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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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