investment
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297
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298
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Don't miss your chance. That's IV
as in Victor eest Far dot Com forward
299
00:19:57.480 --> 00:20:03.960
slash invest. So what you just
explained, like, that's what grand Cardon
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00:20:03.000 --> 00:20:07.839
does. So the idea that I
don't think people get, that's what most
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00:20:07.960 --> 00:20:11.599
rich people do, like because that's
how you avoid paying taxes. So you
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here's a good point when you when
you buy property and you add value and
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you raise the value and you go
do a cash our refinance. Another bank
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is basically buying that property, so
you're not really selling it. For one,
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00:20:23.519 --> 00:20:26.799
you have this other institution that's buying
this loan from you, you know
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what I mean, So you basically
get the difference. There's no there's no
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00:20:30.480 --> 00:20:37.039
there's no I would say, there's
really no gain in per se because you're
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not selling it to someone and they're
buying it. You're keeping it right,
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00:20:40.000 --> 00:20:42.160
so you're really say no gain on
the TAXI turn, does a gain in
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00:20:42.200 --> 00:20:48.279
your bank account. It's all that
matter as long as you keep ten thirty
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one yet correct, you'll ever pay
the game. You'll never pay the game,
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right, and so that's kind of
the the name of the game.
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But yeah, that was the kind
of the story of development. Let's this
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one thing I'll say about that too, just because people are listening, like,
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oh, I want to get a
development. You he had the background
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as a lender. I know,
you have to have an extensive background of
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doing a real hardcore rehab. You
can't do like a fifteen thousand dollars rehab
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and be like I want to go
do new construction. It has to be
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at least fifty thousand dollars or more, which I'm pretty sure your rehabs were
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at least fifty The first one was
eighty exactly. So that's the equivalent.
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You can go out and build a
house for like eighty thousand dollars if you
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go to Georgia and get some land. So that's the equivalent to basically building
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a new house. So if you're
thinking about getting in to the new development,
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you have to do extensive rehabs over
fifty to sixty grand for the count
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toward you having a development experience,
which is what he Yeah, and it's
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00:21:42.119 --> 00:21:45.559
kind of interesting, you know,
like when they think about it too.
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My vote wife and I both had
good W two's, so like even though
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hard money letters are asset bath lenders, I think we probably looked like good
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barrowers, right because we had good
credit W twos. So then once we
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get a couple of those deals,
then we had a little money that we
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built a website, you know,
in a nice looking website that chugg pass
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projects. And that's really how we
were able to transition from hard money to
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community bank financing and really you know, bring on lending from like twelve percent
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to five percent. Is because you
know, we called this lady, we
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called the banker at a at a
small ed egg, you know, and
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00:22:25.880 --> 00:22:29.759
consider our website. Wow, your
website looks so professional. I saw you
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00:22:29.759 --> 00:22:33.000
a couple of paths projects. I
think I can get this proved. And
338
00:22:33.400 --> 00:22:37.400
that's how we got financing for that
six unit. And that six unit was
339
00:22:37.480 --> 00:22:41.720
a that was a seven hundred thousand
dollars reab, but that was a very
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00:22:41.799 --> 00:22:47.799
large reab. Yeah, and we
got eighty percent loan to cost on that
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rehab. And that was after doing
like three heavy reabs right eighty thousand and
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00:22:53.839 --> 00:22:59.559
then a couple six figure rehabs,
but it was mainly a couple of projects
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00:22:59.559 --> 00:23:03.799
in a website, and we looked
legit now and again. As a lender,
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that's one of the first things you
ask for, you ex for someone's
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bio, right, And it's so
much better for them to be able to
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see you with link because I'm pretty
sure your link to your website had your
347
00:23:12.480 --> 00:23:17.079
projects, they had your bio and
had your experience. That's exactly, so
348
00:23:17.319 --> 00:23:18.920
exactly, that's just the easy way
to go about. So that's our credit
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cards were good and I think it
was just like Chuck check check correct early.
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It's low airsh risk and yeah,
thankfully it worked. So do you
351
00:23:29.680 --> 00:23:32.480
mind giving people the website to look
at it just so they have it as
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00:23:32.480 --> 00:23:37.039
a as a or you took it
down let meet them on that. But
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you know, I'm just like,
as I'm telling you before, I don't
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transition out. That's right, you
guys, No, you can go,
355
00:23:45.279 --> 00:23:49.359
it's still activity. It's uh.
I can give it to you as t
356
00:23:49.559 --> 00:23:55.279
R I H O M E S
t O D A Y dot com.
357
00:23:55.319 --> 00:23:57.720
So TRYS today. Maybe we can
put that in the show notes for sure.
358
00:23:57.880 --> 00:24:02.440
For sure. Yeah, that's the
site that the front page of the
359
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project that we did back in twenty
sixteen, So yeah, this is all
360
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or we started the accounting visits that
we were so we're going to be full
361
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time developers, and then we got
into this idea of a real day accounting
362
00:24:15.400 --> 00:24:19.319
and realized, wow, we really
like operating businesses and we've been full widens
363
00:24:19.400 --> 00:24:22.359
on this for the last five years. So did you think there was a
364
00:24:22.400 --> 00:24:27.880
major benefit in you being able to
what's your accounting background do the numbers on
365
00:24:27.960 --> 00:24:34.480
these projects? Dred percent? I
think yeah, absolutely. I mean,
366
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ultimately, all I was living in
Excel for the first seven to ten years
367
00:24:40.400 --> 00:24:44.799
to my career, and when we
were doing numbers, you know, the
368
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kind of an Excel model, so
we kind of knew. I mean,
369
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I think ultimately, you don't need
to be some finance wiz. What you
370
00:24:52.720 --> 00:24:56.160
really need to be able to do
is buy properties cheap, as you know,
371
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but then estimate rehabs pretty well.
And having a fin anthigree doesn't help
372
00:25:00.079 --> 00:25:04.920
you without intimating reabs. So that
just kind of comes to the experience.
373
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They think, But yeah, I
always felt I felt more confident kind of
374
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putting together financial packages for banks because
they always say like send us your underwriting
375
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and send us your comps. And
so I felt good about like doing due
376
00:25:21.240 --> 00:25:26.319
diligence on comps and pray, but
just still uncomfortable with the financial piece event
377
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and because two on all of our
deals we raised money from investors. You
378
00:25:30.359 --> 00:25:33.559
know, we had to gebt,
but then we had to come up with
379
00:25:34.400 --> 00:25:37.920
quite a bit of equity and we
didn't have all that cash, so we
380
00:25:37.960 --> 00:25:41.640
had to put together a pro forma
and something that looked professional for investors,
381
00:25:41.640 --> 00:25:47.559
and I think having a financial background
health So then we'll go two places with
382
00:25:47.640 --> 00:25:51.319
this with you, because we just
had we have people coming on about raising
383
00:25:51.359 --> 00:25:56.000
funds and syndication, so to help
out some of the listeners. Where did
384
00:25:56.000 --> 00:26:00.680
you source those people for your syndications? Yeah, So that first ever hard
385
00:26:00.720 --> 00:26:04.519
money deal we did, he brought
the he brought the equity guy. He's
386
00:26:04.559 --> 00:26:07.160
like, hey, I'll do that. He was a really entrepreneurial guy,
387
00:26:07.160 --> 00:26:11.279
and he's like, I got a
fund that'll do the loan, and I
388
00:26:11.279 --> 00:26:15.960
got a few guys that would invest
in the deal of equity. Okay,
389
00:26:15.119 --> 00:26:19.039
it was like the easy button.
We paid them an observer turn in hindsight,
390
00:26:19.079 --> 00:26:23.119
but like that's how we thought we
got the game. Yeah, and
391
00:26:23.160 --> 00:26:29.839
then after that it was really friend
and family. And I think part of
392
00:26:29.839 --> 00:26:36.000
that was again we were rubbing shoulders
with some pretty financially successful people being a
393
00:26:36.000 --> 00:26:38.319
PFC and then go to the tech
company, like I said, and that
394
00:26:38.400 --> 00:26:44.000
head of sale he was finen stroking
a check from fifty k because that was
395
00:26:44.079 --> 00:26:45.960
just you know what I mean,
Like he was an entrepreneurial guy, and
396
00:26:47.039 --> 00:26:52.319
so we kind of just had some
people in our sphere at that point that
397
00:26:52.000 --> 00:26:56.279
could could help fund us. So
then that's what made you start RIA,
398
00:26:56.640 --> 00:27:00.359
right because you hadn't started a yea, you went and did all these real
399
00:27:00.440 --> 00:27:03.400
estate deals and then you were like, because that's the part you try to
400
00:27:03.559 --> 00:27:07.440
You do all these deals, right, how do you keep that money?
401
00:27:07.480 --> 00:27:15.319
Because capital gain tax are what thirty
seven percent, twenty percent and twenty five
402
00:27:15.400 --> 00:27:18.200
I think now okay, okay,
So then so you do make that money,
403
00:27:18.359 --> 00:27:21.839
Now the idea is how to keep
it. So, like you said,
404
00:27:22.000 --> 00:27:26.480
the refinance is the way to keep
it. Learning how to do appreciation
405
00:27:26.920 --> 00:27:29.400
and all these other things. So
like this is the stuff that you were
406
00:27:29.400 --> 00:27:33.519
figuring out right obviously as you were
doing deals, you having your accounting background,
407
00:27:33.799 --> 00:27:37.599
and then you're looking online for someone
who had a real estate accounting background.
408
00:27:37.720 --> 00:27:40.079
Is that what led you to do? Aria? Like, you know
409
00:27:40.119 --> 00:27:42.039
what, I know all this stuff. I know the other people out there
410
00:27:42.039 --> 00:27:45.799
like me, So so go go
into that a little bit. Yeah.
411
00:27:45.880 --> 00:27:48.279
Yeah, And I think, you
know, the biggest thing is just like
412
00:27:48.039 --> 00:27:52.279
we have the problem. Yes I
was an accountant, but now I'm a
413
00:27:52.319 --> 00:27:57.160
real estate guy and I need my
accounting done and I try and having somebody
414
00:27:57.279 --> 00:28:00.079
do it, and it came back
great, poorly, and so now it's
415
00:28:00.119 --> 00:28:03.680
like, Okay, who does it
really well? Couldn't find anybody that did
416
00:28:03.680 --> 00:28:08.359
it really well. So we were
like, hey, let's get a website
417
00:28:08.400 --> 00:28:12.839
and started advertising and see if we
can get to lead and see if there's
418
00:28:12.880 --> 00:28:17.720
an opportunity there. And it turned
up to be a Veig opportunity. But
419
00:28:18.119 --> 00:28:22.359
you know, I think I would
tell people the best accountants are people that
420
00:28:22.559 --> 00:28:26.720
really understand the industry and the product, not just somebody that knows how to
421
00:28:26.759 --> 00:28:32.720
do devinth and credit, but somebody
that really gets it. And we've syndicated,
422
00:28:33.200 --> 00:28:36.640
we've raised money, we've sold deals, we've done bank dron's, we've
423
00:28:36.680 --> 00:28:41.319
done negotiations. We've done ten thirty
one, we've done CONTANCT, We've done
424
00:28:41.680 --> 00:28:45.000
you know, like ourselves. We've
done it. So while we're our clients
425
00:28:45.039 --> 00:28:49.240
doing these things, it's not just
like a concept we've read about online or
426
00:28:49.279 --> 00:28:52.559
in a book. It's we've actually
done it. Yeah, and so I
427
00:28:52.599 --> 00:28:59.640
think roughly sixty percent of our clients
both own the real estate and manage it.
428
00:29:00.240 --> 00:29:03.160
And that's because you know, we
are older operators. We've done it,
429
00:29:03.200 --> 00:29:06.880
so they're kind of we bet in
their shoes, maybe at a smaller
430
00:29:06.880 --> 00:29:11.960
scale, but it's more relatable.
And yeah, we just we kind of
431
00:29:11.039 --> 00:29:15.880
we know the industry and both sides
of it, both business and the kind
432
00:29:15.559 --> 00:29:19.160
So it's like what he's saying is
like, if you get an attorney to
433
00:29:19.319 --> 00:29:22.720
try to handle a real estate transaction, it's okay, it's not going to
434
00:29:22.759 --> 00:29:26.640
go as well as you get in
the real estate attorney. They're out of
435
00:29:26.640 --> 00:29:29.240
the real estate transaction. So like, if you go to a CPA,
436
00:29:29.599 --> 00:29:33.319
who's this a regular CPA, he's
not going to be able to get you
437
00:29:33.319 --> 00:29:37.319
as much money back as you go
into a real estate accountant. Like it's
438
00:29:37.359 --> 00:29:41.519
just not because he doesn't know what
to put or what depreciation are all these
439
00:29:41.559 --> 00:29:42.880
different He can look at a book
and say based on this, so he
440
00:29:42.880 --> 00:29:47.480
can look at a code, but
you're going to know exactly because you still
441
00:29:47.559 --> 00:29:48.920
might have your own deals. You
told me you have a development that you're
442
00:29:48.920 --> 00:29:52.039
working on, so you're still active
in what's going on in the market.
443
00:29:52.200 --> 00:29:56.880
You know, yeah, yeah,
we got we're building forward town homes in
444
00:29:56.920 --> 00:30:00.440
and fualified opportunities don't. So that's
another thing where exactly down in tamp at
445
00:30:00.440 --> 00:30:03.720
the moment. But you know,
when you work in urs and Young and
446
00:30:03.759 --> 00:30:07.519
PwC, damn a specialist for everything, there's noel and yeah special media,
447
00:30:07.640 --> 00:30:11.880
entertainment, real estate, and there's
a reading for that because kind of like
448
00:30:11.920 --> 00:30:15.599
you're saying, it's the same,
every industry has really unique issues. And
449
00:30:15.640 --> 00:30:18.960
the tax code, if it was
a book, it would probably be this
450
00:30:19.279 --> 00:30:23.839
ex right, and you kIPS know
everything well. And the real estate guys
451
00:30:23.880 --> 00:30:29.440
are focused on a few things that
affect everybody, and yeah, people like
452
00:30:29.480 --> 00:30:32.880
to work with specialists and that makes
sense. So then with you guys,
453
00:30:33.160 --> 00:30:36.400
since you guys do have the background
when you go to your website, which
454
00:30:36.400 --> 00:30:37.640
I'll get that at the end,
but when you go to your website.
455
00:30:37.680 --> 00:30:42.720
Is there a way for people to
ask consults, to get a consultation or
456
00:30:42.839 --> 00:30:48.240
just say, hey, you got
to do more than just real estate accounting.
457
00:30:48.240 --> 00:30:51.039
Will you give me advice on some
deals? Like what what does RIA
458
00:30:51.240 --> 00:30:56.200
do outside of just accounting or is
it strictly books? Pretty much expected the
459
00:30:56.240 --> 00:30:59.920
book? Okay, you know,
if you want us to talk to you
460
00:31:00.160 --> 00:31:03.359
about that, you go to our
website. We'll put that in the show
461
00:31:03.400 --> 00:31:07.599
notes. It's actually just r e
a dot co O. We used to
462
00:31:07.680 --> 00:31:11.119
have built in accounting dot co and
people kept misspelling it, so we went
463
00:31:11.160 --> 00:31:15.559
and bought RIA dot co from some
guy that in Bonnet to be in a
464
00:31:15.599 --> 00:31:18.400
band Bora but that you know five
note. But yeah, there's a green
465
00:31:18.440 --> 00:31:22.759
button on the website that contact us. You can go in there, book
466
00:31:22.759 --> 00:31:26.640
a meeting, be happy to shout
you and see if we're a good fit.
467
00:31:26.039 --> 00:31:32.519
And I'm pretty sure the pricing is
favorable. So do when you were
468
00:31:32.680 --> 00:31:34.759
so you you're you're not like obviously
day to day you guys have one hundred
469
00:31:34.759 --> 00:31:40.039
and fifty employees. So when the
people come through you get a consultant,
470
00:31:40.480 --> 00:31:45.079
are the accountant's gonna give information like, hey, you guys should do this
471
00:31:45.519 --> 00:31:48.720
to save more money here or do
you guys just take it upon yourself to
472
00:31:49.119 --> 00:31:53.799
structure that to where the person gets
the most money back. So we're you
473
00:31:53.839 --> 00:31:57.640
know, we're not We don't do
tax returns. We do the book keeping.
474
00:31:57.920 --> 00:32:02.079
So we you know, are real
bread and butter is property management company
475
00:32:02.599 --> 00:32:07.440
collucting a bunch of red charge,
reate black rent, You pay bill,
476
00:32:07.079 --> 00:32:13.759
distribute checks to owners, and you
deliver financial statements so that investors are comfortable
477
00:32:13.799 --> 00:32:15.839
that you know, they can see
the numbers or bank see the numbers.
478
00:32:16.039 --> 00:32:21.200
And at the end of the year
we give it to the TAXDPA to file
479
00:32:21.480 --> 00:32:28.000
do the K one. So you
know, we are not necessarily saying we
480
00:32:28.119 --> 00:32:30.519
might have a point of view with
them to say, hey, look instead
481
00:32:30.559 --> 00:32:34.640
of capitalite and the thought run through
repairs and maintenance and which is going to
482
00:32:34.680 --> 00:32:40.240
lower your tax liability? But are
is you know, we are Privately management
483
00:32:40.279 --> 00:32:44.599
companies have two options. Probably somebody
told this the other day. Provaby managed
484
00:32:44.599 --> 00:32:51.079
companies are glorified bookkeepers because so much
of them is just bookkeeping. And they
485
00:32:51.240 --> 00:32:54.039
have two options. They can hired
accountant and out and pay W two and
486
00:32:54.079 --> 00:32:59.000
pay self employment. And but you
know, FIKA and all those different things,
487
00:32:59.400 --> 00:33:02.000
or they can out source it to
a group like ours the ten ninety
488
00:33:02.079 --> 00:33:07.359
nine and don't payroll packed, and
you can kind of scale up and down
489
00:33:07.799 --> 00:33:10.119
as you event. A lot of
people don't need a full time account,
490
00:33:10.200 --> 00:33:15.000
they need a practical account, and
that didn't effect. What we provide is
491
00:33:15.039 --> 00:33:20.480
fractional bookkeeping services for property, medic
good good good, And then you guys
492
00:33:20.480 --> 00:33:23.759
can do forensic auditing and things like
that. We don't do a ton of
493
00:33:23.799 --> 00:33:27.720
auditing, but you know, I
was an auditor back in the day,
494
00:33:27.759 --> 00:33:32.559
and I like your clarmonton which makes
sense. A headache, yeah, a
495
00:33:32.559 --> 00:33:36.839
headache, yeah, yeah, yeah, yeah, I'm doing a forensic order
496
00:33:36.880 --> 00:33:38.079
right now. That's why I was
curious, like you can do it because
497
00:33:38.240 --> 00:33:43.759
yeah, I know that not really
on bread and butter. That's cool.
498
00:33:45.079 --> 00:33:49.000
So, you know, any advice
you can give listeners on like what they
499
00:33:49.039 --> 00:33:52.240
could do to transition from W two, I know you gave the advice on
500
00:33:52.400 --> 00:33:57.480
like being good at your job first
of all, right, and then leveraging
501
00:33:57.599 --> 00:34:00.039
your skill set and being good at
your job to being able to go part
502
00:34:00.079 --> 00:34:02.680
time. You have any kind of
books, I'll saw to, you know,
503
00:34:04.079 --> 00:34:07.440
a port ad or podcast as you
listen to that kind of got you
504
00:34:07.480 --> 00:34:09.559
on the path. I know,
I'm curious about this. Who was the
505
00:34:09.599 --> 00:34:14.239
guy that you went and saw to
get started in real estate? Do you
506
00:34:14.280 --> 00:34:19.480
remember his name? I don't remember
his name so many but I mean I
507
00:34:19.519 --> 00:34:22.079
did the same thing. So that's
why I was like, what if it
508
00:34:22.079 --> 00:34:25.639
was the same guy. I don't
remember, you know, books, books,
509
00:34:25.840 --> 00:34:30.239
I read so many books. I
just listened to Elon Mouth's book that
510
00:34:30.880 --> 00:34:34.719
not going to motivate to you your
real estate and gonna motivate you to think
511
00:34:34.760 --> 00:34:40.360
a lot bigger. The Email was
a great book and guy recommended to me
512
00:34:42.000 --> 00:34:45.039
and and that was big readings.
I outsourced my own accounting and it was
513
00:34:45.079 --> 00:34:49.679
all about focus on what drives the
revenue and outsource the admin. And that
514
00:34:49.800 --> 00:34:52.559
was an eye opening one. Yeah. I love all sorts of help help
515
00:34:52.639 --> 00:34:57.800
self help books like Think and Grow
Rich, all the classics. I'm a
516
00:34:57.840 --> 00:35:01.880
voracious reader. But I think,
you know, ultimately, you gotta go
517
00:35:01.960 --> 00:35:05.320
out there and you got to buy
a deal, and you gotta do a
518
00:35:05.360 --> 00:35:07.679
deal, and you got to start
going to reavengs, start meeting the whole
519
00:35:07.760 --> 00:35:13.440
dealers, and you start talking to
people. And I think, based on
520
00:35:13.440 --> 00:35:16.239
what you can do it on the
side and the risk and yeah, it's
521
00:35:16.239 --> 00:35:20.320
it's gonna be busy. I started
or I had kid. But even if
522
00:35:20.360 --> 00:35:23.320
you have kid, it's just another
thing you gotta work around. But I
523
00:35:23.360 --> 00:35:28.920
think if you're hungry and you're super
dedicated, it's just all about like how
524
00:35:28.960 --> 00:35:30.599
bad do you want it? If
you want to badden up, you'll wake
525
00:35:30.679 --> 00:35:36.519
up early in your work late to
underwrite deals and you know, go buy
526
00:35:36.559 --> 00:35:39.440
something eventually. In my opinion,
like you said, it all comes down
527
00:35:39.480 --> 00:35:43.119
to you obviously have to be in
the right mindset, you know what I
528
00:35:43.119 --> 00:35:45.320
mean at the end of the day, did you have a fear when you
529
00:35:45.400 --> 00:35:49.679
first jumped out, which or you
were like, you know what, okay,
530
00:35:49.679 --> 00:35:52.920
okay, r tons of fear.
But the discussion I had with my
531
00:35:52.960 --> 00:35:57.360
wife, wud hey, look this
totally failed. I can always go back
532
00:35:57.360 --> 00:36:00.119
to public accounting. These these accounquerts
have been around for ever ever, and
533
00:36:00.760 --> 00:36:06.719
you know they all are growing and
need people. And even if the firm
534
00:36:06.760 --> 00:36:09.840
that I want says, you know, like resent me for leaving or something,
535
00:36:09.840 --> 00:36:14.599
which they didn't, I don't think, but like there's plenty of others
536
00:36:14.800 --> 00:36:16.239
that would be like, oh,
we'd love to have an experienced guy to
537
00:36:16.280 --> 00:36:21.920
come back then, so I saw
it as kind of rescue, but not
538
00:36:21.960 --> 00:36:27.800
really so guys, like he says, he gives you a bunch of tips
539
00:36:27.800 --> 00:36:30.679
that a lot of our guests come
on here and give, so it would
540
00:36:30.679 --> 00:36:32.880
be your best interest too. I
always talk about going to seminars because you
541
00:36:32.960 --> 00:36:37.400
learn so much from those seminars.
It just leads you into a U.
542
00:36:37.559 --> 00:36:39.880
I guess you know. I'm pretty
sure you're a lifelong learner like most people
543
00:36:39.960 --> 00:36:43.239
that are entrepreneurs, right, you
just kind of got to be in there.
544
00:36:43.239 --> 00:36:45.400
You're always reading books. That's the
that's the thing, that education is
545
00:36:45.440 --> 00:36:49.559
the key. That's completely what it
is. Right, he got into a
546
00:36:49.599 --> 00:36:52.679
space that he never knew. He
was an accountant who just went to a
547
00:36:52.719 --> 00:36:55.920
seminar, and now he's full blown
into real estate with accounting, right,
548
00:36:55.960 --> 00:36:59.079
so he can do both at the
same time. It's not gonna be that
549
00:36:59.119 --> 00:37:01.480
hard that kind. I would always
say, like, if you know something,
550
00:37:01.719 --> 00:37:05.559
stick with that, right and then
like you did, you pivoted from
551
00:37:05.599 --> 00:37:07.280
accounting, but you're still doing accounting
with real estate and you do them both
552
00:37:07.320 --> 00:37:10.599
at the same time. Yeah,
And I literally got back from a seminar
553
00:37:10.719 --> 00:37:15.239
last night. I was, I
still do all this stuff, so I'm
554
00:37:15.280 --> 00:37:20.079
in a mastermind now. I was
down in Georgia from Monday to Thursday,
555
00:37:20.599 --> 00:37:24.239
Like last Wednesday, I got to
hear Tim Grover speak. He's the guy
556
00:37:24.280 --> 00:37:29.880
that trained Jordan and trained Kobe,
and I'm sitting in front row listening to
557
00:37:29.880 --> 00:37:32.880
this guy, and I'm just like, I'm just jacked up right now because
558
00:37:32.920 --> 00:37:36.760
I'll come out of the high up
this event, like i still go to
559
00:37:36.760 --> 00:37:40.000
all this stuff. I think it's
all about my His whole thing was mine
560
00:37:40.400 --> 00:37:43.840
great, And what you said just
kind of read the name with me,
561
00:37:44.119 --> 00:37:49.320
just like he made this comment like
you think Jordan was just interested in winning
562
00:37:49.400 --> 00:37:53.760
championships. He was like he was
obsessed, was interested and he was like,
563
00:37:54.159 --> 00:37:58.119
no, that heroes got a funny
like the first time he met Jordan,
564
00:37:58.239 --> 00:38:01.519
Jordan hired him. Jordan like,
you better keep up. That was
565
00:38:01.559 --> 00:38:07.079
the first thing you said, Like
you better be able to keep up with
566
00:38:07.159 --> 00:38:09.320
me, And he was like this
one is just like working out just like
567
00:38:09.559 --> 00:38:14.599
his whole life. You better be
able to keep up because I'm going places.
568
00:38:14.760 --> 00:38:17.440
So it was to your point,
I'm still going to seminars, I'm
569
00:38:17.480 --> 00:38:22.360
still learning because it gets you fired
up. You learn something new every time,
570
00:38:22.719 --> 00:38:25.199
and then you're around a bunch of
people that are super motivated and want
571
00:38:25.199 --> 00:38:30.840
to do the same thing. So
it's the energy and it was energizing.
572
00:38:30.639 --> 00:38:34.039
I wrote a book called it Pitime
of the Mind, and it talks about
573
00:38:34.079 --> 00:38:37.679
that. It's like anybody like you
or anybody that's made it to a very
574
00:38:37.760 --> 00:38:42.960
high level, they were obsessed.
It was an healthy obsession. But it's
575
00:38:43.280 --> 00:38:46.199
and some people will be like,
okay, obsessed is like it's just high
576
00:38:46.559 --> 00:38:50.199
like highly focused. It's basically what
it is, you know what I mean.
577
00:38:50.199 --> 00:38:52.599
But obsessed might be like a strong
word, but it's just a person
578
00:38:52.599 --> 00:38:57.880
that's highly focused that nothing's going to
stop them from reaching whatever that goal is.
579
00:38:57.920 --> 00:39:00.280
And that's just kind of what it
is. Like you consider him like
580
00:39:00.360 --> 00:39:02.199
this is holding me back, this
is this, this is this, But
581
00:39:02.599 --> 00:39:07.880
even with all these barriers, a
highly you know, motivated person or a
582
00:39:07.920 --> 00:39:10.039
highly focused person, it's not gonna
stop them, right at all. Yeah,
583
00:39:10.280 --> 00:39:15.719
that was his That was his whole
thing. So what else they they
584
00:39:15.840 --> 00:39:22.079
like the Rundown Paradise starts and hell
uh yeah, so many good blood liners.
585
00:39:22.119 --> 00:39:24.239
So anyways, that was really fun, man Mark, thank you for
586
00:39:24.280 --> 00:39:29.360
coming on. Man got to have
you back and trap Mere. We do
587
00:39:29.440 --> 00:39:31.559
something called investing Guns into the Roundtable
where we bring on a lot of guests,
588
00:39:31.679 --> 00:39:34.639
you know what I mean. We
talk about real estate and talk about
589
00:39:34.639 --> 00:39:37.639
different things going on in the economy. So it'd be great to have you
590
00:39:37.719 --> 00:39:42.519
on because you know, bringing on
people like minded to give their energy just
591
00:39:42.599 --> 00:39:45.119
fees and and it keeps it going. Play it just let me out,
592
00:39:45.599 --> 00:40:00.320
all right, Mark, thank you
for coming on. All right. Thanks. Yeah,
