Andrew, Head of Acquisitions, Development, Sales & Marketing at GL Capital, excels in sourcing new projects, overseeing asset redevelopment, and managing sales and marketing to secure significant investor payouts. As the co-founder of Stork Property Management, a subsidiary of GL Capital, he’s instrumental in business development, shaping company culture, and leading the sales team. With a Master’s in Design from the Maryland Institute College of Art and an MBA from Johns Hopkins Carey Business School, specializing in marketing, Andrew combines expertise with a passion for mentorship and social impact, demonstrated through volunteer work and charitable contributions in Philadelphia and Baltimore.
Here’s some of the topics we covered:
- Andrew’s First Rental Property
- How To Operate Multiple Companies At Once
- One of The Best Horror Stories Ever
- The Importance Of Trusting Your Gut
- How To Build A Culture Around a Business
- Censorship In The Mainstream & Social Media
- Suggestions For People That Need To Take Action
To find out more about partnering or investing in a multifamily deal: Text Partner to 72345 or email Partner@RodKhleif.com
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Full Transcript Below
00:00:19:13 – 00:00:44:16
Rod
Welcome to another edition of Life Time Cash Flow Through Real Estate Investing. I’m Rod Cleef, and I’m thrilled you’re here and you’re in for a fascinating conversation. I’m really looking forward to this gentleman named Andrew Hinton, and he’s the head of GL Capital and quite a few other things actually. We’re going to I’m going to let him tell you about all that, but I got a lot of cool stuff going on and I’m excited to have, I think, what’s going to be a very wide ranging conversation.
00:00:44:16 – 00:00:46:01
Rod
What’s happenin, buddy? Good to see you.
00:00:46:03 – 00:00:46:22
Andrew
Good to see you, too.
00:00:46:23 – 00:01:01:20
Rod
All right, man. Well, why don’t you give us some background on you know, you tell me about all these businesses that you’re in, but go back and let us know what you know, how you got started and bring us current. Sure.
00:01:01:22 – 00:01:28:06
Andrew
So at a college, I was really interested in technology, entrepreneurship. I had the opportunity to start a business at a college. Wasn’t necessarily technology like high tech, but it it was what I needed to learn, that I wanted to be an entrepreneur and I wanted to own my own businesses. And fast forward, it was when I bought my first rental property was actually a house hacking that I knew that I want to be a real estate agent, where.
00:01:28:11 – 00:01:29:05
Rod
By the way, I was.
00:01:29:05 – 00:01:29:16
Andrew
In Baltimore.
00:01:29:16 – 00:01:30:18
Rod
Maryland, Baltimore, As.
00:01:30:23 – 00:01:51:15
Andrew
I was renting a room for $500 a month, I had seven roommates. The landlord wanted to sell it to pay for some other venture he was doing. And so the roommates put a few thousand dollars together and bought the house. And I managed the whole process and a light bulb went off. We had bought it for 315,000 and it was worth about 375,000.
00:01:51:15 – 00:02:02:21
Andrew
We had to put a $60,000 deposit down. So in, in, in basically a day we had doubled our, our money and I saw that and I knew instantly that was one was this. That was 2016.
00:02:03:03 – 00:02:08:18
Rod
Okay, fantastic. Okay. You’re young. All right. Yeah. So? So keep us keep going. Sure.
00:02:08:22 – 00:02:28:07
Andrew
Yeah. So saw. Saw the opportunity in real estate. Baltimore is a great market to get involved because low, low barrier to entry. Right. You could buy a house for $60,000. That’s worth 200,000. You got to put it in a little bit of sweat and time and money. And while so we were flipping houses, it was a lot of work to do.
00:02:28:07 – 00:02:43:17
Andrew
The single family, you know, around. So we saw an opportunity to basically scale well at the time it was scaling to five, six, seven unit buildings, some value add where we were doing some cosmetic upgrades and.
00:02:43:22 – 00:02:45:20
Rod
Just buying for your own account, right?
00:02:45:21 – 00:03:14:11
Andrew
Yep. Yep. Without really knowing how to scale a real estate business, we were buying small multifamily properties. We were using our own funds. We brought in some of our friends and family and before we know it, it was two years. We had 39 units under management. Wow. And then that’s when it was three of us partners. My my partner, Jade and Kelvin were, were getting together and say, Hey, we can we can do something, you know, serious here.
00:03:14:11 – 00:03:21:04
Andrew
So that’s when we leveled out from the 5 to 10 unit buildings to the 20 to 50 unit building range.
00:03:21:06 – 00:03:21:12
Rod
Yeah.
00:03:21:15 – 00:03:22:14
Andrew
And that’s.
00:03:22:19 – 00:03:30:16
Rod
So. So let me stop you for a second. So in the 20 to 50 unit range, where were you finding those assets? So how were you finding.
00:03:30:16 – 00:03:41:15
Andrew
Yeah, I could, I could go through. So one of them was broker, one of them was a wholesaler couple with one and we bought at auction. Wow. One, we knew the owner directly. So everything they.
00:03:41:15 – 00:03:43:03
Rod
Said a whole bunch of stuff. Yeah.
00:03:43:04 – 00:03:52:22
Andrew
I would say the number one was definitely brokers, right? But it wasn’t one that just came on market. It was what we called the broker back to say, Hey, what happened to that deal? They said, Oh, just fill out a contract. Do you want to buy it?
00:03:52:22 – 00:04:10:22
Rod
So we could get a few? Okay, I’m going to stop you there, guys. I can’t tell me I can’t tell you how many deals get bought in the way he just described, which is why, you know, if you miss out on a deal, you’ve got to follow up with that broker because so many deals fall through, especially today with with what’s happening with capital.
00:04:11:04 – 00:04:24:15
Rod
So but but even for the last three years, I can’t tell you how many my warriors and us as well have bought deals because we follow it up. All right. So you went to 20 to 50 units and you bought them from a bunch of different places. Self-managing.
00:04:24:20 – 00:04:30:19
Andrew
Self-managing. Okay. Hating going to eviction court, the whole nine yards, everything. Lots of stories.
00:04:30:20 – 00:04:40:22
Rod
Okay. And and and does the does it, does it stop there or did you actually do some larger stuff as well or is it that’s been your focus is that 20 to 50 range.
00:04:40:22 – 00:04:54:06
Andrew
So as of today we’re under contract for 109 units closes next month in Baltimore and Baltimore County. So it’s a garden style, huh? Perfect. We did we did a mid-rise we looked at a couple of high rises and the two story gardens.
00:04:54:06 – 00:04:56:15
Rod
Mid-rise is perfect, man. That’s the perfect bread and butter.
00:04:56:19 – 00:04:59:14
Andrew
And then at age 1952.
00:04:59:15 – 00:05:00:07
Rod
Oh, old.
00:05:00:11 – 00:05:08:22
Andrew
Okay, Yeah, that’s. That’s that’s pretty standard and ball to a lot of it. Inventory Baltimore Philly two story brick.
00:05:09:03 – 00:05:17:21
Rod
Story broke good structure I mean boiler is that how it is a boiler a big boiler okay and no air conditioning or they have air conditioning while units or windows.
00:05:17:21 – 00:05:28:19
Andrew
So the value add program initially is keep it as is with no AC window units only. But over time to power up.
00:05:28:21 – 00:05:31:20
Rod
Increase electricity, get in the building central and.
00:05:31:20 – 00:05:32:17
Andrew
Get a central air.
00:05:32:17 – 00:05:42:20
Rod
Gotcha. Okay. But the units aren’t too small. Ceilings too low, you know? No, no service function obsolescence or there is a little.
00:05:42:22 – 00:05:53:04
Andrew
Ceiling’s too low. No, they’re not huge. They’re getting $750 for a one bedroom and the market’s a thousand houses a mile away from you. And while doing any advertising to students.
00:05:53:07 – 00:05:54:05
Rod
Nice.
00:05:54:07 – 00:06:01:10
Andrew
I’ll tell you this. When we walked in the leasing office, there is no computer. They were using a typewriter to to know receipts. A real.
00:06:01:10 – 00:06:01:23
Rod
Typewriter.
00:06:02:04 – 00:06:09:21
Andrew
Maintenance slips were handwritten. So they they pulled off the gray slip, gave it to the tenant, and there was a pink slip. That’s how they do all their repair.
00:06:10:02 – 00:06:28:17
Rod
That that’s exciting. Now. That’s exciting. That’s exciting. Okay. Wow. Yeah. I remember I almost bought a mobile home park and went to the owner, and his filing system was his desk with about six inches of paper on it. One of those, you know, checks where you where the check goes on to the paper below, you tear it off And that’s your accounting system is.
00:06:28:22 – 00:06:50:21
Rod
Yeah. Yeah. All right. So you got 109 unit go and you syndicating that one. Yeah. Okay. Good for you. And, and so you talked about your team. Okay. And you said the names, but what did the does each play a different role? Do you guys all wear the same hats? Talk about the team dynamic and why you guys feel like you work well together.
00:06:50:23 – 00:06:52:12
Rod
Speak to that a little bit.
00:06:52:14 – 00:07:18:14
Andrew
Sure. So at this point I am owner or part owner and six or seven operating companies and it’s important that I have an operator who’s the boots on the ground, I guess, director of operations, if you will. I fill that role for GL Capital, the investing business, but for the property management company, we’ve got a head of property manager and we’ve got a property manager.
00:07:18:16 – 00:07:24:11
Andrew
So those are really the ones that report to me. The restaurant business. I have an operator in the commercial.
00:07:24:11 – 00:07:39:00
Rod
You have two restaurants that so you just got to rest. You’ve got, you’ve got it, you’ve got a working operator, correct. That’s handling the day to day. Correct. Okay. And you’re an investor in it, basically. Okay. And you had something else to figure out with the other one. Oh, brokerage. Real estate. Yes. You broker.
00:07:39:02 – 00:07:39:20
Andrew
I’m a broker.
00:07:39:21 – 00:07:41:04
Rod
Okay.
00:07:41:06 – 00:07:49:20
Andrew
I was listening a couple of your podcast for you. Explain the dynamic between whether you should get your license or not. And it’s very. You have it.
00:07:49:22 – 00:08:06:06
Rod
Yeah. So, so what he’s talking about is if somebody asked me, should I get my license to do this business, I always say no, and here’s why. Unless you’re going to just sell real estate, you know, if you’re just going to sell them by real estate. Now, there’s a caveat. If you’re going to buy small stuff in your own state, sure, because you’ll have access to the MLS.
00:08:06:06 – 00:08:29:18
Rod
Although I have hired brokers as as really just a face of a brokerage. I’ve did that here in Florida and I got $80,000 commission on this compound. You’re here right here. And I pay the guy the guy 300 bucks a month to to be the broker of record. But any commission that came out or anything I did came to the company, quote unquote, even though I am not licensed here, the company can make money and and it’s completely legal.
00:08:29:18 – 00:08:43:12
Rod
So I did that. But but what I’m getting at is, is when somebody says I get my license, I always say no, because you’re held to a higher standard. You know, you’ve got liability in your. Why? Why would you bring that liability on yourself unless you’re going to sell If you’re going to buy an invest, for God’s sakes, it’s unnecessary.
00:08:43:12 – 00:08:53:06
Rod
You’re not going to learn how to do it, that’s for sure. People think they’re going to learn something from the licensing stuff, and that’s just how to protect the public more than anything else, right? Yeah. Yeah.
00:08:53:08 – 00:09:13:00
Andrew
So degree, I think from the very get go and I’ve seen models that worked really successfully where you have a private equity syndication company and then there’s a brokerage arm to it. So if we build our portfolio to be 10,000 units or more, which is our, our long term goal, then that’s a lot of apartment buildings we’re going to need to sell.
00:09:13:02 – 00:09:15:15
Andrew
That’s a lot of deal flow we need to have.
00:09:15:15 – 00:09:17:19
Rod
And that’s obviously an inventory.
00:09:17:19 – 00:09:31:05
Andrew
Shoot and it’s very capital intensive. At the same time, the cash flow is huge lifetime cash flow, right? So cash flow from brokers actually is quite high because it’s not a lot of capital expenditures, but so the margins are really good.
00:09:31:05 – 00:09:34:01
Rod
You mean in your brokerage for for for you to have I want to I.
00:09:34:01 – 00:09:36:08
Andrew
Want to own a brokerage and that’s what I want to sell.
00:09:36:13 – 00:09:52:22
Rod
That’s got it. Got it. And that’s different. That’s completely different. I get I get calls from people that, you know, want to get into real estate and say, should I get my real estate license? My answer is no, absolutely not. Unless you’re going to just go sell real estate or if you’re just going to buy small stuff in that market, maybe.
00:09:53:00 – 00:10:07:02
Rod
But what you just described, where you own the brokerage, that’s a whole different. Yeah, that’s a whole different conversation. Yeah. Yeah. It’s funny. You want to have an aside. I was a broker right when I turned 18. I guess you could do it back then through education, you know, Now you’ve got to have some experience to be a broker.
00:10:07:02 – 00:10:16:12
Rod
But I got my own office. That’s how stupid they were back then. And then my brother was became a broker. I, when he turned 80, beat me like a few days. I was so pissed. But, but yeah, that’s I talked about that.
00:10:16:14 – 00:10:23:15
Andrew
So did getting your license and actively selling house houses help you in what you’re doing today? That would be my question.
00:10:23:15 – 00:10:38:21
Rod
No, no, but but I mean, I bought you know, I bought hundreds of houses. I mean, 2000 houses in my career, and I bought 500 in Denver. And what I used to do was run foreclosures. I’d knock on the door. Hey, I saw you having some trouble with Countrywide funding. And, you know, I help people when they’re in foreclosure.
00:10:38:21 – 00:10:56:18
Rod
And I listed a ton of houses and I bought a ton of houses and helped people get financing if I could. And, you know, I did that for years and years every night out there. I had a I was in a I was driving a Subaru brat, you know, Subaru brat with the little seat in the backseat of a piece of crap.
00:10:56:18 – 00:11:07:23
Rod
Oh, my God. But you own a restaurant business. You’ve got your brokerage, you’ve got your syndication business. Now you’ve done some construction as well. Speak to your construction experience a little bit.
00:11:08:04 – 00:11:26:16
Andrew
So it started with the single family redevelopment. We were flipping houses, but these were substantial projects. We weren’t just going in and doing cosmetic stuff. We were doing additions like our model was buying a two bedroom house in Baltimore, less than 100,000 at a at a 600 to 1000 square feet, whether it was.
00:11:26:21 – 00:11:28:13
Rod
Make it a three bedroom, two bath or something.
00:11:28:13 – 00:11:29:03
Andrew
Exactly.
00:11:29:03 – 00:11:29:12
Rod
Okay.
00:11:29:12 – 00:11:31:03
Andrew
And sell it to 50 range.
00:11:31:03 – 00:11:31:13
Rod
Gotcha.
00:11:31:15 – 00:11:43:02
Andrew
And so it was a steep learning curve at first because it was permitting was somewhat new, the architecture was somewhat new. Handling contractors was was somewhat new.
00:11:43:02 – 00:11:48:18
Rod
So so you learned we cut out some seminars. Is this are you where you were leading into the horror story?
00:11:48:20 – 00:11:49:22
Andrew
Well, so.
00:11:50:00 – 00:11:56:18
Rod
You told me to ask him. You told me ask him about a horror story. And I’m just curious because your apprehension here made it sound like we might be heading. That we’re heading that way.
00:11:56:19 – 00:12:16:12
Andrew
Okay. Yeah. All right. So. So that the flipping was was good. Then we were doing the small multifamily acquisitions, so we found the opportunity to essentially flip a four unit. So it was completely vacant, got rehab, four units, and it was right. It was next door to where we had 17 units. So it was like strategic.
00:12:16:14 – 00:12:18:19
Rod
Retreat and then hold it. If you had 17 right now.
00:12:18:19 – 00:12:20:06
Andrew
We did. We we we held it.
00:12:20:06 – 00:12:21:16
Rod
We still held it. Oh, good. Okay.
00:12:21:20 – 00:12:38:17
Andrew
So it makes it never look so much more beautiful. Is is a really good project. Cash flow and great. So that’s the one we did before we found an office building downtown Baltimore. Okay. That I had. There’s an Irish pub on the first floor that used to go to go watch NBA games and cable.
00:12:38:19 – 00:12:43:19
Rod
Also a little reminiscent. Then you bought it. You bought an asset used to go to exactly. Oh, that’s cool.
00:12:43:23 – 00:12:54:03
Andrew
So and this was early on, this is probably 2018, so it was off market. A wholesaler brought it to me. I walked in, it was all vacant office space.
00:12:54:04 – 00:12:57:14
Rod
So so it was the it was the pub on the ground floor and there were offices above it.
00:12:57:18 – 00:13:01:14
Andrew
There’s a Indian restaurant to own it. It was $14,000.
00:13:01:14 – 00:13:12:14
Rod
I the smell just hit me just now. It’s Well, that’s why those offices are vacant. Sorry if you’re Indian I’m, I’m teasing. It’s. It’s, it’s that curry is a little pungent.
00:13:12:16 – 00:13:14:20
Andrew
It’s an old building. And actually, it’s inside a pretty well.
00:13:14:20 – 00:13:15:08
Rod
Is it okay?
00:13:15:08 – 00:13:27:01
Andrew
Yeah. So. So the the 14,000 a month was the income on this. It was 1.8 million. So if you look at the cap rates, 10% cap rate. Wow. Without doing.
00:13:27:01 – 00:13:28:23
Rod
It without any without filling the off, that’s.
00:13:29:00 – 00:13:32:02
Andrew
Taxes, insurance and the commercial. Right. Wow.
00:13:32:04 – 00:13:32:18
Rod
Fantastic.
00:13:32:22 – 00:13:36:02
Andrew
So I thought it was a great opportunity. It took a year to do entitlements.
00:13:36:04 – 00:13:38:15
Rod
And entitlements to do what?
00:13:38:17 – 00:13:41:19
Andrew
To renovate the apartments and offices in apartment.
00:13:41:19 – 00:13:42:19
Rod
So you converted into.
00:13:42:20 – 00:13:43:02
Andrew
A part.
00:13:43:02 – 00:13:50:17
Rod
Multifamily. Gotcha. Okay. Yeah, that’s a lot of work. Yeah, it’s all new plumbing, everything else. But you had floors deep enough to run plumbing and all that stuff.
00:13:50:19 – 00:13:53:06
Andrew
This is this is where.
00:13:53:08 – 00:13:55:01
Rod
This is where the.
00:13:55:03 – 00:14:18:08
Andrew
The leap from the four unit, which was a little bit of structural, but mostly just kitchens. A bathroom. Sure, sure. Went to brand new electric meter stack water plumbing configuration That was that was because it was already serving the two restaurants. So we had to while those were still active. Right. Without your business, we had to bring in new plumbing.
00:14:18:10 – 00:14:21:00
Andrew
It was fire safety, which.
00:14:21:00 – 00:14:21:16
Rod
Oh, my God.
00:14:21:16 – 00:14:22:09
Andrew
Yeah, killed us.
00:14:22:11 – 00:14:24:21
Rod
Think about that. You had to run sprinkler.
00:14:25:00 – 00:14:47:16
Andrew
Well, the egress was a situation where because of how it was chopped up, we need to get all the apartments to two stairwells. Wow. And so it’s this great opportunity on paper that and the pandemic caused a major slowdown, obviously, from March to July. But we had a fire alarm panel, took eight months because of supply chains. Honeywell.
00:14:47:20 – 00:15:05:23
Andrew
Honeywell was like not putting out these fire alarm panels. Gotcha. And code had changed. So we were we were not able to build as it was permitted. We had to update to new equipment. And that equipment was was on recall or whatever for four months. So the lesson was.
00:15:06:01 – 00:15:08:02
Rod
Was this the horror story?
00:15:08:04 – 00:15:13:02
Andrew
It’s not done yet. Oh, we bought it in 2018. No, it’s still not. It’s not it’s not open.
00:15:13:08 – 00:15:16:07
Rod
We’re five years later. It’s it’s not done yet. That’s a horror.
00:15:16:07 – 00:15:17:07
Andrew
Story. Yeah.
00:15:17:08 – 00:15:34:00
Rod
That’s a horror story. Okay. That’s a good one, man. That’s one of the best ones I’ve heard. So far. Yeah. Wow. Well, you know, there’s a lot of valuable lessons in that for your next one. That’s right. That’s how you look at that. It’s a seminar. You know, I call them seminars. If you lose 50 million, then you let me know.
00:15:34:00 – 00:15:43:00
Rod
So I feel better about what happened to me. Okay, But. Okay. Wow. Holy cow. That’s crazy. Still not. Still not done. Are you close?
00:15:43:02 – 00:15:46:23
Andrew
We’ve been so close for years.
00:15:46:23 – 00:15:51:08
Rod
What’s what’s what’s what’s the hang up today?
00:15:51:10 – 00:16:05:20
Andrew
The hang up today is a demonizing wall that needs to be permit 12 feet by eight feet tall with a doorway in it, because there is too long of a distance for people to get out of there.
00:16:05:22 – 00:16:11:04
Rod
And it needs to be permanent. Is that what you said? So you just got to put it in a wall. Okay.
00:16:11:05 – 00:16:19:01
Andrew
That’s it’s been two months and a half. Okay. So there’s been there’s been a list and then it was a new list and then it was a new list.
00:16:19:06 – 00:16:33:17
Rod
Well, I’m sure you’ve discovered in your communication with the county or the city or whichever, you know, governing body is making your life hell is that you have to document every communication in writing, because otherwise things change. Did you learn that the hard way?
00:16:33:19 – 00:16:36:12
Andrew
There’s things in writing that they ignore anyway.
00:16:36:16 – 00:16:52:17
Rod
Okay. Yeah. By the way, guys, if you’re ever dealing with a county or a city official and you have a conversation you always documented in writing and it maybe it doesn’t help you, but you know, it’s at least you got something point to if if they change the rules on you. But Oh, God, what a nightmare, brother. Yeah.
00:16:52:19 – 00:17:12:04
Rod
All right. We’ll move on to something else because it hurts just thinking about that. So you mentioned before we started recording this move on to some positives. So you’ve got a growth mindset. Sure. Okay. And I told you that this show is all about mindset. So talk to me about where that what that is, where it came from and how you implement it.
00:17:12:06 – 00:17:43:15
Andrew
You know, I’ve always been interested in entrepreneurship. I studied it. I have read I love biographies of founders and seeing their story. And, you know, you can change entrepreneurs can change the world in a way that, you know, nonprofit or policymakers can’t write. And that’s important to me, is creating a big impact, You know, making people happy, not in the sense of, you know, a funny video, but in the sense of, you know, them just being happier people, like generally.
00:17:43:15 – 00:17:52:23
Andrew
And so through the products we have, the services we have through like technology that improves our lives, I think I think that’s the impact I’d like to make.
00:17:52:23 – 00:17:58:18
Rod
So it’s it’s really an impact mindset. Yeah, versus a growth mindset. Okay.
00:17:59:00 – 00:18:07:02
Andrew
So to make an impact, you need to you need to own your own companies and build those companies up to be.
00:18:07:02 – 00:18:08:12
Rod
Certainly the best opinion.
00:18:08:17 – 00:18:19:01
Andrew
With the premise being, you know, how do we grow companies to be successful and to last is you have to have a big vision.
00:18:19:03 – 00:18:19:10
Rod
Right?
00:18:19:16 – 00:18:19:22
Andrew
Right.
00:18:20:02 – 00:18:20:22
Rod
Are you the visionary?
00:18:21:02 – 00:18:21:13
Andrew
Yes.
00:18:21:15 – 00:18:23:06
Rod
Okay. Awesome.
00:18:23:08 – 00:18:32:06
Andrew
And my partner is also a visionary. Okay. I don’t want this to fall back on them. Say that I’m the visionary. Okay.
00:18:32:08 – 00:18:37:20
Rod
So it’s awesome when you when you’ve got more than one visionary and you guys can compare notes. We need opera. Good God. Yeah.
00:18:37:22 – 00:19:00:22
Andrew
You’re off to the freak show. So we want to. We want to build a a massive real estate company. Got you. We want to invest in technology companies and help them scale their businesses and then, you know, through other private equity investments. I think private equity is such a under appreciate it industry because I think they’re you’re.
00:19:00:22 – 00:19:04:08
Rod
Talking about syndication when you’re talking about private equity or you just.
00:19:04:08 – 00:19:10:02
Andrew
I’m talking about infusing a company with funds and new people and new opportunities that they can grow.
00:19:10:03 – 00:19:25:02
Rod
I gotcha. And you like the tech business. I know before we started recording, you talked about utilizing tech in growing your companies, which we feel the exact same way, but you’re going to invest in those tech companies as well. I love it.
00:19:25:04 – 00:19:43:10
Andrew
Yeah. The idea of using technology to reduce your operating costs or improve your efficiency, improve your customer service, that’s all technology does. So to invest in those products and services where we can use them and we have intimate understanding of how it works.
00:19:43:12 – 00:19:53:10
Rod
And then if you’re an investor in your as well, I mean, you’re actually you’re not just a customer, you’re an investor. I mean, that’s that’s that’s yes, that’s prudent.
00:19:53:12 – 00:19:56:15
Andrew
This is just strategic venture capital. Sure.
00:19:56:15 – 00:20:17:08
Rod
Company. And of course, you’re going to have the benefit of all the activity that’s happening. You have the inside knowledge of of the advancements and so on and so forth. You’ll be beta testing, advancements, I would guess, all of that. So, you know, I love it. Now, you had talked about a deal that you tokenized. Yes. I’d like to expand on that a little bit.
00:20:17:08 – 00:20:35:12
Rod
Sure. You know, I’m kind of dubious. I’ll be you know, you hear about FTC’s in the billions lost and you hear about, you know, all of Bitcoin is way down or people are crying. I literally have seen literally people crying on social media over it. So so talk about what tokenization is and how you how that was implemented on an asset.
00:20:35:14 – 00:20:59:18
Andrew
I’ll start by saying as a as a value investor, I’ve never invested in cryptocurrency myself, so I already Bitcoin or theme or anything that. So I think that’s important to note because I’m not trying to push cryptocurrency in any but on any audience. Instead, I’m solving a problem for how you know that you are invested in a company.
00:20:59:20 – 00:21:10:10
Andrew
So for you, if you’ve done multifamily syndications, chances are people have or are you invested in multifamily syndications that aren’t yours? No, not really, no.
00:21:10:10 – 00:21:12:21
Rod
I’m a control freak.
00:21:12:23 – 00:21:18:17
Andrew
So your investors, how do they know they’re invested in your projects?
00:21:18:19 – 00:21:36:17
Rod
Well, I mean, they register on a portal and they get you constant continual communication from us on a weekly and monthly basis emails, webinars and so on and so forth. And of course they get distribution checks on all but one asset that had a fire, but they’ll be getting them soon.
00:21:36:17 – 00:21:46:02
Andrew
So. Sure. But yeah, and there’s, there’s a light there on the tax returns, But how do they know how many shares they have in your properties.
00:21:46:02 – 00:21:53:05
Rod
They get, they get a certificate that outlines exactly what their percentage ownership is in that particular asset. Right. You know, point.
00:21:53:05 – 00:21:56:09
Andrew
One, what does that certificate look like? Oh.
00:21:56:11 – 00:22:02:10
Rod
I you know, I don’t know, honestly, it’s a single page document that that that spells out what that percentage is. Right.
00:22:02:14 – 00:22:24:09
Andrew
So the premise of of what we’ve done, we haven’t necessarily created a new token, although that’s something that we have the option of doing more freely in the future is we’ve we’ve we’ve created a digital stock certificate that you can’t edit that’s literally impossible at it. So as yours, someone else could, you know, look at that page and and copy it or duplicate it.
00:22:24:11 – 00:22:25:22
Rod
Like liquid paper.
00:22:26:00 – 00:22:29:20
Andrew
It’s, it’s a, it’s a, a blockchain based digital stock.
00:22:29:21 – 00:22:55:13
Rod
Okay. So, so, so that’s okay. So it’s a digital stock certificate that can’t be modified, altered, whatever. So it’s, it’s, it’s, it’s solid, it’s secure. The secure. Now, I guess I was thinking about it differently. Okay. I was thinking that, that you utilize that mechanism to do something else, like to sell that token or to market that token or to have a platform to market those tokens.
00:22:55:13 – 00:22:58:10
Rod
Is that is that on the horizon? Is that happening? What’s the.
00:22:58:13 – 00:23:01:22
Andrew
So the three benefits, the one I’ve already shared a security right.
00:23:01:22 – 00:23:02:22
Rod
Sounds good that the.
00:23:02:22 – 00:23:12:16
Andrew
Other one is liquidity. So if you wanted to sell if some one of your investors wanted to sell their shares to someone else, you would need a a website platform like crowd.
00:23:12:16 – 00:23:14:18
Rod
There are there are some out there now Street smart.
00:23:14:20 – 00:23:29:14
Andrew
Right? Yeah. But those live and die on their websites. So if you don’t go to their website or you’re not on their website, you can’t trade, right? Whereas ours are actually like a token that you can sell and transfer to someone instantaneously and for. No.
00:23:29:14 – 00:23:46:12
Rod
Well, I know there are securities. Well, let me back up your PM and offering documents are going to spell out what a person can and can’t do with that interesting asset. So there will be some ise to don t to cross. You know, typically there’s some documentation.
00:23:46:12 – 00:23:53:06
Andrew
Structure five or six C right away is tied to the coin description. Docks are tied to the coin anti am.
00:23:53:10 – 00:23:55:16
Rod
Okay. So they reference the coin, they reference the.
00:23:55:16 – 00:23:56:15
Andrew
Token investors.
00:23:56:18 – 00:24:12:08
Rod
To accredited only. Okay and and and so the documentation spells out the ability to to have liquidity if you want to sell that particular interest in an asset via this token mechanism. Correct. Interesting.
00:24:12:11 – 00:24:36:19
Andrew
Okay. And the third value proposition is accessibility. So whereas. Right now, if you wanted to get involved, one of your deals, you have to know you and chances are be somewhat, I guess people from all over the world could theoretically, but on a Coinbase for example, people are already using that all over the world. So for someone to be invested in our syndications, they’d have to go on something they already trust and feel good about.
00:24:36:19 – 00:24:57:19
Andrew
Now, now’s not a great time to be promoting this. However, I believe in the long run, I’ll say if in the long run this is something that does pick up momentum again, will be will be one of the leading companies in interesting technologies. So to us, it’s a hedge. We haven’t invested a lot of money in it, but we are the first ones to do it successfully in Philadelphia.
00:24:57:19 – 00:25:02:12
Andrew
And so, no, I think there’s no good opportunity if it comes back.
00:25:02:13 – 00:25:33:23
Rod
Okay, cool, cool. So let’s talk a little bit about, you know, you’ve got these different entities, you’ve got operating partners in each one. How do you manage that? How do you stay on top of it? Talk a little bit about, you know, what sorts of operating strategies utilize KPIs, whatever you’re doing to manage that many entities and stay on top so you don’t lose track?
00:25:33:23 – 00:25:53:00
Rod
Because I will tell you, I’ve had 27 businesses, so far in my career and I had many at the same time and my focus was heavily diluted. Now I did not have operating partners and that’s a that’s the big difference. I’m sure they’re incentivized based on performance. They have an equity interest in the assets, correct? All of that.
00:25:53:00 – 00:25:59:12
Rod
Yes. Okay. So but but you still have to stay on top of it. How do you stay on top of it?
00:25:59:14 – 00:26:02:01
Andrew
I was the book Traction.
00:26:02:01 – 00:26:04:11
Rod
Traction tracks use the your system.
00:26:04:13 – 00:26:15:04
Andrew
Not I’m not a rule follower but you know weekly meetings and monthly you know, income statement reviews and quarterly rocks and.
00:26:15:06 – 00:26:32:00
Rod
So you doing the quarterly rocks you’re doing the weekly management. That’s what we do. That’s essential. It’s a it’s an incredible program. And I’m really glad you brought it up. I should get tested of stock in that freaking company because, you know, I brought it up and my mastermind is about, I think, 35 billion in assets represented by that.
00:26:32:00 – 00:26:40:20
Rod
And and I brought it out to them at our first meeting which was here at my comp at at 16 people here is only about a billion here. Yeah. And almost every single one of them has rolled it out.
00:26:40:22 – 00:27:05:09
Andrew
You’re giving me way too much credit. You make it sound like I’m doing it properly, consistently. But when something comes up, it’s very clear to me, like, there’s a problem, there’s issues. If there’s something that’s like, What’s going on? Income statement doesn’t look great at any given time. Or I get I get a note from someone that whatever red flag appears, that’s usually the point where I’m like, okay, we need to get back on track with this.
00:27:05:09 – 00:27:16:00
Andrew
And then the operators, if they’re really self motivated and really have a strong vision and can is the right person, they’ll they’ll clean up their.
00:27:16:00 – 00:27:18:08
Rod
Stuff said if they’re the right person.
00:27:18:10 – 00:27:19:07
Andrew
Yeah.
00:27:19:09 – 00:27:20:04
Rod
Has that come up.
00:27:20:04 – 00:27:21:14
Andrew
Yeah we’ve had.
00:27:21:14 – 00:27:23:08
Rod
You have had to replace them. Yeah.
00:27:23:08 – 00:27:36:09
Andrew
Okay. That’s a that’s the toughest part of the business. Yeah. I really any, any partner, whether it’s life partner or business partner, um, you, you learn kind of what you’re looking for. You don’t put all your eggs in one basket.
00:27:36:11 – 00:27:53:02
Rod
Partnerships like a marriage is easy to get into and hard to get out of. And, you know, and I actually have a resource if you’re listening and you’re thinking about getting a partnership, if you go to Rod’s links dot com or text links to seven two, three, four or five, there’s a list of questions you should ask before you get in a partnership.
00:27:53:04 – 00:28:05:22
Rod
And it’s a very powerful list because, you know, they get caught up in the emotion and you go out there, Yeah, let’s do this. Yeah, we’re going to kick ass. But you don’t ask all the hard questions upfront. You need to you need to stop, take a deep breath and ask these questions. You know what happens if one of us dies?
00:28:05:22 – 00:28:23:19
Rod
What happens? You know, if we don’t get along? What happens if you do more work than I do or vice versa? And, you know, and then you also know I need to trust your intuition. Okay. I can’t stress this enough. If your brain is so powerful, it can pick up on these micro nuances that you’re not consciously aware of.
00:28:23:21 – 00:28:38:18
Rod
And and of course, women are better at this than men, but men can hone it as well. And if your gut doesn’t feel right, trust it because it’s seeing something you’re not consciously aware of. I referenced the book Blink. I know if you’ve read the book Blink, you know, and it talks about these best art experts in the world.
00:28:38:18 – 00:28:54:13
Rod
It can look at a painting and they know what’s a fraud, but they don’t know why. It’s the same thing with a person. You or you can pick up subconsciously. These you know what I’m talking about here as far as your gut. Yeah. Have you had that happen to you, where you’ve where you’ve ignored it and regretted it?
00:28:54:15 – 00:28:57:00
Rod
Yeah. No. Okay.
00:28:57:02 – 00:28:59:02
Andrew
Maybe not very trusting are.
00:28:59:03 – 00:29:02:18
Rod
Yeah, well, I am too, but I actually that’s true.
00:29:02:20 – 00:29:03:01
Andrew
I’ve been.
00:29:03:01 – 00:29:09:12
Rod
Successful. I’ve been screwed so many times. I’m not trusting that much anymore. I’m actually a skeptic. Candidly. It’s a shame. It’s sad.
00:29:09:14 – 00:29:16:14
Andrew
Yeah, but. But the key is, is to walk away from it quickly. If it’s. If it’s not going.
00:29:16:14 – 00:29:18:02
Rod
Well, hire slow, fire.
00:29:18:02 – 00:29:23:23
Andrew
Fast. And I mean, we we had to we had to basically pay someone.
00:29:24:01 – 00:29:24:12
Rod
Off.
00:29:24:14 – 00:29:36:01
Andrew
And we’re better off for it. So it sucks to make it seem like someone else, you know, potentially got over on you or got their unfair share. But really, if you look at the long run, like being free of that.
00:29:36:06 – 00:29:55:14
Rod
Cut your losses. Cut your losses. It’s money well spent. Yeah. So let’s shift gears for a minute and talk about culture a little bit. You know, you’ve got all these different entities. Are you intimately involved in these different cultures or is your operator pretty much responsible for what’s happening on the, you know, like in your brokerage or at your restaurants and so on and so forth?
00:29:55:16 – 00:30:07:07
Rod
Is it is when you speak, you see culture on your bio here, which is why I’m bringing up is it like the global over, you know, the parent company culture or is it these individual cultures at these different businesses?
00:30:07:09 – 00:30:12:15
Andrew
I think I bring the top down perspective. It comes to culture for every business.
00:30:12:15 – 00:30:13:05
Rod
Okay.
00:30:13:07 – 00:30:14:07
Andrew
And I think that’s.
00:30:14:09 – 00:30:18:15
Rod
What does that look like? I mean, what do you what do you do to establish a culture? Just curious.
00:30:18:17 – 00:30:34:01
Andrew
So culture and brand, I think, are tied together. I think you have to you have to stand for something. You have to have a big vision and everyone has to know the vision and know the values. And when you’re hiring, they have to be aligned because you’re going to have a bad hire if they’re not aligned with.
00:30:34:01 – 00:30:53:13
Rod
You as part of the ecosystem interaction, you come up with your core values and they’re super important and integrity better beyond their. And then you come up with your vision for, for the, for the company and, and, and, you know, an entrepreneur or a visionary. His job is to enroll people in that vision, get them behind that vision, get them supporting that vision.
00:30:53:13 – 00:31:15:05
Rod
And the more you can involve the team in the really the set up in the implementation of that vision, the more they get behind it. And I’m sure you remember that from the book Traction as well that’s there are other books that speak to this as well. But the Rockefeller habits is another one. Yes, that’s the same. Okay.
00:31:15:05 – 00:31:33:00
Rod
We went a little political before we started recording here, and I told you just how staunch I am on one side than the other. And you you supported my position by bringing up the fact that you’re reading Elon Musk’s book right now. I haven’t read it talk. Tell me about.
00:31:33:00 – 00:31:37:16
Andrew
It. Ashley Vance, 2015. I wish I read it in 2015, I would have bought a bunch of Tesla stock.
00:31:37:16 – 00:31:38:12
Rod
Oh, no kidding.
00:31:38:12 – 00:31:46:06
Andrew
It’s it basically it reports on his early life and and his founding.
00:31:46:06 – 00:31:46:14
Rod
It’s like a.
00:31:46:14 – 00:31:52:22
Andrew
Biography of co-founding his first Internet company. And then it’s like he was in part, part or something.
00:31:53:00 – 00:31:53:05
Rod
Okay.
00:31:53:10 – 00:32:15:00
Andrew
And he was. And then space X was this. He wants to he wants to go to Mars, humans to Mars, and that’s that. So when you talk about big vision and getting people on board like people are are want to work for his company for less than they would make other places because his vision is so strong because his work ethic is so strong and he can bring resources to the company.
00:32:15:00 – 00:32:34:14
Andrew
So that’s a good example of where having a big vision like it’s literally a universal like space travel mission that engineers are going to go want to work for his company and then they’re the ones solving the problems to get the rockets into space. So he’s creating almost creating the vision and then bring people onto his team to get there.
00:32:34:14 – 00:32:36:23
Rod
He’s knitting the parachute after he jumps out of the plane.
00:32:37:00 – 00:32:37:07
Andrew
Is what he.
00:32:37:08 – 00:32:44:06
Rod
Was doing. You know, he’s brilliant at it, honestly. I mean, what was it, three or $4 billion staff? Yes, he’s got the solar, He’s got the space X, I.
00:32:44:06 – 00:33:06:15
Andrew
Don’t have the solar six. Tesla. Yeah. And then everyone’s criticizing him publicly about Twitter. And my only thought is like, let’s see what happens. You know, the way he, he, he where he’s an engineering mindset he’s not he’s not a a nice guy to to people that he doesn’t want part of his company like we know that right.
00:33:06:15 – 00:33:08:13
Andrew
But let’s see what what can happen.
00:33:08:15 – 00:33:28:03
Rod
Oh, I think he’s fantastic. He’s one of my heroes. I’m honestly, he can do no wrong as far as I’m concerned. I love the guy and and, you know, I mean, there was so much crap and censorship on that platform. It’s still is still censorship on other platforms. I remember my wife and I were walking on Lincoln Road, and she’s a staunch Trump supporter.
00:33:28:03 – 00:33:54:17
Rod
I mean, big time, she’s black, which is unusual. And she saw Guy, this is when he was running and she saw the second time she saw a guy with a Trump and she’s like, yeah, Trump And and the guy interviewed her on Lincoln Road. And and she just talked about how she liked him because he was staunch, staunchly against human trafficking and how he’d, you know, earmarked 35 million towards human trafficking and that she loved that he does what he says he’s going to do.
00:33:54:17 – 00:34:12:04
Rod
And it got, I don’t know, like three or 4 million views. And then they took it down and that’s all she said, you know this. And so that’s just a prime example of censorship, which to me is just inexcusable. Frankly, We live we’re supposed to have freedom of speech in this country. And and that’s why he’s my hero.
00:34:12:04 – 00:34:28:20
Rod
I mean, you know, the fact that he went and it may not have been the wisest investment, although I think he has a plan for it. Honestly, I think it’s going to be more like a a what’s that platform in China that everybody lives on? Is it WeChat? What is it? WeChat. WeChat. That’s it. I think. You think that’s what he’s doing or what do you think?
00:34:28:22 – 00:34:35:12
Andrew
So I think he’s a technologist. I don’t think he’s a like a civil rights activist.
00:34:35:12 – 00:34:36:10
Rod
So not a great.
00:34:36:10 – 00:34:45:09
Andrew
Look at look at what his strong suit is. It’s it’s it’s developing like world class technology at lowest prices, right? Like right like.
00:34:45:09 – 00:34:49:06
Rod
The rockets like like he got prices for rock the electric guy in that So.
00:34:49:06 – 00:35:13:17
Andrew
They made I don’t know I just read the chapter about his Tesla journey right and how like other car companies like totally overlooked what he was doing and he did everything from with basically a blank slate said this is the problem I want to solve. Right? And he brought world class engineers with this grand vision to like, reduce the carbon footprint, all this stuff that made them want to work for the company and and they they made it happen.
00:35:13:18 – 00:35:26:06
Andrew
And he was there. Well, sure. Leading bringing resources. He was tinkering. He was designing. But really, like all he had was a vision he made people believe in so strongly that they work day and night for him. And they built the.
00:35:26:09 – 00:35:44:18
Rod
You know, who else did that was jobs. Jobs with with the with all the Apple products that that he you know, he was like the visionary and he and he was insistent on how it went. And you know guys that’s a formula for massive success is you you come up with that big vision and you hire the best possible people you can find because you enrolled them in that vision.
00:35:44:20 – 00:36:00:07
Rod
And Jobs is a great example and Musk is a great example of the end result of that. I’m sure Bezos as well. I’ll bet you he pretty much did the same thing, brought in the best people he could find. I remember when people were making fun of him because he was going to sell books online, I think the wealthiest guy on the planet.
00:36:00:11 – 00:36:19:16
Rod
And I still think that companies going to big places because I spend so much frickin money on I mean, it’s so easy just to buy something there. Why go to the store when I can have it the next day just by clicking a few buttons and have it in, you know? Biden in 10 seconds, right? Yeah. So but well, that’s that’s I love that conversation, that whole visionary conversation.
00:36:19:16 – 00:36:40:13
Rod
I love that a lot. So, you know, this is a multifamily podcast, okay? And I get a lot of people that want to invest in multifamily like you’ve done and you’ve done all these other things as well. But you know, what suggestions would you have for someone that you know that needs to know? They know they need to do something, they’ve got a W-2, they’re not they don’t have the time freedom they want.
00:36:40:13 – 00:36:46:14
Rod
They don’t have the money, freedom they want, and they know they need to do something, give them some advice.
00:36:46:16 – 00:37:07:05
Andrew
I think it’s probably every single person on the podcast would would have brought it up at some point. But getting into your first house via house hacking has got to be the easiest way to get through real estate investing for sure. It’s it’s almost foolproof because you’re going to rent or buy anyway. The money’s going out, so it’s already a planned expense.
00:37:07:07 – 00:37:25:23
Andrew
Yeah, Hopefully you’ve got a job that covers you for it and then boom, that’s how you’re building equity. I mean, our house was just a price for 600 grand that we had bought for $315,000 in 2015. I was, I was renting for $500 versus I mean, I don’t know how much you want the math, but I moved in with my wife.
00:37:26:00 – 00:37:27:01
Rod
You made some good money.
00:37:27:02 – 00:37:42:23
Andrew
We made some good by I moved in with my wife into a house and we were Airbnb being bedrooms. No house. Wow. House hacked my first one and then my second one. It was food on the money table. We were trying to build our business. You know, all the money we earned from our business we put back in the business.
00:37:43:01 – 00:37:44:14
Andrew
Yeah, that. Okay.
00:37:44:16 – 00:37:57:12
Rod
Stop you. Sorry. Go ahead. Want to stop you there? Know that something you just said I want to hammer home. We said the fact you said all the money you made went back into the business. I will tell you, every business I’ve ever had, I except for the current ones now, because they’re so profitable, I’ve never pulled money out of.
00:37:57:12 – 00:38:16:10
Rod
Yeah. All the money has gone back in to build those businesses and it’s not true. I have my litigation support company made a lot of money there, but it was profitable before I pulled my. Yeah. So you live below your means initially. So you build the business, you put all your money back into the business and you don’t go out there and blow it until it’s tell rolling.
00:38:16:10 – 00:38:19:12
Rod
Okay? And that applies to real estate as well. Would you agree?
00:38:19:14 – 00:38:35:20
Andrew
I think you said I’ve never put this together. Live below your means. House hacking is going to reduce your means, right? You’re able to to live for less and that allows you have much easier time to live below your means because all of it’s going into savings. Yes.
00:38:35:20 – 00:38:54:00
Rod
Right. It’s fantastic. Fantastic example. You know, besides the horror show that I’m sure you’re going to it’s going to be over here soon in your journey, were there any other epiphanies or. Aha moments? Really? Okay, now I get it that you haven’t spoken about already. You may.
00:38:54:02 – 00:39:10:08
Andrew
I’ll say in through this horror story, we invested in other properties that were our most successful ones. Like our last three deals have been our three most successful deals. So it took the beating to get where we are today.
00:39:10:11 – 00:39:11:09
Rod
That’s the way it works.
00:39:11:09 – 00:39:28:13
Andrew
Yeah. So while it’s a horror story, the key is I didn’t you don’t give up. You don’t say this is it for me, right? Because you’ve paid so much money for that lesson, you better keep doing it. And I think a lot of people there their first maybe not their first deal, but one of their first five deals.
00:39:28:13 – 00:39:30:05
Andrew
Let’s say something’s going to go wrong.
00:39:30:06 – 00:39:30:17
Rod
Oh, sure.
00:39:30:17 – 00:39:42:16
Andrew
You can’t be 100% successful in real estate investing, Right? I think that’s like a story people read about real estate investors who are now successful and like people who are syndicators, they don’t want to tell you about all the things that happen.
00:39:42:17 – 00:39:47:23
Rod
Oh, I’m going to raise money. I make them tell me, you know, I you know, tell me about a failure. And so.
00:39:48:02 – 00:39:48:19
Andrew
So we do.
00:39:48:19 – 00:39:52:02
Rod
That at my bootcamps as well on panels like, yeah, what went wrong?
00:39:52:04 – 00:39:55:20
Andrew
And that’s why I love reading biographies. A lot of your favorite.
00:39:55:20 – 00:39:58:16
Rod
Just out of curiosity, I said What it takes.
00:39:58:16 – 00:40:06:21
Andrew
My Steve Schwarzman is probably my Number one Principles by Ray Dalio. There’s a short biography at the beginning. Shoe Dog by Shoe Dog.
00:40:06:21 – 00:40:08:10
Rod
That’s when I had Alexander.
00:40:08:11 – 00:40:32:08
Andrew
Hamilton like his like his story is incredible because you go they all went from oh crap, we’re going to be bankrupt to wildly successful. And it wasn’t just, oh crap, we’re going to be bankrupt. Once it was like three or four or five times in their first ten years of their business. Right. So if you expect to become wildly successful without going through that same, you know, almost the.
00:40:32:08 – 00:40:33:07
Rod
Hiccup.
00:40:33:09 – 00:40:52:16
Andrew
Situation and I heard what? You have it. Yeah, you got it. You got to do it and keep doing it. And I think the big vision tied with keeping going if something bad happens, like that’s that’s the predecessor. So if you’ve learned one thing, it’s the big vision is going to get you through those moments of that. When you do come to the other side, you’ll be able to use the lessons in order to make the money.
00:40:52:20 – 00:41:11:17
Rod
Listen, the biggest companies on the planet were born in tough times. And and, you know, I just watched that movie with Matt Damon on the shoe dog story. Yeah. Yeah, It was awesome. Awesome movie. Yeah. If you haven’t seen it, I highly recommend it. I forgot what the name is, but yeah, great. Great. Do you have any did you have have you had any mentors along this journey?
00:41:11:19 – 00:41:33:16
Andrew
Yeah. Yeah, I, I do have a couple of coaches now, so if you are independent, if you’re working for a W-2, you might have a supervisor, someone you can go to. But if you’re on your own the business coaches, executive coaches, they’re they’re super helpful. Sure. Sure. You don’t want to take that stuff home to your wife and you don’t want to, you know, go to your employees or sorry.
00:41:33:18 – 00:41:51:18
Rod
It coaches bridge the gap from where you are to where you want to be. They shorten the learning curve and, you know, typically they have no secondary gain. So, you know, when you’re when you’re an executive or a CEO or you or you’re starting your own business, you have your own business, it’s not a lot of people you can go to that have no secondary gain from their advice to you.
00:41:51:20 – 00:41:56:20
Rod
And that’s why Coach is so powerful. I’ve had coaches life. I got two or three right now and then.
00:41:56:20 – 00:42:17:19
Andrew
Yeah, just having people who you’re in your corner, you don’t want to call them all the time. You definitely don’t want to make too many asks, but in times of need, when you like need to talk to someone, you know, grooming those relationships, letting people you know, feel good about helping you like that, there’s no there’s no substitute for that.
00:42:17:20 – 00:42:18:09
Andrew
Great. That’s the.
00:42:18:09 – 00:42:24:03
Rod
Best. Agreed. Agreed. So so we just talked about books. Is there a book that you like to gift more than others?
00:42:24:07 – 00:42:25:23
Andrew
Billionaire Real real estate investor.
00:42:25:23 – 00:42:28:02
Rod
Millionaire. Real Estate Investor by Gary Keller.
00:42:28:02 – 00:42:29:13
Andrew
Jay Patterson Oh.
00:42:29:13 – 00:42:34:17
Rod
Yeah, yeah, yeah. So I had Jay on the show by the well, really esteemed. So wow. Yeah.
00:42:34:19 – 00:42:35:23
Andrew
That’s also I was.
00:42:35:23 – 00:42:41:01
Rod
Like you can’t get Gary I mean Gary does one interview a year maybe really. But yeah yeah.
00:42:41:04 – 00:43:03:21
Andrew
So it it’s so well-articulated about how to get started. And then if you’re at a point where you’ve got 5 to 10 houses is where there’s like different levels of buying your first ones, the first level getting to ten units or 20 units is a second level. Then you want to start to scale. It breaks down the steps you have to take.
00:43:03:23 – 00:43:15:23
Andrew
And so wherever you are in your journey, I think you can learn something from that. And there’s a mindset piece too, which is helpful. Gary Sellers I think the where I got like start with the big Y, big models.
00:43:16:01 – 00:43:18:12
Rod
The one thing big goals, big me. That is one thing to.
00:43:18:14 – 00:43:19:00
Andrew
Think, Well.
00:43:19:01 – 00:43:20:10
Rod
Yes, so.
00:43:20:12 – 00:43:25:03
Andrew
So I would say that’s, that’s my recommendation if you’re trying to get started.
00:43:25:03 – 00:43:50:11
Rod
Good, good, good, good. Great, great suggestion. Now, I know you’ve got a master of arts in design and so you’ve got a creative side to you, you know, and and that’s not as linear as some entrepreneurs. And so when you were first getting started or any time in your journey, how did you get past fear, like maybe doing a larger deal or getting into something you hadn’t done before, like restaurant business or whatever?
00:43:50:11 – 00:43:52:17
Rod
How did you get past the fear?
00:43:52:19 – 00:43:56:20
Andrew
I I’m not sure I did. Oh, really? I think I think.
00:43:56:22 – 00:44:02:15
Rod
You still operate in fear, which is most entrepreneurs that are smart keep a little bit fear.
00:44:02:16 – 00:44:39:13
Andrew
Going up and down. Yes. Roller coaster. Okay. I love I love the process. So in design, there’s a concept called tolerance for ambiguity. And that’s the idea of when things are unclear, you have to be able to tolerate that. And I think that’s something that has helped me, you know, in owning businesses when things are up in the air being okay with the idea that things are up in the air because artists are like, you start a painting, it’s going to look terrible until the very, very, very, very end where if you design a product, it could look terrible because you’re prototyping being okay and just going through the process no matter what happens.
00:44:39:15 – 00:44:42:23
Andrew
And then on the outcome, you’re going to be better off for it because you worked through it.
00:44:43:02 – 00:45:03:17
Rod
Tolerance for ambiguity. I love that. Let me tell you why. Because for analytical people getting into this multifamily business, they have to check off every single freakin box before they make a move. And I love you and you know who you are. And this is a great example of that because in the multifamily business, you’re not going to see the whole path, but you got to take that first step.
00:45:03:19 – 00:45:24:01
Rod
You know, like Dr. Martin Luther King said, you take that first step and faith the next step will be revealed and that is a great descriptor for that exact same dynamic. You know, that holds people in analysis paralysis, right? Yeah. You know, I know you’re big on mindset like I am are any favorite quotes that you enjoy that you live by?
00:45:24:03 – 00:45:32:03
Rod
You know, like I’ve got to live with passion. That’s what a Tony Robbins quotes. I love that one. Love, passion. Is there anything that that that you that.
00:45:32:04 – 00:45:52:21
Andrew
You know what the one that’s like coming to my mind Maybe it’s not the one I think about the most, but it’s the one I thought about most recently because I saw it somewhere. But it’s it’s as someone who deals with self-doubt a lot and the imposter syndrome, like, it’s it’s I forget the name. It’s a long one.
00:45:52:21 – 00:46:03:06
Andrew
It’s like a paragraph, but it’s what’s it’s a people. Your deepest fear is not that you’re inadequate.
00:46:03:06 – 00:46:04:02
Rod
I know that’s that’s.
00:46:04:03 – 00:46:06:02
Andrew
Your deepest fears that you’re powerful beyond measure.
00:46:06:02 – 00:46:08:22
Rod
Measure. Yes. Strength not your fear that hold you back.
00:46:08:22 – 00:46:14:02
Andrew
And and that’s really important. Marianne Williamson Yeah, it gives me chills sometimes, you know, when I do.
00:46:14:02 – 00:46:26:15
Rod
I actually recited at my bootcamp. Yeah, I got, I got. Chichi. Oh, there you go. Yeah. You know that exact quote? I recited my book. Yeah, it’s brilliant. You where you don’t dim your light to do that, You know, for other people.
00:46:26:18 – 00:46:45:00
Andrew
And I think just becoming aware that you becoming you getting on stage and and being the person that you could be the best version of yourself is a little scary. And I think just becoming aware of that makes, you know, makes me feel free to take the next step. Yeah. The other one that’s a shorter version is if not me, who?
00:46:45:00 – 00:46:46:06
Andrew
If not now, when?
00:46:46:08 – 00:46:49:14
Rod
That’s my dad. That’s like, tell me that. If not now, when? I love.
00:46:49:14 – 00:46:52:00
Andrew
That. Yeah, yeah. Go, go, go, yeah. Love it.
00:46:52:00 – 00:47:03:14
Rod
Love it, love it. You know, if you could teach school kids something for an hour or two a week, what might. What might it be?
00:47:03:16 – 00:47:31:21
Andrew
Well, I studied, you know, the design thinking process, and it’s something where you identify what the real problem is. You brainstorm solutions and you you test the solutions out. And that’s really where that’s the innovation, the process of innovation. Engineers use that process, love it to love it. So, you know, we need inventors and innovators and we don’t just need, you know, business students or, you know, art students, right?
00:47:31:21 – 00:47:41:11
Andrew
So I don’t think they teach that process in school because it’s very creative. And I think that’s one of the most important processes I love.
00:47:41:11 – 00:47:53:12
Rod
It is absolutely that trial and error process, love it. You know, on this journey of yours towards success, what are some things you had to cut out of your life to get there? Do you have kids?
00:47:53:18 – 00:47:54:10
Andrew
I have two kids.
00:47:54:10 – 00:47:57:01
Rod
Two of two kids? How old are they?
00:47:57:03 – 00:48:00:06
Andrew
Three and a half and almost two. Wow. Little kids.
00:48:00:06 – 00:48:01:20
Rod
This is. This is good.
00:48:01:20 – 00:48:02:16
Andrew
I’m lucky to be here.
00:48:02:19 – 00:48:09:17
Rod
Right? Right. So. So what, if anything, have you had to cut out for this success journey of yours?
00:48:09:19 – 00:48:32:14
Andrew
I’ll I’ll reverse the question. I think it’s super important to be balanced. Right. And I think people who start their business go in isolation or people who have kids go in isolation and they don’t see their friends. I don’t watch TV. I don’t you know, I don’t spend I don’t go out drinking or partying anymore as much as I did.
00:48:32:14 – 00:48:54:05
Andrew
So, you know, I wouldn’t say I cut that out, though. I just started, you know, growing up. And but but my my advice would be for people who get into that, like, you got to go travel. You got to go do things by yourself. Yeah, I do go to couple’s trips and that’s going to help help you survive the marathon of running our business.
00:48:54:07 – 00:49:13:18
Rod
Yeah. Yeah. Well, let me give you a little coaching, okay? Sure. My greatest regret in life was coming home to my kids. Actually, right across the bay here is what’s now probably a 20, $25 million home. It was 8 million at the time. And playing with my kids, but not being there mentally. So don’t do that. Yeah, because you got a lot going on.
00:49:13:18 – 00:49:32:12
Rod
Yeah. So put the phone down and block out the time, crawl on the floor, do what you have to do. And I want that regret. My kids themselves are great, Dad, but I didn’t live up to my own. Expect Haitians and and I told my students as well say that yeah my student I tell them this as well because you know yes financial success is awesome and important and great.
00:49:32:14 – 00:49:37:10
Rod
And if you lose sight of what’s most important, trust me, you’ll regret it.
00:49:37:11 – 00:49:39:00
Andrew
So focus way or two feet.
00:49:39:00 – 00:49:50:00
Rod
Ah, that’s it. Well, listen, brother, I really appreciate you coming down here for this. And, you know, it’s been a really enjoyable conversation and little different than normal.
