00:00 - 05:00

David:

What's up military millionaires. I'm your host, David Pere, and I am here with my wonderful co host, Mr. Alexander Felice, and my friend, Marty Tyler who invest in the same market. I do. And he's been in the Air National Guard for 20 years, Marty and I've gotten to become friends over the last probably two and a half years or so ever since I invited him to lunch or he invited me to lunch. And then I invited like seven or eight other people and didn't actually get to talk to him most of the lunch. And then I've been basically in his debt now for like a year.

But anyway, Marty is a solid investor in my area, and a friend and international guard, but he also has probably the coolest story for purchasing a house of or one of the coolest stories that I know. And so I was like, dude, I gotta get you on the show. We have talked about this. And here we are.

Intro:

Welcome to the military millionaire podcast where we teach service members, veterans and their families how to build wealth through personal finance, entrepreneurship and real estate investing. I'm your host, David Pere. And together with my co host, Alex Felice. We're here to be your no BS guys along the most important mission, you'll ever embark on your finances.

Roger Vick one Oscar Mike.

David:

So Marty, how are you?

Marty:

Sup, guys, thanks for having me.

David:

Absolutely. Welcome to the show, brother.

So I guess the first thing I normally do is just say, Hey, tell us a little bit about yourself. And you know a little bit about how you got into real estate. We'll start there. And then I'm gonna itch to get into this fun one.

Marty:

All right, cool.

Yeah, so I joined the Air Force in 2001, right towards September 11. I've always just kind of been like in real estate. I like to watch HGTV on that income property just always seems to make sense to me. And so when I got out of active duty seven years later, I built a garage that I put an apartment on top, so I could rent it. And so I did that. And then I've just kind of been buying stuff, did a couple flips and decided buy and hold was my area that I liked. So I've been doing that pretty hot and heavy over the last couple years.

David:

Simple enough. I like it.

Marty:

Yeah.

David:

Do you still have the apartment over the garage?

Marty:

Yep, I got somebody renting it right now.

David:

That's cool.

Marty:

So my $1,000 mortgage, I only paid 500 bucks after letting them pay half my mortgage for me.

David:

I like it. That's pretty sweet.

Marty:

Yeah, yeah. So house hackish I guess?

Alex:

House hackish. But you get to still keep a little bit of your independence. I love that.

Marty:

Yeah. Yeah.. We share the driveway. That's it.

David:

Yeah, that's cool.

All right. So we can, I'm just gonna go right into it. Because this one's fun.

So I guess the preface for this was that Marty and I were talking about some tax lien stuff, because there's some there's some auctions in town. And I was like, Man, you know, I was trying to do these auctions. But I'm still out of state, you have to be there in person. And I was just talking about what I think I posted about it in a Facebook group. Marty’s like, oh, I've done that. So we start talking, whatever.

And I knew he did some cool deals with it and bought some houses that way. But then we were home recently. And well, I'll just let you tell the story of you know, which deal I'm talking about.

Marty:

Yeah, so um, so I started lately going to like estate auctions where there's auctioning the real estate. And I was able to get a couple sweet deals on there. And so then, I saw the tax liens for our country come across the local newspaper. And so I told my wife, I said, Hey, I'm going to go there, I'm going to buy some land, just so we can kind of figure it out. I said, worst case scenarios, we end up with some land that we can ride her four wheelers on and that sort of stuff. So she's like, cool, go for it.

So I go there, and the very first house, they auction off, and it's like 2000 bucks, and nobody's bid. So I was like, Alright, I'll throw my hand up, right. So. So I ended up winning. And then I ended up winning like three auctions for houses at like, I don't know, six grand total or something. So I got no clue what I'm doing. Then the auction is over. And everybody starts leaving, something's kind of standing around there. And the guy goes, Well, I'm going to auction off these properties that haven't sold in the last three years. I'm going to auction them off starting with a $90 bid. And so I was like, wait a minute, so it's just 90 bucks. And he's like, yeah, and so I was like, Alright, I'll take that one.

And so he did a couple of them at 90 bucks. And so I got them both. So I ended up with five properties on this visit. So I had no clue what I was doing. I walked up to the guy's like, well, how much do I owe? And so he you know, he's telling me, so I was written about a check. And he's like, hey, there's two houses that you bid 90 bucks on? I said, Yeah, he said, you get immediate possession of those two houses. You don't have to wait the year and do all that other stuff. Like you do with the other ones. You just can have it. So I was like, cool. He's like, what do you gotta go to the city, make sure there's no fines. So I did that. I don't know. I paid a couple of bucks for each one or something like that.

05:00 - 10:00

Marty:

So they give me this address, and it's in town where I'm at. So I just drove over there. And I knocked on the door and I said, Hey, I now own this place. You either gotta pay rent or get out. And so it's this dude, young kid. He's kind of tweaking and stuff on drugs that look like and he's like, well, it's my dad's house. And I was like, Alright, here's my number. Your dad’s gonna call me quick. Otherwise, I'm gonna evict you.

So a couple days later, this guy calls me. And he's like, hey, that's my house. I was like, Alright, so you can either pay rent or get out. And he's like, well, how much would have cost me to buy back from you? And I hadn't even thought about it. I didn't even know anything about it. And I just said, 25,000. And he said, Can I pay you? 350 bucks a month? And I said, Yep. And so I went to the lawyer and drew up the contract, and he's paid me 18 months to 350 bucks a month.

Alex:

Pretty good.

David:

200% return every month.

Marty:

Every month. Yeah.

So I think I added it up. I think I told you, I got like, 250 bucks into the deal total. And yeah, so he's paid me he's paid me like 4500 bucks so far.

Alex:

That's pretty good. What about the other ones?

Marty:

So the other one was just a vacant lot that the city had torn the house down was a house fire, and they tore it down. And so that was a vacant lot. I kept it for about a year trying to sell it. I literally just sold it last week. So I had probably $1,000 total in it. And I sold it for 3500 bucks for just a little piece of property.

Alex:

With the guy, the first guy did he pay rent?

Marty:

Yes..

Alex:

How did he lose it?

Marty:

Oh, well. So that's what he's doing to me. So he called me and said, I'm an over the road truck driver. And my wife was supposed to be paying the bills. She didn't and she's left me. And he's like, I don't want to lose my house. And I was like, okay, man. So I just, I just rattled off that number. Like I said, I hadn't even thought about it. He just said, how much to do?'' 25 grand.

Alex:

Did you look later? How far, how far off were you?

Marty:

I've never set foot in that house, man. I mean, you know, if you turn 250 bucks into 2500 grand, I mean, I got zero complaints, he deposited in my account, the first of every month. He's been late a couple times . I've threatened to evict him and you know, that sort of stuff a couple times. But ever since then, man, he's paid.

Alex:

That's awesome.

Marty:

Yeah.

So those are those deals that just get to get to Jones and man like, Oh, my God, that's all awesome.

David:

Well, and you kept some of the. Did you get to close on? So the other three that you got tax liens. So for those of you who don't know, and I haven't done this, but correct me if I'm wrong, but tax lien you buy the lien, if they pay you back, they have a year to pay you back? If they do I think it's a minimum 10% interest that you get on whatever you paid for the tax lien. And then if they don't pay you back, then you can essentially foreclose through the city.

Did you end up getting to keep any of those? Or do they all pay you out?

Marty:

So I had one pay me out and I got two properties. So one I made my 10% on and then I've got two houses that, you know, I've had to put some money in. But it's minimal, minimal investment, and then I got long term buy and hold. So.

David:

You essentially paid like 7500 bucks at an option for five homes? Well, four homes and a lot four homes a lot.

Marty:

And so, I mean, if you think about that, I've already made all my money back on everything. And I have two long term buy and hold out of it. Plus, he still owes me another 20 grand or whatever.

Alex:

Yeah. Have you done that since? Have you gone back and done more tax purchases like that?

Marty:

Yeah. So this year I did. That was two years ago, this year, I did another one. So I'm currently in my one year waiting period, I went to a different county to try to see if that would kind of spice it up. But that county didn't do the $90 thing. So next year, I'm going back to that Canada test and $90.

Alex:

Yeah, as soon as that happened, I'd have been like, I'm gonna go back to see if I get to know how many more these he got?

Marty:

It was just brand new. So I was just like, well, I'll just roll the dice on these two and see what happens. And so yeah, next year, I'll buy all of them. Worst case scenarios. I'm at 90 bucks.

Alex:

Can you get stuck with any real lien? I mean.

Marty:

So, I mean, like the two that I have had liens against the previous owners and so I can never sell it. But I can rent them out forever because they are mine, they just have liens against the property from previous owners. They can't come back to me but I can't sell it like through a bank through the MLS.

Yeah, without either satisfying the liens or going with an attorney. paying a couple grand which I may do that eventually. But for right now, I've just got my name with liens against it.

10:00 - 15:00

David:

The biggest bummer in our area is that every auction goes on the same day.

Marty:

Yes.

David:

So like Marty and I were joking about it. It was like, dude, we could just like a roadshow, every county and like, within 50 miles, we'll go on that day the same day. I mean, literally, like we've we've joked about it, but like, when I get back there, we'll find like two or three people and be like, Alright, this will work. This is the criteria, you go to this county, you go to this county, you go to this kind of you go to this county, and we're basically rolling the lotto here for if we can find some, like, $1,000 house that, you know, at that point, I mean, it's kind of like we were talking about with Matt earlier, like, Okay, if you lose $1,000 on a house, it's not the end of the world, especially if the upside is potentially, you know, 10 x 100 x, you know, whatever.

Marty:

So the one I just recently finished, I put 3000 down for the tax lien, and I'd probably put eight or 10 grand in it, fixing it up to get it rentable. But I'm in it for 13-15 grand, and I've got a long term rental of 500 bucks a month. You know, that's pretty. What is that? The 3% rule three and a half percent rule something like that. So.

David:

Do we talk about your division duplex here? Because if we do I mean, I wasn't trying to, I wasn't trying to rub salt in the wound, but like, you know, there are people listening to my point but just be there people listening to this just like cringe because it's a risk, right? It's a gamble. It's a you don't know what's gonna happen with these tax liens.

But the reality is, like you bought a property that should have been perfectly fine, right, a duplex on a street that is a major thoroughfare in the area. Division is a, you know, East West, I've got a property, I got two properties that are within one block a division, and I'm closing on a division house in two weeks. And you just ended up in this thing that happened to be the wrong block and division. And you've I would be willing to bet that that one property that was bought the right way renovated the right way, and everything was done, like the normal way is probably more stressful than all of these things combined.

Marty:

Yes, for sure.

Yeah, I've wasted more time and dollars and man hours of thought and, and that sort of stuff on that duplex than I'd probably have on all my tax liens altogether.

Then that was yeah, like you said, I bought that through a wholesaler, did the renovations, did the BRRRR you know, all that stuff that you know, that everybody talks to you about that you're supposed to do. And it just hasn't worked out. So.

Now it's the last thing on my list. And so now I'm concentrating on only that. And I'm just kind of blocking out everything else until I get that up and running, hopefully, although our boy West may have a buyer for it. So.

David:

West our for my 10 unit right now. So it's a weird market that we live in.

Alex:

Do you have any problems with pivoting, I have a problem.

Do you have any problems with pivoting like that, like I can't, I can't do more than I can't, it's hard for me to focus on more than one thing at a time.

Marty:

So for me, you know, I can multitask pretty good. But you know, that's in a little bit of a different market. I've never done a duplex, I've never done one downtown. And so I was, I figured that I could use my systems in place on that property. And it hasn't worked. And so now I just need to turn it over to a property manager and just do it that way. And so it's just, you know, it's an hour from my house. And so I just kind of so I gotta say, it's hard to pivot, but it's just everything that I thought would happen with it hasn't happened. It's just been, you know.

David:

I wouldn't say it's hard for you to pivot. Why don't you talk about your other totally not similar at all property? That's right around from where you live? The man owns a laundromat.

Alex:

Well, no, it's one thing. It's one thing to have multiple feeds. That just means like, can you buy the laundromat and you know, do the rentals at the same time? You mean what I mean? Can you go into acquisition mode for both?

Marty:

I can do that. But it's one of those things where if my normal system isn't working, then then I just kind of put it off to the side. You know what I mean? That's gotta fit in my lane of what I can do. And if it doesn't, then then that throws me off a little bit, I guess.

Alex:

Yeah, I get that.

I love my partner so much. If I had to actually do the things he did. He does. I'd be dead in the water in a week.

Marty:

Yeah.

Alex:

I can't do any of that stuff. I can't actually do anything. I'm just gonna..

Marty:

Just get somebody else to do it?

So I mean, you know, the way I manage my properties, I manage everything myself, but I do it through a VA and so down there in that market, it's a little different to get tenants. And it's a little different. So she's not able to do that. And I'm not able to communicate with her on how to do it. So I've got to be able to do it all. And so when it just started going off the rails, I was just like, throw it off to the side, like I can't.

15:00 - 20:00

Alex:

Yeah, don't try to do things like that. Outsource it.

Marty:

Yeah, yeah. So now outsource, fix it up, get it to a property manager and let them deal with it. Or let somebody buy it.

David:

Really, really good morals in there. And Alex hit the nail on the head, a lot of people get when they get into something that it stops, you know, it's not your, your zone. It's like, Well, how do I learn how to do this? How do I there's a time and a place for that? But there's absolutely something to be said for the ability to just say, Nope, this is not me.

Like, I mean, we joke about all the time, but like, the reason I use a property manager, I would be the worst freakin property manager in the world. So I don't do it. I don't touch it. I won't touch it, not my thing. And I think there's a lot of power in that. And unfortunately, people get sucked into trying to do everything themselves. And they don't know that playing to your weaknesses is ever really a good idea.

Marty:

Yeah, so that's been my concentration for 2021 is I bought a couple houses, you know, regular bigger pockets 1% rule off the MLS, that kind of stuff. And, and they were my two worst performing properties, just because that's not what I'm good at. That's not for me. And so I've already offloaded one of them. In the next six months, I'll offload the other one. And so I'll have nothing but either multifamily small multi families or tax liens. And then that's it. I'm just concentrating on those other people who can do the bigger pockets, 1% rules, all that stuff. Let them deal with that. I'm not doing it.

Alex:

Yeah, I go more by rather than trying to figure out what my strengths, weaknesses are, I just kind of figure out what I like.

And so and the first way that I noticed it for myself is procrastination. If I find myself procrastinating, it's like, whatever that I've set myself up for. I've told myself I'm going to do a job that I don't like, because if I'm not, if it's something that I'm actively procrastinating is like the most noticeable. We know when we do it.

So people, but they, you know, it's like, it feels normal, but it's actually not or how do I say it's more like, it's your body telling you that you don't want to do something, if you don't want to do it. Trying to build a business around something you don't want to do is not a long term viable strategy. Because like you said, You're like, I just, I don't want to do it. What's the point?

Marty:

Right.

Alex:

There's not enough money in it, I promise you, there's not enough money in it for you to voluntarily do something you don't want to do. So for me, certainly going towards things uncomfortable or getting out of your comfort zone and growth. And that's all certainly part of it. But for me, the first thing I noticed is procrastination, if I don't want to do something, and my body is like, really resenting me for it, really putting off it's like, outsource it.

David:

The phrase I've been hearing a lot lately, I guess it's kind of becoming a buzzword, but it’s like, does this feel heavy? Or does this feel light? Like when you think about it, like the moment you think of having to do something? Are you like, immediately, like, okay, or, you know, and it's like a luxury answer. And I've been trying to kind of use that as our filter a little bit more frequently.

Marty:

Yeah. And, and I agree, I've been kind of doing that, too. And that's why I think about those properties where I have a mortgage. And so you know, thinking of how am I going to pay the mortgage without somebody in there, you know, that part weighs on me. And so that does feel heavy with tax liens. I own it outright, it can sit there for a month until I find the right tenant, or if I'm busy with this project over here. And I got to do something else. And then that's that's what you know, just leave it there.

So, but now it's going back to your point, like I enjoyed the chase and the, you know, the auction format and trying to find a sweet deal and that sort of stuff. That's my favorite part of it. And so that's the biggest part of my strategy going forward is going to be the, you know, auctions, estate auctions, tax lien auctions, that sort of stuff, because that is my favorite part of this whole thing. You know what I mean? And so dealing with the BS to get them is worth it to me because of all the fun I have.

Alex:

Yeah, that's my least favorite part. To be honest.

Marty:

Yeah.

Alex:

Yeah, I don't do that.

Also, this whole conversation with me telling you, I don't do any of these things.

Marty:

So what do you do? Exactly?

Alex:

Right now I'm trying right now. My hair looks good.

Right now my current strategy is I'm going to try to find somebody to find me a deal, find somebody to pay for it, find somebody else to do the underwriting, and then I'm gonna put my name on it.

David:

It’s funny but it sounds true.

Alex:

That's basically I did a lot of work in the last one, actually, and I'm sure I'll work on the next one, but that's my current plan.

Marty:

I like it.

20:00 - 25:00

Alex:

But yeah, mean deal hunting like at an auction? Yeah, I get so. I mean, it's exciting. I used to do it cars, but um, yeah, not for me. Like, it's hard for me to, I hate getting the momentum machine because deal flow is about keeping that pipeline filled.

Marty:

Yeah.

Alex:

You know, and you get an auction maybe maybe you hit maybe bust I gotta go back. You know, it's like you got it, it's a process you don't get it. You don't just show it's an inventory. Right? Yeah, I'm sorry. Like, like, I wish I wish it was inventory like, yeah, this is what's gonna work. We're gonna buy like this. I'll put it together. I'll tell everybody how to do it.

David:

So we kind of skipped over the I mean, we talked tax liens briefly, but we skipped over the estate sales. I'm kind of curious like you for I haven't really talked to anyone before who's done estate auctions. I don't even know that you and I had mentioned that talk estate sale auctions. Like, I guess my question would be like, what, you know, where are you finding those that are on Craigslist, like random Craigslist ads and kind of what is that? I would just be curious. I've done via sound like a very Missouri thing to say, but I've been doing a cattle auction and bought a bowl that way but not bought a house.

Marty:

So what way to go out country on us.

David:

And I think maybe some money.

Marty:

So the first house that I bought outside of my rental was that my house was I just driving by and saw assignments at a state auction. And then it was like a house for sale or something or whatever. And it had this phone number on there.

And so I called the guy and I'm just like, Hey, can I come look at the house, he's like, sure, just some good, good old boy, let's meet in there. And that's when my, you know, thoughts on HGTV. And these income properties and stuff was kind of just kicking in was like it had a full basement. It was unfinished. It was all 1970s, that sort of stuff. And so I was just like, boom, boom, boom.

So then I showed up the day of the auction. And there's only 25 people there. And only four or five of us were interested in the house, everybody else was interested in grandma's old recliner and that sort of stuff. And so then I just had to beat out five people. And so I ended up winning it, we flipped it. I made every mistake in the book and it was my first one. And I still made 15 grand on it.

So then, a couple months later, I'm driving by again, I see another one. And I show up and the guy's like, hates these two houses. I'm auctioning off both of them. I was like cool. One, I was interested in one I wasn't. And so I started bidding, and it was literally me and this old guy just bidding against each other. And so I got this house for 16 grand. And the guy walks up to me, and he says, I'll sell you the one next door for 16 grand if you want it. I was like, Alright, cool. So I ended up with both houses for 32 grand.

So, I mean, so I mean, I'm on, you know, Facebook and all that stuff. I like all the local auction companies and that sort of stuff. And as soon as I see one that's going to be you know, it'll say like a real estate auction or something. And so I'll go, you know what I mean? Or I'll contact the auction house or whatever. And then I'll say, Hey, is there a reserve on there? Because then if there is, and I know, I'm probably not getting a deal, then I really won't go with time, but some of them will be like, nope, no reserves. And so I went to a couple of them. I didn't go too high for me, but I always go just in case. Because you know, just take that one small chance that it's just you and an old man. You know, he's just been on just cars or whatever. And so then I only have to be that beat out the people that are there. I don't have to beat out everybody on the MLS or everybody on the, you know, whatever. Whoever's there.

David:

Yeah.

Marty:

So for us here locally, it's a pretty sweet, sweet gig, if you can find them.

David:

I feel like I should preface for people who don't know this, but we're obviously not in San Diego, we're talking to a $16,000 house. So just know that as amazing as a $16,000 house is right. Like I'm buying one for 13 in two days. Like, there's a reason that it's usually that price, right? Like I'm not buying a $13,000 house to turn around and rent it for $2,000 a month. So.

Marty:

Yeah, no.

David:

I just want to make sure I put it in context.

Yeah,

Marty:

I had to put probably 15 grand into both of them. It did you know, total? So I mean, I was probably 50 grand total. But I got to, you know rent rent, here's dirt cheap. So I gotta $400 rentals or one out of it. So still a good return. But yeah, yeah, like you said, I mean, I'm not..

Alex:

You showed up.

Marty:

Exactly.

That's all it takes, man. Just show up. I go to these things. You know, tax sales, I show up state auctions. I just show up and that's what it took at the beginning. And that's what it's still taking now. Like even when I find some now it's just showing up.

And then, you know, eventually you gotta put it out. You know, you gotta put your chips in the middle. You know what I mean?

Alex:

Yeah, you gotta make a bet. Yeah, for sure.

Marty:

You gotta just do it once.

25:00 - 30:00

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Alex:

But people are like they're afraid to bet I'm like you don't even have to auction. Like you're not even like you're afraid to buy the house. Like how many bids have you put in? None. It's like, bro, you don't you're not you're not in any danger. Like, you gotta get closer to the fire. But you gotta get burned a little bit, you know, to get this to get it done. Like you get burned up closely. Right?

Marty:

Exactly.

David:

Nobody’s gonna force you to go over whatever your max is, as long as you know what your max is, and you don't go over it.

Alex:

Yeah, you bid low in the first few just to be ultra safe. You're like, hey, that's the deal at 50 offer 40. Okay, well, they said no, no, now I want it. Now I saw then you see it sold for 50. And you're like, Well, shit, I would have taken it at 50 you know, then yes, you're gonna get a lot closer. But I love that, showing up. Every time I have no momentum. These last few weeks, I've been going through a momentum problem because all my big projects ended in December at the end of December. And so now it's like how do you get a deal? How do you get this video done? How to get the next multifamily. It's like just start. Just start burning the phone down, be showing up. Like just let everybody know just networking showing up till everybody's got to check on that pound of pavement.

David:

You should have set some new year's resolutions, Alex.

Alex:

I said it all the time. I said I said I said. Shut up.

David:

Hashtag New Year new me.

Alex:

I do, you know I have a problem though. Because if I get on the treadmill, if I get on the motive, the pipeline treadmill where it's like I'm constantly in momentum working mode, I get sick of it, that I'm lazy.

Instead, I'm like I work for myself. I'm not happy. This sucks. So then I get frustrated. So now I try to like I do it. Now I am in this very, very volatile situation where I get a bunch of projects going overload myself, get excited. Keep at it, like I'll keep the momentum going. But I'll be stressed out and then I'll close them all at once. And then I'll have nothing to do and then I get bored and depressed. And I start the whole process over again.

David:

Healthy.

Alex:

Highly unhealthy.

David:

That's what you have to look forward to in retirement, ladies and gentlemen.

Alex:

Yeah.

Marty:

So yeah, I mean, I agree, just just show up.

You know, I told somebody today, he was like, what's the best piece of advice and I was just like, whatever you're on the fence about, buy it. You're either gonna make money, you're gonna lose money. Either way, you're gonna win, because you gained the experience. You figured it out? That sort of stuff.

So you just gotta keep showing up, man. Now, I'm out there. I've showed up to enough of these auctions. I'll get messages from people saying, Hey, I'm going to auction this house off on this day, you should come. Because they know that more people are coming. It's going to be more money for them. But it's also going to be a sweet deal for me. You know, I mean.

David:

That's the power of word of mouth.

Marty:

Yeah.

Alex:

That's showing up compounded. That's what when you show up enough and people know you as a buyer, they know that you're a player, because you showed up on time, then the showing up comes to you. Hey, here's the deal. Hey, that's what you should be at. Hey, yep. Here's an opportunity.

Marty:

Yeah, I mean, like these two houses and knob noster were talking about before the thing started. I didn't do anything. This lady contacted me. She's like, Hey, I'm getting out of the game. I just got married. You want? You want to buy these two houses? I was like, yep. So she gave me sweet terms. And there you go. I didn't do anything with it.

David:

I can only imagine how wonderful this town is because I live or unfamiliar with your area and have never heard of that place. So.

Marty:

It's a little town right outside of Whiteman Air Force Base. I'm gonna rent military people like a champ.

David:

That makes sense. That's cool, though. That's awesome. Probably better tenant base than some of our clients.

Marty:

That’s what we're currently getting

David:

Yeah, so what's next?

I mean, obviously if you focus on tax auctions, right, so and auctions and stuff, I mean, that's not really I would imagine not really a scalable. I mean, you're kind of waiting right? Like you're kind of in the wait, like waiting in the weeds like alright, where's the next where's the next thing coming like deep is that do you care? Is that? Is that the game? Or do you have plans to? I don't know.

30:00 - 35:00

Marty:

So I just, you know, I like David Osborne and he's just like, get a property here. And so that's, that's my goal. So small multi families I'm in after, you know, I can sort of look for those on the MLS and word of mouth and stuff. But, you know, I bought a tax lien last year, that'll hopefully come due this year that I'll, I'll take possession of the property. And then I'll go to the tax lien issue, and hopefully at least get one for next year. And so I'm just going to kind of keep, keep rolling it.

You know, I'll still show up to real estate auctions and stuff here locally that they don't happen all the time. So, yeah, like I said, I'll just show up, and then, you know, if the, if the, you know, perfect thing presents itself, I'll be ready. You know, I'll keep showing up. But, you know, I'm okay, I got my one house for this year.

Alex:

Especially, you know, especially now in this market, where everything is so squeezed anyways, leave plenty of time to go fast. You know, when it's not so competitive.

Marty:

Yeah.

Alex

You know, right now, it's like the time to rush. You don't need to rush right now. It's hard. It's hard to rush right now. I kind of do that where I'm like, dude, one, one, I'm gonna do flips. But like one big property here, that's gonna kind of be where I'm thinking to go.

Marty:

And, and, you know, that way, it doesn't put a whole lot of stress on you, like you said, you know what I mean, you're just all you're doing is just kind of wait and you're still doing your research. You're still putting feelers out there. And when the situation presents itself, you'll jump all over it, and then you'll be okay with it. But if I present itself, I'm ready. If none present itself, that's okay. You know, I just, I'm just trying to just keep adding, man, you know, I mean, yeah, it'll all average out.

Alex:

Yeah, it's just, uh, you know, it's good to hear. It's good to hear when your ego is not in control. A lot of people. You know, that's a lot of ego. Yeah, I gotta do all this stuff right away.

I mean, I think it's admirable, it's admirable to be ambitious, but it's, it can get away from you. So I identify with this way more. It's like one property year, it stresses me out buying those big deals, especially, it stresses me out. Once a year, I add to cash flow, I don't have to worry so much about like, you know, keeping the momentum machine going to stay a lot like to keep the movement alive, just like one year ago to perpetuity.

Marty:

Yeah, like these wholesalers and stuff, man, where they're always a job and stuff trying to find that next deal or these flippers. I mean, I decided a long time ago, that ain't for me, you know what I mean? I just, I just want to be there. If the situation presents itself, and then it's fine. If it does, it's fine. If it doesn't.

Alex:

Oh, I said, I started flipping this year, but kind of just just want to throw it back to work, because I hate it for the same reason where it's like, um, I got to get in that search mode. And, and then I need a deal. And then you mentioned wholesalers, and yeah, I think they're, you know, they're all really doing really well with the markets up. I worry. It's like, you know, split up really learning good business. But, you know, when the momentum is behind them, it works really good. As soon as it's not, it's like, as soon as the buyers slow down, it's gonna be tough.

Marty:

Yeah.

That's why that's why the flipping business doesn't interest me at all. Because, you know, the bag is, you're going to be the one holding the bag when the market quits. You know, I mean, you want to be holding on to that property. That ain't for me, man. It's for some people. Great. I'll help them. You know what I mean? But it ain't for me. I don't want it. So I just stick with what I want. And enjoy the crap out of it. And yeah, like you said, Man, there's zero ego about it.

Alex:

Yeah, I have a lot of ego. So I'm yeah, specifically. We don't relate in that way.

Marty:

I should hide it real well, don't show up on Facebook or anything like that.

Alex:

Right.

Alex:

Oh, boy. Something like that.

Marty:

Yeah.

David:

I love it.

Marty:

Dave, also, to add on to your question, I kind of like the laundromat. And you know, it's, it's challenging and I'm sort of figuring that out. So I may try to expand that a little bit this year. I've kind of went on to the biz buy, sell or whatever it's called and put in a couple offers for personal laundromats and that sort of stuff. So I'm gonna try and expand that this year.

David:

I was gonna wait till we got off the call but I still got a washer dryer dose sitting in my they got brought up from the barn to the garage. You let me know next time you're headed towards Springfield. It's like right off the it's right off the highway. Tell my wife Yo, open the garage. Take a look. Okay, I for anyone who's listening to this wondering what the hell I'm talking about. I bought a monstrous building that required me to have coin laundry for tenants. And I bought brand new coin laundry. It was great. I no longer have said building but I had paid for the coin laundry. So you best believe I took the damn things with me thinking oh yeah, I'll buy another big property soon.

Yeah. And so now I've had them sitting in a bar and like, okay, yeah, when I buy the next property, these things are gonna be great. And it's been like three years. I'm like, okay, I don't like the property I bought and had a contract for coin laundry and I can't get out of the damn contract yet. So I still have my own coin laundry. So I'm like, Alright, you know, what if Marty has used for these things, enjoy cuz they're just chillin right now.

35:00 - 40:00

Marty:

Alex, I see that you're getting in on laundry too.

Alex:

So I made a post on Instagram today. I bought a 52 unit and it has a little community room and there's some washers and dryers in there. That's all it is. I don't know, five sets?

No, I'm actually gonna, I'm gonna get more because they're actually in heavy use. And so I'm like, so we're going to do things, we're going to install washer dryer hookups into half of our 52 units. And then we're going to add a few more washers dryers into the community space. And I think we're gonna have a vending machine. So I've never owned a vending machine either. Now I own a vending machine.

I mean, these are like really small businesses. These are not like big moneymakers. But I think I want to talk about the performance of the vending machine, and the washing machine washing dryer hookup like they made $1200 a month, something like that. It was pretty good.

Yeah, that that sounds right?

Marty:

That sounds like an awful lot for just a few machines.

Alex:

I could be wrong.

David:

It could be a lot more for a load where you are than it is for where we are.

Alex:

I don't remember the exact numbers, but I remember thinking that sounded like a lot. I remember thinking that sounds like a lot. Okay, well, that's what they're reporting. So, I mean, they put in a financial well so we're gonna go in there and we're gonna stop that vending machine and we're gonna I said, you know, we're gonna do I'm gonna put an ATM in here. That's what I do.

And so I have this little bug for the last day or so where all these little you know, dollar machines and I got a whole bunch of these ideas from like, what if we could collect dollars from people all over? They'll get vending machines everywhere. like as if I just figured everything out.

David:

Figure out how many of your clientele like to smoke pot and then you just multiply that by the number of vending machines you need and you're good.

Alex:

So on Instagram, I wrote what I should fill my vending machine with and I put a pole and it was hot cheetos, or super hot cheetos?

David:

Definitely those.

Alex:

Yeah.

David:

I like the lime. I like the Hot Cheetos with lime.

Alex:

That's Nobody.

Nobody can relate to that. Nobody else except you.

David:

I appreciate you Alex. You're a wonderful human being.

Alex:

I know, right.

Marty:

Alex if you buy one of those changes, man, make sure you bolt that thing to the wall. Somebody Jackman cost me like 450 bucks for a new one.

Alex:

Yeah, we're gonna bolt it to the ground is what I was thinking. Yeah. And it's indoors. I

Marty:

Yeah. So it was mine. Somebody went in there, snipped the wire, threw out the trash can and carried the trash can outside.

Alex:

Oh, we don't have a changer in there. I was gonna get a fully I guess I was gonna put a full ATM in there. I didn't think about a coin changer.

Marty:

Yeah, get a coin changer. Yeah, it'll, it'll, it'll increase your business for sure.

Alex:

Yeah, or, you know, can I just make them? Can I just make the washer and dryers? Take dollars? Can I make a fake credit card since that;s what I really want to do?

Marty:

a credit card thing? It's freaking expensive, man.

Alex:

Yeah, I imagined.

Marty:

Yeah, cuz I want that too. You know what I mean?

Alex:

Yeah, I'll have to get a, I’ll have to change machine. It's a good idea.

Marty:

Yeah, yeah. it'll increase your business for sure.

David:

See! The power of being around people who are doing stuff you want to do.

Alex:

That's why I'm here. Yeah.

Alex:

I was a little worried when I first saw I was like, Damn, you know, community laundry at night. But the area is really good, thankfully. Not really good. It's got community laundry but it's um, it's pretty good. So I'm not too worried about it. But.

David:

I lived in an apartment with community laundry at one point and I used it religiously. I was single at the time and I actually got a date out of said laundry room at one point. So you know, I used to go down there, read a book, watch my laundry, go and chat at everyone that came in. It was real jam and laundromat.

Marty:

And now she's Mrs. Pere.

David:

No, no, no, I recruited her out of high school when I was, she was a counselor until my command running joke was like the running joke at one point because like there was like, literally recruiters quit. They're like, do not date faculty. And I'm over here like..

Marty:

There is a counselor for faculty?

40:00 - 45:00

David:

It's like it all Command knew my SEO wasn't invited to the wedding. And then, you know, it's kind of like a running joke. But anyway.

Alex:

It's not the worst crime.

David:

No, I mean, worked out, right. Like it could have been a lot worse. Their whole fear was that if you date said teacher, Counselor, and then it's a really bad breakup, now, the Marine Corps can't recruit from that school, because they won't let you in the school over, you know, whatever. And like, I could see that, yeah, Marines have a really great track record with bad breakups.

Marty:

Typical military makes a big deal on nothing.

David:

Yeah, you know.

There are worse things out there.

All right. So Marty got a few questions we always ask every guest right so the first one is, if an E one, E two was a walk up to you asking you for advice, real estate, life, whatever. Like what's the one thing that you wish someone had pulled you aside when you were a young airman and said, You should know this?

Marty:

Don't compare yourself to anybody else. Just do you be you? You know, don't buy the car because somebody else bought the car. Don't buy the fancy house because someone else did. You know, don't date a chick because somebody else is dating her sister or whatever. Just do you. And, and yeah, just just live your life.

David:

I like that.

I think the whole keeping up with the Joneses thing is super dangerous.

Marty:

Yeah, so so overblown, man.

I mean, I mean, we all did it. You know what I mean? I had way too expensive cars back back when I was active duty and that sort of stuff. And.

Now. I drive a Prius.

David:

Now I have it. Yeah.

Alex:

I know how to use mine.

David:

Yeah. Well, I mean, that's, you know, that's because I just bought it to keep up with you.

Alex:

Actually, the camera is one of the least kept up with the Joneses. Things that I do. I like this advice. This is good advice. It's very hard advice to take. But it is good advice. But the most keep up with the Joneses thing I do, or at least keep up with the Joneses thing. It was the camera because this thing right here, dude, I take pictures with that, that I process. I'm like, on my computer, like diligently for hours that I never post because I don't care. Like I do that I take those pictures for me. I don't care if anybody sees them. I don't share 90% of them ever. And I'm like, yeah, nobody cares. I don't care. I'm happy. I still love the thing.

Yeah, well, people have low standards.

That's good advice. That's good advice.

So we always make the mustang jokes in this podcast, like, Oh, they you know, buy that Mustang. It's like, bro, that's like literally one of the biggest mistakes, just hope. Just fight in 10 years.

Every time you're like, I want to buy them a car. It's like, you know, dude, in 10 years, I guarantee, you know, my dream car. I didn't make that car 10 years ago. How do you have dreams about it? You know? Like, like, just put that car off. That's usually the biggest one too.

Marty:

Yeah, just think how much money we'd have now if we would have taken the money that we spent on new cars and put it into real estate.

Alex:

Yeah.

Marty:

It's just the new cars.

Alex:

I'd be too rich to be dicking around with this cup podcast.

David:

True because I joined an O 8, right. I got stationed in San Diego in 2011. I bought a house in San Diego in 2011.

I mean, you know, obviously hindsight is 2020. But if I even knew that buying a house was a thing in 2011 I could have bought any house. I could have shaken a tree no matter how terrible the buy was. I would be living like a king in San Diego right now. But you know.

Alex:

Yeah. And you'd be too rich to be dicking around this podcast too.

David:

Probably wouldn't even have a mustache. I'd be such a..

Alex:

Yeah.

Marty:

In 2011, what were your car motorcycle boat payments added up? Probably enough for a mortgage. I bet you.

David:

I did have a brand new Harley. I got out of that deployment. I bought a Harley, a truck and a sniper rifle. And yeah. That sniper rifle doesn't get used very often and the truck is now gone. And the Harley I totaled all very successful investments. I also bought tattoos and alcohol.

Alex:

Okay, I'd like to stand up. I'd like to. I'd like to stand up for alcohol, please.

David:

I did not say anything about that.

Alex:

Yeah. But yeah, that's such a common theme. And you know, I don't know what are you? I don't know what the listener demographic is on the show. But my hope is if we can reach a couple of 18 year olds, it's like Dude, just before you go by, not even 18 year olds, 20 year olds, 25 year olds. You know, I bought the last time I bought a new car. I just bought a new car. But now I promise you I can swing it. Last time I got into a car was 10 years ago and I could not swing it. And I was 27. So it's not even the 18 year olds. It's you know 30 below. It's like, dude, just don't buy that car.

David:

Yeah.

45:00 - 50:00

Marty:

Just stop.

Alex:

And if she won't bang you with that piece of shit, then yeah. Yeah, nothing you're driving that cool anyway, so.

David:

Oh man.

All right. It's a good thing the explicit boxes checked.

All right so resources right, what are some good, what's a resource that you would recommend anyone looking to get started in real estate? Well that's a book, course, a website, podcasts you know, astrology symbol?

Marty:

Is this my, where I should obligatory say military to Millionaire?

David:

No.

Alex:

Yes.

Marty:

Okay.

David:

They are listening to this, they already found the resource.

Marty:

Okay, yeah.

To me, the best thing you can do man is when I first started, I lived and died with realtor.com zillow.com, Craigslist, and you know, all that stuff for my local market.

I knew what a house costs, what I could rent it for, and what was a good deal? And so I could just scroll through and I could be like, boom, why is that house? Not, you know, that three bedroom, two bath house? Why is it so much cheaper than everything else?

And so I just became an expert in my local market. And so now I can invest here. And I can use that to learn and expand my knowledge. And then I can go into different markets if I want. But I think people try to fancy it up and start trying to study a different market and all that sort of stuff. And I think if they just took all those hours that they spend listening to podcasts and doing everything else, that they just use that to concentrate on their local market and become an expert at that local market, then then everything else becomes easy.

So I don't know if that's any one resource or whatever. But that's what I would do. I think that's the best advice that I can give anybody.

David:

That's a way different answer than anything we've ever gotten for that. And I actually really like that, like, just study your area. And that's a lot to be learned from that.

Marty:

Yeah.

Alex:

I like that advice too.

Marty:

I mean, I could look, I could look at a house and I could say, Okay, this is 50,000. But I can rent it for 750. You know what I mean? And I could just do that, I can do that now. And so then that, that allows me to jump on something sooner than somebody else.

Alex;

I love this advice. Because if you can look at a deal, if you can know if it's a deal inside of five minutes, which if you know the market, you can, you're deadly. And that can't. You can't get a book for that. Like that's experienced. That means spending time in your market. But like you said, Zillow, the MLS, if you have access to it, realtor.com Craigslist, like these resources that give you market data. The first thing when somebody gives you an address, it's like Google Maps, I want to see Street View, I want to see the area. And I wanna see what Zillow says, how, you know, what was sold, what's the tax value, like these things?

Like, you know, Oh, I know the area, I know the market, right? I know, the market rent is going to be. I know it's gonna be worth it when it's sold. I know it's not gonna take a few. But you know, I mean, like, all these things, like, I know all those things about the market, the property is at the finish of the boxes. Oh, it's in this school district. And if this price, that's all I need to, buy it.

Marty:

It does matter. Yep. Exactly.

And that's just because you know, your market, and you can just jump on it. And a lot of our gain is being the first you know what I mean? And so if you can do that, that's, that's all you need.

David:

I bought a duplex in May. And while I was under contract, a buddy of mine was like, Hey, can you help me learn how to analyze deals, I jumped on a zoom call with him. I was like, he had any properties. He's like, No, I was like, Okay, well, let's just use this one as an example. And I ran through it on the calculator or whatever, on bigger pockets. And we got to the end, I was like, Wow, that's really good. And he's like, Well, what do you get the first time you run it? I was like, I've never run any numbers on this property. What do you mean, he's like, he's like, What? What number like, yeah. And it was funny, because I was like, I was literally closing like, the next week. And I was just like, I just knew that that was a good price for this duplex.

Marty:

Yeah.

David:

Well, I knew what it would rent for. So whatever. Like that, which is interesting, because one of my biggest gripes when I first started was that I lost on a three property deal for like, 100 grand in Republic, it popped up. And I was like, Oh, that looks awesome. And then I spent like four hours analyzing everything about that deal. And then it was gone. It was under contract that fast. And I remember sitting there and just going like, I knew that was a good deal. Like the moment it popped up there was like that piece in me but I just wasn't. I didn't know enough about the market yet to like, no. So I think that's huge. That's great advice.

Alex:

I love that advice.

David:

Where can people get ahold of Marty Tyler, if they would like to reach out?

Marty:

I'm not the biggest social media guy. You can find me on the military to the millionaire Facebook side. You know, anything like that. They can just shoot me a message on Facebook or whatever. I think it's under Marty Tyler, so yeah, you can just do it that way. But like an email to me too. I don't care [email protected] make sure you put 2005 in there.

50:00 - 51:34

David:

Yeah, otherwise you'll send Tyler a zoom link for recording a podcast and you'll be like, Where's this guy? And then he'll be texting you saying you didn't get you're not that I'm speaking from experience but.

Marty:

Allegedly.

David:

Yeah, allegedly.

Hey, Marty, thank you very, very much for agreeing to join us on this podcast. Also, thank you for rescheduling on me last week as I asked you super last minute because I was running off to do something else and was like, I can't do all this stuff. Marty, can you do next week and you agreed.

So I appreciate that and appreciate all the help and everything in the market. I look forward to it, I should be back there for five months and rockin it out. We'll hit up some tax auctions together. I'll bring 80 bucks you bring 10 bucks, which you know, we'll see what happens.

Marty:

We'll roll the dice baby.

David:

I got 90 bucks to gamble on real estate all day.

Marty:

All day long.

David:

I bought 10, $90 properties and one of those things will work out.

Marty:

Thanks for having me on.

David:

Absolutely.

Alex:

This is awesome. Thank you so much.

Marty:

Yeah.

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.