Wealthy AF Podcast
Welcome to Wealthy AF, the ultimate podcast for ambitious individuals ready to transform their lives. Hosted by Martin Perdomo, The Elite Strategist, this show dives deep into the powerful pillars of personal growth, entrepreneurship, and building wealth.
Each week, we bring you actionable insights, inspiring interviews with industry leaders, and proven strategies to help you break free from the 9-to-5 grind, unleash your entrepreneurial potential, and create lasting financial freedom. Whether you’re scaling your business, investing for wealth, or leveling up your mindset, this podcast equips you with the tools to design the life you deserve.
Because let’s face it—being broke was never the plan. Ready to join a community of go-getters? Subscribe now and start your journey to becoming Wealthy AF today!
Wealthy AF Podcast
Overcoming Fear to Achieve Financial Success in Real Estate (w/ Jim Manning)
What if overcoming fear could be your gateway to financial success in real estate? Join us as we chat with Jim, a seasoned real estate investor with over 3,500 deals, who shares his transformative journey from fear and hesitation to impactful action. Jim's first deal took 18 arduous months, yet with the support of a trusted acquaintance, he leaped into the world of property flipping and never looked back. Discover how learning through action, rather than endless theoretical knowledge, can catapult your real estate ventures into rewarding success.
In our conversation, we explore the secrets to maximizing returns in real estate investments. By leveraging strategic partnerships and building trust, we've scaled our business to include a $26 million debt fund with 130 partners. Hear how prioritizing relationships and honoring commitments can eliminate financial constraints and allow you to focus on what truly matters—finding lucrative deals. Our experience shows that the power of collaboration can transform a real estate business into a thriving enterprise where everyone benefits.
Real estate investing isn't just about profit—it's a mission-driven career that empowers investors and communities. Listen to stories of how investing with purpose has helped individuals, like a teacher escaping domestic abuse, achieve the dream of homeownership. We advocate for new investors to balance learning with decisive action and to engage with community events to build meaningful relationships. Reflecting on the mortgage industry's ups and downs, we emphasize the importance of learning from seasoned investors who have weathered past market storms, combining fresh enthusiasm with the wisdom of experience.
CONNECT WITH JIM!
https://www.linkedin.com/in/jimmmanning
https://passivewealthshow.com/
https://doorwayproperties.co/
Introducing the 60-Day Deal Finder!
Visit: www.wealthyAF.ai
Use the Coupon Code: WEALTHYAF for 20% off!
Building wealth isn't just about personal gain. It's about empowering yourself and your community. This is Wealthy AF your ultimate guide to understand what it truly means to be Wealthy AF. Today we have Jim, a seasoned real estate investor and entrepreneur. Jim has closed over 3,500 deals and successfully built multiple businesses into multi-million dollar organizations. He's here to share his expertise on investing in real estate and how to scale your business effective. Let's dive in. Today's topic we're going to talk about is the mindset of a successful investor and what you need to succeed. Jim, welcome to the show, Welcome to the podcast. I'm glad to have you here. As a fellow real estate investor myself, One of my favorite topics to talk about.
Speaker 2:Oh, that's great. Thanks, martin, appreciate it, man, and thanks for having me on. Happy to be here and hopefully share a little bit on what I've learned over the last uh, getting on 20 years now 20 years a long time, brother.
Speaker 1:Yeah, man, that's a long, long journey, man, um, why don't you share with us? Let's start with you. I will do a little something, something a little different. Tell us the story of your first, first deal, how you first deal. Uh, you know your fears and how you overcame those fears, and how that deal, um propelled you to um where you are today.
Speaker 2:So it's a fantastic question I, so they have the very first deal? I, obviously, you're you're going to always remember that. And, um, I like to tell people too, by the way, when you're just starting out, like, hey, don't judge us on the 300 plus deals we did last year and the hundreds of deals we're doing this year, like, don't judge yourself to that if you're just starting out, because, well, one comparison is the thief of all joy. You shouldn't do that anyway. But two, that's not what I did when I started out. It took me 18 months to do my first deal and I had a lot of fear that was baked into it.
Speaker 2:And finally, uh, my now business partner just said, jim, you just got to do a deal and he and he ended up wholesaling me a deal. Uh, but when we try to get financing for it, uh, because he was wholesaling it, uh, the loan that I had gotten approved for they said, well, no, you can't buy it from a wholesaler. And I'm looking at the numbers like, well, this is crazy, because the numbers work. Why, why can't I get a normal loan? And uh, for those of you that don't know, what a wholesaler does, is they lock up property under contract with a homeowner and then they turn around and sell it to another investor right, and a traditional bank doesn't like that. They want the contract to be with you as the buyer, with the homeowner. And so, anyway, I was really blessed to know a high net worth individual, that I had two weeks left to figure it out and he said well, jim, you know what, I've known you for a few years, I trust you to be able to do this. I'm going to give you a loan, I'm going to give you some of my cash and a loan to be able to do a property flip. So that deal all came together pretty quickly and I was able to make a good profit on it.
Speaker 2:How much did you make on that first deal? So I bought for $40,000. I think I had about $50,000 into it and then we sold it for about $ or 85. So that means we, and then we ended up. We ended up making about twenty thousand dollars. Yeah, that was 20 years ago too, so that's uh, if it. You know. Yeah, I mean so I've been doing this a long time, like like I would budget two grand for a full, full bathroom remodel and 12.
Speaker 1:You can laugh about that today. That's now. You can spend that just in materials today. Just a bathroom, absolutely insane, right, that's right.
Speaker 2:You can't even like blink, and you can blink and spend a thousand dollars on a place now, but, or on a repair, but the? Um? So what had happened? Let's get back. Let's let's go into the, the like more context around the question that you asked, martin, because I think it's important to not skip all of it.
Speaker 2:So, okay, what was happening in the first 18 months that I wasn't able to launch and get my first deal? So, for one, I grew up in the school system, just like we all do, and the school system teaches you that, hey, knowledge is power, right, so I would read, but I bought books. I bought thousand dollar courses online. This was before YouTube has all the great resources and knowledge on on it. Like you had to pay for for a lot of the stuff that's on YouTube. Now that's just free, and, um, and I, you know, I'd read a book on how do you manage a do project management with contractors, and I'd read another book on, hey, how do you market and find motivated sellers. And the problem, though, was, um, I wasn't implementing or or acting on any of it, because I was scared. I wasn't implementing or acting on any of it because I was scared and when, if you're just reading and learning and reading and learning and you don't actually have any action, like well, a lot of what I read in the first book I was forgetting while I was reading the next book. And an analogy I like to say on this was I was like like if I wanted to be an expert free throw shooter, I was reading a book on how to shoot a free throw, but I wasn't actually going to the gym and physically practicing. And how good of a free throw shooter can I be if I just if I would, if I would just read a book, right, a lot different than getting in the game and doing things. It's a lot different than getting in the game and doing things.
Speaker 2:So the solution that broke me out of my fears was one of my colleagues at work I had a corporate America job said hey, I'll go and have these with you, and so that took me from like fear of losing or going bankrupt, because I, you know, I started out out of college with zero dollars in the bank account. So so much further than so many of us. So a huge blessing that my, my grandparents and my parents were able to pull that together for me and. But you know, I still had a lot of fear of, like, not knowing and taking that plunge. So by getting a business partner, I helped mitigate the risk a little bit and say, well, I lose money, at least I'm going to lose half of it. I'd rather lose half and split half of the profits while I'm learning, right, uh, so that helps, that's wise, yeah.
Speaker 2:And then the other thing was just getting around someone that was doing it and Ryan, my he's, uh. So Ryan's been my business partner since 2010. And we were coaching baseball together at our high school and we're friends since high school and he was already investing in real estate. So by kind of getting him involved with it too, with it too, uh, I was able to, you know, feel comfortable with it. I ran all the, the numbers and, and and, uh, he double checked it for me and you know we had that friendship. I really trusted him and and um, so it wasn't until I got the right people around me, uh, that I was able to to do the deal and, and I think a lot of times we focus so much on like, how to do things, and how to do things is very important.
Speaker 2:I don't want to discount knowledge, but having the right people, the right who's around you, um, in many cases can be more important because, like, do I, how much do I need to know about illegal contracts If I have the right attorney that can, I can pay to draw one up, for example, right, so the right who will solve a lot of the problems. So in my case, like when I got those two guys in place the who, not how you've read that book yeah, fantastic. And um by Dan Sullivan book yeah, great book, oh, yeah, fantastic.
Speaker 1:And um by dan sullivan.
Speaker 2:so I got the two individuals together ryan and derrick are their two names and then I got the high net worth individual to lend me the money. So I had my own little team and when all that came together we did our first deal. We made 20 grand. I split it, I kept 10. My Derek got the other 10. And then at that point you know, 22 year old or however the heck I was, at that point I thought I was rich, Quite frankly.
Speaker 1:I was a millionaire with 10 grand at 22. Yeah.
Speaker 2:And I was buying apple stock this was like right before the first apple phone came out and I so I took five grand of, just like you know, put in some money aside every paycheck, uh, so I made 10 from the flip and then I made another. Uh, then I had another 10 from the Apple investment. So I had $20,000 in my name and I thought I was so crazy rich. I was like you know what I'm doing it? I'm starting my own company. I got into real estate full time and um had lots of ups and downs, you know, on on that journey and um.
Speaker 2:But but the, the, the high net worth model, uh, that never. Uh, that didn't you know that? That that was the thing that propelled us. You know we talk about the scaling and all the deal models or the deals that we've done. Well, if you have 20,000 or a hundred thousand dollars in the bank, whatever it is, and you're just starting out, uh, you're not going going to be, you're going to be able to do like one, maybe two flips at a time. Uh, if you're the one paying for for all of it.
Speaker 1:Your money's only going to get you, but so far your own money well, depending on how much you have of it right, so it doesn't matter, you can have a whole ton of money, it's still only going to get you, but so much, so far.
Speaker 1:Right, because if, if you have, let's say, let's just say you have five million dollars and now you want to start buying larger assets, right, larger multis, even your own money is only going to get you, but so far yeah, I mean, there's a point of just depends on how wealthy you are, right, like the elot musks of the world.
Speaker 2:Like, yeah, you know, it's a different, it's a different level. Okay, yeah, but typically you're 100, right, right, like at one. Then you have to judge, do the balancing act of like, well, how much scale or how much deal flow do I want? Or like, when you start to get more, I think it makes sense to start to use some of your money as well. But, but, uh, but anyway.
Speaker 2:So, um, what we were doing when we started out is we were doing a hundred percent purchase price from the high net, worse.
Speaker 2:And then we were self-funding the repairs. Uh, that was the model that we started out doing, and a couple of years go by, I ended up, uh, derek ends up not getting into real estate full time. Uh, so still friends with them today, but I didn't ultimately end up business partners with them. And then Ryan, my buddy, who I coached with, who got found me the first deal, him and I ended up partnering up, and so we got to about three flips at a time that we were able to do through paying for all the repairs. And then a light bulb went off and we were like, well, wait, these people are trusted, have trusted us for multiple years on, uh, with their money. I wonder if they would just give us a hundred percent of everything. And so we talked to uh there was four individuals at that point and we said, hey, would you be willing to do that? And uh, they all said, yeah, that they were fine.
Speaker 2:Of course they were yeah, yeah I mean we, you know we had earned it. Yeah, 100 success rate. We've paid them what we promised them the whole time. And then we were like, oh my goodness, the amount of deals we can do no longer is restrained by the amount of money we have. It's really just restrained by the amount of deals we can find. And the amount of deals we can do no longer is restrained by the amount of money we have. It's really just restrained by the amount of deals we can find and the amount of capital we can raise.
Speaker 2:So once we eliminated that bottleneck to growth, uh, then we just started growing and we did 50 flips and then 100 flips and then 200 flips and kind of, uh, like all you know, the race was on at that point. And, you know, one of the more proud things that we've been able to accomplish is we do get in front of high net worth individuals that say, well, hey, I have money, I love the idea of investing in real estate, but I don't have time. Our private lending model we've had 100% success rate with it, uh, since 2006 and has been on over $300 million of properties. Now, that's amazing. Congratulations, matt, good for you. And that's the thing on passive income and investing Like um, I. I think the model that works best that I don't hear a lot of people talk about is if you have a hustle partner and a money partner, you have these, these two different about is if you have a hustle partner and a money partner, you have these, these two different entities. I obviously was the hustle partner. I had time but I didn't have treasure, uh.
Speaker 2:But a lot of times, money partners are your doctors of the world or successful small business owners, uh, that that have money that they're looking to deploy, but they don't necessarily have time because they're busy running their own business. And so a lot of times there's people that want to invest in real estate but they're like I don't want to be a landlord or I don't have enough time to do it. But back to the who, not the how. For the individuals that can be money partners, you just have to find the right person you can trust to be able to deploy your capital through, and then that's the secret to becoming a passive investor and turning real estate into a passive investment. It's getting and succeeding, succeeding through other individuals. So, um, so it's been, it's been a great model for us on uh, and it works. It works really well.
Speaker 2:I've seen other partnerships kind of struggle, uh, where maybe a partner is putting half the money in and they're kind of trying to do half the work and the other partner's doing the same, but maybe the other partner only has 25% of the money and they're going to do half the work. And I've seen a lot of different partnerships fail, uh, but the one that can be really successful is hey, let's do a hundred percent of the money from one party, but no, none of the work, and a hundred percent of the work and decisions from another party, uh, but not necessarily any of the money. So I've seen that work time and time again.
Speaker 1:Yeah, that's amazing. Do you guys have a fund now or is it just a per deal lending basis? How do you guys structure your deal, your money situation today?
Speaker 2:Yeah, so we opened up a debt fund for private lending right about a year ago. We were lending on one person to one loan for a property and our business just grew to the point where that no longer made sense. So now we have our private lenders put their money into a real estate fund, then the real estate fund lends money on the deals and, yeah, we're up to about $26 million and, uh, between that and our uh, the equity side of things, there's about 130 partners in them and that's awesome, brother. Congratulations, man. Yeah, it's been a huge blessing and it's honestly, it just goes like our first core values trust and it just goes back to like, like, we just did what we said we were going to do. And here's the deal.
Speaker 2:Like I I can't give you guys advice on how to make money on every deal, like on some of our flips, we've lost money. Um, on, there was a year where we scaled and we did double the amount of investment deals that we and we ended up making less money than the year before. So we made a lot of mistakes along the way, uh, but when it came down to it, uh, you know, like when we struggled at his business or when we sort of uh, thrived like it didn't matter. We were going to pay the people that trusted us with their money first, and then what was ever left over is what's left over, right, and?
Speaker 2:And when you honor your word and you do what you say you're going to do as a real estate investor, guys like, like, if you can just get good at that one thing, you're going to attract deals. You're going to attract agents that want to work with you. You're going to, you're going to attract, uh, people that want to, that, that have money, that don't have the time to do it, and so that's really been like if you said, hey, what's the one secret sauce behind it? It's, it's really just that, like that simple, and and then it just kind of snowballs and grows and and, uh, you know, you give it a couple decades. Then you're like me and I, you know, I started the company and my parents unfinished basement and now here we have 30 team members and are rocking and rolling with a few things Right, so it's been good.
Speaker 1:I really really, really appreciate and respect what you just said about honoring your word, right? So that is one thing. Our core value, our top core value in our investment firm is integrity. It is the most important thing. You know, we have a value here that, and I actually, we, actually we actually let our contractors know, as you know, being as long as you've been in the business, how many contractors you fired, right, you know I don't have to tell you the pains, because we both know the pains of of dealing with some of these contractors, right, right, yeah, and um, we, I've literally have had conversations with contractors to your point of hey guys, my first and foremost, most important person that I have to honor is my investors.
Speaker 1:Like, you think that this is, uh, that we are, that I make all this money. You don't understand it. You think I don't report. You know, and everyone here reports to me, that this is the way it works. I have to honor my investors first and I'm going to protect my investors at all costs first, like, I will unapologetically let people go if they're not going to produce what we expect to be produced, that's for anyone, right? So that's and that's just going going goes back to our level of integrity with our investors, honoring our word saying, like you said, even when it hurts, when your margins are you know where. I've had to sell some of my assets and rentals because a deal didn't work out the way I planned it and I'm like shit, I gotta this property because I got to honor my word to my just to make them whole Right. So I, I, I love, I love that you said that and you shared that with with the audience.
Speaker 2:Yeah, so you know, what's interesting on it is now that I've seen a lot in the last couple of decades or not quite two decades, but, um, you know, I, I have evolved. I don't just think about like the dollars and cents anymore. Uh, I don't know about you, uh, uh, martin, but I got to a point where I started out in real estate because I was like you know what I love the idea of fixing up a home and creating a home for a family and making a lot of money at the same time and, unfortunately, like that, that focus on helping the community out and my pocketbook at the same time as we were scaling up, unfortunately I I lost my way on the uh, on the benefits of helping other people and I and we just started driving revenue and we started and we became about, hey, let's be the biggest flipping company and uh, so we're in st louis and st louis, let's do more deals than anyone else does. And as we were growing and and really became one of the the juggernauts, uh, I honestly I hit a lot of my original investment goals. You know, I got married in the process, have four beautiful kids so beautiful kids, beautiful wife, a nicer house than I thought I was ever going to live in.
Speaker 2:And I woke up one day feeling just disgruntled, empty, and couldn't figure out what was wrong with me, like well, why, like what am I missing here? And that kind of put me on a journey, a couple-year journey, to figure that out. And, looking back at it, it's because, like I think we get into this trap of like hey, when I become financially free, then I'll be happy, when I become financially free, then I'll have a good relationship with myself and and address some of the scars of my childhood and and and heal right, um, and what I found is, as we hit our goals, we just moved them. We didn't celebrate the wins along the way. We didn't have, you know, I, uh, there's a um. Yeah, a lot of people have heard of the prodigal of, or the the parable of, the prodigal son I don't know if you have Martin or not.
Speaker 1:I have, I have.
Speaker 2:It's a biblical story. Biblical story and basically, like the youngest son goes away and squanders all of his inheritance and he comes back and the father gets excited and says, hey, we're going to have a party for you, and the older brother brother, rather than rejoicing that his brother has been found, you know that he was lost and he's came back is resentful and upset, and it is. It is just pissed off. It's like, well, hey, why are you throwing this party? You haven't thrown a party for me here, I am doing the right thing the whole time. And what I found about myself is like, wow, I've become this resentful, like as if I'm the older brother. I've become this resentful individual, even though, like I said, I'm doing the right thing. I, I tell all my team members we're creating homes for families and and, uh, uh and, like you know, helping the community out and and um, and that the funny thing with the parable of the, the prodigal son, is that it it could be renamed the parable of two, two lost sons, right, and I had lost my way. And even you know, and I I wasn't in during those years, I wasn't in integrity with, with what my original purpose was, and the resentfulness and the lack of joy was me subconsciously knowing that that I wasn't in integrity.
Speaker 2:And, thank God, I ran into a now business partner His name is Jason Courtney, who came along and opened up a. He had been working for over five years on a home ownership model that takes deserving families and puts them into a lease purchase program and then a lot opens up the way to home ownership, and so we. So he took him about 18 months to talk, talk, ryan, I ended up doing a deal. He's like hey, I have this art form, this great structure. You guys know how to do a ton of deals. Like, let's partner up on a deal and and do some stuff together. And and so finally I was like, okay, let's, let's all do one. I was in a mastermind group with Jason, so I'd, you know, I have to see him, uh, or I would, I would get to see him every few months, and uh.
Speaker 2:So anyway, we did our first deal and it was a teacher that a shelter connected us with, and the teacher was in a domestic abuse situation and had a non-existent credit score. No credit score means it's hard to find a place to rent, right, guys, like as a landlord. It's like they have no credit score. I really want to rent to this person, much less own a home right.
Speaker 2:But she was a teacher. She had 10% saved up to be able to put down on a property. She was able to get away from her now ex-husband and put a down payment down on a house and we got her into homeownership and starting uh, building her wealth and, um, you know, building, uh, you know, you know, getting the getting that important first main investment, that that I think, uh, maybe not everybody should have, but but as many people as we possibly can, uh, if we can get into home ownership, I think that's just so important. And so when that happened and then we started doing a couple more of them, then they're like the light bulb went off. It was like okay, like, like you know, I, I said I wanted to make my career about more than just money. Uh, now here's the opportunity to do that.
Speaker 2:And um, so since we started creating uh, since we and we've made home ownership our mission of the company, I found myself in a much better place, like being able to have joy, being able to celebrate along the way and not just be like resentful and and uh and then just like a negative headspace.
Speaker 2:So, um, that way, I would encourage you guys to do the same. Like, regardless of where you're at, if you're just, if you're, me, just starting out, or you're along the way and you're starting to hit some of the financial goals you have, don't wait to like to like achieve a goal or or make a certain amount of money. Uh to to um to to get centered, um to. You know you can choose joy and you can, and it might. So, and then, in my background, uh, the, the way I have found joy is really through a better relationship with God. So, like the disclosure, that's how I've found it. I'm not the guy that's going to judge anyone because, believe me, I have no room to. You know, sometimes Christians can get a bad rap with that right, but so getting in sync with a higher purpose has really, it's been a game changer for me.
Speaker 1:Really powerful stuff. What is the one thing? My final question for you is what is the one piece of advice that you would give someone starting out or wanting to start out as an investor that you would give to yourself now, looking back with all of this experience? How to get over their fears and create the right mindset to be a successful investor?
Speaker 2:What would that be? Uh, so it's tough because there's different things that hold different people back. Okay, I found that, uh, there's like analytical, like I want to know everything first before I act people. And then there's some people that just act and they don't know anything. Both can be dangerous. Okay, like, a middle path is is advisable, and so, for those of you that are like me and kind of wired where you want to know everything first, even though it's going to be impossible, you're going to have to take a leap of faith.
Speaker 2:Um, uh, get, you know, I, I needed to get over myself. I needed to get over that that my ego, that I wanted to be the guy at a local RIA that had all the answers, even though I was new. I didn't want to go to into a room and admit I didn't know, admit that I was this newbie. Um, you know, like, I wanted to like know everything first and then go and start to connect and network with people, and that really held me back. It wasn't until I got frustrated enough that I started getting the right people around me and asking them questions and getting help. Uh, that I that I started doing anything. So, uh, so for, for people that are really like information junkies. They're trying to learn a whole bunch of stuff.
Speaker 2:Uh, think that it's focusing on who you need, on your team and building those relationships will lead you to far greater success than just watching a, taking another course or reading another book. Like you know, just get intentional about your relationships, and you know what's that saying Everybody's heard? It's not what you know. Just get intentional about your relationships. Uh and uh, you know what's that saying everybody's heard. It's not what you know, it's who you know. I mean it, it's, it's truth, and I I took for granted relationships and I didn't uh foster them along the way as as much as I should have, to my own detriment. Uh, we could be a lot further along had I, had I been more relationship focused and and been more intentional with who I was around.
Speaker 1:So you're recommending meetups, as you mentioned meetups here a moment ago. People, that's what I tell my students, right? Like, hey, I have a formula to try. I have some students I mentored that to get your first deal, your path to your first deal. So I have some students I mentored that to get your first deal, your path to your first deal and that is one of it is you want to. One of the part of the formula is uh, you got to get into rooms where people are doing deals, right, and? And you gotta be, you gotta be open and you gotta be willing to learn and you gotta be in the market talking to the use of the world, cause you're there, I'm there, right, no-transcript.
Speaker 1:The same way, you want to give, you want to share. You're not looking to hoard information. I remember when I had not done a deal yet, right, that's right. So you want to be that source. This is why I host. This is why I do a podcast. I want to be that source, I, I. This is why I host a. This is why I do a podcast. I want to empower people. I want to give back, right, I want to, I want to. That's why I host meetups. I also host a couple of meetups because I want to give back to them.
Speaker 2:Yeah, no, and the one. The one thing I would say about it is is you do have to. Um, you know like I mean, some good questions would be like hey, how many deals have you done? How many years have you done it for? Like my?
Speaker 2:I kind of joke with my business partner, ryan, because he had hooked me up with the first deal and he had been doing it a couple about 18 months longer than I had. Uh, I just like I overinflated his knowledge in my head and I was like, oh, like, he's an investing genius. And then we became business partners and we grew up together. We made a lot of mistakes, but my first impression of him was because he was, because he was a few deals further along than I was was that he's this expert. And so be careful with that, because there's going to be a lot of people that, because they've been doing deals, it feels like they really know what they're talking about, that that certainly you can learn from them. But but just just understand that that not everyone's knowledge is created equally and someone could be a giving person and they've only seen one market cycle like not no nothing yeah, they're telling you their truth, but their truth is maybe only 18 months of experience, right, so that so much wisdom, so much wisdom, so much wisdom.
Speaker 1:So I've interviewed a lot of people on this podcast Okay, cool, lots of people. We've done over 500 episodes now. Right, yeah, great. And before our podcast, the name of the podcast was Latinos in Real Estate Investing Podcast. I rebranded it and we went to Wealthy AF Podcast. Okay, was Latinos in Real Estate Investing Podcast. I rebranded it and we went to Wealthy AF Podcast. Okay, and so I've been doing.
Speaker 1:I've been in the mortgage industry since I was in the. I started in real estate in the mortgage industry in 2005,. Right, so you already know what happened, because you came in around the same time, right, but I was a mortgage guy bought my first investment in 2007. By 2009, my first duplex was a hundred thousand dollars underwater. Jim, you remember those days. You was in the game, right, oh yeah, hundred thousand dollars underwater and I thought it was the end of the world. Right, I was like I was. I was like. I remember the number because I was 29 and I remember thinking I'm gonna be 59 by the time I pay this thing off, and who knows if it'll ever come back, because you don't know any better. Like, literally, you see how we laugh about it. You laugh about it today, but that's literally how I was calculating. I was like shit, man, it's going to take me 30 years to pay this thing. I'm 100,000 on the water. I just bought this thing, like all this stuff, right, because you don't know any better. So fast forward to today. So to the point I was making.
Speaker 1:I've interviewed a lot of guys, and a lot of younger guys too, and a lot of the younger guys. Here's, here's my, here's my conversation with the younger guys. A lot of the younger guys I talked to that haven't been, to your point, exactly, through the market cycles, right, are like. I remember interviewing those guys three years ago, four years ago, five years no, the podcast is four years old. So three or four years ago, right, and those guys saying how wonderful things are and how easy it is to make money and how amazing, how amazing, how amazing, how amazing. But then, when I interview guys like you and like me, right, that have been through the cycles, there's this little level, small level of paranoia that we have. Just like what you said, be careful, be discerning who you listen to, right, because they might have not been. They're coming from a good space, but they might not have been through a cycle and they don't know what that pain is like.
Speaker 1:When you go through what we went through in 2007, 8, 9, right, that creates a new level of knowledge because of experience, like, oh, this can really happen and I don't know what your experience was, man, I did not see that one coming. This one hit I literally my company was making Jim, we were making over a million dollars a year in 2007, 2008,. I literally had my 2008 or 9, I can't remember. Literally. I remember a vivid picture in my head, closed out my mortgage company because then the regulation changed. Remember the dot front laws and all that stuff. Literally remember putting my mortgage broker's license that made me a million dollars a couple years before the year before in the garbage in my garage at in my house. Literally I remember that.
Speaker 1:And those kinds of experiences, when you go through cycles like that, tend to leave an impression on you, tends to make you a little bit more conservative, tends to make you run the numbers a little bit more, look at the numbers a little bit more closer. Tends to give you, hey, let's talk about a different exit strategy. If that doesn't work, what would we do here? Because of the experience. So to your point, man, you couldn't I could not have said it any better than the way be discerning to who you are listening to. I'm sure you see them on social media right now, online all the time, jim. You see the younger guy, I. I see the younger guys. They talk like cowboys man, and they're like oh, and I'm like oh, dude, I can like.
Speaker 2:You're talking and I already know you have, you don't have, you haven't gotten any scars yeah, it is unfortunate because I I mean, I, some of the guys I'm friends with too, like in my area, and it's like that when they started teaching, maybe three years in to their investing experience, and I like our career, yeah, and I remember just thinking, like like you're still a baby, you know what I mean. Like and don't get me wrong like they're doing good things for people too, but but like, like, like when you're around people like that, that's that's great. You can learn from them, and if their heart's in a good place, like, there's a lot you can trust. But just understand that and and be a little cautious. Don't, don't take it the advice like it's gospel. You know what I'm saying.
Speaker 1:So yes, sir, yes sir, I was just, uh, my, my previous interview. Uh, I was talking to a gentleman, really smart guy, about our age. You're in your forties, right? I just doing the math. He said 20,. You're in your forties, I'm 46. Yeah, just turn.
Speaker 2:Yeah.
Speaker 1:Yeah, just turn 40. Yes, so, so, um, I was talking to this. Uh, he built a multi um, six figure multifamily, not six figure, eight figure company coaching online and stuff, Really cool stuff, anyways. But he, you know, again said the same thing right, experience, right, like you're basically that's what we're talking about here is like that experience cannot be taught. I cannot teach experience, right, I cannot teach you no-transcript.
Speaker 2:Yeah, you know. One of the other takeaways too is um, uh, like I know how to make money and oh my god, no cycle, see and like. So there is a like. If you look at it just from the fear lens like I think, um, uh, that that's absolutely a benefit. And another benefit too, from having lived through it is like like I, I know how to make money, you know what to do with that market.
Speaker 1:You know yeah.
Speaker 2:Yeah, right, and and and. So the biggest thing that I would say, guys, is like, like, be cautious, but like you don't have to be like a hundred percent fearful because, uh, the hustle shifts. As long as you're hustling and and and doing some of the right activities, there's money to be had. Uh, even when real estate causes a hundred year recession, you know, and before that recession, by the way, guys, like people thought that single family real estate always went up and only went up. Yes, I remember, yes, sir, yes, and I mean and that's I mean Harvard did a study. They would think what we're, you know, through 20, uh, through 2038, maybe 2040, that we're going to be in this housing crisis, that the short. So yeah, for a while here it's looking pretty good for us and it's not to say we won't have like a flat level or maybe a slight decline, but uh, when you're that, when you're as short as we are on supply, like know it's a, it's a healthy market to invest in for sure, um, but the hustle is we gotta find the property and find the deals. Like that's really hard.
Speaker 2:Back in 09 you could go on everywhere nervous and and buy a rental that cash flows, and not even. Like you know, I get 10 out of 10 offers accepted. You know, like, yep, but it was like if you wanted to resell it, that was the hustle. Uh, that's not as big of a hustle to sell right now and uh, but you know mark's shift to go and have little ebbs and flows, but um, well they. Yeah. Thanks for having me on, man, I mean yeah brother, thank you for coming on.
Speaker 1:How do people connect with you? If they wanted to find you, how do? Where do they find you? How do they connect with you? What's your, your website? Yeah, absolutely ig facebook.
Speaker 2:Yeah, so, if you just if, uh, so my name is jim manning, so if you like, google jim manning, and then my podcast is the passive wealth show.
Speaker 2:The passive wealth show, like, uh, so passivewealthshowcom uh, if you want, you know, if you have any questions, anything like that want to connect with myself or one of our team members, uh, you can fill out a form on that site, uh, or if you just want to listen to our podcast, uh, you know, go to YouTube or go to one of your favorite uh uh podcast players and just you should be able to find it and subscribe that way.
Speaker 2:Um, but, uh, yeah, we have a lot of good resources on passivewellshowcom and you know, I, I do what I can to uh, to spend time with people that have questions. I like, my next two weeks, I'm like I think I'm already all the way booked up, but, uh, you know, I, I like to give back whenever I can because, um, that's that's why I'm where I'm at, like I had other people that were further along turn around and pull me up, you know, and I, I think that's important to to stay centered on that and and, yeah, and we have, you know, if you're a high net worth that's interested in passive income. Uh, you know, we have opportunities to kind of invest with our team that way, but, um, yeah, that's. Uh, that's that's the story so far and where I'm at. Well, you guys had some good takeaways.
Speaker 1:Yeah, perfect, thank you so much for coming on and remember guys. Um, uh, make sure you drop your comments and if you're, if you're listening, if you want to continue to learn more to, uh, just go to martinreimasterycom. Uh, that's martinreimasterycom. Thank you guys for watching, listening and appreciate you, jim, for coming on. All right, brother, thanks.
.JPG)