Episode 106 – David Gutierrez on The Military Millionaire Podcast

Show us some love!

88 / 100

Episode 106 – David Gutierrez on The Military Millionaire Podcast

00:00 - 05:00

Intro:

You're listening to the military millionaire podcast, a show about real estate investing for the working class. Stay tuned as we explore ways to help you improve your finances, build wealth through real estate, and become a person that is worth knowing.

Sponsor:

Hey guys, if you're looking to take your investing, business, life or just yourself to the next level, then I have something for you. The War Room real estate military mastermind group is a mastermind group that meets weekly in small groups of five to six people to help you hold yourself accountable and really experience that growth.

But we also have a monthly guest speaker that we bring in and we've had guest speakers talk about mindfulness, taxes, or bringing in somebody to talk about marketing, we bring in very specific topics that will adhere to very broad any any kind of real estate investing or investing or entrepreneurship that you want to do, and will really help you out. And we let you ask these speakers questions and get very personal with them. And then back to the small groups, weekly accountability for what you're trying to achieve, and just being surrounded by like minded people, and they say your network is your net worth. I know that's an overused phrase, but I recommend checking it out.

So just shoot an email to [email protected] Once again, that's [email protected] and we'll send you some more information.

David:

What's up military millionaires. We're here today with David Gutierrez, who is a friend, mortal enemy. David is the co-founder of storehouse 310 ventures which is the turnkey company that you've heard Stu Grazer on here at some point talk about he's also a commander of the Navy.

He does some cool stuff. He wears ball caps backwards, which makes him you know, like when I was in high school that made you the cool kid. So you know, it's got to be the cool kid and he's a friend. Right, so like Alex and I and David, we were all members of this mastermind group. So we bust each other's chops all the time. And well, he finally decided that he would grace us with his presence, and we're gonna record a podcast is gonna be a good time.

So David, welcome to the show!

David Gutierrez:

Yeah, no, hey, thank you. Great intro, Dave, a lot, a lot of real, real flattering things that I've never really had a quiet intro when I correct the record since we're recording a couple things.

So one, I don't wear the hat one though. Let's even start before that. When you're in high school, even if you wore a hat backwards, you were not the cool kid. I just want to make sure that that's understood. You are always a cool kid even now. The hat is the light from above. I'm bald. So it sends a reflection on the recording that you don't want that. And I didn't wear it the other way because then it puts a shadow on your face. So it's very practical. And I haven't shaved my head for a couple days. So I look like a hippie.

So there you go.

David:

All right, well, very well, why don't you tell us a little bit about yourself?

David Gutierrez:

Yeah, so, no, I appreciate it. appreciate being with you guys. Oh, actually one more correction. I have never been invited on this show. I've been asking. I've actually never invited myself to any show. But I have been asking you to have you on our show for what...a couple months now? Since we had a few months?

David:

That is awesome our show is...we appreciate you.

David Gutierrez:

Well, 100% oh, yeah. So like you said, the commander in the Navy has been in for 18 years currently the commanding officer of cyber strike activity 63 in Fort Meade, Maryland. And then Stuart Grazer and I were both Naval Academy roommates a long time ago, and had been friends and brothers and for you know, since then, and then we decided to start a turnkey company based on our experiences with our own experiences that we had going through providers in different parts of the country that just were subpar.

And I always like to say just to kind of give a little context to that, um, the company that I had gone with settled out of court for about $30,000 just wanted to write me a check. And it was all based on just terrible work that they had done and stuff they said they did and didn't do. And it was just a bad experience. But it was a blessing in disguise for both Stu and I because it really prompted us to start a business because we knew we could do it better. So that's storehouse 310. The background for that, and, you know, it's, it's, it's been going awesome. I have a couple more years in the Navy to hit 20. And that is decision time at that point. But up until that point, we'll hope to continue scaling storehouse 310.

David:

Go to 40. Right.

David Gutierrez:

What's up?

David:

You don't have 40 right?

David Gutierrez:

Sorry, you cut out.

You know, God bless, I yeah, I thank God for people that are in this country that want to serve for 40 years. I mean, that is what an accomplishment. Right? And, you know, our country needs it. But that's a long time to think that you hit 20 years. You're only halfway there. Yeah, I don't know.

05:00 - 10:00

David:

I can do it.

Alex:

I love that you said that you're gonna start a business because he saw somebody else do it. Like it inefficiently. And I identify with that because there's so many, you know, so many businesses that you think are daunting because just because they're there and then if you really get the nitty gritty, it's like a lot of businesses are like, run by regular people who are. Well, I don't know if you know, but we're all flawed individuals. And, and you and it's just an interesting insight to be like, teah, well, if you could do that this bad, I could surely do it at least a little better.

David Gutierrez:

No, it's, it's true. That's a great point, Alex. And one thing, you know, I could not go. I don't have as bright of a pink as you do. But I wanted to honor you today. So I wore the closest shade I had, but I can't pull it off as well as you do. So.

Alex:

No one can..

David Gutierrez:

Yeah there you go. But to your point, um, you know, just what Stu and I realized and your we're run a faith based business, we're, you know, Christian dudes, and we just one of the biggest things we saw that was lacking in our experience was integrity, and a value based system upon which people did business. And we're like, and honestly, some of our first conversations, we were just like, hey, if we just go into this, and we are going to be honest with our clients, and do the best that we possibly can, we can't be worse than, than this company that that both of us we had gone. He was in Alabama, I was in Milwaukee with the particular companies that we had used, and we knew that just from that foundation, we could do better.

And so then we went from there, and there are lots of ways that obviously, we improved that model, and it made it our own.

Alex:

I gotta say, this is um, this, this kind of talk depresses me, because I get it too right people go Alex, I love you because you're so you know, genuine. And I'm like, really? Isn't shouldn't that be the standard? And I applaud you guys for doing that. Right? If you're like, hey, if I just go into business go, hey, look, I'll do the right thing first no matter what, money second, I know, that's not really what it means. But it kind of means that right where you're like, Look, I just, I don't wanna be so greedy that I become a sleaze. So I'll just make sure that I do the right thing first, it shouldn't be that hard. And it isn't.

But the fact that it stands out in our society is depressing to me, because it's like, how many people are just anything for the dollar, bro? Anything for the dollar. It's like, I'll never do anything for the dollar. And I'm glad and I think that's why you and I and you know, there's a group of David's a stand up guy, and there's a bunch of people that resonate with each other because it's like, I just have morals. I'm yeah, I'm not. I'm not a faith based business. But I have, like I said, I have integrity. I have morals first. So I love that you said that and I just had to say like, I like that, that stands out to you, but I kind of hate that stands out.

David Gutierrez:

Yeah. You know, and I will say though, um, you know, I kind of twist that on its head a little bit. I think that being an entrepreneur is you're in a smaller subset of society already right? So we're all bets. So already part of our life is less than, you know 1% of the population serves.

As an entrepreneur, we're also a very small subset of people. I think our group even further refines that and because we have similar morals we look to be surrounded by the people that we want to be like that challenge us and that are like minded so I'm, I'm kind of thankful that we are different. And when I say we, I mean the mastermind that we're a part of everybody in that group, I could trust any of you guys. I would trust you. They think some of the conversations we have are hard conversations that are personal, they're deep. We talk about our families, our wives, our kids, our our, you know, mentally the things we're going through emotionally things are going through physically the pains that we potentially have and dude that that is powerful stuff, right. And that's that is that has been enabled by the fact that we have found and surrounded ourselves with like my It individuals, so I twist on its head a little bit . It can be depressing.

But the other side of that is I draw great hope and joy from the fact that I'm surrounded by dudes like you guys who are different. And I had a, as a kid, this resonated with me as a neighbor, minding his own business. And this is before I even joined the military. And I was lamenting the fact that, you know, he was a, there's an electricians business. And I was lamenting the fact that a lot of folks in industry, they don't show up to work and, you know, show up drunk or high and one of the things that he said was, hey, you know, I think God that everybody's not like me, because then everybody would run their own business and I would not have my own business. I wouldn't be the guy making the calls. I wouldn't be the guy making the hires or the fires. And for him, it was about cars and money. There's like, and I wouldn't have this stuff for me. It's not, you know, to your point, Alex. Stu and I did talk about that. If we have to write checks out of our profit to make something right like whatever, it's just money, it'll come and go.

But all that rant being said, I agree with you. It's interesting how it's a unique characteristic, maybe that we do business that way. But I love the fact that we're surrounded by folks that are like minded and want to do it differently.

10:00 - 15:00

David:

Just having a similar conversation two nights ago with one of my roommates, where it was like, I was like, trying to figure out the line, like, there's a part of me that's just not not like, not like, money doesn't matter, right? Like, there's obviously a value to it, but like, there's a part of me that's just like, if something comes up, it's like, it doesn't like, like just being like, you know, like, it's not a big thing. And I was like, at some point, like people talk about, like, there's all these mentalities. Like there's the mentality of like, money to currency, you gotta keep it rolling, and just like, push that crap away from you and like, not care about it. And then there's the other mentality that's like, you don't focus on you know, whatever, you lose it and I'm like, there's got to be like a line because I was like, I'm very much like, I'm bad about it. Not bad about tracking finances, but I'm bad about like, if there's money in the account, it's got to go and like, like, it's just not important to me. So I like doing whatever. But we brought it up because this guy literally introduced himself to me. He was like, hey, I make $100,000 monthly doing this, this and this and it was like an immediate like, I was just shut down. I was like, oh, right on dude. Like that was it is like if that's your introduction, like I don't know. So anyway, all that to say like, I agree with you guys. Like there's unfortunately kind of a disparity between the people who, I don’t know like, you can tell if somebody is running a business just for money, it shows and it generally doesn't follow or come with like, there's just a vibe that just does not. I don't know, like it's just...

David Gutierrez:

Yeah.

David:

Okay, cool, man. Not my thing. Like I'd rather hang out with people who have other, you know, other reasons. They want to be successful or come through a different way because the money will follow.

David Gutierrez:

Yeah, I think you made it, you make a couple really great points and, you know, one, it's how you identify yourself. You know, one of the things I preach to my sailors is look, you know, this uniform that makes us all, you know, the US Navy makes us all the same and part of this, you know, the service. Each one of us is a very different individual, and this uniform is going to go away. And that's one thing I want my sailors to recognize from the get go is, look, this is a young man's and young woman's game.

Alex:

Whoops.

So Dave, how are you doing?

David:

I mean, he looks stoic, at least.

Alex:

Yeah.

David:

Oh, we got him a young man or young what you were talking about how we're all sailors.

David Gutierrez:

That was interesting.

That was actually my Navy work from home VPN, somehow magically without a cack kicked in, I'm not really sure how that happens a little...

David:

Hashtag cyber.

David Gutierrez:

Just tell me to get to work, I'm sorry.

So you know, it's a young man 's and young woman’s game and and your uniform will come off at some point it has to. And so if that's your identity, that's going to be an issue. When that time comes, whether it's at the five year mark with the 20 year mark, or the 40 year mark, if that's how we identify yourself, that's a problem.

If you identify yourself with money when it comes, okay. And so ultimately, for if you identify yourself that we're wrong, in my opinion, the second part of that is money as a tool. You know, I love talking about money. Money is a topic I'm not uncomfortable with. I love talking to anybody about it, but I see it as a tool. And for us, if you have money, you have the potential to change the world and to give for us giving is a big part of that. In a warrior's heart is what we give to through the business. We give through the note to our church and a number of different things. And if you don't have money, you can't do that. It's just a tool. So the way you look at these things and you critically think about them, and you identify them ahead of time, I think that's the key right? And that that really can frame your identity and really drives your action and potentially motivates what you're trying to do with it.

David:

I love the... Oh Alex is gonna go.

Alex:

David Foster Wallace wrote this incredible book called Infinite Jest and it's a daunting read, but it's an important one about American culture of materialism. And in there, he had this really long rant about why it's, he says, he starts with you should choose your temple of fanaticism carefully, because if you define yourself by something, or one person or one shallow idea, it can go away.

And but, but but values don't go away. And so I like this because if you define yourself by what you've done in the Army or your rank or your uniform, it's like, yeah, that's gonna come to an end one day and the PR for the military changes, right? Like, you know, we went to the Vietnam War where it wasn't as popular to be in the army as it is now.

15:00 - 20:00

Alex:

Uh, I went through this with the gym, right? Cuz I'm a lifelong gym rat. And it's like, you know, some people get so wrapped up and be the biggest guy in the gym like, dude, you're 26 you're 28 You know, when you're 50 you're not going to be the biggest guy in the gym. And then if you have nothing else, then you have defined yourself as nothing.

And so money is the same way. It's like if you define yourself as I'm the guy that makes X amount per year, it's like yeah, but what if you don't know that you have nothing else. And so having something a temple of fanaticism that is higher than that is really important. Something that can define you as beyond the material, you know, what's the visuals easy, the shallow easy in front of you think to yourself.

David Gutierrez:

And you have to be pragmatic and realistic, right? You have to realize so as a lifelong gym guy as well, like I know I'm one rep from some crazy random torn rotator cuff for no reason because I go this way a little bit more than, you know I should or, or because I'm 41 years old, right? I'm one rep away from something. So if that's how I identify myself, like you just always have to plan for the worst, and hope for the best, right?

But if you do that, you can and you're not being a pessimist. You're just being realistic. So if you go into a career, a military career, and so like I'm completely honored and humbled to be a commanding officer, I didn't plan for that. Right. That wasn't part of it, it was a hope. But it wasn't a it wasn't something that I expected. And it can come and go and it could have never happened but if that's what I base my identity on for a 20 year military career, then wow, that's that that's kind of sad. Because if you don't get it then what? right but just being realistic, you know, you're and you're one decision away from potentially making a ton of money or losing a ton of money, you just never know you have no idea you tell me who could have? Well, actually you can because these books you read, you say who could have predicted COVID-19? Yeah, well, it's been predicted. I was almost...

Alex:

But you're right, you know, the idea you're saying is right, so you've nobody can really predict the future and specificity. And so, yeah, I'm with you on that one. Yeah. If you feel like I have to, it's gonna be this way. The world has to turn out this way for me to have any value. It's like yeah, well, the world's gonna it's got different plans.

David Gutierrez:

Yeah. And then you're lost, right?

Alex:

And then yeah, you're...

David:

I love that we're talking about this. Now, it won't be anywhere near as poetic or deep as Infinite Jest or some of these others. But the book that I have at the editor right now I have this whole section on finding your purpose and identity. Because, so this community that I've been building has become like I it has been huge for me and the fact that it became a hobby and it's become something that I can be like, hey, when I got into the military, like, I do this, like, this is a purpose for me, this is part of my identity, like, I'm this person, whatever.

But like, I was lucky enough to have someone way smarter than me a few years ago, point that out to me like, dude, when you get out of the Marine Corps, like, yeah, you're a marine. And you'll always be a marine. Like, if that's all you are, then then what? Like what you know, and his point was essentially, like, we're talking about the whole military, like the veteran suicide thing. And the biggest rate is the first three years. And when you talk to guys who struggled or came close, like, they feel alone, they feel like they don't belong, they feel like they're they don't have a purpose. They love they their identity was so wrapped up in being that person that when it disappeared, like that's, that's crushing for especially for men, which we know the suicide rates higher, like, especially for a dude to just lose your, your purpose or your identity and just be like, well, now what? Like that's, I mean, I've seen it like, it's just, it's crushing to people. So, I think it's a cool topic that we talked about, as far as like, just so for anyone listening, if your identity is that that's who you are like, that's awesome. And that should be a part of your identity for sure.

But you need to find out who you are. Who's Dave, like, when you're, you know, standing in a towel instead of a uniform like, anyway.

Alex:

You know..

David Gutierrez:

Towels are interesting.

Alex:

This is a big talk from a guy who defined himself as mustache.

Your one set of clippers is a little wooden.

David:

Hey, hey, but I control that.

David Gutierrez:

Hey, that's good. Let's do this.

Alex:

Next time we next time we bunk together in a conference, yo.

David Gutierrez:

That goes both ways here.

Alex:

Okay, okay. I'm just just joking. I'm just joking. There's no need.

David Gutierrez:

Hey look.

David:

Do blow dryers bounce when they get thrown out of the window?

20:00 - 25:00

David Gutierrez:

I'm happy to mediate between you guys talking about bunking together and zip zipping noises I'm not really sure what that means. But hey, you do your thing because you do you. But what I will say is, you know, this is one of my favorite topics. I love talking business. I love talking money, I love talking, you know about faith and all these things, but I will tell you the mindset. And you know, if you listen to our podcast, and both of you have been guests, so that thank you for your, your graciousness, and that, um, but one of the things that Stu and I talk about all the time, because we spend so much time talking about it amongst ourselves with our business is mindset and your why. And it's kind of become a buzzword, you know, since Simon Sinek wrote his book, everybody loves his book, and it's bizarre, but tell you, if you take it seriously, then it can really change your life. And it can drive you down a path where you know, the decisions you're going to make before you make them or the before they present before the opportunity presents itself or the challenge presents itself you know, you have a good sense for the decisions that you're going to make or the direction at least that you're going to go. There might be some course correction. There might be a little bit of road Change but you know the general direction you're gonna go because you have established your your why you've thought about it you've established that mindset so you know, the direction that you want to go so I think it's important man I think these kind of conversations should happen more often because there's always fruit is born from from these types of discussions and then I'm not really sure what you meant when I take off my uniform and put on a towel, but that's a very interesting transition as well.

David:

Well, you know, I didn't want to just say like when you're standing in the mirror badass naked but I guess I can because it's my show.

So when I'm standing in the mirror right before I jump in the shower, and I'm looking at my massive hockey puck having manhood. Is that better?

David: Gutierrez:

No, it's more. It's actually a little more disturbing.

You could transition anything right? In uniform. You're wearing a suit.

David:

I don't know why. It's how, maybe, I don’t know.

David Gutierrez:

It’s your show. I’m a guess, I'm just proud to be here.

Alex:

I want to be a cost to the show anymore. He's his host. I've nothing to do with this. It's all him.

David:

Oh my God, can't handle our manhood here now. Well, you were just talking about being in bed with me. So I don't even want to know. Shave my mustache and stuff. Yeah.

Anyway, so remember what I said before the show where it was like, it's great, you can say whatever you want.

David Gutierrez:

Sometimes less is more.

Alex:

Yeah, David. David, tell us about the storehouse. So how’s the business?

David Gutierrez:

Yeah, so the storehouse is. So what we recognized is especially military, I'm sorry, Navy and Marine Corps. Were stationed in super expensive places, right? We're usually typically on the coasts or overseas or in Italy or Japan, we're stationed places that have real estate, at least if you're looking for cash flow, and steady investment, which is the type of investing that I do.

If you're looking for that, it's not usually present in San Diego. You know, Virginia Beach, some of these places on the coasts that are a little more expensive. You know, once you buy a house there and leave you just you don't get the rent just can't cover typically. I learned that lesson in Hawaii on my first property and I was losing 1000. It was rented, and I was losing $1,000 a month. So that one I quickly got rid of that.

But a point being the turnkey model was something that resonated with me resonated with stewed in order to get, you know, cash flowing assets kind of in the middle of the country, you know, the Midwest we love and down the southeast, the middle parts of the country really offer the opportunity to do that one 2% rule for all your VP listeners out there. And so that's a model that I had gone with, and again, that then went through the turnkey company that I use, and the one that stood us down Alabama, with the experience that I had alluded to previously.

And so we started storehouse 310 in Milwaukee, and effectively we're buying properties, rehabbing them and then selling them to our network of mostly military people now and providing them with cash flowing assets out of Milwaukee. We really like that market.

David:

You guys have done well, what, uh, I would be curious to know, what was the biggest challenge, like, biggest most unexpected challenge with starting a turnkey company?

David Gutierrez:

Um, you know, it's been interesting some of the things that we thought were gonna be the biggest challenges. So, so, initially, you know, when you go to do your first deal, and you have to raise money, and you're asking people for money, that is the initial challenge, like, well, is anybody gonna invest in me? We found that that very quickly resolved itself, just based on the network. And really what would boil down to is people's trust in us, you have to have the data, right, you have to, you have to have done research and know what you're doing and be able to present an analysis sheet that makes sense.

25:00 - 30:00

David Gutierrez:

So the next biggest challenge that we thought was going to be a significant challenge was you have to have that back end buyer to recoup that money to pay back your loans. And we thought that was gonna be an issue for awhile it was right, getting the numbers up to the point where we're consistently selling his houses, well, that, as you know, has now resulted at our current pace in about a eight month two year long waiting list, which is awesome, you know, huge blessing for us. But it's also a challenge because we have to create deal flow.

I would say right now, our biggest challenge is, is just what identified is we need to figure out how to scale to a point that we're able to really whittle down that waiting list and get good deals, find enough of them and be able to provide our investors with those assets. So that's where we're at right now. The challenge is always changed like anything, you know, military career. Um, but, but those are that's kind of our current, our current issue.

David:

It's a good problem to have for sure. But it's still a problem. Like, you know, people listen to a show and they're like, oh yeah, okay, he's got so many people on his waiting list that, you know so much business he can't keep up like, ooh, you know, but that's that really is a problem because the reality is not everybody's gonna stay that long on a waiting list, right? So you're..

David Gutierrez:

No man and we always preach it right? The thing that we do when we're asked, hey, you know, what, what should we do? And we're always saying the same thing, maybe get educated, read some books, you know, but take action. Take action now.

The best time to buy is yesterday, the next best time is today, right? And so we're always preaching to take action. So I've got this kind of dichotomy of I'm telling you to take action, and then I'm saying, hey, can you wait like a year, you know, to take action with us. And I would never ask anybody to wait a year. But, um, I think that's a testament to the product that we put out and the just kind of the reputation we built which again, is a blessing, but the reality of it right being pragmatic people don't want to wait that long, which is good.

Alex:

Especially in a super hot market. But you know, this is a very common problem in real estate as an investor trying to buy a few deals. A guy like me, you know, I buy a few a year, not that hard. Not that not that difficult. But if you want to have inventory at scale, a much different story, especially like right now in the market when money's cheap and in abundance. And you know, the foreclosure market isn't like it wasn't in 2012.

So, I mean, skills, that skills are difficult, it's a difficult thing to do on real estate, because the transactions are so big. And, um, you know, you need a bunch of money, you need a lot of deals. It's not like Walmart, it's not like, you can't just unless you're doing new construction, right, so you gotta go find those deals, they already exist. And, you know, there's, it's not like a target. Just go then buy 10 off the shelf and go, you know, this is the ones you want right now. Sounds like that. Do you guys have fun?

David:

Sorry.

Alex:

Sorry. No, good.

David:

I was just gonna ask if you ever find or buy, like portfolios? Like, if you've had any luck with that. I know in Springfield, there's guys who will sell like, you know, 15 houses when they're ready to retire, it's just one.

David Gutierrez:

Yeah, it's funny because we've, we've now in the last week, we've looked at three or four portfolios. And actually, just last night we looked at, we analyzed another 10 house deal and those would be amazing. The promise you're gonna get the good with the bad and you have to be willing to do that and we're not willing to do so like the one we analyzed yesterday 10 houses three of them were would work with our model, and the other seven were super high crime and just things we wouldn't want to sell to our investors we would not not want to, we would not sell to our investors.

And so, you know, we're doing the due diligence on the front end for our investors because that's the trust that they're building and relying on. So we can't in good conscience buy that portfolio, unless I want to somehow keep those seven properties but then that ties up. You know, however many hundreds, hundreds of thousands of dollars that. And there's a strategy that we're looking at to potentially do something like that. But I also don't want to own one. I also don't want to own houses in a war zone, right. So that's the challenge and every portfolio that we've looked at, we've offered, and we've offered to chop it up and take what we want out of it. And most people are like, nah, me take the good of the bad. Unfortunately, the bad usually outweighs the good. So it doesn't make the deal that profitable. Yeah, we're looking all the time for portfolios for sure.

Alex:

Yeah, it's a tough market. I mean, you know, it's always competitive. But right now, the challenge that just speaking of our challenges we were facing like I said, money's cheap. Like, I gotta get a guy yesterday who said he did his first flip. He did, hard money. He got it at seven and a half percent at one point.

David Gutierrez:

Hard money, it still has one point? Yeah, passed me that dude's contact info.

Alex:

Well, I mean, even still, right? You can get hard money at 9% pretty easily in one or two points nowadays. I mean, even that, there's no reason why you don't deserve that money, right. That's too much risk.

30:00 - 35:00

Alex:

But there's so much money out there. That people are, they're buying stuff up and they're driving prices up. And so, you know, it's not a it's not it's not you know free for all like it was five years ago it's definitely more difficult so scaling up, I'm sure you guys you know, you express your challenges I get it you know, you'll get through it. It's just, you know, you ain't the only one.

David Gutierrez:

Yeah, and we're looking for opportunities, right we're looking to part of the scaling model that we're looking at is is starting a couple different businesses and ultimately, the end state where we really kind of change things up is we want to start the property management because that's that's a significant so a significant challenge for me is having a process that I don't own and because of our full time posts, Stu is still full time active duty, I'm full time active duty, the inability to spend all the time you know, on and in the business makes it made it a little bit daunting for us to to jump into, you know, another business but it just makes sense right to take on the properties after we sell them and then to continue to to manage them for our folks. And one thing that I have not enjoyed, because we want to honor our investors, you know, on the warranties that we give, like I often do when I'm writing cheque, right? And it goes back to what you said, you know, the cheque that you write, the dollar amount on that check does not, does not, it pales in comparison to the amount of trust that you're building and the repeat buyers and all that stuff that you're trying to build that culture.

But I'd rather be writing those checks to myself or the crew that that I'm sending out that works for me that at least I know, the work there that is to 100% is going to be satisfactory to our standard, right. So there's other opportunities to grow businesses. And so you hit the roadblock of deal flow. So okay, well, let's go start property management. And then as you grow that property management, there's also deal flow from that, right. There's people that want it and they get tired of it. And there's the back. I don't want this anymore. Cool. I'll buy it for me.

Alex:

Yep. Oh, yeah. Like the macroeconomics of the economy has been, that's sounded weird and has changed for the last few years, right? So like, everybody's buying up single family homes. And so it becomes a little bit more difficult. So it's like, yeah, the time to pivot. Like, you're like you just said it's time to pivot is, you know, maybe not perfectly not saying that to do 100%. But the idea is like, look, when something starts to get harder, it's like, well, there's not that means there's opportunity somewhere else.

And so the first thing I'm going to ask you before he brought that up was, why not switch to multifamily not to say that that's easier because it's got its, it's on the uphill too right. There's a lot more people doing it. It's a little bit faster to scale, but it doesn't really work. It's a very different model than turnkey. But I love that you go to the vertical integration, you're like let's build the product management in house because then we can get a lot more residual income, we can take care of our clients better. It obviously provides us the opportunity, like you said for deal flow, more opportunities. It gets more of our hands on the ground and in parts places and honestly, I think the taking care of the client is probably the most valuable because the risk of somebody miss handling your client apartment side is Clayton Morris level catastrophic.

David Gutierrez:

Yeah, man. No, it's huge. And that's what we're most passionate about. Right? Like it pains us. We had a conversation with a CPA the other day that just kind of brought something to our attention and it literally in my gut pained me, because there were veterans that this CPAs perception of what was happening and I don't, you know, I haven't dug further into it. But her perception of what was happening is that veterans were being potentially mishandled and even, you know, at worst, at best, it was ignorance at worst, it was taken advantage of, and that just like hit me in the gut, right? Because those are, that's our tribe.

So, you know, most of our buyers are vets like 98% right now. And so that, you know, it's of utmost importance to us, because we're talking about Emmys. These are our people, right? These are, these are not millionaires. I mean, they can be, they can be, but some of these are junior enlisted Marines that, you know, they just want to, to build a future some of our instance out of the, you know, whatever commissioning source they have and I'm saying Navy ranks and we're open to all ranks, of course and all services but but it's it's people that you I mean, you gotta you got to be special to take advantage of these people right like there's something I gotta be something wrong with you and I think it should be something wrong with you you're taking advantage of anybody but that being said, you know, there are opportunities and if we that primary driver for us is creating opportunities for that for that tribe.

35:00 - 40:00

David Gutierrez:

So we have actually you know, we're under contract right now in Colorado on a syndication deal that was GP’s of and and raise money for that. And it's been a it's been a slog, but you know, multi, multi fam, like you said, most mobile home parks that we're looking at, we're looking at different, was it good opportunities to to create opportunities for our for our network and, and it's out there like you say you just got to be willing to do the diligence and hustle a little bit to try and find those opportunities.

And like you said, Dave, you're not trying to squeeze every penny out of every person that wants to invest with you. Also opens up the deal flow a little bit.

David:

I think I think going vertical is a big player move and I love it. So I have this buddy Cory now he's doing Courtney Moto, he's been on BiggerPockets podcasts, whatever, he's a house flipper. And you know, I got to partner with him kind of like he was the guy that I bought a house with. It was like can I just follow you around? And when I was in Hawaii so I know, I partnered quote unquote, but I just found the deal and handed it to him.

Big flipper, right doesn't you know in Hawaii margins are weird like he wants to deal if he doesn't make six figures, you know, but that's because you're throwing in like 600 $700,000 is you know, like purchase price. So, you know, the numbers have to make sense on that amount of money, but.

About three years ago, he was talking about going vertical and I, he was the first person I ever met who I didn't, just didn't make it. I didn't know what it was, you know, and now all of a sudden, it's like, Okay, I'm a house flipper. But I also own a real estate brokerage, the contractor and a hard money company. And it's like, I like that ability to control every piece of your, your entity. And then also, because you're the expert at what you're doing, be able to outsource, you know, because if you build a property management company, that's incredible. You don't just have to manage the storehouse, right. Like you can bring other customers in and then that'll it's very synergistic. And I think it's smart. And I think a lot of people think of scale, they immediately think of the multifamily because that's the buzz thing right now and that can be great. But there's definitely something to be said for scaling vertically in your niche and still being very successful. And I I like that opportunity because I think we all have this same little bug in us that like, once you start creating things, you're like, ooh, how can I, for example, the podcast thing like I started podcasting, I had a lot of fun with it that I hired an editor then I was like, this is awesome. He's awesome. This is great. Hey, what if we become? Yeah, hey, we edit podcasts now. Like, I don't know, there's just something about that. That scratches an itch and I think there's definitely people out there.

So anyway, for anyone listening to this, just know that there are other ways to scale without going multifamily. Not that there's anything wrong with multifamily but people get wrapped up and don't forget, you can do other things.

David Gutierrez:

So yeah, I would love I mean, we'd love to have everything you just mentioned. Right? That's our goal is the acquisition side, that we house that under a storehouse brokerage, and we're providing jobs for realtors to put those jobs as realtors are being paid and have a living. They're providing us deal flow because they work for me.

And then we have the turnkey part. We have the property management. We have the construction piece and then ultimately, potentially take that construction piece and go do development, right? The sky's the limit. You just have to be willing to do it.

David:

Right.

Alex:

I don't like to do anything.

David Gutierrez:

So when I say do it, I'm not gonna I'm not gonna go out I'm not gonna find a house. I'm not going to go swing hammers and nail it and then market it and then drive over there and manage it right. I'm not. But yeah, I think it was Bill Motel. I always give him credit for this, but I don't remember where I heard I heard it in something, but it was a vet. He said, the most patriotic thing you can do is serve your country.

The second most patriotic thing you can do is to create jobs. And that that second part and Dave is you talked about it, the creating part of it. I love the idea of building something, whatever it is, that is literally providing jobs for folks and taking care of them. I like that responsibility. That's something that I don't shy away from. I want to have the opportunity to provide those chances for folks so I love that.

David:
I like that quote. And then you know there's obviously tax advantages that people will hate you for not understanding the system but anyway, um I have a few questions that I always ask people when they're on the show.

David Gutierrez:

Let's do it.

David:

And I did not prep you with these so you're welcome.

David Gutierrez:

Awesome.

David:

The first part..

Yeah, shut up. You should come up with a fourth question like randomly right now that is very hard. So you've got about three minutes, but you but your moon sign though not your I think that's the thing. I don't know what that I don't know. Anyway, but.

David Gutierrez:

I have no idea what you're talking about.

David:

Hippie dippie. It's gonna tell you your success. You can't be successful without knowing your moon sign star roster.

David Gutierrez:

I'll look it up. I'll look it up.

40:00 - 45:00

David:

Okay, if an E one, e two walked up to you asking you for advice in life. And you only had like, two minutes will be the one thing you tell them?

David Gutierrez:

I would honestly tell them some of the stuff that we were discussing earlier.

You know, I would, what I like to do when folks come and ask for advice, I kind of turn on them and say, hey, let's talk about this in depth what level of thinking have you done into who you are and what you want for your future?

And then I think from that basis, when they've put a little bit of consideration into that question, I think you can have a very rich conversation. And I think that's the kind of the beginning of mentorship both ways up and down. And there's just an opportunity for significant growth there.

So typically I would start that with a question and then we go from there.

David:

I like it. All right. Now, here's the real hard one. What resource, book, course, website whatever would you recommend to anyone looking to get started in real estate?

David Gutierrez:

Hey, and I'm not just saying this, because I've been pushing your guyses stuff for a while, but I think you have. I think you guys create amazing content.

So I would push people to your website I think you have a diversity of you have a diversity of different niches that you that you highlight there folks can gain an education there's there's a plethora of knowledge and then just through the podcasts and what you know you and Alex do I think you know, Alex, you you're a prolific writer, you put out a ton of content, your your videos, and just the stuff you guys do again, I I've told you guys this in private in our group, but you guys are doing awesome.

So I would highly recommend you know, go into your resources and continue to do what you do and listen to the things that you guys put out and read the things that you guys write because there's a wealth of knowledge there. I'll tell you what people can take action from that stuff. So it's a great one stop shop.

Other than that, books, you know, get into some books for me personally. Things I like to read I'm reading about social capitalists. I just finished that. It's Josh and Lisa Lannon. They are the founders of warrior's hearts. And that's a organization that Stu and I partner with we give money to them and they are phenomenal they it's all about how you can make a social impact through your through your businesses, and things that we're talking about right money's not the most important thing how do you make a difference and then read another book killing sacred cows been pushing that one for a while. You're at B. Gunderson. Love that guy

Alex:

Some girl told me to read that book. And then she unfriended me on Facebook because of some political thing that I said that was barely political. It’s on my list, though, it's on my list.

David Gutierrez:

You know, it's good, because it's a mindset book about finances, and it just kind of challenges some of the conventional wisdom, quote, unquote, wisdom. And it really enables you to empower yourself and bet on yourself. Be educated, but bet on yourself. And so I really liked that book.

Alex:

So I wanted to take a second and say, you know, you made I'm a very nice words about some very nice words about David and I but the reality is David does everything and so I'm just thankful to be part of this of his of his you know I basically come in here take it over but it's a little disingenuous he does everything so David I'm thankful to be part of it.

David Gutierrez:

No David does but Alex quit selling yourself short. We talked about this the other day, you create some amazing content.

David:

You want to make a check out to your pump?

David Gutierrez:

David Gutierrez it's one T two R's.

David:

But seriously, thank you. Thank you very much.

David Gutierrez:

Absolutely man. Thank you for what you do. It's incredible and Alex is so short, man, you got a lot of skills and you add a ton of value. So you guys keep it up.

David:

Alright.

Alex:

I started doing the intros for the military to millionaire, let's see if it works.

David:

It was definitely hype.

Alexi:

It’s definitely hype. Wake you up.

David:

Oh my God. Alex has that switch that I sometimes lack or maybe I'm just not comfortable enough in it.

David Gutierrez:

That’s a skill.

Alex:

My secret is I'm always hyped.

David:

My secret is I get to go to sleep at night so my hype shuts down at some point.

I've checked out social capitalists so I like warrior's hearts, I've never toured their facility I you know, I don't know as much about the program as I probably could. But I do know that guy that I deployed with and a personal friend probably had his life saved by them. I mean, they're turned their life around, so.

David Gutierrez:

They are awesome. We really love them. Josh and Lisa are super busy people and they make time to talk to Stu and I, mentor us and they're incredible people and they run a great program and they are literally saving lives. They just had their 1,000th person come through the doors of the warrior's heart. So a huge milestone for them. And it's awesome, man.

45:00 - 50:00

David:

Yeah, that's really cool.

All right, so final and the most difficult question. How can people get a hold of you?

David Gutierrez:

Yeah, sure. They can go to our website. They can hit us up. We're very you know, it's funny because I think we're, we make ourselves very available, which is good. There's Kalman links on our website, you can get in touch with Stu or I. And you know, if you don't mind, throw the website in the show notes. But yeah, we're pretty easy. We're on LinkedIn. I'm on LinkedIn. Well, I am on Facebook.

Hey, I'll tell you what. So this is I was gonna tell you guys this the other night, I didn't have time to share my highs and my lows, and this is probably not a great thing, but I cannot stand social media. Like I just can't like it's very hard for me, it's painful. Um, but I do read your guys stuff.

David:

Let me ask you this, David, because I hear this all the time, right? I don't like social media and people think that I'm some kind of natural at social media. I honestly truly, deeply believe that social media is misused and missed, miss, I guess for lack of a better term understood.

I wonder if I could put out some content that would help you get over. That's that. Let me start with that. I'll just say that like content, like social media, you should think about it as output, not input.

David Gutierrez:

Yeah. No, you're right. And I recognize I was talking to Stu about this the other day, I know, the advantages. And I recognize why it's critical. I've just, I am the type of person that there's a huge barrier. If I don't enjoy it a little bit. There's a huge barrier of entry for me, and that's a problem. I'm admitting that's a problem because it's a missed opportunity on a free resource, right? So I need to get better at it for sure.

Alex:

I'm gonna make some content.

David Gutierrez:

Awesome. Look forward to it.

David:

Oh man, yeah. It's funny because I haven't liked my personal Instagram hasn't been updated in like a year, year and a half. So it's kind of similar, everyone's like, they see my stuff all over the place. Like, yeah, but like, I don't dislike social media I enjoy you know, I mean, shoot like there's definitely I definitely understand the whole dopamine thing right behind it but but I'm also not like, it's not something that's natural for me like, I know it's hard to but I know it's hard to believe but I was not always the popular kid in high school when I was in high school.

Alex:

Somehings never change.

David:

I was homeschooled.

Alex:

Social media is not natural for anybody. I just think I don't get what I don't know, for me I taught like talking to people. And so for me, it's like, it cannot be like David, you started this year like we found our group because we have like it's like a natural draw towards an eco chamber in a good way, right? Like I'm going to be drawn toward people that have similar values. Like that's all social media is for me. It's a, it's a megaphone to catch. Act, It's not a megaphone, it's a beacon. It's like, hey, look, this is what I'm about anybody else? And then people like, yeah, like a fly to the light, like, oh, pink, I like pink too. Oh, no, no, I like this guy's values. Oh, this guy's real. It's not like, and so these things that you believe these values you have, you can express those on social media and people are drawn to you. And so if you get into the mud with the idiots and start talking about idiot stuff, it's not fun or productive or useful, nor does it make your life better. And no, it helps nobody and it only polarizes people. But if you use it as a beacon for attracting your other humans, I think and then you don't let the nonsense you know, it's very easy to get wrapped up in that nonsense.

David Gutierrez:

But it's good. I was good. Be intentional. I'm saying be intentional.

Alex:

Yeah.

David:

Absolutely.

David Gutierrez:

It’s good.

Alex:

Be intentional.

David Gutierrez:

Alright, any, hopefully answered your three questions, dissatisfaction they were very challenging. I want to validate you in that.

David:

I have other questions on my like list of things.

Alex:

We should come up with,I should come up with my question that way, you're right. We should have a little bit more..

David:

Did you come up with anything?

Alex:

No, I didn't. I fold under pressure.

David:

There was a lot of pressure. Let me tell you so much pressure. You just disappointed the entire community by not coming up with a question about moon stars or whatever.

Alex:

Okay.

David:

Anyway, all right. Hey, David, thank you very much for joining us. I don't say this enough. But there's not a whole lot of people that I would I don't I don't. I enjoy talking to you. Like every time we have a conversation, it's I don't ever leave on a feeling like I didn't get something out of it. So I appreciate that. And I appreciate you. It's been it's been a pleasure getting to know you this here

50:00 - 54:00

David Gutierrez:

No, man, I appreciate it. Thank you so much, and always a pleasure to be invited to such an awesome show and and feeling's mutual you guys are you guys are awesome you guys are crushing it you guys motivate me you you energize me with the challenges and amazing things you guys are doing and keep it up thank you for having me Alex's hair is a constant motivation for me as well look at that look at that.

Alex:

We will get there, hey we should plug the war room if you're listening you're not part of the war room you're missing out.

David Gutierrez:

You're missing out, surround yourself be intentional with who you hang out with surround yourself with with awesome dudes and dudettes

Alex:

Dude I did not deserve I did not I did not really deserve to be in the room with you guys that war room but it has helped me tremendously so if people get in like get in there and people they will they will help.

David Gutierrez:

You shut your mouth Alex you deserve to be there.

David:

That's the thing right like it my I hear that right, having worked on starting this and that like we get that from people right like it sometimes It's, well you know, I'm the biggest fish in this little group and sometimes it's the other way around. But like the reality is just realizing and owning what you bring to the table like you even to the guy being the biggest fish in the group, maybe you have the most units, but maybe your units are, you know, less profitable per unit or maybe, maybe that's great, but you don't know how to market maybe that's great, but like, like so it's, it's a I think there's there's an intricate value that everyone brings to the group so like, you know, the like, shoot, I remember when I was at flip hacking live and I'm sitting at my desk and they're like, stand up if your business has done over a million dollars gross and Stu stood and I was like, huh, like wait a minute! yeah, you know, like oh, okay, I'm alright I'm hanging out with the right people.

You know, and I didn't realize the storehouse was doing as many deals as the storehouse had done last year, and I mean shoot already this year, right. But there was still like, I'm still able to bring something to the table. Even though I'm by no means the biggest, you know, so it's like trying to figure out and that imposter syndrome, for me, is huge. But figuring out what your piece is, in a relationship you can always add, there's always something.

David Gutierrez:

I'll tell you the challenge and one thing I if I could leave with this, you know, I never think in terms and I think it's natural to have a little bit but I've really been intentional and changing my the way I think about things, but to not think in terms of like rank as being equal to significance, right. And what's really helped me with that is that a lot of the guys that I served with the most junior enlisted sailors that come in, a lot of those guys have, like two master's degrees in computer science and like, have these life experiences that I you know, they, their knowledge shames me, right, I can't even I can't even keep up with what they're talking about.

What I will say is that in the groups like the money in the units and all that kind of stuff, completely unimportant. That's not what that's not what I saw at the, the best ever conference. You know, they talk, everybody starts and they say, oh, it doesn't matter that you know what the numbers are, but here's my numbers and I'm like, I don't care about that, like, what are your values? What it what are you doing to give back and if you're not doing any if, if you're presenting the a great deal 12% return annual with potential for equity by and blah blah blah, and you're not giving back to something or somebody in some way like I'm out, I don't care. That could be that number could be 20% return.

I just don't care because it's not that it has no eternal value. And it's not about it just you're not sharing what you bring to the table. And so if Stu and I gross, you know 10 million this year to me it doesn't it doesn't change the fact that the dynamic in our group, I am gaining value in learning way more than you guys even know you're you're giving to us and the money that the money thing, the value thing. It could disappear tomorrow, it's of no importance, but what I have grown internally, mentally, are the things you've exposed me to the thoughts you expose me to Alex with the different books that you that you present like that in itself has made me better person and more rich in my knowledge, so yeah that that other stuff is just, it's just, it's just dressing.

Alex:

War room. Join it.

War room, get it.

David:

Thank you very much for joining us today.

David Gutierrez:

Thanks guys.

End:

Thank you for listening to another episode about my journey From military to millionaire. If you liked it be sure to visit Frommilitarytomillionaire.com/podcast to subscribe to future podcasts. While you're there, we'd love for you to rate the show. Give us a review on iTunes. Now get out there and take action

David Gutierrez on The Military Millionaire Podcast

Episode: 106

David Gutierrez

Join David Pere and Alexander Felice with David Gutierrez as they talk about running a faith-based turnkey company. David Gutierrez is an active duty naval officer and co-founder of Storehouse 3:10 Ventures. He shares how he and his buddy got into the real estate business, his passion to maintain a high level of integrity in their company, and some useful tips in real estate and in life as a whole.

In this episode, you’ll learn:

  • The value of integrity in the real estate business and how it led him, and his co-founder Stuart, to start Storehouse 3:10 Ventures.
  • The importance of finding a deeper purpose and identity beyond the military life.
  • How establishing your ‘why’ and your mindset is the key to knowing the direction you wanna go.
  • The challenges of starting and running a turnkey company.
  • Where to go for good resource about real estate business? ‘The Social Capitalist’ book is one to consider!
  • And much more!

~

About David Gutierrez:

David Gutierrez is an active duty naval officer and co-founder of Storehouse 3:10 Ventures, a turnkey real estate business focused on offering cash-flowing real estate investment opportunities to the military and veterans, while upholding the ideals of honesty, integrity, and giving back to the community.

~

You can find David Gutierrez on…

Facebook: https://www.facebook.com/storehouse310turnkey/

Instagram: https://www.instagram.com/storehouse310turnkey/

Website: https://storehouse310turnkey.com/

Youtube: https://www.youtube.com/channel/UCRfHftpmUNLbQ36e9vXYQkw/featured

 

Advice to an 18-20-year old:

What level of success do you want? Figure that out, and your identity. Then progress accordingly

Recommended resource(s):

The Military Millionaire Community

Social Capitalist https://amzn.to/2WWeBky

For more information about the War Room REI Mastermind send us an email at: [email protected]

Real Estate Investing Course: https://www.frommilitarytomillionaire.com/teachable-rei

Recommended books and tools: https://www.frommilitarytomillionaire.com/kit/

Become an investor: https://www.frommilitarytomillionaire.com/investor/

SUBSCRIBE: https://bit.ly/2Q3EvfE

Website: https://www.frommilitarytomillionaire.com/start-here/

Instagram: https://www.instagram.com/frommilitarytomillionaire/

Facebook: https://www.facebook.com/groups/militarymillionaire/

My name is David Pere, I am an active duty Marine, and have realized that service members and the working class use the phrase “I don’t get paid enough” entirely too often. The reality is that most often our financial situation is self-inflicted. After having success with real estate investing, I started From Military to Millionaire to teach personal finance and real estate investing to service members and the working class. As a result, I have helped many of my readers increase their savings gap, and increase their chances of achieving financial freedom! – Click here to SUBSCRIBE: https://bit.ly/2Q3EvfE to the channel for more awesome videos!

THIS SITE IS INDEPENDENTLY OWNED AND OPERATED. ALL OPINIONS EXPRESSED HEREIN ARE MY OWN. THE VIEWS EXPRESSED ON THIS SITE ARE THOSE OF THE AUTHOR OR THE AUTHOR’S INVITED GUEST POSTERS, AND MAY NOT REFLECT THE VIEWS OF THE US GOVERNMENT, THE DEPARTMENT OF DEFENSE, OR THE UNITED STATES MARINE CORPS.

Share this article soldier!

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
David Pere

David Pere

David is an active duty Marine, who devotes his free time to teaching personal finance and real estate investing for service members, and the working class!

Leave a comment trooper!

Leave a Reply

Your email address will not be published. Required fields are marked *

start now

never miss a post

Join the thousands of other Military Millionaires that are building their real estate portfolio!

military to millionaire
ABOUT

Website powered by RapidWebLaunch

Copyright 2020 From Military to Millionaire

shares