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good morning good afternoon good evening

folks michael’s uber one rents atlanta

time and as promised in this morning’s

daily financial news i have a special

guest i have a student for my course how

to get started one rental at a time who

has been doing the work and is a little

bit frustrated so let’s welcome chalet

to the show and see what’s going on how

you doing buddy

good good morning how are you michael hi

i’m doing well so thank you for reaching

out in our private facebook group thank

you for setting this up i think a lot of

investors and frankly homeowners

are frustrated with what’s going on

given low inventory rising prices now

rising mortgage rates

so i’m glad we can have this

conversation so give the audi let’s

introduce the audience to who you are

what you’ve been doing uh what you’ve

been doing in the course and then we’ll

kind of dig into the frustration

awesome so good morning everyone um

my name is chilit i i came across one

rental at the time about a year ago

and after

watching a couple of uh youtube videos i

decided to purchase your one rental at

the time course

and that was back in march of last year

so

after i purchased the course site i went

through all the contents and i tried to

i follow what you’ve been teaching in

the course

and i picked the market i started out

with the market near where i live trying

to find trying to learn the market find

finding yield trying to learn what’s

average what’s good what’s what’s better

what’s bad

um

about a month few weeks a month

a month and a half into it i realized

that most of the yields and in in the

market where i live it’s it’s terrible

right so i expanded out um to uh to a

market um specifically sacramento which

is about an hour and a half from where i

live

and i start studying that market as well

and again i spent about a month or two

um trying to

pick just a zip code in sacramento area

and after i i narrowed down to two zip

codes in sacramento area that is

kind of in my in my price range

um started studying it studying the

market and learned the yields in in

those two zip codes and same story i i

kept getting back

negative yields in in that area where i

was looking okay so

and and i i tried to be persistent and i

kept i kept watching the market i kept

looking at at the market once or twice a

day sure i i’m i’m

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i’m really eager to get started i really

want to get that first deal under my

belt

but but when you’ve been preaching never

ever buy alligator never ever buy bad

deals

so i want to pull the trigger so bad but

i don’t i haven’t been able to find

anything that i could could pull this

trigger on okay so all right so well i’m

gonna kind of summarize what i hear you

saying and kind of translate it for the

course right so um so what so what is

your buy box today

um my buy box today is um

three two okay

uh single family home okay um

and um i i have been lately looking in

like i said sacramento area two zip

codes okay and

um

that’s that’s pretty much it what what

is the um

what on an average day how many

available listings in that area

um buy box sorry the area that i’m

looking at there are about

40 to 50 listings oh okay so not bad all

right i expected less okay so plenty of

well

that’s a lot because my buy box says

eight today so 40 to 50. okay

um so there’s a couple of things to kind

of think about as we evaluate your buy

box first and foremost obviously yield

uh prices one down payment make ready

what have you done to validate rents

because what i’ve seen in some markets

is people are actually underestimating

rents today uh especially for houses so

have you gone about validating the rent

today because maybe your rents are low

i’m just

just guessing at this point so i’ve done

um i’ve gone on um i’ve called the

property management companies

a couple of them to kind of get a

general idea and and um their numbers

are pretty close about a couple hundred

dollars difference

and i’ve gone on um

online platform like facebook

marketplace

and um

craigslist sure just kind of compare and

the numbers are kind of all over the

place actually yeah so i’m so i i’m

doing my best to kind of

get a guesstimate i kind of pick

somewhere in the middle yeah and uh

while i’m looking on the um the online

platform i’m trying to gauge

from the pictures to the best of my

ability sure the conditions of the house

that they show

and and um comparing it to the

homes that i’m looking into um kind of

in a well well lived in like you said

yeah yeah i’m not buying anything brand

new so i’m trying to use that to gauge

and then estimating my guests my rent

from there okay yeah so one of the

things that i would probably do in this

situation again this may not be advice i

would have given two years ago but it is

advice i routinely give today is i think

you need to do my homework on rent

because when i listen to dion and matt

do their binder strategy

rents are up

20 30 sometimes

uh so people can’t be all over the place

so i would actually look for rental ads

in your buy box right go find some

actual houses three twos in these two

zip codes and call and be a tenant and

see what rents actually are gonna be

right because online apps are different

all these things

and just validate because again

you could be negative because you’re not

your your rents are um

and again you’re probably still going to

be negative but at least you’re going to

know so i would do more homework on rent

today also do some find a real estate

meetup uh matt the mortgage guy lived or

invested in sacramento i talk to on

wednesdays okay uh he does he’s a part

of a meet-up so you can ask him

uh and i would go to the meetup even if

i had to drive to it

just just to tell people hey this is

what i’m looking for

and validate rents i think priority one

is you got to validate rents i think

you’re being too conservative today and

again i would not have given that advice

two years ago okay because i think rents

were very predictable two years ago

second

it sounds like you’re you’re doing

everything like me where you’re only

looking online

right that’s all i had when i for 15

years

the other thing i would do is i would go

to the real estate meetup and it would

almost be like a business card hi my

name’s chilette here’s my phone number

i’m looking for three bedroom two bath

homes in this zip code i would hand

those out like candy

because of the deals i’ve closed in the

last two years

10 of 11 were from a network or from

events like that only one was online

it’s just a different world

today because there’s so little

inventory so you need to get out of your

comfort zone

you know flex a little bit and again i

would literally have a business card hi

you know it would be my name’s gillette

if you have an llc whatever that is

phone number and on the back of it would

be i buy three bedroom two bath homes

in these two zip codes call me

right away because again agents want to

double in sometimes people want out so i

think we gotta

i think we have to do more today than

we’ve had to do in the last two years so

that’s advice number two okay um

one more piece of advice single-family

homes the stuff that i love today

are the things that are being scooped up

the most because homeowners are coming

off the sidelines because rates are

going up

okay matt the morgan or not matt the

lumberjack landlord and dion had really

beaten into me and now i’m convinced

if you you again if i was starting out

today i actually might look for twos

through fours

okay a little bit less competition

a little bit different rent structure

but the price points are at least on the

twos

close so i i might create a separate buy

box same zip codes

because again it seems like you know the

area

but i might look i i actually might look

at twos threes and fours as a separate

buy box because

again right you hear the lumberjack all

the time he hasn’t been able to buy a

house

in like five years that made sense but

he’s cleaning up the twos through fours

oh wow less competition so again i think

i think in today’s environment

we have to we have to

move around but again as i’ve said in

the daily financial news this morning i

think come summertime

as homeowners get priced out with higher

rates and they get nervous because of a

recession

i think your experience in single

families might be okay but you know

there’s a there’s a lot of time between

now and then so i would i would not stop

i would i would add a duplex through

quad buybacks make sense no totally i i

actually started dabbling into that um

in the same box

that i that i set up for three and twos

in a zip code i actually added on

realtor.com duplexes multi-family um

just just to start expanding out because

i’ve been frustrated not being able to

find anything so yes i’m trying to

expand out so no thank you for the

suggestion yeah so i think there’s three

things so again this goes for everyone

including myself

i’m trying to buy homes

between now and april or may 1st april

15th or may 1st it’s going to be a

market that’s

irrational is i think the word i use

today because we’re going to have

homeowners that want that forever home

and they’re going to make bad decisions

which for you and i suck because we get

alligators and no cash flow

so between now in the middle of or april

or may

if i was getting started i would first

add a buy box through twos through fours

still residential financing

less competition all of that

second i would get out of my comfort

zone and this is hard for me because i

wanted to live in my computer i would go

to meetups with a business card that

says my buy box is

and maybe now your buy box says i buy

homes here or

you know two through four is here and i

would it would almost be like a

signature line on my gmail account i

might because you got to tell everybody

what you’re buying because you want that

phone call again 10 out of 11 deals

where phone calls coming in or emails

coming in i think one was a text you

still buying these absolutely

and then lastly

rents have escalated so fast

i believe all the online apps are wrong

i would actually physically try to be a

tenant and see what’s renting in your

area and that goes through duplexes

through quads also because a hundred

dollar move

could take you from negative to positive

yeah 200 move could take you from

negative to a good deal so we really got

to do that so i think there’s three

areas

that i would focus on and again all

three of those i may not have said two

years ago it’s just the market we’re in

we got to deal with the market we have

not the market we want

so um

yeah and again the last thing i’ll say

is i’m glad you’re frustrated

because if not you would have done a bad

deal

right

yeah that that’s the only silver lining

i could get out of this that um

maybe yeah maybe the good the good thing

is i haven’t bought a bad deal but if

you know you you announce new

deals on your youtube channel every day

congratulations i try to they’re they’re

not in sacramento

so that sometimes gets me even more

frustrated because i want i want to have

a deal under my belt and i haven’t been

able to so it’s yeah it has been it’s

been tough it’s been yeah it’s it but

the good news is i think there are three

things you could do to increase your

chances

uh even yeah i yeah so again keep it up

um

you probably should be feeling this way

right you’ve been doing the work you

have a buy box you have you have plenty

of inventory 40 to 50 listings

um but yeah never buy negative cash flow

it’s not okay

yeah so i know it’s tough but you know

what i’m

this is i’m i’m i’m sold on this one

rental at the time

um process and um just just excited and

just want to get going and just yeah you

know i know it’s it’s going to be a

grind and you know

you you’ve been telling everybody that

the first few years first four years

gonna suck yeah

i just want to get i just started i

started that my first four years sooner

rather than later all right so so do me

a favor uh i’m going to treat you like

one of my sales reps now so i want you

to repeat to me the three things that i

told you

okay so you told me to uh increase my um

my buy box start start looking into twos

and fours okay so be clear i want a new

buy box

yeah new buy box new buy box um start

starting looking into twos and fours you

want me to go and um confirm the rent in

the area just because in the past two

years it’s it’s it’s a new newborn game

it’s different

and um

and the other one you told me is um you

you want me to get out of my comfort

zone and start going to meetups instead

of just staring at listings on my

computer all day long and um go out

there and pass out my business cards and

tell people what i do what i’m looking

for tell everybody you beat what

gillette wants to buy

yeah no be obnoxious

yes because you just never know

so

uh i think with those three things um

you know let me know how they go in 30

days reach back out let me know

uh i think i think you’ll be surprised

and and

yeah i i want to encourage you to keep

going

it’s hard it

this like i’ve said in the last month or

so this is the hardest market to get

started it just is

right

you know i i help i don’t know somewhere

between three and four thousand people a

day now gets interacted with one rental

at a time and we’re only announcing one

or two wins you know i think we’ll do

like seven wins for the week i should be

announcing 50 wins

it’s hard today it’s hard for everyone

um but i tell you if you increase your

network you tell everybody where to buy

boxes look at two through fours and

again really validate rent my sneaky

suspicion is you’re under you’re being

too conservative and i know how the

spreadsheet works if you’re off by 150

bucks

you know that could take you positive

so um

don’t stop

have a new buy box don’t throw the other

one away okay right because you that is

dna that you’ve earned so keep it up

crack the numbers because again i think

in may

you’re going to watch both explode

but we’ve we’ve got to get there so i

you know

i want to encourage you to keep going

nice work

i understand it’s frustrating sometimes

well yeah i appreciate you taking the

time to talk to me i i was surprised

when you when you responded to to my

message and offered to to do the

interview and i want to help everybody i

can’t yeah it just shows shows um that

you you truly do want to help people and

you you take take uh some time away from

from your day and doing everything else

you to talk to me so i really appreciate

your time awesome and thank you for

letting me record this this will be

uploaded it’ll be up at four o’clock

today

hopefully lots of people realize that

see this and go wow i’m i was frustrated

like i’m gonna do the same things folks

validate rent a lot of you are too

conservative

have a buy box two through fours i talk

about houses because that’s what i want

if i was starting out that’s probably

not the right place to be maybe it’s two

through fours

uh and again uh tell be obnoxious

tell everybody and your brother what

you’re like tell the person like tell

your mailman what your buy box is i mean

just be obnoxious that’s how you get

deals today so buddy thank you very much

for your time thank you for being a

little uncomfortable and sharing what’s

going on you have a great weekend thank

you michael you you do as well awesome

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