Episode 108 | Rick Jarman | Military Millionaire Podcast

00:00 - 05:00

David:

What's up military millionaires tonight we have an exciting episode with Rick Jarman real estate old school, and he was just on the BiggerPockets podcast and he and I've been friends and talking on Instagram for a long time, this guy has more experience with real estate investing than probably anybody we've ever had on the show. And he's just awesome.

So this is gonna be a really good episode. It's a little bit long because we just talked a ton, so maybe you split it into two, I don't know, I'm gonna have him back on at some point because it's just such a good episode. The guy has been through everything, including tornadoes, wiping out half his portfolio and just some really cool stuff. Some really crazy stuff makes a ton of money in real estate. And he's just a really genuine genuine guy.

So you're gonna really like this episode. Also, this is the first time you will get to hear the new podcast Intro music, which was mixed by a friend of mine from high school and intro so let me know what you think. And if you haven't done so yet, I never actually asked about this and I probably should do a better job of it. I would love it if you guys would subscribe. You know, on iTunes or wherever you're listening so that you get notified when the new episode comes out, but also leave a five star review. I don't ever ask about that. And I really should. And I'm, I guess I'm just a bad promoter. So it would mean the world to me, especially since I got my first one star review, which is hilarious because the guy was basically saying that we were jerks. Because we said, and I know this is audacious, how dare we, we said that if you're not wealthy, it's because you didn't work hard enough. And that you should take ownership for things and apparently, he just wanted to believe that it's always someone else's fault.

So if you think it's always someone else's fault, why don't you have money, you're probably not listening to the show. But if you think that you can take responsibility and fix your wealth, and fix and learn and improve and educate like I did, and like everybody else has done like my co host is done like all these other incredible success stories and you think that you can take control of your situation, leave us a five star review and help others hear about this podcast. I love you guys and enjoy the show.

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 won Oscar Mike.

Sponsor:

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David:

What's up military millionaires, I'm your host, David Pere and my co host, Alex Felice is drinking at a bar right now. So I forgot to message him this morning and remind him and I'm going to just say that because I think it's funny that that's the reason I mean, that makes sense to me. And that seems to make sense to the audience. So that should be relatable to everybody.

But we have Rick Jarman on the show tonight, which is awesome, because well, Rick, and I've talked back and forth on Instagram now for a little while, probably six months, maybe a little bit more. He is real estate, real estate old school on Instagram. And we've been talking about getting them on the podcast for a little while. And for a while. It just hadn't really worked out this and the other. I've been slammed, you know, whatever. And finally, I heard him on the BiggerPockets podcast recently, and I was like, what am I doing? Why have I not had this guy on the podcast? That was an awesome episode. We need to make this happen. And here we are. So Rick, thanks for joining us this evening.

Rick:

And I'm glad to be here. Like I tell folks a lot of times, I'd rather be here with you tonight and in the best jail in Tuscaloosa County.

I'm looking forward to it.

David:

Thank you. I appreciate it.

Well, why don't you tell our listeners a little bit about your story and how you got started in real estate?

05:00 - 10:00

Rick:

Well, I'm 65 years old. That story goes back a long way.

I guess kind of break it down real short.

My dad was a world war two veteran had a complete mental breakdown when I was three years old. He was in the VA hospital task 15 but he wasn't able to get service connected. I think that Mr. Probably today we would have known to get it back then they didn't he was like maybe six, eight months.

We ended up homeless for about a year. And we made her labor one my aunt my, my brother with another and so she realized you know, by those days you women didn't work and she didn't have a job and didn't even know how to drive so I she kind of figured it all out pretty fast. And she was one tough lady that raised us up to work and stillness to work and so came up with real power, but now don't get me wrong she did all she could do.

So anyway. I worked all my life. But by the time I was coming my levels in 12th grade of high school, I got to do my first construction work. And when I was a boy, there was a subdivision being built behind my house and I used to love to go over there and watch the guys work and you know, back then you didn't have all the nail guns and stuff. They were hammering and cursing and so lumber and I just liked all that excitement.

So I tried that construction that summer and I knew then what I won't do the rest of my life. So I got out of high school, I got a job and a cabinet shop making minimum wage. He gave me a nickel raise because I got married about three weeks after I went to work for him. That was 47 years ago and I'm still married to my wife.

David:

Oh that's awesome.

Rick:

And, you know, went from there to being a carpenter apprentice and got into university Alabama and maintenance worked for 10 years remodeled owner side, started flipping about three or four rental houses in about 1984 which would have been 11 years from when I graduated high school. I quit my job and said I was gonna build how this all got started doing what I dream of doing.

And so I was a home builder for 31 years, I quit when I turned 60. That was five years ago. And I just woke up one morning. And I have people say sometimes what, don't you miss it? Well, I say, yeah, but I get my recliner needed to pass because this is stressful. You know, I tell them flipping houses is like being on vacation. But I flipped you know, I've had my own real estate companies all these years since when I went full time just turned 29.

So I've been in this is all I've ever done in my life. So I guess that's kind of the gist of it. I still love to work. We have over 100 and we're right at 125 rental houses. My son's worked with me for 20 years and this is all I know. That's it kind of sums it up at about 45-7 years where a threat quick air bridge fight.

David:

Yeah, man. What I mean, it's just cool. So we talked a little bit before and I kind of so I mentioned my father in law and he's similar age but he built houses for 20-30 years. And he built their house and he helped my wife build the remodel of the house that she owns. And he never, he never got into investing. He ended up actually getting into cattle farming. He has like 400 head of cattle and farm. But I always remember thinking like the house she has she bought for a steal. She got absolutely dirt, dirt, dirt cheap.

Someone had odede in the front half of the house and they got it for nothing because nobody wanted to live in the house. And then her and her dad and brother in law, rebuilt it they remodeled, did almost everything themselves. And I just remember thinking I mean for one, they did incredible work and everything's done very well. But I just remember thinking like, man, imagine if you were if you know some of these people who do it themselves, but if you'd had 20-30 years experience building houses from the ground up, and then you gotta remodeling that would be like the perfect profession to transition.

I'm curious if that's what you think it was, was it a smooth transition or is the difference between building a house and flipping a house? Is that a noticeable difference?

Rick:

Actually, I was remodeling first. I mean, you know and flip. I bought my first house.

Well, back it all the way up. I bought a mobile home right before graduating high school because I was engaged to my wife. She's 22 months older than me and when we first met, I was playing in her brother's band. I played six nights a week at Mudd and my senior high school I didn't learn much but I wouldn't hear too much anyway.

But uh, so she didn't know I was still in high school too late. I like to tell folks she just kind of fell in love you know, and it was but i'd paid down on a piece of land owner financing $500 down he financed it. I had Monica I've been working on my life so I put a septic tank in it, you know and own the land and water meter and had a trailer come and pay down on a mobile home.

10:00 - 15:00

Rick:

And folks back then wouldn't make the team when I bought I was still 17. But I guess they didn't care because I didn't have anybody sign with me.

But anyway, long story short that they deliver in my mobile home, we'd had practice. You know, when you graduate new graduation practice, we'd have that date the same day that we're gonna live in my mobile home. Where we're waiting, wait a minute, a couple of my buddies, so we finally ran over to the main highway to see if we could see him coming. When we got there. The mobile home had been destroyed. 18 Willard hit, it's all up and down the highway and they turn but don't worry, we'll let you know in two weeks not playing well. That's fine because I'm not getting married to June. You know, this is in May.

But two months later, they finally got in and we had to live with my parents. So we got started off rough. So I tell folks, my first real estate experience wasn't good. But then we sold later on, we sold a mobile home and lot and we bought our first house at 21 I was 21 1976 And I remodeled it while we lived in it. It was a little house built right after world war II about a 700 square foot house and we sold it I had a first and second mortgage back in those days you know, I'd assumed an FHA loan and you know paid down a second mortgage had borrowed money for a second mortgage and so got it because I didn't have any money we in it two weeks and air conditioning goes up central heating and iron 200 degrees in Alabama we're sleeping in the screened in porch I mean, it you know, I'm getting wonder about this real estate, you know, but all this time, I'm working for other people and learning my trade. So we sell that one anyway, we do that three times in two years. And by the third time we've moved up to about 1800 square foot brick houses, almost new an acre land and I'm thinking you know, each time I was second when I sold pay the second mortgage off, went back to the same guy did the first one I said, would you be willing to do this again? He said, yeah, you paid me the first time.

So by the third house, assuming a seven and a half percent VA loan which was a good loan scene back in those days FHA and VA were fully assumable. As to qualifications you had to have $45 for the transfer. And if I held a note in a mirror under your nose, you were breathing, no credit checks and nothing, you know, if you had equity money, so about assumed that seven, three, quarter seven, half, whichever was the VA loan, which was a really good loan. And we stayed there about five years. But that's kind of how we got started. We used to move a lot in having money, but by the third one, I paid off the second mortgage on the first second one, I had about $8,000 left over after I paid down the house, I said this is my workout. This is my bill, right? So it started piquing my interest.

David:

So, at first off, I want to key in on the fact that you said seven and a half percent and good loan in the same sentence which I think for the younger generation, like my peer group in the military, right now you see in 2.5, 2.75 you know, I hear people arguing like, Oh, I got 2.75 I heard someone got a 2.65 and I keep telling people like, that's the best they've ever been. Just take it and run with it right, buy a 30 fix then just just own it. But you save seven and a half was good.

So what I mean, you've been investing long enough, what kind of what was like the worst interest rates you ever saw alone?

Rick:

I would say the highest I've ever paid was on that mobile home it was 17% because mobile homes are hard to get it to time, but to buy even the investor loan 100 something dollars.

But the worst I've seen you know, I said I had a real estate company also when I was a licensed real estate broker later on, but so whatever. And there was a period there that they were running a bond issue for people and it was 11 and three quarter fix. And that was the best you could get and people camped out all night long to get that but I've seen when 12 adjustable was the best we could get from people buying their houses.

By me, you know, I didn't hit the Jimmy Carter years or the 22%. But I was up in the high teens. You know, when I was building and stuff there period. I tell folks, I've been through six recessions for them since I've been in business. 1973 when I first came out of high school, you know, we had the gas embargo. You'd hope you'd have gas gas to work the next day as on the way as affected by but it went on for about a year and a half at Natura 2008 was worse would you know we'd never seen but we'd learned a lot of lessons in the late 90s I had kind of got my butt in a bind and had to sell off all my rentals to keep my keep my business going, but my rentals have always been my salvation, but you know, yeah, I went from I got started, like I said, full time at 29. But 32 hours, no read a millionaire and a 43 us had to start over and a cook Couldn't get a $19 page in my name then. Good lord brace. But now, but what we do oh right now so what I say is probably closer but 10 now so you know.

15:00 - 20:00

David:

That's awesome. So one question I have for you is, is where and how did you, I mean, so obviously bigger pockets weren't around right and it wasn't audiobooks everywhere and there weren't podcasts everywhere and it wasn't mainstream. Did you have someone in your life who mentioned this?

Rick:

Yeah, trial and error and that's some things that I had to learn the hard lessons in the 90s you know, because nobody, your competition wouldn't tell you anything less you were met, like I remember homebrew association. So if we went to something on the national level, and you might have a magazine, but when I worked at university, I worked in maintenance, housing, maintenance in the dorms and the rim. I worked there for 10 years, and I'd go to the business library and check out books on real estate and read. And when I started selling open houses, they used to be a little book called The Blue Book, that it would have amortization schedules and because you don't want people won't know what the payment was you didn't have calculators and everything to sit down and run it. So you've had to do it in this book. But it had a lot of definitions and studies and things you just had to he had to dig it out it just trial and error. And I'll tell you about my first rental guess what I had to do to get at it. 1981 I mean, it's kind of hard. I'll be jumping around for 47 years. I bet a lot of stuff happened, you know.

David:

Yeah. I mean, it's just the fact that you learned everything on your own and you've been through so many different variables in the market cycle and everything else. I mean, recessions and everything else, you know what was and I don't want to I don't want to hit on recessions yet, but I'm just I guess I'm just kind of curious, like, at what point in investing did you realize like, do you do you feel like you really got a grasp? Like was there some point in this while you were learning that you're like, oh, yeah this is...

Rick:

Well, I was when I was putting my wife through college. She was a school teacher for 25 years, had her master's and double certified. I barely got out of high school, you know, I was a big get me going, I think. But when I was putting her through school, I was keeping up some rental property for a man. He had about 40 houses saying, like, at the time, I was doing other remodeling jobs and stuff. And you know, I just kind of in my young mind at the time, you know, I'm thinking he doesn't have any headaches. I'm the one with the headaches. I'm the one laying up on these things, fixing busted pipes and whatever. But in reality, we know that wasn't so but it piqued my interest because I saw him live, where he lived and he just like went when you know, I told you I got my license in 1983 as a real estate seven, so a year part time.

When I got ready to go full time I wanted to work for somebody and you had to make money. So there was a man our town had a big old house and like said to simple minded me, I wrote by say, got a big house. He's in real estate. I said, I won't learn from you know, so how so for that guy for two years was building for myself and I'm pretty simple about everything, you know. So I think a lot of people try to complicate everything today. I mean, all these terminologies and things they use now, I didn't know none of that stuff. And I got on Instagram a little over a year ago.

They just sound complicated.

David:

Yeah, my friend Alex, who, you know, my co host, whatever we, we, we kind of say the same thing every time like the running joke between us is real estate's easy. We figured it out. And, and it's, you're right. I think people overcomplicate I mean, at the end of the day, it seems like you took a very common sense approach and just kind of realized, hey, if this is this is working, I'm going to I'm gonna keep doing this.

Rick:

Well you know I tell folks I've always I don't want this come off wrong but I've always been fearless because I had nothing to lose you know you when you're improving every step of the way course I had obligations I got married young and then I had when I when I went full time in real estate in 1984 I have a daughter was born in 80 and a son 18 months later so I had two little kids and but you know, I just felt like I could do it and I was raised if we're as good as anybody else know better we all put her rich's legs on one leg at a time Richard on one leg at a time and I just you know you might be smarter than me but always said that to you would not work me. Yep. Because I'm definitely not smart. I just found out what I like and stuck with it. That's what people ask me to do stocks I said no, I'm not smart enough. But I know real estate you know, because, you know, I tell people people everybody's gonna rant about you know, you heard me say that they're gonna rant about living under the bridge and only so many can live under the bridge.

20:00 - 25:00

David:

Yeah. So not necessarily a desirable place to be.

Rick:

That's right but that need for housing will always be here. Real estate never changes, it's the financing and things like that but the need for shift is never changed.

David:

I like that. That's a pretty solid way of looking at it and it's spot on right like that's exactly right.

And that's I mean that's the whole concept behind everybody wanting to buy mobile home parks right now is that you know, in the worst case scenario supposedly people will that's you know, those will fill it and you know, I mean there's theories for every everything but the logic just being people need to live somewhere if they can afford to live somewhere nice.

They're going to live somewhere.

Rick:

I see it I've had multifamily and stuff you know, I've had a 15 unit 10 unit was 16 unit 10 unit five Plex, I own three duplexes now but and I had a little commercial but everything else is seeing a family. And that's why I do see class single family. I've seen it stand the test of time, you know, through the worst recession wherever I had, my ranch wasn't affected.

I do a lot of six and eight, two chicks were coming in. So, you know, it's just a safe way to go. And like I said, I didn't have room for more mistakes, because I'd had to start over 43 and I had, you know, hunker down and put me to bed back home and start back doing what I was doing when I was 20 for about a year, you know, so and oh, it gets you get your head, right.

David:

Yeah, I've had some sex eight tenants and I'm a fan. What? I guess I'll just go ahead and ask, I am curious. You've said you've been through four recessions since you've been in business and then six, but what do you think you're looking forward to now? What is, you know, in your opinion, is there a way to best protect yourself from recession like what's the best practice for that mess?

Rick:

You know, if I think it's single family homes with section 8 I mean even when the government shut down here you know this past year you know a couple of times section eight chicks kept coming you know that like I said people when times get hard they're just not can't sit and say well I can't buy I can't run I guess I'm just not gonna do anything well now they gotta live somewhere and you know you hear all these horror tales right now of a horror stories of people doing you know, big apartment complexes going on rent strikes and stuff throughout the country and when you know in the heart of the COVID you know, so you don't have that with single family you know, and I found out when I had and I you know, 10 units or down or something like that, which you know, I'm in a college town so there's a lot of big units of apartments and stuff here but I don't like student ram because like I said, I did have an it University for 10 years know what what now I wanted to go and I don't like you know, where I live. There's really not apartments, a lot of apartments in between and see the students or people rent houses and not it won't be in a grown up daycare business. So I just dislike saying to a family I found it works for me and I've always done 15 year loans. I've got tenants who have been with me 12-13-14 years the record tenant I got in with me 17 years now. She's paid for that house. And she was in it when I bought it. I asked her the other day.
How long have you lived here? She said 21 years. I mean, so you know if you just get that longevity also most time with a single family. So for me, it's just a good way to go.

David:

Yeah, and it's simple. It's not over complicated. And you're definitely right about section 8. I've had some of those and there are definite benefits, especially right now. So just a good model and single family you know, they value differently. There's definitely some advantages to that for sure. What else I know you've kind of alluded to a few setbacks. So I got I'm just gonna go out and ask about the tornado story because I heard you mentioned BiggerPockets and I think that's when people talk about things going wrong in real estate. I think that's a journey.

Rick:

You know, I've had some life lessons too quickly. You know, I had an interesting thing, but what happened in 2011 right after the great recession, you know, we're coming out of here, you kind of getting things rolling, we get hit with a huge tornado. I mean, it's probably the largest one we ever had in the state of Alabama.

I lost 26 houses totaled in a commercial building and had damage to property other 70 more my house I had a $2 million insurance claim. 2 million plus, but I did have insurance, but still you had to deal with it. And it doesn't happen overnight. You know, and it was it was you know, it was interesting, but it all worked out good. But it took a little while to build up because I don't go out of town. No words. I do all my best and Tuscaloosa county always has the most minds in the two cities Newport in Tuscaloosa. There's a river separation, we're actually part of Tuscaloosa on this side of the river.

25:00 - 30:00

Rick:

So you know it was tough but I mean it's it also gave us some good work because we did all our own work you know I went out and bought a bobcat and my German real estate construction my guys we would do the work from other companies and get the you know insurance pays good on the contractor so it all you know we did alright.

David:

I never thought about that. That's pretty interesting.

Rick:

So we kind of dealt with them a little bit, but it's all legal. So I guess it's okay then see.

David:

I mean, you know, someone's got to fix the house might as well be you.

Rick:

Yeah, see what you had to do then, you know, famous and all you had to do was push the houses to the front, you know, of your yard. And in fact, there's a special that it was on national television, other channels, I can't remember which one it was. We're talking about it and there's a young black lady talking about her house. She had a baby in the baby bed, and it sucked the sheet up Monday, baby. She's holding one baby. And the house is spinning like on the Wizard of Oz. And that was my tenant. And when it landed on his left is the flower of the house. But we'd have lots that wouldn't be my house on my land. My house might be on somebody else's, you know, it was, it was crazy. Well, I've got some pictures on my Instagram, just have a few of the houses and you would have thought there'd been a lot more deaths in the world. I only had one fatality. And it was a young lady who was scared of running and fell on her baby. And so it was really sad.

But you know, it was real. It was kind of like, I have never been in a warzone. And I know you probably haven't, but it was kind of like when everything is just blown up like a bomb went off and right when it happened in your smell and you know, you know people that have it trying to find people, you know, say people and I had tenants it would come you know, they won't know what they could do. I didn't have that it was you know, it was real emotional you don't you do that for two years straight. It works on you.

David:

Yeah.

Rick:

But I had one candidate pick her up and throw her like three city locks down but she was up in there broke her leg and oh, but I don't like that I had a bunch of all busted up but it's scary.

David:

Yeah, that's not a fun spot to be in.

Rick:

No, you know a little bit about tornadoes. But I tell all your listeners to go and look at that up to five languages April 26-28th. I would have thought I'd never forget that day. But I know it was 201.

David:

Right in the middle of tornado season. Yeah?

Rick:

That's right. You know.

David:

Yeah, yeah. I mentioned I was not born there. But I grew up in Arkansas. So I've seen, we had this weird feeling that we had the privilege of being in this little tiny valley next to like a little State Park. And for whatever reason, there were just the right kind of mountain ranges that our little valley likes to always seem to be on warnings for tornadoes.

So, I mean, multiple, multiple times throughout childhood, you know, in the bathtub with the mattress over the top of the bathtub. And I mean, we, you know, we've lost people so we had a family that worked with my parents that the house was just, you know, the studs are just down and it's just concrete left. And it's, in fact, that storm, I actually was driving back up to Missouri as fast as I could, because I was I was recruiting in Missouri, so I was home visiting family, and I was driving north, alright, or as I was going to be driving north like two hours later, I just got this weird feeling that I needed to leave and you know, I left and I headed north. Like, I mean, it was maybe 10 minutes behind me that this tornado came through the highway just throwing a bunch of semis into the trees and leveling the town.

Rick:

Yeah, it's just..

David:

Yeah.

Rick:

You know you could you'd be trying to find your because there's no street signs, no trees, buildings, nothing the whole landscape is changed and you're trying to figure out where you are you know and it was it was it was pretty it was there for I don't know won't go through it again fighting here but you know but like I said it's it helped save a lot of people in this town that were out of work you know like trades that you know good came from the cat the numbers of people killed it was bad but it could I don't see how it wasn't a lot worse you know?

David:

Yeah.

Rick:

But it put a lot of people back to work so that part was good. You know.

David:

All About that silver lining and then and then you bounce back you said you've got over 100 homes now right? Yeah, everythings going great. So that's what it's all about.

30:00 - 35:00

Rick:

We just took time to you know, find him I didn't build any back because building affordable housing was even though the end you know, but I have people comment, you know that I show some my house every now now and then only Instagram and they look at destiny but the middle roof was I got new roofs I'm just about all my houses but I got to compare and contrast you know if you go and tear off an old roof and it's three tab shingles is just your regular shingles you know not the architecture of shingles were the cost of doing that versus putting metal over the existing roof you'll put a heavy 30 gauge fail and then put the metal on there was about the same and you got a lot longer that roof so we wouldn't hold back metal roofs and my guys did it and we did them so double dipped again you know but but we got a lot of good metal roof out of the deal so.

David:

And you think that's the way to go?

Rick:

Well that was a different situation we were dealing with insurance money you know you cuz I got to set a mat to give you.

David:

Yeah.

Rick:

And and you know if you're you know I've got a couple I've done since then in my house. I just regular roofs because it is expensive, you know?

But it's all crazy right now. I mean, lumbers went up and materials build materials went up 60% since April.

David:

It's crazy everybody thought the world was gonna fall apart and so I'm stationed in San Diego right now. And I mean we got houses you know, day one on the market 10,12,15 offers in over asking 10-20 $30,000 over asking price, because it's like, everybody's so scared that something's gonna fall apart, that they stop listing homes. And then like there's this massive supply and demand issue because people still need somewhere to live like you said, and it's been kind of kind of crazy. It's very market is fairly counter intuitive. I feel like right now.

Rick:

Yeah, that's what that's about, don't go float market down. Excuse me is that supply and demand. You know, people are afraid to sell right now because they don't have where to go. Now. If you're being moved somewhere else, another state goes into a nursing home oh, the person hurts downsizing.

But you better have something lined up when you say oh, you may get a lot more for your property, but you got to pay a lot more. But you know when they are some people pay in crazy prices, but there again, if you get to looking at the interest rates and you spread that out over 15 to 30 years, you're going to save a lot of money still, because you compare in 2020 interest rate and prices to what's gonna be 10-15 years from that. Yeah, yes. So I don't know.

David:

Yeah. Yeah, it's gonna be interesting to see what happens with interest rates in the future.

Rick:

I'm still buying. I know they don't keep man.

David:

Yeah, well, I've been telling people right now you know, and I am not old enough to claim that I am by any means a market expert, right. I have not been around long enough to know the ins and outs internally, but from just like a logical numbers perspective, like, like even if the property drops in value in three years, if you can hold forever and you can lock in to that half, three, three and a half percent interest on depending on what kind of property you're buying. As long as you don't sell the property you can't lose.

Rick:

So that's what I've just fixed. I had someone ask me on my Instagram, they asked me, you know, they said why a lot of people are selling, why are you still buying?

Well, first of all, I'm about home and keep, you know, let's get back to flip the numbers. You know, I buy some things I know we're going to flip, because they're not going to fit my numbers as you know what I do for rentals.

But people don't realize, okay, you got a rental house that you've got a rental house out there and it's worth $100,000 when the market goes down and it loses some value, or if it goes up and increases in value if you're not selling, It doesn't really affect you. If you're when you bought that piece of property. If the numbers worked for the rent, there weren't good times and bad times, whatever that rents are not likely to go down. You don't know there's always excitement but I'm talking about a good average working class neighborhood type house.

So it doesn't really know, it may affect your financial statement when you go to the bank if it loses 10,000 value, even if it goes up 10. But the rent hasn't changed, so it's not affecting you. And that's what I can't understand so many people that can't see that. I mean, I think why would I say first and I'd be paying if I didn't do 10-31 then you go pay too much to do a 10-31 to try to keep paying taxes so you are willing to pay more and you should pay? I mean, it's just so many things, but I understand it's just a lot of people are just looking at it just you know, they are you don't ever count on buying something to count appreciation. I'm with a wedding and I see too many people doing that. Like I said, those numbers have got to work day one. Yeah, they work then you okay, more likely.

But you know, I think people overanalyze everything. You know, they get all these Analyzing programs first of October, midday on my videos, I get to analyze, I get a legal pad. I see what I'm paying forward, I say how much your payment is, what my tax is an insurance or how much I won't leave repaired. If I got a good enough cash flow, then it's analyzed. Yeah. best time to buy when you buy.

35:00 - 40:00

David:

I bought a house in May. I bought a duplex and we closed may 6. So I, the moment COVID happened, I saw this thing pop up on the market. And I just immediately knew it was a good price. I didn't, I didn't do anything.

And it was funny like three weeks later, about a week before I closed I was helping a buddy do analysis and I was using the BiggerPockets calculator just kind of walking them through. But we got on the call. It was like five in the morning, four in the morning, my time was something like that, you know, I'm just trying to walk them through and teach them what to do. And he didn't have a property to analyze. He was just trying to learn how to use the systems. I'm like, okay, well, let's just use mine, right. I'm buying this one in a week. We'll just run through it and get done with everything. And I was like, oh, man, that looks pretty good. He's like, oh, is that better than you ran the numbers the first time like, I didn't write the numbers the first time I I had bought a duplex in that same neighborhood for $5,000 or $8,000 less and this one has garages so I knew that that one was gonna be a good deal and he's like really like yeah just...

Rick:

You know I got HP 12 c app on my phone you know but for years I mean since really for since 1984 that's when I discovered one and you know I go when I figure my payments in I look you know and everything and of course you know, I know I did it a bunch of times you know, but still is I had a guy that was dming sent me a thing with this when I first got on Instagram and I try not to I tell people I don't analyze the deals I don't know your market I don't you know, I don't I couldn't tell you about Birmingham market I know my market I'm a big believer in learning your market but I you know, I'm not gonna go study a market just tell you if you get a good deal or not.

David:

Yeah

Rick:

That's not what I'm here for, I'm here to share my videos. But anyways can enjoy this guy sent minister its own single family home we're not talking about apartments and nothing he had all these graphs and junk I've never seen and I'm looking at trying to figure it out so a buddy best I tell how beliefs can be a little skinny but since you done about it I guess you gotta make it work. Well yeah named bout it and I've never seen anything like this. I mean, just over analyze I mean if the numbers work, but..

David:

Just take the income and subtract whatever the expenses are, and tadaaa.

Rick:

It's not that hard. I mean, you know, they will make it so hard.

And, you know, but like I said, I know, we come up like I did, it's just all everything's roses and sunshine, cuz it was tough. But um, you know, I'll tell you a little story if we got, you're not talking about right when I got to high school. I knew when that summer worked. Between 11th 12th grade I knew I won't build high. I mean, that's what I wanted to do.

Never bet one that knows nothing about other than that summer. So I went to work right out of high school first construction job because I knew I won't be in construction. I'm working at the cabinet shop, making a minimum wage dollar 60 an hour. He nickelled our race because I got married. So I'm making dollar 65 big money, you know, put my wife through college.

So we're on break one day, and I happen to just because I'm just 18 years old just turned 18 I'm sitting there and we were talking and I said, Well, you know, one day I won't build houses. Oh, they got the biggest chuckle out of that and I kind of hurt the big boys feelings. You know what I mean? Because I was serious. You know, I just you know, did on offense, keep in thoughts to myself. But like I said, I've always been a goal setter.

So fast forward, that was in 1973. Fast forward to 1993. I'm building so many houses that my cabinet might can't keep up. So I had to hire a second cabinet man. So guess what I hire? The man I worked for when I was 18 years old. I never said nothing about it. But every time I wrote his check, I just kind of smiled and joked with myself and I who left and now you know, you never know where life's gonna take it. I tell folks, the job I had before that summer, I was 16 I worked with the city North port on the garbage truck now that you things aren't looking up for you back. This is like in the days when I didn't have all the carts and stuff. It was some rough work, you know, and you just got to realize, you know, if you are willing to do what it takes you this business can take you a long way. And just to give you some idea, like I said, I don't mean it as a brag. Are you a football fan by chance?

David:

I mean, I pay attention every now and then.

40:00 - 45:00

Rick:

College football. You will didn't know who Coach Saban is in Alabama football. Well, he lives three houses up from me. I told my wife, I said, when we moved here six years ago, I said to get doctors and lawyers, they got a football coach. I said, now they got a red Nick in here. I told her I said, I might not be the only one who started out in a mobile home. But I'm not, I'm no wonder I worked on the garbage truck. Yeah, so you know, but I mean, that's what real estate's done for me, you know.

David:

It's an ends to a means and I think I joke about it when I talk to people about real estate or entrepreneurship or whatever, but my friend Jeff calls it the below minimum wage phase like BMW phase and it's real, like a lot of people just aren't willing to work through that point where you're not making the money, right. It doesn't come right away.

And I think that's honestly, I talk a lot about what gives military guys an advantage, but I think that's one of the things is like, you're on a salary and you're used to doing kind of ridiculous things like standing a 24 hour, like in three weeks, not that this is not a this isn't a gripe, right, like it's just part of the job but in three weeks I have a 24 hour duty that, you know, we stand every month or two, whatever. And I got Saturday so I get to show up at work at 7:30 Saturday morning, and I'm not going to go home until 7:30 or 8 Sunday morning when turnovers are done. I'll sleep there if I sleep at all and eat there and you know, it's just part of the gig.

But I tell people to look if you're looking at getting into real estate like military guys have an edge because you're used to doing like an extra full 24 hour shift without getting paid a dime more. So hey going to work for four hours for yourself on a side project or looking for a property and not making any money. Hey, who cares? At least this is what you're doing instead of your...

Rick:

You know you're, I used to kind of it's like a curse to be driven. You know, I used to wish they would like me to be like some of the guys I work with. I worked at university and could go home proper feet up. Didn't and I was going to do work. You know how to do massage jobs.

I can remember being so tired one day I'm looking out the window at a big oak tree and daydreaming about rest and under that tree are you tired when you're like that? You know? But it takes it you can't you gotta have that hunger and you got you're not gonna get there on 40 hours a week you know, they may be deceptions or rude but you just not gonna do it. Especially starting with nothing. You've got to, you know, I hear people say, well, I can't do it. I'm poor. I don't have any money for hippie stuff. I can't do this. I'm not educated, educated if you know how bad you want it.

The first rental house I bought 1981 I was working with a guy at University of maintenance. He was getting a divorce. The house was worth $20,000. He was gonna sell it for $10,000. I didn't have $100 extra to my name. I mean, I've got two kids. And working on the side. I mean, you know, I'm just just living life like a lot of people hand to mouth, you know, because I'm trying to help, have a nice place and you know, thank you how?

Well I've got like at this time this is if at one I had like a 1979 Ford Ranger XLT truck. I mean, it's nice, you know, nice truck. But I got equity in it. I said, well, I can sell this truck. I went out to the credit union. I said, Look, I found this house I want to buy and get it for 10,000 I tell them about it, you know, I said, well, here's what we'll do with finance to hold into 20,000 for excuse me, the whole 10,000 because it was worth 20 they said we'll finance the whole thing and but you got paid to clubs and coasts. And you got to show what you got the money to repair the house.

So I went and sold my truck. Got that money. I found a 1969 Plymouth station wagon had a tailgate folded down like a truck. I knew I could work out of it. Army green, ugliest thing ever. So they were $600 for that just Karla but it had a 1200 dollar loan value so I borrowed an extra $600 between the amount of when I sold my truck and the $600, I got extra on the car, the Plymouth station wagon. I had enough money for a fixed asset. And that's how I got my first rental and did the work myself.

David:

Man, that's yeah, talk about dedication. That's, and the crazy thing is that you didn't have someone telling you how to do this or why to do this or why this was such a great idea. You just had a feeling that this was the right thing to do.

Rick:

What really piqued my interest is in the latter part 198.. I read it on date myself, I read an article in Reader's Digest, it was called beating inflation with real estate. It had three books listed once the granddaddy of all real estate books. The guy named William Nickerson, I think it was called hot turned $500 into our thousand dollars into 5 million and actually I get to meet him on time he was old man when I made him into, I went to one seminar my life when those big ones like that, and it was in the early 90s, and he was still alive.

45:00 - 50:00

Rick:

The other book was called Nothing Down by Robert Allen. And the third book was by Albert J. Lowery. And I think it was actually called beating inflation, real estate. And I got to meet two of those three authors, you know, but I keep those three books today in my bedroom, upon a little piece of furniture, a cup of bookends, and you know, I won't buy think about my day but my mama she said, what you want for Christmas. I said, I'd like to get these three books. I didn't have extra money by the end of the three books because I got two kids and you know, doing all these things, and she got money in books for Christmas. And that was the first book I've read on real estate.

David:

That's cool. That's a cool story. And I'm and I mean, obviously it worked out for you. But I think that's, that's just awesome to show. So I in a kind of different way have a similar start to real estate in the fact that although it wasn't intentional, I had to use money from a vehicle to buy to put my down payment on my first property, more or less because somebody was drunk and decided to park on top of my Harley, around the same time, I was debating buying a house and I just took money from that to buy to buy a property.

But you know, I didn't consciously make that decision, but I probably wouldn't have bought that duplex if it hadn't been for something like that coming along, where I just happen to have the cash to, to use the loan and buy the property. And I mean, I've said it a couple different times. Like I'm just glad that the timing worked out in the stars aligned because just getting that first property was like complete eye opener.

So it's pretty cool that you were that set on doing it and that if you mean your first deal sounds like a pretty decent deal.

Rick:

I kept, but let me interrupt you. I'm sorry.

David:

No, no, no.

Rick:

I kept that house forever. I mean, I don't have it now. But I kept it for long time and I'd refinancing cash yeah, I mean you know kind of what to call the bur method which is an ad for the birdman that ever I didn't know what the bur method was like I don't get it Instagram but that has it made me more money and you don't pay taxes on it borrowed money and that was a once I learned that, you know my second rental house about was owner financing. And I think I'd pay $500 down and see here again, this is my second rental house. I got it, I fixed it up. I rent and some people come along. We got the first month's rent to security deposit and rebated the move. You know I learned real quick these people a lot of times and somebody said eager to move you need to slow down take a breath find out why but I didn't know I was green as a cucumber. I had no clue. You didn't have things go check credit now already that I knew about.

So I didn't know to check any references so I rented it to him. I didn't have that for six months and I got a call one night from the lady next door because it's full. He has cell phones everything Of course. And at this time my wife had been in the hospital having surgery. So I went to work and had a massage job checked on her at the hospital and got home and I'm a mother with the two babies and I'm just dead tired. So I'm asleep. My phone rings, I answered. Ladies this is mister. If you won't see your house before it burns down, you better get down here for us and I'm trying to get awake. You know, do you want to walk because I mean, it fits the word house today is because I've only got two. And I figured out you know who it is. I got down there and sure enough, it was just a bowl and it was burning. And they wanted to total it. I found out later that this guy would get to drink it and he would beat on his wife and she had had enough and she just said to burn them out. Neighbor was 10 minutes late. I don't know if it's bad because I didn't go anywhere. In total it and I said you know, back then if it told it you know it I was better off having half I so I said I think I can fix it so I had a friend of mine, that contractor license submit to be it and I did all the work and I remote it myself and kept that half a year.

I was telling my son on that day I said I can tell you my first half I can tell you my second rental half. I couldn't tell you the third one if I had to. I've tried to think about what to look for by that time. It was just you know, they just started happening you know.

David:

Yeah, it just happens the more you buy it, that's why everyone says the first deal is the most important. It doesn't have to be a great deal. It just has to not bankrupt you right and then you always prove the concept to yourself it's..

Rick:

So you know I like to look at this about a mobile home that was destroyed.

First house by Eric should go on. I got the money for the central heating there, you know and it's in the middle of summer, but we get it fixed up. I say up About there and we sell it.

First rental house. It's okay. I think it'd be nice to do this real estate you know, then I had to fire on the second one. Excuse me, so, you know, I've had a few fires, so by the time I got to the tornado I'd already been baptized. You know, I didn't have enough stuff happen because you know you have it as part of it if you think you're gonna do this business and things not happen. You're wrong.

50:00 - 55:00

David:

Oh, yeah. Yeah, but absolutely gonna take some punches.

Rick:

But I'll tell you this. I got a couple more local stores. They're like, hey, whenever you just get told to me when you need to talk and I'm talking too much because I can't tell you I can talk all night.

David:

I enjoy it. This is good.

Rick:

A lot of ground I could cover. Oh, my son who just turned 39 he kind of took out like I did. He got out of high school you guys carpenter certificate. And then it's a home bear license and he's worked with me for 20 years. And when he turned 25 I gave him 25% of Jarman real tin construction But when he was 25, I told my son if you listen to me, I said in 10 years, I will make you a millionaire. And so this was like, it was actually almost 11 years because of the recession. I called him in there one day and he didn't let me tell this because he's real quiet. Can he not like his dad? Yeah, he's like a mom. I said, so come here, man. we shake hands. Oh, well, what is it that I said, I won't shake a millionaire's hanging, you know, we will work on our financial statements for the bank. And his net worth is like then was like this was he was 36 I spent three years ago was like 1.2 some odd million dollars from who you own for him own and half of 26 houses that we own together.

And, you know, his house and things. I mean, he was really thrifty. He drove. He got a new truck when he was right after high school. Toyota Tundra, you know, a limited nice truck. He drove a truck for 17 years. You don't find people that do that. Now he'd have a nice car for his wife, he's had Lexus and Mercedes. But I mean, he drove the same truck. And it's like me, you know, I drove a 2007 Land Cruiser I broke about new, and people all time to me. So when you go get a new one, I don't tell them. I've had a new one sitting down to grow it for a year. I got a 2019 Land Cruiser, but, you know, I just yeah, I'd rather put it in real estate. You know, I said, when I got 65 I was gonna buy my one I actually bought at 64 because it's such a good deal.

But, you know, I'd rather have the house as my cap money. You know, it's like my son, I'm talking about him. We got a bunch of houses down in the teens and he and I bought together. I mean, so there he is, when listen, you know, five years. He's gonna have some serious money coming in and being a young man course I'll have the other half coming in. won't be so young, but I feel offended. But it's just it's the biggest, not the biggest, let me slow membrane down here. A question I probably get asked more than any other question is how many houses you had to have? Well, you could quit work. But that's not the question. You don't want to quit. You know, if you think you can go sit in the sand sticky toes in the sand, and wait on the money to roll in. I did a video the other day, you know, I got almost 500 videos on my channel. And I try to do it while doing one every day. I'm down to about five a week.

I had a tree fall on the house. Now when I was managing it or somebody else we managed our own property. You don't think if you have an appropriate management, manage your property. They're gonna call you to say look, a big old tree just fell on your house. We first had to get this tree off, get some prices and fix your house back. Have you got some money? Because, you know, they're not gonna pay for it out of their money. Thank you. They're gonna finance it for you for about two years.

You know, there's nothing passive about this business, you can be less involved and you want to be. But to steal, you got to pay insurance taxes. And when the window window management got that you ain't got no money, you better come up with the money.

David:

Yeah, absolutely. So I had a question for you. I just remember you saying this earlier on.

15 year mortgages, right? That's your, do you still even with low interest rates is that?

Rick:

Still do a 15 year mortgage.

David:

Why do you prefer 15?

Rick:

Well, when I started out, that was kind of a thing. And it's always where I've only I've done. I've had five houses over that period of time that I didn't do 15 year loans that were actually forward and I'd actually built in prior to the recession 2008 to say I tried it and was trying to be affordable, housing.

55:00 - 1:00:00

Rick:

And you know, because I was building surveys, but I would try, you know, I was gonna try to build some and just you always looking way to get a little more of a market, you know, because when the recession hit, I just bought 1,000,004 worth of building lots because I'd buy homes, so division go and put my plans on it and pick everything out, you know, I didn't I did custom since 1998. As speculative, you know, we do it like that. And then if they come looking at the construction, you know, they pick a color from whatever.

But anyway, we had to work through that, but that wasn't no biggie. So, I'd built these smaller houses go and try to sell them, you know, just make a good little late, you know, distribution for behalf and because, you know, Rachel's hard people having a hard day, you know, you've always got to be strong to figure out a way to keep making money within the recession hit and they didn't say, oh, I thought turned into rental so I had to set them up with 20 years make the numbers work.

And to this day, I still have three of them and I still have one here while back because it got so valuable where it was to keep it as a safe night ran out, you know I just sold it. But that's the only time I've ever did 20 year mortgages and you know and you got to realize maybe it's not that much different right now, when the right term is low is ar 15 in the 30s it was only two and a half of what if I see most of the time on a commercial loan, you don't get a fixed 30 year loan you know, and I you know, I hear everybody talks about 2-3k loans and this loan that loan. That's like one half here one half say if you go and grow your portfolio you got to deal with you got to deal with banks, you know, and what I even credit you used to limit you to four but I hear people say, well, banks only do 10 houses, no I got one loan it started that with 53 houses own 54 and I so it's got 46,000 now, I paid 500,000 down.

This is about an 8 year old loan when I refinance with that times what it was and I financed Me and 550 and it's paid down a little less than 700,000. And I've got houses and net worth $150,000. So I'm down to like in 17,000 per house and basically, you know, 46 houses. I told my wife other days, like a $12,000 a month payment. I said, you realize and but I guess six years, I said, five, six years, we're gonna get a $12,000 month raise. Of course you wouldn't return but I think what I'm going to do is pull out 10 houses and set them up again on the 15 year loan and let it because they're still cash flow really good. And the payment of B I think I figured a payment was gonna be less than $5,000. You know, maybe 4000 whatever.

I'm six feet 600 feet of water for 15 years, take out 10 eight, whatever it takes to make the numbers work. And those other 37 are free and clear. And I have other free and clear property but I mean, it's just getting that many more free and clear.

David:

Yeah, just working on the numbers.

Work in the numbers to get a lot more cash flow out of it.

That's cool. That's a cool spot to be in. And I like 15 year. Yeah, I mean, I haven't actually executed a 15 well, no, that's not true. So I have a 10 unit. And I bought the 10 unit that it was like I think was an 18 year when I bought it and I refinanced 18 months later and I'm going to kick myself I can't remember if it's a 15 or 16 year now but I basically took out just enough to pay off the seller financing that I got on it and say okay, cool.

Now I don't know anyone but the bank, and I dropped the payment by like 200 bucks, but I didn't take a bunch of cash out. I just kept the years off. And so I've got 14 or 15 years left on it, but it'll cash flow another two grand a month. Once it's paid off, so.

Rick:

When I had refinanced these, I bought out a partner in 2008. So I spent 11 years ago. So I bought him out. And that was about two years later when I refinanced. So that's about right. I was 15. So I don't have many more years left on.

David:

Yeah.

Rick:

So how do you Dave you know, my math?

David:

30.

Rick:

So you're 30 we're just thinking about this. If everything you bought this year, you did when you were 15 years old, you're gonna be 45 years old when they pay.

If you don't, you're gonna be 60 years old. Yeah. And that payment doesn't go down just because your equities are going up. You pay much the same, and the rates change, it could go up and down. And so that's the sweet thing, but 15 years.

David:

Yeah, that’s awesome.

Rick:

you'd be like my son, you know.

1:00:00 - 1:05:00

David:

Yeah. That's really cool.

All right. So I got two questions that I always ask everyone and, and so the first one is If you were to run into a 18 year old, 19 year old and they were to ask you for advice and you only had like two or three minutes what would be like what's the one lesson that you wish they knew?

Rick:

Myself at 18 or somebody else?

David:

Either way, I guess it could be either one let's let's do someone someone, now if you ran into me when I was 18 right now.

Rick:

And you're wanting to get into real estate? Or what I would just what would I tell us?

I would say invest in real estate, start working that way, learn in the markets, and learn financing. And I would you know, I have people come in and try to sell me stocks and stuff all the time, which I'm not against stocks. Like I said, I'm just not smart enough. I don't know and I don't want to know, but that'd be a young stock salesman come in, you know, in time I get through to them. I get Tim can you do this for me where your stocks because you know, real estate's leverage. You can leverage it, you know, you can be flipping houses leveraged or you are buying rental property. And when I get done what I'm making on the rental house, or how I'm trying to flip. They forget about two stocks. I won't talk about more real estate.

So I mean, you know, everybody loves real estate. So I guess answer your question. I would, I used to call it when I worked at university. And like I said, I was in my early 20s. When I got started, you know, I left in 84, I was 29. So I was probably 25 years old. I used to call it a miracle of real estate. I mean, you buy a piece of property, somebody else is paying for it for you own rental property, you use and leverage you get in it very limited amount of money down and there's ways to do it. It's basically back then, if you if you structure it right, here you are the government's tenure 27 and a half years it's going to be wore out. But in reality, it's going to be more valuable. You know, because you get to depreciate it out over 27 and a half years what you pay for. I mean, it's like a license to steal. I mean, it's the best. I just, I mean, I love It I just think it's the best thing in the world. So I would get, I would try to turn them over to real estate, the miracle of real estate.

David:

I like it. And the second question is, what is one resource, book, course, website, whatever that you would recommend to anybody who's looking to get started as a real estate investor?

Rick:

Whoo. You know, you probably heard what I told him on the podcast, so bigger pockets. I told them to go read the Birdman because I liked it. But I told David, I told him about it. David Green, he wrote the book and I said, but you know, I hadn't read it yet. Even though I figured I better read it since I'm over time recommending it to people.

So I've heard him talk about another dog. Thank you. So pick a book to recommend and buy it. Read it yet. But you don't pay per see what real estate books are you reading? But you know, I was too much. I am 64 years old when I got on Instagram.

Knew nothing about like I told you or I didn't know what a podcast was years and a half ago.

David:

Yep.

Rick:

And like I told you, I'm a goal setter, and I got on here. And you know, I set my goal. I told my son, I'm gonna be on BiggerPockets podcast one day, and that was one of my goals and, and, and a month ago, I made that goal come true. So, you know, I just I'm a big believer in still to this day setting goals. And so, you know, I've been learning all this stuff. I've got a 16 year old granddaughter who could show me half his stuff. I could slow her down, but you can't get him to do it. So she's a cheerleader and dances and other stuff.

So I get on YouTube and I study stuff. And you know, it's been a wild ride. I mean, like I said, I just started but 13 months on Instagram, and I think today right now I'm at like 19,800 something followers.

David:

Bigger than mine and less time. It's a good it's a good it's a good Instagram.

Rick:

Well, I mean, I'm just amazed that the folks listening so fat man talk about, you know, real estate, but just try to keep it real. And I could tell him, you don't, BiggerPockets asked me, well, what can people out there,do we tell him to the hip? Yeah. I said, Well, I don't want anything. Just go follow me on Instagram. You know, I mean, I don't know who wrote a book when I do that. I'm going to buy it. No, but I'm not trying to sell anything on it. And so it's kind of a good feeling to be able to share with my wife sometimes.

Some of the messages I get from people and I know I'm making an impact because they tell me and that means a lot, you know, where so you probably get that too. Like, you know, somebody, you tell them what they need to do and they listen to you.

I had one guy. He's a pastor in Missouri and Ozarks.

David:

Got to be around the corner from me.

Rick:

Yeah, but I got a video where I talk about always checking square footage on a piece of property when you bought it don't listen to what the real estate agent says, don't go by what the court has said you just sold. And I talked about how to do it and that, you know, in that video, well, he was fixing the rental house, another rental house, and it was wrong. And they were charging more than what the square footage was. He says $20,000. He said, I told myself, man that I'll be worth a box of good cigars Anyway, you know, so he sent me a box of cigars.

1:05:00 - 1:10:00

David:

That's awesome.

That's cool. And you're right. Yeah, it's good to be able to help people out with stuff like that. And I can vouch I have read the brrrr method. And it is a well written book and does a good job of explaining the concept so.

Rick:

Well, you know, I've always used it because I was always leveraging because you didn't have money and so you know, leverage use right is a powerful tool. It's hard to beat.

David:

Agreed.

Rick:

But uh, but yeah, and in there's one more book that I would recommend if you're somebody starting out It is almost like a take a look at the first podcast that was ever own was new American Dream podcast I think with George mind's gone blank by Georgia last name is now but you already got where he'd called me but deals or something, you know, we just can't. I've made so many friends since I've been on TV anyway. I was telling him about this book and he said man, he looked at a bit of ad dollars. That's where I bought it, you know, a long time ago.

But there's a guy named Trammell Crow. He's called Trammell Crow, masterbuilder. Now it's not about building you would think you did that. But he was a Navy man in World War II and he was an accountant or whatever. And he got, you know, building warehouses and real estate, a lot of commercials. He was like, one of the early guys that brought, you know, where you take, like we know, up north, you know, the New York they have where the market and stuff you know, he had the markets in Texas. He started at concept with a big trend and all that stuff. But he had companies like Trammell Crow properties, Lincoln properties.

But he worked with a lot of partners and when I was regrouping you know, like I stayed in the late 90s I went being able to borrow millions of dollars and I couldn't get a $19 page of money. But they were people who knew how to make money and I did everybody right and took care of all my, you know, debt.

And so those people I work with lawyers, accountants would be my partners, and private money lenders too. But someone with clearly said company, I got one guy's prayer. I've been doing business for 20 something years.

But anyway, in this book, he talks about how he worked with the partners, and I've got a couple of videos explaining how I used to work with partners had, you know, they'd bring the money, I'd be the talent and, you know, we take our cost off, they'd get paid for the money, just like we were paying the bank, but they didn't get to interest to the end so that bank was charging 6% the partner we get 6% of their money they'd be wearing two hats one hat, they'd be half owner in the company though the hat they were the bank, you know, so they'd get that money then they'd get half of the net profit, which was a sweet deal and I and all them always made money. But he showed how you had all these different partners and he's in the center like a spiderweb. And he's working with all these partners, but it'd be like, save me and you did something to me and somebody else to me, your deal doesn't have nothing to do with their deal, you know, all these different companies.

And that's how I come back you know. And I had a couple of guys I said Well, I guess now that you don't need us We won't do two more days I said now man usually you know cuz what I was able to do, especially a lot of the building if I had a partner I'm building on a subdivision or whatever, my money since I wouldn't have no foot every day cost you know of paying men and everything. When we sold something I could tell money put it into rental property see cuz I didn't have to worry about holding money back for that because you know if you build it buy locked, buy rentals banks only gonna loan you so much yeah, so I was a tool I used to do things to kind of speed up the process because like I say there's a lot easier second time around because you're a lot smarter and you know a lot more.

David:

It makes sense. Oh man, there's a lot of stuff done back in here and.

Rick:

I'm sorry.

David:

This is a great episode.

Rick:

4-7 years is a lot of things to talk about.

David:

No and this is why people like your Instagram because it's full of nothing but value you're not selling a bunch of stuff. I will buy your book when you come out with it. But you've got just a lot of great stories, great information and you're genuine, right? It's not you're not trying to push an agenda. You're not trying to push a product you're not trying to, it's just helping people out and it shows and that's why people like it.

1:10:00 - 1:15:00

Rick:

I literally I've gotten what tells me I'm available. I don't want your money. You know, I don't want it. You know, if I give me some t-shirts to coffee mugs or books I'm going salad. But I mean, I'm out of the big time. I mean, this has helped me this past year. And so cuz like I said, my first retirement from building, you know, I'm thinking well, I'm just not going to, you know, do much just collect, you know, stay to work with, I don't want to do the day to day at the office. I don't even have to go in but I like to, because I'm a control freak.

So, but I'll go and spend a little time you know, but I, after about a year or two, you know, if we you know, I think we start by flipping big. I say big we try to do 12 a year that's, you know, guess if I don't make enough money through flipping houses, so I've got an office manager. It's been nine years, almost 10 my son's salary, he's been with me 20 years. I've got a maintenance man who has been with me. 16 years, 15 years. And then I got a real estate agents been with me 16 years so of course she her money you know his commission so I don't have to pay her just I get company gets 30% of whatever she sells, you know commission wise so it helps a company but if we don't generate enough money to pay all the salaries and overhead, it has come out my rentals and I don't like that I had to loan it to the company.

So that's why we keep flipping you know, I mean, sometimes I count on you. Sometimes you are just doing this as a math man to go with that. That's not what I built it for. I'm buying stuff now for my grandkids and kids and I mean, you know, I've got to enjoy doing it. You know what I'm saying? It's been a lot of fun. I thrive on it. But I guess I kind of got sidetracked. If I can do it, it's hard to pull back.

So by me you have an Instagram and have been stirred in this stuff. And face, I mean, YouTube, you know, just trying to see how do I know people think where he just just did this and his Instagram grew. No, I've studied it, you know, read about it. It's everything I could find out about it. And I haven't read real estate books. I mean, don't take it wrong, but I just think saving a lot of money at meeting them. But I need to read, you know, I don't mean that in a bad way.

David:

I mean, you've got experience.

Rick:

Well, I mean, like I said, real estate doesn't change. It's just the biggest thing. We've been learning all these terminologies and stuff, like the other day somebody, you know, for a long time I hit about 10,000 people every time somebody followed me. I'd say thank you for the following: It wasn't a private account. Yeah. Hi, look, I could look back and tell you the date. You started following me. I found you just for that very reason. I do that sometimes, you know, well, the guy says, I can't believe you asked me back says, is this a bot and I'm thinking about what the hell is he talking about? And I said, but I don't know which job I should be a robot and I thought, oh, you know, I mean, but all these regulations and stuff, I don't know what half I mean.

David:

I get that message every now that I kind of do something similar I send a welcome aboard. This is a little bit about me whenever someone follows me. And sometimes people say the same thing or they get mad, they think I'm trying to spam and I'm like, I'm just just introducing myself like, you don't get that message unless you follow me. So it's not very spammy. You're just following me.

Rick:

Well, you know, if I told you were talking earlier, I didn't like about Tiktok, you know, because I really, I wasn't free to really talk about real estate cuz you know, you get to stuff like the haters, you know, aka like, I call them gangsters behind the keyboard coming on landlords or slime or landlord scum, and you know, and I won't, and I can't deal with stuff like I'm old school man. You don't talk about me. I won't be reached out. Let's talk about it. So I just finally said one day I'm just shocked. I told him I did it twice. First time I cut it off. My granddaughter says you don't need to do that pop you got you know cuz I had like almost had 8000 something followers and 40 something thousand likes I met one one of them it went over 100,000 views you know and but I told him no I can't tell them do a bunch of things I want to do and enjoy because I don't need something making my blood pressure go and pissing me off or taking me off I'm sorry about that.

But uh you know so but I you know they started the reals now you know on Instagram so I did three of them and it's kind of going pretty good.

David:

Yeah.

Rick:

I can enjoy showing them a little different side, you know.

David:

Yeah, my first real estate video got like 30,000 views and oh, yeah, no, it's like, oh, man, I can do more of these.

Rick:

I see that one of mine. I did him. I kind of did almost like a rap, you know, and is just more or less like a poem type thing. You know, when people are saying oh, Man you doing bars I'm trying once bars I didn't know what all that meant somebody had told me you know, or you know they call me goat. I didn't know what that was. I had to mean goat, you know, but they're called me OG, and I didn't know what OG mentioned. Oh, and it's just been a heck of a ride. I mean, I just love my followers, man I just love them.

1:15:00 - 1:20:58

David:

Well that's too funny. Well, I appreciate it.

Alright, so I do. I do think we need to cut this off eventually because none of my followers are gonna end up with a two hour episode. I have to do like two parts.

Rick:

There you go. Just have me back sometimes.

David:

Yeah, I was just saying we'll have to do that for sure. So just let everyone know real quick the name of your Instagram account and where to go is there anywhere else you want people to follow you?

Rick:

I actually have a YouTube channel right now a lot of it's the same stuff that I just put up but people tend to like it too. You know, different different people our time so both of my accounts and my YouTube is a Real State Old School and my Instagram is Real Estate Old School.

David:

Perfect and I will absolutely take that down in the show notes and share it and tag you in it obviously when everything goes live and I'll probably have to tag you on YouTube as well just so you can see it there. So.

Rick:

I need to know, get some more subscribers there you know, so I've got the number now to start getting monetized. Don't give it enough, but just buy a hamburger, I'll take it, but I got to get a listing ours, you know, but uh, but you know, it's, and I'm not doing it for the money, but it's like anything else. It's like playing poker if you get a little money if I can make a little money doing it. I'll be smiling.

David:

Exactly, yeah, it's, uh, yeah. But you know, I found that for myself. I started outsourcing a lot of my stuff to an editor. And so I'm making money on youtube, but I'm paying the editor. It's like every month I pay the editor. Basically whatever I make, like I just put out more videos and like eventually YouTube will make enough money that I can pay the editor and still keep some but for now, I'm like I could edit this video myself. I'll have him do it. And then it's time so.

Rick:

It'll take five minutes to do this when I first like said, my son introduced me to the podcast bigger pockets. The first podcast ever heard about it, you know what one was, so after I stayed up one night, you know, well, I tell this for the cut out of the podcast for David green. I'm trying to figure out how you get on here? Well, how do you contact him? I didn't know. I mean, I'm green. So I get to hang out with that David Green, green and green, I guess but that David Green. He's a real estate agent, his numbers out there somewhere.

So I go online, I find his number and I start calling and leaving message tags and I guess he figured this food line was gonna go away. So he sends me a message to go on there, you know, on their website, and there's something you fill out Tombow I got my pay it I stay at one night at one o'clock filling it all out then I think I lost it I get next morning do it again.

So I'll leave a message I said look you may have to have these own from me you pick out the one you like best and that's one would go with but when I was talking about how I got that number you're saying David’s eyes he's like Brandon was kidding says yeah, man everybody's gonna know how to get up you know, so they cut that out so so I started I said okay, you know I didn't hear nothing I'm because I'm thinking I think I sent him my stuff that'd be ready to have me on the show. You know? Cuz I'm a positive thinker.

David:

Yeah.

Rick:

I didn't hear no not so bad God I just started my own podcast. I ordered me a mic and got on YouTube and studied and got GarageBand and, and I'd already had everything set up about me some music intro and extra, you know and I couldn't find about to go head to head with I don't even have a website. To this day. I don't have And I've tried of course, I was cheap, but it won't pay much for someone wrong. I could in fact, get a website.

So it's too much trouble. To do this. I'll just say about starting a YouTube page. So I'll go on and read about that. I started my YouTube page. Well, it wasn't taken off. I said, well, heck, I'm just not having anybody who wants to hear. That's when they say, well, why don't you try Instagram? I said, Instagram, I said, that Facebook for young folks. I said, well, you need to try. So I did. I said, my instagram and actually started calling it real estate. Invest in SEO. Yeah, real estate investing, no real estate investing made real. And then I, you know, I'm thinking, hey, nobody won't hear what I got say. I said, I'm gonna change the real estate old school you know, and then I just shortened it to real estate. Okay, so some of my older videos are still called real estate investing old school.

David:

That's funny. Yeah, well, your channel is doing great and everybody loves it. So.

Rick:

That's it. That's pretty much that's pretty good to hit on. four to seven years and I'd like more things with that topman.

David:

Absolutely. Well, Rick, thank you very much for joining us this evening.

This has been a lot of fun, some good stories, some good wisdom and obviously a lot of value for everybody who's gonna listen to this.

Rick:

Well, I appreciate it man and you all come follow me on Instagram and David, thanks for the opportunity to be here.

David:

Absolutely. Yeah, everybody, you should go follow him.

His channel is awesome.

End:

Thank you for listening to this episode of the military millionaire podcast, Alex and I really, really appreciate each and every one of you. Thanks for helping build this community to be the biggest investment military real estate, entrepreneurship, personal finance community in the world. That sounds cool. But look, check it out. We really really appreciate it. If you haven't subscribed to the channel yet. Please go ahead and do that. And leave us a review on iTunes or whatever platform you use. If you think we're worth reviewing. We prefer a five star or one star but have a great day.