Ep #403 – Bruce Wuollet – From Single Family Flip to Multifamily Hold
Here is some of what you will learn:
- Repositioning multifamily assets
- Secret to successful partnerships
- The importance of broker relations
- Understanding direct to owner relations
- Evaluating the adrenaline rush of your business
- The power of knowing your strengths
- Avoiding shining objects
- FOCUS – Follow One Course Until Successful
- Leveraging experience
- Being patient
To find out more about our guest: click here To find out more about partnering or investing in a multifamily deal: Text Partner to 41411 or email Partner@RodKhleif.com Join us at a Multifamily Bootcamp, visit: MultifamilyBootcamp.com
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Full Transcript Below:
Ep #403 – Bruce Wuollet From Single Family to Multifamily Buy & Hold
Rod: Welcome to another edition of “How to Build Lifetime Cashflow through Real Estate Investing. I’m Rod Khleif. And I’m absolutely thrilled that you’re here. And I know you’re gonna enjoy the gentleman we’re interviewing today. His name’s Bruce Wuollet and you know I’m gonna pretty much let Bruce tell you his story. I mean I know he’s repositioned over 800 doors in multifamily but he’s got a whole lot more than that. So welcome to the show Bruce
Bruce: Hey thanks for having me on! It’s a pleasure to be here
Rod: Absolutely. So why don’t you in your words talk about your background I know before we started recording you mentioned that you knew my brother that you met my brother Al at a conference which is great memory by the way cuz I’m sure that was years ago but talk about your story and why real estate, how long you’ve done it and just take us back to the beginning
Bruce: Sure well I had a drug education business that failed and I closed the doors and broke even and I said you know I got to do something different and I met a friend of mine or I had a friend of mine. We got together, talked business. He was doing tax in foreclosures. That was in 2001. I started doing those for about a year and I realized how much money he was leaving on the table with an opportunity to buy those houses that people were in fact redeeming their taxes but they would still sell for you know $10,000-$15,000 for $60,000 house in Phoenix. I said man, Gary just buy those. He says, go ahead how about it. So I started buying those picked up triplex duplex a couple of houses three houses and partnered with a guy by the name of Jack Martin and we formed Baker Sending, Baker Sending is a, it play on our fathers, our fathers are both bakers in fact his father worked for my grandfather in Minneapolis at the Woullet bakery and so that’s where the Baker Sending comes from. That’s not my last name as people think and so we started fixing and selling them retail and I could find more properties we could possibly fix and sell, introduced the whole selling in 2000 and December 2002 December 2003 we flipped around 60 houses, 47 to one buyer and it was, a new business was born. And so we got into wholesaling we’ve done over 2000 homes
Rod: You’ve also wholesale 2000 homes?
Bruce: Yes in Phoenix alone
Bruce: And then in between there of course, we get into that later but we do – I do have some battle wounds I have some scars when the market crashed. I paid dearly for some some speculation we did that didn’t turn out as planned he got back into housing in 2011 and we did biggest biggest month we had 37 houses that we flipped and we did 287 homes that year, 2012 and it was fun, it was really fun because I had 7’s at three title companies in one day for purchases and sales I remember that was the busiest day of my life and those frenetic and from then on I said we can only use one title company if they only use their title company we’re not doing the. And we’ve been down that sometimes because banks you had to use theirs but yeah we got into that. We whole selling these flipping these apartment buildings that started small and we did a 250 space mobile home park and Winckelmann outside of Phoenix and we found out what those people did and we’re like, hey we can do this. We can buy fix and sell apartment buildings. So we started doing that in 2014, did 120 unit in Glendale, 64 unit in Phoenix, 22 unit and 16 unit 8 unit and then market got really tight for our model here in Phoenix although in retrospect everything we’ve seen we could have made money on 43 years ago but we decided let’s check Tucson. I went down to Tucson picked up 11 buildings down there and combined two of them and sold seven and we have three left. So but now we’re in the shift of we’re buying and we’re buying for the long term we’re gonna hold for cash flow. So we went from flipping houses to flipping apartment buildings to buy fix and sell, give two to three year process for the apartment buildings and now we’re looking at how can we get a three to ten year old out of this and create some passive income for us and our investors.
Rod: That was a quick. That was a lot in a very short amount of time. So let’s drill down on some of it and obviously our focus is multi-family. So let’s focus on the multifamily. So you say you’ve flipped multifamily. Did I heard that correctly?
Bruce: Yeah 25 or 26 buildings. We tied him up and we would put the contract
Rod: So you wholesale? Basically you wholesale those multi-family? Wow
Bruce: Yeah and we did that for a couple of years and Jack and I were talking about hey we got to do something different that these people are making. We’re doing okay on it but man if we could transition to buy and hold ultimately and then by the way three years ago when I decided to transition to Tucson, Jack and I parted ways but we’re still best friends. We talk every week we don’t have there’s no bad blood in our separation that we feel very blessed that we were able to separate and remain friends. In fact I believe it work for me who become in some ways culture friends we started as friends part of those friends were still friends so very very blessed for that
Rod: Okay I don’t want to go past that. I want to drill in on that before we before we drill down on properties because what you just said is really awesome and not I would say regretfully not as common as people might think. So let’s talk about that partnership because in this multifamily space there are a lot of partners born in fact I was just listening to a interview of Charles Koch the brother or the billionaire brother of the one that just died you know the 40 billion apiece or some crazy number and he talked about one of the reasons for his success was playing to his playing, building, and utilizing his strengths and aligning for his weaknesses, creating relationships and partnerships for his weaknesses. Talk about your partnership with Jack and did you, were you guys, was it the dynamic by any chance? did you guys have complementary skills?
Bruce: Yeah when we started out I was, I own the buildings and I know very little personally about how to do construction. I’ve done some things around the house I like electrical and plumbing which lot people don’t like dreaming and all that I don’t do so well and so I would hire that out well I hired him to repair a triplex that I owned and he got into that and he said man we got a partner. He says you got a great model here and I’d like to expand your business next to the partner with who he says what me and that was in September 2002. October 2002 we started Baker Sending and what it was is he he came from a very strong construction background the guys is insanely talented at construction. The challenges he doesn’t like to do it he’s good at it but he says I’m really I’m really good at it I mean this high-end carpentry work second to none but he say he doesn’t enjoy it he likes the business side of it. So he started setting up these crews to build it to fix and sell or to fix these properties you know drilling down on the subs and he was a masterful at that and he brought that in. And I was primarily chasing the deals and that’s what I’m still good at is chasing the opportunities exploiting what’s out there and he brought in a lot of the capital and so that’s why we were very complimentary on that
Rod: Great. That’s what I was looking for yeah okay fantastic and so speak to and by the way guys at my live events I teach this and I’ve hand out about a 30 page document I hand out about partnership and the you know the asking the hard questions up front making sure that you really know the other person one of the things Charles Koch said on that interview that I heard heard was you know making sure that you’re aligned on your mission number one, aligned on your values number two, and then you have the complementary skill sets so he said that was his recipe for success and I mean the guy’s worth I don’t know how many tens of billions of dollars. So you know you you listen to stuff like that. So let me ask you this, in that, to make that partnership effective were there any rules is the wrong word but any strategies that you might share with my listeners that made that partnership so effective that you ended it and you’re still great friends or even better friends
Bruce: Yeah it’s actually quite simple but it’s difficult to do is we never left the day with bad blood. If we had a disagreement, we always forgave each other before the other days took care and make sure that the issues were resolved and that we were still on the same page that we have this bigger objective. Although we had this battle today you know I’ve had a short temper and I blow up kind of easier people and he never took it personal but sometimes I would go too far or sometimes maybe he had blow up and we’d have this tension before we went home for the day we made sure that that was gone so when we go home we have a peaceful life at home because you know what happens we have a bad day at work you take it home. If you always had an audit of note, you go home, you’re much happier with your spouse and your kids and so that was our secret sauce was to always if we had a battle to forgive each other and say listen this isn’t personal. I’m sorry I did that or the other person say you know you took apologizes and it was it’s magical it really is and that’s what really carried us through the business
Rod: Love it love it. Now can you speak to since you’ve been so successful with wholesaling you even wholesale multifamily by the way that’s one of the things I also teach at our events is wholesaling multi-family and you just had a student that made a hundred and eight grand on a wholesale deal that talked about it our Denver event and another student made a hundred grand but one of the hardest things right now is finding deals. Can you speak to you know some strategies that you utilize to find deals without givng, I mean if you’re willing to give away some secret sauce we’d appreciate it
Bruce: Well since we’re focused pretty heavily on Tucson it’s pretty we got a pretty good niche down there that we’ve carved out and we have a relationship with the primary brokers that’s very important. You get into market, get to know the brokers, that was probably the most difficult thing for us to overcome as somebody coming from Phoenix into Tucson and they was, well I don’t know you know who we were so we are they’re real skeptical and then after we did two deals and all the brokers are calling us with opportunities. It was three years ago. Then when the market started getting dried up, we started going direct to owners and we were marketing direct owners knocking on doors so to speak
Rod: Of multifamily? You’d actually go knock on the doors of the owners of the multi-family yes?
Bruce: Sure yes yep and we found one of the owners up but probably we haven’t to send out Pablo Springs. We found that owner and got to talking to him in January year and a half ago and just ask to me one of the pain points you have with your property and he says well they’re cute but otherwise I love it I’m not selling it it’s a great property. Two months later call hey how’s it going. So how’s it? you know so you still in the community? how’s that going for you and really focusing on the things he didn’t like and then learn from the things that he did like and eventually said you know what I’ve been so tired of this why don’t you just buy it? We bought it. It took multiple months but you focus on the things that the people that caused people to stress about their business because he had multi-family know he has multiple businesses, multifamilies in Sierra Vista but that’s a 90 minute drive or roughly from his place to Tucson a couple times a week and he was he’s getting tired of it. So if you hone in on those, the secret sauce is you’re honing and things that are paying points for people and that causes them to act
Rod;: How often were you. how often do you recommend communicating with an owner once you’ve started a relationship?
Bruce: Probably once a month if you sense that there’s some pain points. If they’re a person that’s really like there’s one guy we’ve talked to many times and he’s an elderly guy and he’s never gonna sell on his kids you’re gonna inherit it. So you know that’s what every quarter just kind of checked you in and check the mark condition to ask about those rents but don’t ask about selling just talk to him get be their friend. And then you can glean some good information on what’s going on in the market with those people that you could use for your own advantage as well. So if it’s somebody that you feel at hey there’s something wrong with the property that you’ve seen or there’s a management issue because he had a manager we knew and we knew he’s gonna run into management issues because they have every time they taken over a property they did not succeed very well. So we knew there’d be a problem there so you just keep in touch of those probably every 3 to 4 weeks just ping and ask you know talk to the owners see what’s going on how are things going you know I noticed some changes that you’re getting along your property are you still engaged or what do you what’s your long-term plans there? And we’re direct and that’s probably body will don’t like that because I think we’ll you’re picking on the property owner really not we’re just observing what’s out there. And say hey you got a bird unit that looks like it’s still boarded up or you guys fix it, you having issues with insurance or what now we’re just slow fixing it okay buy you slow. Whatever you see or can lock on to but as often as you can probably probably no more than three to four weeks though in between calls and less they’re anxious. Then you go every week you don’t tell you get an answer
Rod: Interesting. So do you do any mailers ?do you do any other besides brokers and director – owner calls
Bruce: Yeah we have done mailers and we’ve done that both direct ourselves as well as we create the mailer and then brokers send them out on our behalf that way some owners will only sell through brokers and some will sell privately. So far we’ve only bought one privately and then we did a direct mail we bought two that way and then the rest we’ve got through it this is just the Tucson market the rest we purchased through brokers but they’re really simple
Rod: When you say you have brokers, did you create the list, you give it to the brokers you actually give them the mail piece as well? or do they mail on your behalf? How does that work?
Bruce: Well they were picked up to properties, we did that. We sent the wording to them and said hey want to email these out to the owners, develop some relationships with them and then we can we’ll buy him that way. And so they did and we got two properties that way and then they kind of gave up because they sent out the next wave of mailers with no responses after a while. So they gave up. So that was a short term strategy ever bought a nine-month period that we did that but otherwise we just call the brokers – what do you have or hey we see this property you sold this property three years ago and it looks like it’s still in trouble. Just wanna see if you can get the owner to sell to us
Rod: How often are you talking to a broker?
Bruce: Every week yeah. Ben, my son he’s our acquisition director. He’s in Tucson today meeting with one of the brokers because we want to seal a deal with him right now. So an off-market
Rod: Nice nice. I mean when you’re calling every week what you know I mean you’re obviously a great communicator. What sorts of, I mean you just have to find a reason to call what you just call and just talk about the conversation for a second
Bruce: Sure it might be that you see a property come over that they sell the property that you like before. I said, hey I see you so Bellavista congratulations. How’d that go? you know that was one we were interested in and these people obviously paid more than we would and just tell us about the deal. They tell us about the transaction or this last week we said hey we’re not ready to sell one of our properties but we like a BOB on it can you get us a BoB? They said yeah we’ll get it to you next week the next week we don’t see it, we call up, hey we don’t have our BoB, you get next to us this week you see how to it be in the inbox tomorrow and we get an inbox and there’s okay let’s meet next week. Let’s go over this BoB and let’s talk about the market and it’s not difficult even on that case since we have properties that we’re looking to sell within this year to start engaging the brokers and having a reason but probably one of the biggest seizes they send email pieces out on a property and you say boy that’s a wishful price how you do you get that price? Tell me what we’re not seeing on that. Your list price is like 20% higher than what we’ll pay or 10% higher, how do you think you get that number? And then you share the story of the deal. So whatever way we can if there’s something that’s tricky in your head that you want to talk to them
Rod: Love it love it great. So let me ask you this, you’ve made a shift now from flipping and you’re realizing the big money you know long-term wealth is really in holding long-term, is that sorry I put the words right in your mouth is that why you made the shift or tell me why you made the shift or holding on to these properties longer?
Bruce: Well that’s actually a good question because what you shift you just said is not what the paradigm shift that I have. I’m addicted to the flip I might get a high on that and I just get in and out you know now I hired a business coach and he said Bruce quit using your business to feed your adrenaline. Go ride your mountain bike, jump out of airplanes, go do something else you got to slow down because you got people in your business that have a that have great skills you’re not listening to because all you’re worried about is feeding your adrenaline. I was like I stopped for a minute, really? So when I listened in my son, Ben, 26 years old said, hey I want to do buy and hold. Tthese flips are like they’re just too much work you know I don’t have zero interest in that long term I wanna hold properties. I’m like well I like to flip here the.. I get anxiety with that. I like the slower pace buy it, reposition to keep it how can we make that transition? And we did bat heads a little bit because of the transition for me because I’m kind of thick-headed. He’s a young guy and of course you think what he’s he was he know he’s been in real estate no but six years with me what does he know? He knows a lot because he reads, he studies, he listens to podcasts, watches podcast videos is his sponge and so then as he’s been just poking me in the ribs they just keep this one, all of a sudden that came on that, hey yeah, that’s my coach told me that feed your adrenaline was something else and use your business to build something special and keep the skills that you have and apply those longer term. They’re not to be in and out, stay with it. And so that’s really
Rod: I love it. I love it. Smart coach. Smart coach, smart son as well you know guys, what else can you buy that someone else pays off and you know if you’re flipping every January first you’re going back to work. And so at some point you want to you know most people want freedom. Freedom to go have fun go do what the things they want to do and if you’re you know flipping is respectfully, Bruce a job and you know when you’re buying assets that cash flow at some point it’s, but I mean you love it obviously there’s no question it’s interesting that you love it because of the adrenaline rush. I want to drill down on the coach thing for just a second if you don’t mind because as I’ve had coaches my whole life and coaches have saved my life and coaches have saved my business life. I’ve had you know high performance coaches that’s I’ve become a high performance coach myself. I’m certified now and spent twenty years following Tony Robbins around the planet. So you know I could teach that stuff and love it but you know and I’ve had business coaches from my business, was this coach a business coach? or a life coach or what sort of coach did you hire?
Bruce: A business coach. What happened was I went to a CEO or a C-suite summit in Denver and he taught that and in that he offered this coaching and I didn’t really bite on it at first but I went to this to learn how to speak in the C-suite I’m a I’m in the streets business owner small business owner that I didn’t know what C-suite frankly
Rod: Haha no kidding okay by the way for those of you that don’t know what it means, it’s the CEO of a company, the COO of a company, Chief Executive Officer, Chief Operations Officer, CMO, Chief Marketing Officer, Chief Financial Officer, CFO. That’s the C-suite of a company. In fact, I’m actually hiring a couple of those positions in my thought leadership business as we speak today but anyway please continue
Bruce: So he said yeah he’s been a trainer for Corporate America for 28 years or 30 years now and he says that there’s so many skills that they teach the C-suite that can be applied to small business and there’s really not a great avenue for those education for a part-time course if you will. So I signed up for six months and what’s been no gosh 18-19 months I’ve lost track of time so just month after month a week back we have a call today in an hour and a half I got my bi-weekly twice a month we talk and what it did, what has it done to me is open my mind. So like one day I said Mark, I got these barriers I’m stuck. I’m in my own way. How do I get out of my own way? I set out online. I watch this video. I checked out this guy said, I know exactly what you can do. Then I found out that what he tells me, he’s already taught me before in his course. This 2-day intensive boot camp. It was already there but of course it takes a bit to unlock it from your mind
Rod: Or actually hear it you know to actually hear it you know you sometimes you gloss over stuff and you don’t hear it till you need it you know it’s been interesting I just want to share a little story that I talk about in my live events in that you know we’re talking about the seminars or the experiences we had in 2008 I call them seminars. You definitely don’t want to compare memos with me on that cuz I ended up losing 50 million dollars in ’08 but it right after a while that was happening I hired a business coach and you know what a coach does is he takes you from where you are to where you want to be. It’s like call it closing the gap and a lot of times like you said you don’t know what you don’t know and you said you had to get out of your own way and that was my situation as well and I was focused on busy work instead of what he described is income generating activity and it’s you know so easy to get caught up in busy work as well. So the coach really helped me a lot totally believe in coaches and of course we offer coaching in our program as well because it’s just so critical but that’s what I wanted to drill down on that for just a minute. I appreciate that. So it’s been obviously a home run for you to have a coach and even as successful as you are you have a coach right now. People think right you know I can remember my time sorry I’m yammering a little bit but I want to add one little caveat I remember my son when he was young, I was telling, I had already had 2,000 houses that I rented out long term multiple apartment complexes and I told him I’m going to this you know seminar in coaching. He’s like, why? You could teach this stuff. And that’s a great example of that. I mean like you you’re super successful and you’ve got a coach.
Bruce: Well you know, what sold me on this is a book called “Relentless” have you read their book?
Rod: Yeah I love it love it. I’ve read it three times listening to the audio twice and Michael Jordan the greatest basketball player arguably in the because if not the greatest all right had a
Rod: What? I’m sorry you broke up that was last
Bruce: He had a personal coach
Bruce: He got a personal trainer and this guy got into not only physical but mental and so I thought hey if he needed somebody to keep him on track, who am I to say that I can go it all my ego took a long time to understand that listen guys, we need help. We always need help we need somebody else out of our company to bounce ideas off and brainstorm until you see
Rod: That’s the other thing by the way, a coach will give you feedback with no secondary gain and it’s hard to find people sometimes in your life to get opinions from that don’t have some secondary gain from the feedback that they give you and so that’s why another reason a coach is so incredibly valuable because they have no gain other than to forward you. And so yeah very good point thank you. So let me ask you this, let’s step back for a minute you know if you were telling your you’re obviously you’ve done so many different things in real estate you’re very very successful you love it like I do and I believe that’s one of the key pieces is you have to love it but if you are gonna go back and tell your younger self something about this business about real estate, what might you do differently knowing what you know now, if anything
Bruce: The biggest thing I would do is I would have I would have held on to more after the crash and we don’t, we may not have another opportunity like that in our lifetime but houses that sell for 200 thousand in west Phoenix where we’re buying auction block for 40,000, 45,000, 50,000 apiece and somebody if somebody told me we should keep one in 10 of these properties and we thought yeah that’d be great but no I bought it kept one
Rod: And now they’re back at 250,000, 300,000 and you could add him paid off right
Bruce: Right, well I know a guy that did that in one of our hard money lenders when I called him up after the crash I said he’s still lending money, his name is also Mark and he said no, he said I’m a landlord now. He took some properties back so he started buying properties and yeah he said he’s selling him now he bought him for the highest price he paid was seventy five and the lowest he’s selling is 175 so how can that be a bad thing? That’s what the young yourself say listen, when somebody said this is the opportunity of a lifetime that people have been in the business for a while you know suck it up and realize it is and don’t get addicted to the flip
Rod: Talk about a time you get your butt kicked a setback talk about that a little bit drill down on that and what you learned a doozy
Bruce: Yeah this is a doozy, it’s not 50 million but it is seven figures than losses we add up there’s a golf course west of Phoenix and it’s a little ways west up right thirty minutes outside of Phoenix and it was a private golf course very high-end private membership was insanely expensive and this guy had a great vision is still one of the nicest golf courses in Phoenix metro and next to it was a vacant bunch of vacant land at equal two square mile of land and so we said hey we’re gonna lock up that land we get a super cheap at the time we’re gonna lock it up we’re gonna talk to this Golf Course community and we talked to them and they got Greg Norman on board he’s gonna fly out and they design this course and we were getting ready to we’re going to be big leagues and in tactic yeah Greg Norman as some of those other golf balls but here design actually designed the preliminary course for the second golf course out there. So we put a lot of money leveraged everything we had and bought these lands most of what I’m seller carry back instead of auctions we were little bit ignorant then and so the market that was our 2006 when we started buying those 2007-2008 happened the land wasn’t even hardly worth the taxes owed on it the Golf Course community was repositioned. There’s new owners of it now it’s completely changed. Now it’s open to the public and there’s no interest in developing this other golf course out there because it is pretty remote it’s just a 30 mission downtown Phoenix that’s not close. So then when that started we just handed all that property to sell it clear backs we gave it back to the owners that here’s your property back you know they kept the 20-30 percent down payment and I’m just kidding this is a reality that I’m almost done paying that back
Rod: No kidding
Bruce: I just went through a long-term payout to those people that said cuz I have some people that work I did personally guarantee friends and family and so I said I’m gonna pay back and it’s taking a long time and it’s been a difficult journey but you know what all in all it is what it is and we just plot forward
Rod: Yeah yeah yeah so
Bruce: But what I learned from that is I’m not a developer. Somebody else be that dreamer somebody else because I thought I was gonna be this big we’re gonna walk away with 25-30 million in profit based on our model it was like this is gonna be Easy Street and then when the opposite happened we were we each had a seven digits of losses personally plus we lost other people’s money. It was painful. I mean reality you know let’s take a look we’re good at so then I got back and that’s what I got back into wholesaling houses and got back into the buy-fix-sell of apartment buildings and I said you know what, this year I have a word that says focus it’s written on my board over on the wall follow one course until successful. I’m gonna focus on our courses multi-family workforce focusing on the resident South paying residents those that may never own a home but I’d like to live in one. That’s really what I like to do and I’d like to see that transformation and if I take care of the residents, they take care of the property that property retains its value then at the end I get paid and that’s going really really fulfilling.
Rod: Follow one course until successful. Love it. Focus is power, clarity, I mean, you know eh eh eh it focus, where you focus is what’s gonna grow and you know when your focus gets diluted as maybe a little bit of in the example you gave about getting outside your strengths and your knowledge base that’s when you suffer and that same thing happened to me you know and when you dilute your focus if you’re an entrepreneur shiny penny person like I am you know you pick up these shiny pennies and you lose focus and that’s when everything suffers so thank you for sharing that I love that. Follow one course until successful. I will steal that one.
Bruce: I don’t remember where I got it from but I heard this last year and I’m using that every year the word of the year that I tell the company one year was impact the other one was consistency and this year it stopped its focus
Rod: Love it love it. So if you could give one piece of advice to my young listeners the ones that haven’t started yet. They know they want to do it, mean they’re not young maybe they just know they want to do this business what might you tell them?
Bruce: Two things one is be patient and the other one is listen to those that have gone before the people that have had success and I found out that some of the most successful people are most willing to share who think some of these elders that have been in business, there’s guys that are 70 80 years old have been in business for 50 years just ask them. Just be free and ask them people are afraid to ask the question. The young entrepreneur keeps things like this the older you get the more open cuz you realize it’s a large playground, its a large sandbox. There’s room for everyone to play and so that’s probably good. Be patient that’s been my biggest challenge in my life is a very impatient person the patience and perseverance and listening to those that have gone before is really valuable for me
Rod: What did you have to give up to get to where you are right now?
Bruce: What did I have to give up probably…
Rod: Coz you have to sacrifice let me say it a different way
Bruce: Consistent income you know because when I was, some days some days you get paid sometimes you’re going home and saying honey yeah we got to hold off on doing this or doing that we just don’t have the money. She said what do you mean you just sold this what else yeah but we bought this one in that one. So there was a lot of that going on through time probably the biggest sacrifice was to realize Linda, was internal I wouldn’t realize when to stop and smell the roses so to speak and I always take care of your family because but is you’re not gonna do it the easier they see start part-time. I don’t know anybody that’s made a decent living anywhere working part-time and always eventually get into it full-time. One sacrifice is consistent paycheck the second one is I buy my own health insurance you don’t get health insurance with the real estate investment company you get
Rod: By the way as a caveat. I’m sorry I got to say this you know when you buy assets that cash flow. You do get a consistent paycheck just want to throw that out there versus flipping and wholesaling and all these other things. So just another plug for multifamily but let me ask you this what do you think and thank you for sharing what you just shared cuz it’s very powerful what do you think is the biggest reason people fail to succeed in this business?
Bruce: You give up too early to me that’s we looked at this, we have this contract that we have on a property in Houston were three or four weeks into this by the fourth rewrite of that contract redline of that contract and the owners dug his heels and we dug our heels in but the property’s not listed. It’s listed as under offer so the LOI was accepted but spend weeks went one point somebody said well we just move on. I said no until he says he’s not going to accept it until we have a definite line. Be patient. The second example I have is a 27 unit building we had we had chased in Tucson the very first building we looked at three years ago just over three years ago we made an offer. They took another offer, win in escrow and then it fell out. Then he took another offer took another offer and there was 14 months between our offer, the first offer, and we still bought at the same price 14 months later but the good news though is we bought the 80 units next door and we combine it into one property it’s 107 units but we did that we’re patient. We just kept pinging the owner and said when it falls out, just give us a call, 14 months later they have three hospitals before ours and deal flows down at them. So those are areas people give up too soon
Rod: Thank you for sharing that let me add an exclamation mark on that guys you know it is critical that when you lose on an offer and they accept someone else’s, stay in touch with that broker on a weekly or bi-weekly basis and ask him how that deal’s going because if you’re the one that calls the day it falls apart you know you could be right back in the saddle I’ve heard this time and time again you know I have a mastermind and I’ve got about five billion in assets in there that we meet three times a year and I had these people on stage from my mastermind and that comes up so often that they weren’t the first ones to have the property under contract but you know time and time again but they stayed in touch with the broker and they ended up with the deal. So I’m really glad you brought that up. Well listen Bruce, I really appreciate you being on the show brother you’ve added a little ton of value as, pleasure to meet you and you know it’s cool that that that you have spent time with my brother in the past. So that he’s you know the most important man in my life so really cool to hear that but thanks for being on my friend.
Bruce: Well thank you so much Rod for the opportunity. This has been a pleasure and really a joy to be on your show and I look forward to getting to know you better
Rod: Likewise all right brother take care see you
Bruce: All right thanks see ya!