This is a bigger pockets podcasts show four hundred and eight, she stands up and she says, Hey everybody, this is AMA. She has some money she'd like to learn. Raise your hand. If you have a project that needs some money and a couple people raise their hand and everybody was like, hey, man, over here, over here, do you need X amount of money?

And he was like, Yeah, you're listening to bigger pockets. Radio simplifying real estate for investors, large and small. If you're here looking to learn about real estate investing without all the hype, you're in the right place. Stay tuned and be sure to join the millions of others who have benefited from bigger pockets. Dotcom, your home for real estate, investing online.

What's going on about its Brantner? Host of the Bigger Pockets podcast? Here with another phenomenal show today with my co-host, Mr. David Greene.

David, what's up, man? How how's life? How's business treating you?

Business has been amazing, actually. This is the best year I've ever had. We've helped more people in the Bay Area and Sacramento Bee. They're buying rental properties, are buying investment properties than like our house tax that I ever would have dreamed. So this has been a very fulfilling year, also very challenging. But that's that's what's fun about business, is it forces you to get better than you were the day before. So thanks for asking. How's things in your end of the words?

How's business going?

Yeah, baby sleeping more for the life, baby sleeping more tonight. Night great than business. The business don't go.

We just actually closed down a big park last week and we just launched fund three. So like we're raising a bunch of money now from accredited investors. So it's been nuts but good. Like the biggest year I've ever had. So yeah, crazy. It's like half the world is like this is the worst year ever and the other half is like this is phenomenal. So it's just interesting how that different perspective and all that stuff work. So that said, today's guest also has a fantastic story of just killing it lately.

I mean, this year and the last few years has been killing it all while having six kids at home. You'll hear my surprise on this show when I find that out. Six kids, home schooling them, not just six kids, but homeschooling six kids while building this amazing real estate empire. So our guest today is Emma Powell.

And she just goes like deep like this is I really like what's the word? Like, you going to want notes for this, like like a Notari informational.

Yeah, there's so but she's also wraps everyone in a story like here's how she pulled off this crazy big deal and wrapped it inside this amazing thing. And this is how you can do it as well. It's really good. If you're not driving right now, I'd recommend giving a paper and pencil up. You're going to learn how to do these deals. Some of like creative finance, stuff like No. One, no money down stuff. Really good stuff in there.

Again, a mom who works like part time at the real estate thing. Crazy, awesome story.

She also had the tip of one of the best tips I think I've ever heard in my four hundred plus episodes of the show is her tip on what to do when you meet with a potential mentor like it was so good.

And I don't know. I have never thought of it before or never heard anybody else say it before. But it's going to change my investing career in the future and it will change yours as well as you meet people who are ahead of you on on the path towards your future.

And then we talk a lot about lease options today, which is kind of a more again, a deeper topic. But you'll learn the power of how those can be really, really, really, really helpful in growing your business. So all that and more to come in just a moment. But before we get to that, let's get today's quick.

Today's quick tip is very simple.

If you are not currently a bigger pocket's member. I know it sounds weird what I said. What does that mean? It means if you have not joined our list, you have a profile on bigger pockets. I want you to go do that today. You might be wondering why. It's because you need to start building your reputation right now as somebody who is in the game, who's connected with people, who is getting to know people. You're going to hear why in today's show with Emma and why that's so important.

But a lot of people, a lot of you guys are just listening to the show, but you're not subscribed to, like, bigger pockets as a member yet. And it's a free membership. Yes, we have a pro membership as well, but just a membership with your face. And it's like, you know, it's like having a Facebook or Twitter, but less cat videos and a lot more real estate content. So go to bigger pockets dot com and do that.

If you want to post a cat video, you probably could as well.

But, you know, David would appreciate that.

David actually is like the guy for, like, sending me funny cat videos. He's like, you know, every every couple of hours they get a new cat video.

David, that's not zero. Yeah, well, we're talking my reputation, my reputation as a cat video man clearly precedes me.

I, I just think that's such a funny thought of like David Spade. As I said, it is. You could get that. Yeah, that's probably true. That's right.

You would that that. Let's get to today's show sponsors.

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He literally wrote the book on real estate investing for bigger pockets. And he joined us right here on this show and show 273. You know, since 2007, PPR has managed distressed mortgage investment funds that have bought and sold thousands of residential mortgages nationwide, managed by a team with expertise in real estate, finance, property management and better investing. They provide investors with passive income for over a decade. If you want to learn more, check out our note COCOM such BP again.

If you're looking to supplement your active investing and get a nice return, passively learn more about how to get started today in notes or a diversified note fund at PDPA Note KO Dotcom BP again PPR notes ko dotcom slash BP. I think we're ready for the show. And if you want to add David. I loved this interview, I think you guys are going to love it, too, as you listen, make sure that there's going to be phrases that you hear that maybe you aren't aware of.

It's OK. Write that down. There's some research for you. But if you come out of this not knowing more than what you knew when you went into it, then you did something wrong. This is definitely a show that should be very educational. Yeah, great point.

With that said, let's get to our show with Emma Powell and the welcome to the Bigger Pocket's podcast. Good to have you.

Thank you. So tell us about yourself.

What would you do before real estate and then we'll get into your real journey?

Well, I was a real estate photographer before for about 10 years in Austin, Texas. I shot weddings on the weekends. Before that, I taught graphic design online. So I've always been entrepreneurial minded. I went back to college in the middle of my photography career to get a degree in entrepreneurial management. Just felt like with entrepreneurial.

And even though that was the thing, entrepreneurial, I was a business.

It's a specialty and a business management degree. And I call it the degree to teach you how to keep all the plates spinning, how to wear all the hats and and get things done. And so that's that's my background. And then after I graduated from that, I was about 40 when I finished college and my first job out of college was a part time marketing consultant, social media manager, content marketer for the professional rugby team in Austin. Oh, that's cool.

That's cool. How did that how do you go from that to. I'm going to invest in real estate where that transition come from?

Well, my husband is in it. He's a specialist in tech startups. So that's why we're in Austin, Texas Tech Startup City. And he got laid off from a company that he was employee number nine. A friend of his started it. And one day, I guess they didn't get their Series B round of funding valuation that they were expecting. And they had to lay off 30 percent of their their workers to get enough working capital to stay in business.

He comes home one day, it's noon, he walks in the door and he didn't look sick. So, I mean, I knew I knew what that meant. And I said, did you get fired? He said, no, come on. I got laid off. So we just went into a kind of kill mode at that point and just started working all the network and going all the meet ups and just trying to find another job. And I said, well, I'd be willing to move to Salt Lake because they also have a rugby team and that rugby league is headquartered there.

And it's hard to obviously find a job in the rugby industry and really niche this type of thing. And so when he told the recruiter he'd be wanting to Salt Lake, they were all over it. They said about six interviews and in three days. And so we drove up, interviewed. He had a job offer the next day, an offer we couldn't refuse. And so we packed up all the kids and and sold our house and got to Salt Lake and Austin team couldn't really keep me remote in the Salt Lake.

Neither one of those organizations really needed or could afford me at that point. So I didn't have a job. So I started sending more media, same thing, trying to figure out what I wanted to do. And I'd always wanted to be a real estate investor. We'd made some money off of the houses that we lived in and just found myself having to redo my my identity. I didn't want to keep being a photographer, getting too old, don't want to build another business from scratch like that.

I thought, I don't want to work full time. And I knew that real estate give me a full time income on a part time schedule. So I just I found this organization. They wanted to sell me some education, not into that. So I got on the Internet and Googled them and I found bigger pockets and started reading up on this organization on bigger pockets. And somebody was like, why would you pay all that money for that education when you learn it all in bigger pockets for free and go to your local?

Rhia and I was like, what's Orea? So I signed up for bigger pockets and I found my local Ria's and just started going. And the first one I went to, a guy was talking about developing lots and we had just sold our house and I said, well, I've got all this cash here, maybe I should loan it to a flipper and while I figure out what I'm doing. So I found him. Everybody they all point at the same guy, right?

Loan it to that guy.

He knows what he's doing. He can use that much money right away. And the second reel that I went to was sitting there.

I had the money placed and I was feeling kind of like a hotshot, like I'm a I'm a hard money lender. Right. So then the guy got up there and he said, look, if you could just skip residential and go straight to commercial, you should just do that. And I was like, well, I can do that. OK, so I decided at that point I wanted to be in commercial real estate. I still did some residential deals that came in my way because I understood that we bought our own houses, we'd have our own house.

And I figured I already knew how to do a lot of that. So we went and got a couple of small rentals. We had the cash that we could do it by ourselves. I wanted to get some credibility and some experience all that while I was learning about commercial real estate that first year, while my money was out and when I came back, just decided to tear it up. All right.

So I want to unpack this a little bit. Yeah. So first of all, you packed up the family and moved. Now, the you said the kids and I heard you had a lot of them that you.

Yeah, I have six kids. OK, yeah. You're moving across the country. You're going to pack up six kids. You get to this new place. And first of all, for those who don't know what it's a.

When you say Rio, what does that mean, real estate Investor Association, it's a national organization and they've got chapters all around the country and you can start a chapter. It's kind of like starting a business. Do you own the chapter and you're supposed to promote it and get people out. And there's a small membership fee, maybe one hundred two hundred fifty bucks a year. I learned Salt Lake had three live ones and one virtual one. And so I just joined all of them to see.

And there's actually another one in northern Utah and one in southern Utah. So I went and visited those, just getting my feet around, trying to meet everybody I could and listening to they put on lots of variety of speakers. So wholesalers, Slipper's apartment guys, commercial rentals, property managers, just every meeting has a different focus and they really can get fast exposure to a lot of different types of things. And you can say, OK, this one feels right to me.

This one fits. And so that was really helpful for me to figure out which direction I was going. Yeah.

Interesting note when you decided that you parted with that one person or you lent them that money, I should say it's I guess it's a partnership, right?

So you you gave money to somebody.

How did you know that that was like did you know, like, oh, this guy is going to be solid. What kind of due diligence did you do or did you get lucky off that or.

I'm wondering like people listen to this, like, well, I got some money.

Shizuko randomly give it to a guy talking at Arria.

Like, what's your thoughts on that? That was really scary. Really, really scary. It was it was quite a lot of money. It was the most money we had ever had at one time. And I told my husband, I said, look, we made this money off of the personal houses that we invested in, that we would buy new brand new construction and appreciates very quickly and then we'd sell it. We live in it for a few years and move on.

And so when we moved to Salt Lake, I said we'll just put barely enough down on this house. So we'll buy a house that we can afford with the minimum down on your income. And the rest of this I'm taking to go start a real estate business. And so that was when I found that guy is like, hey, I can do this. I was not speaking at the rear. I asked everybody at the right, OK, I have this amount of money and it's going to be available on this date.

Do you know anybody can use it? And it's kind of funny because I was sitting in the rear with my very, very first meeting and I was I was knitting just sitting there by myself, just knitting. And the the president of the RIA comes up to me and she says, hey, you look new. I mean, the purpose of Urías to network and you're just sitting up here by yourself waiting for the meeting to start. And so she asked me a couple of questions.

She said, well, what do you here for? Well, I have some some money for my house. I just sold and maybe was looking a place that was somebody.

And she stands up and she says, hey, everybody, this is I. She has some money she'd like to learn. Raise your hand. If you have a project that needs some money and a couple people raise their hand and she said, OK, go meet Joe and Sam. And so she just pushed me to the back of the room to go meet them. And they couldn't use that amount of money in that quick of a time frame. But they kept saying, you know, who is this guy?

This guy, this guy. He's not here. He's not here. He's a well, that guy walked in and everybody was like, hey, man, over here, over here. Do you need do you need X amount of money? And he was like, yeah, I just really like hell call me was about it. He didn't get that shark desperate look in his eyes, came over, had a very calm conversation, very patient. I went home and I looked him up trying to find any dirt I could on him.

You know, you Google his name and scam, you Google his name and lawsuit. Just found whatever I could talk to. A lot of people spent some time in his office. He ended up being a great mentor for me, even though I ended up my business went a different direction than what he was doing was really great. When you loan someone money, you have a question. They pick up the phone and we'll answer any question you have.

So that was a great tool for me to get a lot of education very quickly.

And I want to bring up a couple of things here. First of all, for those who are listening to this going like you gave somebody money, understand the cool thing about real estate for those who are maybe new here and they're not sure how this whole thing works. The cool thing is when you put money into a deal like that, I'm assuming this is the way it was with you, Emma.

You have some sort of like lean against whatever properties they're working on. So they can't just give him a duffel bag full of cash and crossing your fingers hoping you're getting them back. It's all very like as long as you do it correctly, it's all done very legally and there's a lot of protections in place. I use the analogy recently somewhere. I said it's like, you know, driving down the road is a dangerous activity. You're in the car, it's dangerous.

You get hit by a car, you could flip over, you could stare off the road. But that's why we do a driver. That's why we go in.

We learn how to do this. You learn what all those safeguards are. And that's why we have airbags in the car. We have insurance on the car in case something goes wrong. There's all these things that help lessen the risk of driving. And so then we go and drive. So when people are like, well, I would never I would never give money to somebody in a real estate deal because that's risky. Just understand, again, it's not a duffle bag.

It's you have some protection. So now assume that was the case with you.

Emma and I, we had actually had a friend of ours in Austin several years before when he found out we were saving up all this money because of two thousand eight, two thousand nine. The smart thing to do was to live simply and save up all your cash because you never knew if you're going to get laid off as. My husband and I both had part time jobs and we're piling up cash, and then when the the crisis seemed to be winding down and we hadn't lost their jobs and lost our house, somebody came to me and he said, oh, we can do a flip.

And 10 percent on the line, 10 percent. That sounds really high. That must be a scam. Even though he was a friend of ours and we trusted him, it just seemed like a way to good to be true to getting 10 percent on your money. And so we said no because he was asking basically where all of our money and they said, never invest, we can't afford to lose. Don't put all your eggs in one basket.

So we said no. So it wasn't like we had never been exposed to that concept before. I had read Rich Dad for that 20 years before. Yeah. Didn't have enough nuts and bolts, so I didn't really know what to do with it after I read it, but I knew it was a thing. So when I asked this new guy in Salt Lake, So how does this work? Do I just write you a check? Does it go into your personal account?

Because that was not the answer I wanted to hear. Yeah, if he had said yes, I might not have done business with. And he said, no, no, no, I'll hook you up with a guy at my title company. It goes into an escrow account. We hold it there and trust and then they send you the paperwork that you got to sign it. Walk me through the legal ins and outs like what you said, because I knew that he was doing it correctly, because for my research, that's how it was supposed to go.

I offered to send it straight to his bank account, write him a check, and because he said no and educated me on the way it was supposed to be done, I knew that that was a test and it was he was being trustworthy.

And that's a that highlights why your reputation is so important and why doing things the right way is so important.

Because let's be frank, if you're giving someone one hundred thousand dollars, fifty thousand dollars, it is a it's a risky thing to do and it's going to feel even riskier than it is. Even if that person is completely legit, there is still a very real component that they could be gone and in the Cayman Islands before you know what happened. So for both sides, if you're looking to partner with someone and you're bringing the money, you should absolutely do exactly what Emma did.

And if you're the person who's borrowing people's money, you need to prepare ahead of time for how you're going to explain to them what's going to happen. You don't want the answer to be, yeah, yeah, yeah, just cut me a check right now. Then I'll go put in the bank. And don't worry, you know, you can have this or you can have that. That's the wrong answer. And then the third piece would be if everyone speaks about you the way that they spoke about this person, it's going to go very far.

If people say, you know, I don't know. I don't know that he's even done a deal. This guy just shows up at these meetings all the time talking about how he never has money. That'd be a big red flag. I don't want to be there. I'm not going to be helping this person learn how to do the business or if there's, you know, I don't know. So someone so did a deal and they weren't too happy about it.

That goes really, really far when it comes to raising money. I agree.

And I feel like the only thing I didn't do that maybe I should have done was to run a private investigator background check on him. I would never say that that's a bad idea. I didn't really think about it at the time. But if with the amount of money that I was that I was going to him, I probably should have added that to my due diligence. But everything else I felt felt pretty safe with it. And we're still friends.

He's still around. You know, we call him my my air quotes mentor because basically he paid me to mentor me. And so I really felt like I came out on the on the better side of that deal.

And I love that you said that like he paid you to mentor you and what you like. And you said a minute ago, when you lend somebody money, they pick up the phone.

It's such a great point that if you're listening to the show and you maybe have some extra cash lying around and you want to get into the business, I'm nothing. Every single person in the world is trustworthy, right? Of course not. But if you find the right person and you become their private lender or their hard money lender or whatever, like you get to learn from them as they do their deal, they'll they'll talk to you.

So it's a great, great way to get started if you've got that. I got that cash. So what happened next then?

So you bought you you lent this guy the money and now you're in the game a little bit. You're feeling like you got a little momentum going. So and then somebody told you that, you know the same guy, right? You said that said if you just jump to commercial, you just get presidential, which I don't think it's a bad it's not bad advice at all. And so that what you did, it was a different guy.

I was actually just speaking at a rally and I he and I went down immediately afterwards, introduced myself and took him out to lunch. And I said, well, there's this little office that's for sale across from the high school.

I'd really like to buy it. I had no idea. I didn't really want to buy it. I just I called the guy. I got all the numbers run on it between the time I met him at the end, our lunch date, I went and found an actual commercial project that I could bring to him. I knew it was going to be garbage, but I just wanted a real deal to talk about and run numbers. So I spent the owner really wanted to sell this.

So the owner spent a long time on the phone with me telling me all the ins and outs of the properties, the area of the price when they had checked it out, when they were going to build it. So I went in armed with as much information as a beginner could be armed with went into this lunch meeting and it ended up not being a very good deal and not a good fit for me at that time. But that conversation was really valuable.

And then I can. Can I stop you right there?

Because you're making like point after point after point that I just got to know. No good. No. I mean, like everything you're saying is like, I want to stress this because this is so important. A lot of people will say, can I take a mentor out to lunch in or out to coffee or whatever?

And they do that and then they get. And they sit down with the person like, so, you know, how's it going, how do you like real things? You know what? What's new? I love that you said that, but you brought it. You wouldn't found something to bring them that you had a topic, something you could specifically ask questions about, and then you're going to learn from your example. So this is what the income says it is.

And he's going to be like, well, that's what they say it is. But in reality, you've got to make sure you account for vacancy and you're like, oh, yeah, good point. You write that down. Now you even know to ask that question. He knew to ask that question. Right.

So because you brought something to talk about, it's such an amazing point that rather than just a random meeting with somebody, bring them a deal or bring a deal to just discuss with them.

And don't say, can I pick your brain? That is literally the opposite of what Brandon just described. Pick your brain is very general. I don't know. I don't even know what I'm asking. I'm just trying to hope if I talk to you enough, whatever is inside your head will get in mind as opposed to I have a specific direction that I want this to go. I know what questions I need to get answered that just tells the person you want to talk to if it's a good use of their time or not so good.

And at that point, I decided I wanted to start a wholesaling business, the low hanging fruit. And I, I, I knew that it was going to be difficult. Tons of cold calling, tons of hassle. And I didn't really think I was cut out for that. But I thought I need some more cash to get my pile up so that I can go do these commercial deals. So I wanted an office because I was going to I was going to hit it big.

Right. So that was why I hit on this office. I could rent out a little closet in my own space and build it. I can't rent. We tried to rent for four months when we got to Salt Lake. Four months is all it lasted. And so I immediately said, well, if I'm going to go get an office, I'm going to buy the whole building. I just I'm not cut out for it. So that was that was kind of the nexus of where all of these things are coming together.

But so I went I took a class on how to do lease options and my parents and I always sold their house is doing these options when I was growing up. But I would see a lot of stress and frustration when the person that they would put in there didn't pay the rent or the mortgage for that month. And my parents didn't have a good reserve to be able to do that.

And they would be freaking out like how are we supposed to mortgage when they're late again? And and it just wasn't it seemed like a great way for an extra stream of income. But I didn't think the way that they were doing it was bringing a lot of peace and passive income into their lives. And so I thought, I love this lease option idea, but I'm going to go out and learn how to do it correctly. With the emergency fund in place and with the correct legal documents and the marketing and how to how to do background screenings on the tenants.

So that's what I decided I was going to do. This lease option. I'm wholesaling. I get this office. And during that time, we had someone close to us who her husband was laid off and he had been out of work for a year and their house was in default. And people of color and say, honey, what can we do? How can we help? And she say, I don't know. Give my husband a job, like find us a rental to live in.

We have mortgages and our credit shot, like nobody will even rent to us and says, I don't maybe buy my house. And I said, are are you serious? Because I know some people I can ask. I think I can buy your house. Can you really? I said I. I don't know. Let me go figure it out. And so I called all the people I knew and they gave me some ideas and I presented her a couple of options and we ended up taking that whole subject to the mortgage.

I put in a lease option renter into it. That was in Louisville, Kentucky, and they are the best tenants I've ever had. I just met them for the first time last weekend, actually, when I was out of town for that conference, I flew into Louisville and spent the day with them. They just been so great. I just decided instead of asking them to get their own mortgage, I'm just going to wrap and refinance at half the mortgage to them because they're just such they're such great tenants.

And so that was my first investment, all my reinstated the mortgage, my help that person move out of that house and get them into a rental and just did what they needed to do to get moved on with their lives. And then that paid for the class that I took on how to do lease options. That's our deal.

That's awesome. Now, you mentioned quite a few industry specific terms. They're like wholesaling these options subject to can you explain to the audience who's listening one, what a lease option is? And then maybe two, what scenarios? A lease option is a better fit than a standard rental contract?

Not to be fair, I didn't know what any of these things were either. When I first started, I knew my parents were not selling their houses to people who just came with the mortgage, but I didn't know what that was called. So the lease option is when you sell your house to somebody who's going to come in and rent it and you give them an option to purchase that house at a later date at a pre specified price. So maybe slightly over market value because they're going to buy it one to two years and you get to choose the term you have between you and the renter.

They're going to pay you rent each month and maybe or maybe not, they might give you a little credit. You might give them a little credit that goes towards their down payment each month. Sometimes you do. Sometimes you don't. Depends on the strength of the renter and how their background check comes up. It's just a little bit of a deeper look into their background than you would do for a normal renter. We use a service that gives them some credit and mortgage counseling on top of the criminal background check and the credit check.

And and I just make sure that we are communicating. I require them to buy a home warranty and they're in charge of most of the maintenance on the house, unless it's large enough that we need to take out a homeowner's claim against it. And so we get them in there and they have one, two years. However long you agree on to perform on that option, when the option expires, you can just keep renting it to them if you want to.

But usually you want to build into the contract if the option expires and they want to renew that, the house price is going to go up by, say, two percent and the rent's going to go up by one or two percent because otherwise they think that 10 years down the road they can buy the house for what it was worth when they first signed it. So and those are the kinds of provisions that why I took that class, because I needed to know some of those pitfalls and have the right legal paperwork.

So we took that to an attorney's office who and close with the title company. And we actually recorded their interest against against the house in the county records so that they knew I wouldn't just go sell it out from under them because then they would lose whatever money that they had built up into that.

Yeah, that's that's cool. Let me jump in real quick, real quickly. I want to make sure people know if they're listening to this like lease options and wholesaling and subject to you mentioned, like, all that stuff. Just so people, if you're listening, is going to understand what that is. I wish they'd spend two hours explaining that. Like, first of all, understand that this is like a gym tour. Like we're walking to the gym going, here's all the cool stuff that is at your disposal.

You can live with this thing and the thing. But nobody expects when you walk through a gym to know every single thing, you start to show up to the gym multiple times, which means go read the books, go search bigger pockets for the stuff. Like these are really, really powerful strategies that can be great, especially if you're getting started without any cash.

All three of those are really interesting strategies for that. But again, there's books on it. There's podcasts on it. So it's what I always know whenever we talk about stuff that's like really creative stuff, people are like, well, they're not explaining every single, you know, like you didn't tell me what you told the attorney on the third meeting with the attorney. It's like, this is not this is a gym tour. So anyway, with that said, if you're freaking out right now because you do understand every piece, that's OK.

That's all right. Take a breath. Learn.

That's why I wanted to say that I took a class. Yeah, because this is complicated stuff and you don't have to take a class. I'm usually more of a self taught person, but because of the legal implications of doing a deal like this, I really wanted to make sure that I had the ducks in a row. And so I did a couple of those that first year and just realized that it wasn't really cut out for it. It's just too much volume.

I'm not into the volume of, say, wholesaling where you find a deal and you sell it to somebody else and you take a little spread in between. You have to do a lot of those because you're only making 10, 15 grand from each deal. How many of those you have to do a year to replace your income? Plus it's a hassle. So I was more after the passive income, you know, where the financially independent retire early, have my husband quit his job to was our goal and things like wholesaling or being in the intermediary in lease optioning other people's houses just was not getting me towards that goal, even though it was helping me make some money.

I just I really I really realized that was distracting me from my passive income goals.

I love that you recognize this strategy does not fit for my personality and my goals because there are some people that the opposite is true. They need a hustle. They love the chase. They get addicted. They'll always be needing some kind of work. But maybe wholesaling where they get 10 to 15 grand a pop is actually exciting to them and it gets them out of bed every morning. And they're like, this is so much better than my salary job where it didn't matter what I did, I didn't make anything.

But you knew yourself and Brandon and I talk about this a lot. You have to know your goals and your personality and pick the strategy that aligns with those as opposed to just saying, well, I heard somebody else did this. It worked. So that's what I'm doing. And you jump in and do it. And you're the story that you started off where you said you get exposed to a little bit of everything, kind of gave you what you needed to recognize.

This is something that I would enjoy doing. Brandon, do you agree? Yeah.

Can I double down on my analogy from earlier? I'm taking your analogous role today. The analogous role. You're ready for this? This is going to be good. Is it about lying to her? It's like going to the gym. Right. And if you were to go to the gym and they were like, this is the bench press, this is what you need to do every single time you're here. This is a squat machine. I want you to do this.

What? You'd end up looking maybe you like the guy who's giving you the tour, but that might be not the best approach for you there. A line with your with your goal that doesn't align with your personality or what you like doing.

And so, again, like, I think the gym is a perfect example. This is people oftentimes are just doing a thing because they heard it on a podcast or something.

They went to a seminar and it said you should be doing wholesaling. You're a newbie, you should be doing wholesaling. And they just do not like that. And they just they just not good at it.

And then they have the skill set for it. And I'll go even one deeper with the gym tour. When you're talking about a chest exercise, there's many different kinds. There's a standard bench, there's an incline bench, there's a bench, there's a butterfly machine. There's there's weight you can do butterfly stuff with. They all deal with the specifics of how you want your chest to look. Right. Some of the deals that Emma here has mentioned are things like subject to which are very specific strategies that we use for our overall financing.

But financing would be. And subject to is something use within that. OK, so don't get caught up if you're like, oh, this is too complicated for me, I don't understand, subject to it just doesn't make sense to me. You probably don't even need to address that until you've been working your chest out for a year and you say, OK, I want to tweak it in a little way. Most people just need to go to the gym.

You don't have to understand the intricacies of every single machine that's there. Like, just get in there and sweat.

It's better than if you didn't go down on that analogy. Does it show up to the gym and be very strategic about the personal trainer that you hire?

I'm a cheapskate. When I say I paid for a class, that's a big deal for me. I am all about the one hundred fifty dollars a year. I'm all about learning for free on bigger pockets. But when you hire somebody to get you some help, I don't know what is subject to mortgage was I called the guy that I took the lease option class for him and I said, hey, I've got the situation. There's a house that fell in my lap.

I'm trying to do something. What would you do? You are taking on subject to mortgages. I'm worried about bubble. I didn't know what he was talking about. He almost had to fill out the documents for me. So make sure that you've got some people on your team who know what they're doing. So the guy I loaned money to was a great mentor on flipping and it was a great way for me to see. I don't like flipping and I don't want to do that.

And the guy who is doing the lease options well and not I'm not going say lease options ended up not being a good fit for me because there's a story. Remind me to get back to that later in the commercial where that ended up becoming very handy. But the volume of lease options and the residential was not a good fit. But he got me into that first deal because I took this class. I knew who to call when I had a situation come up and help me solve it.

And he helped me.

So I'm in a creative way. So get the personal trainer. That doesn't mean you have to spend a thousand million zillion dollars on the best personal trainer on the planet. Be strategic about who you bring in there with you and know who to call when you've got a situation.

Yeah, that's really good. All right. Well, I'm tempted to four to four X analogy here, but I will move on.

Hey, let's take a quick break from this episode.

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Otherwise we wouldn't be sitting here today talking. So what came next after you trying to try out your hand at the whole styling thing?

OK, so it's kind of a funny story. It's one of my favorite stories. I was at the bank. I was actually depositing a check from a lease option that I had just gotten paid for. And I was walking out and there was a contractor there and a big truck. And he had the branded the wrap on the truck and the branded Polow. And he was on the phone and he was walking into the bank. And I thought, well, this is a kind of professional contractor that I want to be dealing with.

And I was having a hard time finding because in Austin, when we remodeled our house, you it's hard you dealing with contractors. And and I knew that there were a lot of bad ones that I knew what I was looking for in the ones that ended up being good.

So I figured I'll just ask for his card. So we chatted in the parking lot for a little while and he started calling me almost every day, a couple of times a week. Do you have a house? We can get a house we can flip. So flip houses. But you said you wanted to maybe look at flipping houses. I said maybe. I don't know. He bought me for six weeks and finally I said, fine, I'll go find a house that we can flip.

And so I opened up my email and it got all the wholesaler emails that had been coming through, because every time you go to area and you sign in, the wholesalers start emailing you stuff. And so these deals are coming in to your inbox. I don't know if they were good deals. I didn't know how to really run my numbers. I knew spreadsheets from business school and all that, but I didn't know how to evaluate these deals. I'd be on bigger pockets, like on the deal evaluator trying to figure out.

I had no idea. And I said, look, I'll line up a couple of property tours and we'll go look at him. He picked me up and his giant truck and he drove me from North Salt Lake through all these properties one day to sell Salt Lake spent all day with me. He was so excited. And if he hadn't been hammering at me every single day, I never, ever would have done that. So about Thanksgiving, we found this wholesale flip.

And when I walked upstairs, there was a duplex in the attic and I said, well, this is this is a rental. And when I started figuring out, I knew one percent rule. And if you think this is going to be a great investment and he started immediately, firing off like this really does cost twenty five thousand dollars to rehab and this and that. So I put an offer on it. We bought it. I called up the guy that I had my money lent out to.

I said, hey, can you something like 30 grand down payment on this? So he can replace that money and I went and bought that duplex and then my I got a hard money loan for the rest of it, we remodeled it, put some renters into it, immediately refinanced it. So it's kind of a partial birth. So there's another term that I learned from their pocket. So I guess the point of this watch, a lot of YouTube videos spend a lot of time overfocus, spend a lot of time at Uria and you'll you'll learn these things exist.

This is my first BRK. I didn't get all my money back out because it's in Provo, Utah, which I don't know if you know anything about this area proposal. Second fastest growing city in the country. That county is the fastest growing county in the country. I knew this thing would appreciate like gangbusters, but I knew I wasn't going be able to get all my money out in the refinance and I was OK leaving a little bit behind. So we did that, got my duplex, super proud of myself.

I got a property in Provo, Utah. Everybody, this is like my second by second property. I just closed that one in Louisville a couple of months before and I had the fire like, let's go find another one, because he was excited, too. Let's go find another one. So I found that same wholesaler brought me another one not far from there. It was a dump. It was a disaster. I was originally going to flip it, but I found out it had foundation issues that I didn't want to fix.

And I said, well, I'm just going to lease option this one and we'll fix the foundation later. It was basically kicking the football down the field a little to fix the foundation before they closed on a mortgage. So couldn't find anybody who wanted to buy it on the lease. Auction site is rented it out. It was not ready to go. The subcontractor really dropped the ball. The guy who wanted to run it was a contractor. I said, look, I'll just hire you to finish it.

He paid me his rent separately. Don't ever hire your tenants to do the work or give them trade and rent to do work. Never, never, never. He paid me his rent and then I paid him.

Yeah, I've done it numerous. I've never worked for me, never does. So I hired him to basically finish the rehab on that. So he moved into it with no bathroom, no nothing. And he managed that like a project and I paid him completely separately from the rent that was coming in. So that ended up working out really well. He's really made that his home. And he recently called and said, I actually want to buy this.

Do you still want to do that last option thing? I said, sure. He's of I need to save up some down payment. I said, look, if you fix the foundation, I'll give it to you for no down payment. So these are kind of creative things that you can do. So we're working our way through that right now. That's cool. So the next deal that I did it was I found through a wholesaler. I don't know, you might want to do this one for the deep dive because this one is a fun story.

Give us a high over it. You did all. You did a wholesale deal is what you're saying, right?

I found a seller. Oh, yeah. Following through with the wholesaler. But since I kept showing up to meet the seller, I eventually just bought it directly from him and held it on a lease option and just dropped that mortgage to the current buyer. And that was beyond a burden. Not only do I have all my money back out of it, but I made a bunch of money on top of it as a huge spread. So that was a really fun story.

There's no reason we have to do the deep dive at the end of the show. So why don't we just do it right now for the deep, deep dive?

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Hey, it's our show. We can do whatever we want. Right?

So let's do the deep dive right now and now. Yeah, we're going to right now. So, so.

So tell me, Emma, do you have do you have a property in mind that you want to talk about today and on top of your head that you'd want to talk about right now?

I haven't even thought about it yet. Brandon, let me think. Let me get out my spreadsheet here. Yes. Which one would be best for this?

OK, all right. So tell us about what was this property like? What is it and where was it located?

And we'll go into the specifics. It's in a town called South Salt Lake. It's south of Salt Lake. It's really called stuff like that. It's the city of Salt Lake City, which that is relevant to the story because Salt Lake is notoriously difficult to deal with on zoning changes because they have a lot of commercial industrial properties and they're very protective of their residential properties. And so that fed into this this story. So I found it from a wholesaler, same wholesaler about the other two houses from and he sent me by to go look at it.

When I showed up, nobody was there. And he called and he said, oh, we're not going to do it. He pulled out, but I'm standing there on the front porch and the owners like, who are you? What are you doing here? So I introduced myself. We chatted, ended up not being really good plan. I said, well, what do you need to move out? Maybe I'll check up with you in a couple of months and see if it's a better fit.

So a couple of months later, that was probably January. I think I called him well, maybe earlier December. So I called him maybe in January, called the wholesaler. And I said, hey, you saw that deal. You know, I lost it. Another wholesaler picked it up and he said, let me put you in touch with them. So I called the other wholesaler. I never met him before. I'd never talk to him again since.

And he said, yeah, we're doing a showing on Thursday or whatever. So I show up on Thursday. Nobody's there. I knock on the door, the homeowner opens the door and he recognizes me, says Woody. You get what are you doing here? I said, I'm here to look at the house.

He said, No, we're not selling it. I we got a big argument. I ripped up the contract and I said, so I back up, text the guy. He goes, Oh, I'm so sorry we canceled the show. But since you're not on my mailing list, I you didn't get the notification and I forgot that I told you so we didn't text me. So I'm standing there on this guy's porch again. And at this point I said, well, this is getting ridiculous.

I said, do you want to sell your house? Why do you need to move out? What do you need for it? And we talked for a long time, like two hours. Again, this is the second time. And finally he was so open and so skittish, but he finally allowed me to sign the contract. And I had to take out the fact that I had to take out the assignment clause and promise him that we would close on this house ourselves.

We would not sign it to anybody else. He was very skittish. So I ended up going in and we closed it. And with that we had one hundred percent hard money loan. So I just had to pay the points upfront front that I borrowed from a cash advance on a credit card.

And I was very I was in the middle of that rehab with the Palace of the Bad Foundation, and everything's gone bad on that. I did not have any cash. I had actually paid cash for that house. I didn't have anything left over. So this cash advance on a credit card is what got me into this. Third one got in and I, I ran all the numbers. I thought I was going to flip it. What I needed to spend on the flip was the same amount that it would have sold for on the cops.

Sixty thousand dollars in it only sell for another sixty thousand dollars. And I thought that's not worth doing. So what do you actually think.

Yeah. Rejection of buying it for like what was that. Fifty five. Eighty five thousand. And I thought that it would only sell for three, ten rehabbed. Turns out my comps were really really wrong. So, but we continue to ask a couple of different people, help me, I hate doing comps. So I definitely asked people to help. And then I decided that I was going to convert it back into a duplex because I discovered from the owner that used to be a duplex.

So I go down to the city and they said, well, it's not been a continuous duplex use that converted it. You can't have it back. It's grandfathered in. I said it would have to be grandfathered. And I said, well, there's a twelve plex down the road. So they built that before the zoning changed. Absolutely not. I said, well, what if I subdivide the lot? But another house behind it was this huge lot.

There's no it's not wide enough for two driveways. So they just every turn they were just making it very difficult. So then I tried to buy the house. Because it was being condemned and could never get a hold of the guy thought, having bipolar thoughts that can combine and turn it into four lots, every creative option this whole time, I was trying to hold it with at least option seller finance. I just mowed the lawn. I hired a painter, painter stole money for me.

This is where I really learned how to manage contractors and don't ever pay a deposit and put them on a schedule of payments and make sure they do their prep work and demo before they get paid. So that was the lesson I learned there. So I ended up hiring a different painter, got it done and had somebody come in to lease option it. They were so excited about this house. And then right before it was to close, she calls me and says to her, grandma died in Puerto Rico since they were the wealthiest people in the family, that it was their responsibility to fly everybody to Puerto Rico and pay for the funeral.

So they didn't have the down payment money. I was devastated because I was sitting here. I've got hard money on this thing right now.

The clock's ticking. So I ended up just putting it on the market with the realtor and I said, just sell it however we can write. And I said, but I'm really open to seller financing, lease options, let's be creative. And I said, and to get it, somebody who's not just going to come with a mortgage, we need to overprice it a little. That was the mistake that we made trying to sell our financing lease option, our personal homes, because that was always we always tried was we would price it at market value as somebody would come in with a mortgage and snap it right up.

And I said, we'll keep it. But I learned in that class you priced it a little over market. People who want to get a good deal can bring a mortgage. You're not going to buy it. But people who are looking for seller finance deal are willing to pay a little bit more because they're willing to do long term. So we overpriced it a little bit. We got an offer in from a contractor. So he loved that it was a project.

The hotel type of project hotel means that you pick it up at a wholesale price and instead of flipping it, you just turn it around and sell it on the MLS for what it's worth, because it's worth more than what you paid for it, even if you didn't do anything to it. So he came in about it on a lease option from us and moved in and he just wanted a fixer upper that he could do himself. And so I said, you can't do anything to it for six months until we can do the rent mortgage.

So the appraisal came back at three thirty. I, well I, I said, why, how did how did I not know that it was worth this much. All the comps were telling me that we can only sell for three ten if we rehabbed it and this came back at three thirty as is and we were way, way off and I don't really know, I still don't really know how that happened.

How hard money lender or my realtor friends we're way off with this appraisal came in. So he ended up giving us like three twenty eight for it and gave us a little down payment lease option it six months set up the escrow account to handle the payments. He's getting a little credit and then last June he gives it another down payment and we went and rapped the mortgage to went to the title company transfer title and then he continued to pay his down payment in chunks for a couple of months after that.

And so what I ended up with was getting cash out of that. It was like a seventy thousand dollar spread on the purchase versus sale price. And then between the chunks, the down payment that he gave me, I'm completely cashed out of that deal and I'm holding the note on it for ten years. All right.

So let me let me dig in a little bit here. So first of all, so we know how you found the Woolnorth and what it was, we now you found it. We know how much you paid for. It was two fifty five. I'm curious. And in the negotiation, that was a cool story. So the funding part is where I'm getting a little bit confused here because. So you bought the property, you said with hard money that we said if we use one hundred percent of our money loan.

All right, but you have to pay the points up front.

OK, so you paid like you got a loan. You pay this big fee to harm your lender and then you hard is typically pretty short term. Right. So what? So how did you go from that? Did you go then actually after you find the guy, you went and found a mortgage on it at that point?

That was that part. Yes, we had to we had to refinance. And so we had the other house, the little the little house that I was the other contractor was fixing up was in the middle of a refinance. And so we're there in our personal names we couldn't do was causing problems to both at once. So it was very, very stressful. So we put him in there on hard money. The new mortgage that we got would not allow us to get a mortgage on it until we had a signed lease.

So he actually moved in with that house on hard money. And then as soon as I had to sign the lease, I immediately went in for the refinance. And that took that took a little while, maybe another two months after that. They didn't need the seasoning look back of the six months. So I made sure I found the lender that would do the refinance right away rather than making me own it for six months, because that's oftentimes a stumbling block.

You're having hard money on it for six to 12 months before a lender will even look at it. So find a lender that will we'll do a short period of ownership or doesn't have a seasoning requirement. So we got that mortgage in place. And that's when one of the reasons I made him wait so long before I drop it, because I had to get it refinanced and then we had to let that season and. And we could go back and do a rap on it.

OK, that's cool. So you now you've got a normal mortgage on it, then he comes in and pays you and you basically do a rap where you you have a mortgage and then he you go with seller financing, almost like for you.

But it's better for him because he's getting he's getting the wrap around mortgage at better terms and what he might have been able to get for himself, because the assumption is you have better credit, you have a better ability to get a better loan on the house. Is that right?

Yeah. And he's self-employed. Yeah, he's a contractor and he couldn't get any mortgage. And so, again, I ran him through my very detailed screening process with the mortgage counseling. I knew exactly what I was dealing with. It's not like you just go out and do these do be sellers willy nilly. You have to you have to be pretty, pretty thorough about the way that, you know, that they can perform. And and to get a little deeper, if you're going to do this more than once or twice and you're subject to the same laws as the mortgage lender is, so you can't just be going out and being a shark and putting people in these homes that can't perform on the financial obligations.

You've got to beat them out. You've got to make sure they know what they're signing. So we're very careful about that.

How did you deal with the the whole due on sale clause for those who don't know, like a mortgage, just have a thing called the deal. Don't sell that. If you sell it to somebody else, they could ask you. They could make you pay back the loan. Did you have that in that note? Do you just not worry about that? Do you have a backup plan? Like how do you deal with that?

They all have that in there. I've found that if you don't want to get called on the due on sale, don't use a small community bank. They actually will do audits and they'll look back and say, wait, the person on title doesn't match the person on the loan and they'll call it. So if it does get called, have a backup plan, you need to have some cash in place and a hillock or life insurance policy or somewhere where you can stash some cash that if you need to come in and pay this off quickly or have a relationship with a hard money lender, if that's what it came to, I go back to that same hard money lender and say, I got this.

No got called. I need to pay it off right away. I pay his points and then I would go figure something else out to get new financing on it, because with that hard money, at least I wouldn't lose lose the house. So I used a larger bank that I knew was going to sell the loan to an even larger bank. And so the due on sale doesn't really ever get looked at in those situations.

Yeah, I haven't I haven't heard of it happening too often. It's one of those is a risk. It's something that could happen. And like you said, if you have a backup plan, it's not it's not like I mean, obviously we're not lawyers here.

But my understanding, I'm sure you agree. It's not it's not illegal to do it. It's simply in their right. If you do do it, then the bank can say, well, we don't want to lend it. We want to call that no do now. And so it's just it's a condition of the contract. And you say, OK, well, I'm willing to take that risk. It's their right to call it.

And if they do, like you said, I have a backup plan.

So we from a practical standpoint, that is more likely to happen when interest rates are going up. Lately, they've just been going down. So the bank doesn't want to call a note do and then have to lend that money out at a cheaper rate than what they gave it at. But if that changes, then we could definitely see more of these do Unseld classes being called and that that is a risk.

But I didn't have him have a prepayment penalty. And so if need be, he can go get a refinance a lot more easily than he can get a purchase loan, even being self-employed. So if I come and say, hey, I've got down hard money, I need you to go and get a refinance press that really hard while I'm working hard on my end, that's also part of the backup plan. Cool. All right, so this whole deal, you know, I've giving you a big down payment, get you a bunch of your cash, so now you want basically your you have.

Right. You have no money left.

And at this point or I'm positive money on that one. I made money on that. And it continues to pay me because it's one of those deals that pays on the front end, pays you in the middle and pays you monthly. And it might pay me on the back end when he does it in 10 years or whenever he refinances it, I'll get another chunk of cash from the equity that's still in it. Yeah, very, very cool.

All right, last question. And this is what lessons did you learn from this deal overall?

Don't pay your contractor. I learn that deal.

I learned that lesson many times as well. All right. So what? So after this, the end of the deal, deep dive. What came after? Where you at today is going to go to the end of your story. What are you doing now? What's what's your thing and where do you see yourself headed?

Well, a couple of months after that, I bought another triplex, just a turnkey triplex that a little bit of money left. And so I got that. And that's I'm just self managing that. That's pretty easy. Doesn't even have a fun story behind it. So I've got that. So we had those eight units and then that city I bought the triplex in was near my husband's hometown and I knew I wanted to invest in that area. It's in Idaho.

It's hot. It's great cash flow, hybrid appreciation model, our market. And we I saw on Facebook somebody from the Rhia. She said, hey, I'm selling my 50 unit apartment complex in the same town. I just bought that triplex like we just closed that month. Right. And I said, sure, I'll take a look at it. So there might be some seller financing available. I know what I was doing, but I didn't care because I knew people from the area who said that they wanted to do apartment complexes.

I knew exactly the people I was going to call. So I get this their crappy spreadsheet through really rinky dink took a look at it. I said, this actually looks like a pretty good deal. I know three ratios and cash on cash return. I know rate at internal rate of return and one percent real. That's it. That's all I know. But it looked like a good deal from that. So I sent it to a guy I knew who was a spreadsheet geek and dropped it in his monster and sent it back to me.

This is a really good deal. I think I can raise the capital for it. If you are thinking about partnering on it. I said yes. If you're going to raise the capital, I don't know how to do that. Right. That's a whole nother field out there that I knew was the thing that I didn't know anything about.

I think another part of the gym that's like the room it does like the spinning class. Like that's like it's intimidating. But you're like, I could learn it. But, man, I think we've got to invite me into the spinning class because it makes me feel weird.

And he he grew up in Salt Lake from an old, respected Salt Lake family. So he had a lot of connections that I not have. So when he said he will raise the capital for it and he really wanted to split the work, and so that just became that going to be a deep dive deal on its own. That took six months to close. We ended up taking over management before we close kind of a master lease, which is, again, another word for at least option owner.

Like if you guys can't close this thing, I'm sick of it. You got to take over. So we hired our own manager, put in place. We started rehabbing it before we closed on it. We had so much hard, earnest money in that thing, there was no way we were going to let it go and not close. So we took over management of that in September of twenty nineteen. Just closed on in February of twenty twenty.

That's how long it took. And I found it in May of twenty nineteen. So we have rehabbed. Thirty of those fifty apartments were way ahead of schedule and the month that we closed on that in February I found another apartment complex in Little Rock, Arkansas that has another funny story. They all have funny stories like they're all like related.

Yeah, yeah. It's it's like a creative financing and creative approaches. They all have a story behind them and I'll have a lot of lessons to learn. So I put that. Thirty four units under contract in Little Rock in January and we all know what happened the first week of March. Right. So I lost all my investors like the coronavirus and this we don't know what's going on. We've got to preserve capital. So they all pulled out. And so I called the owner and I said, hey, I need some time to put this back together.

I can't get a loan on it. I need to go raise more money for it. So I started over from square one, raising more capital just on Facebook and LinkedIn. Just put it out there like, hey, I got this deal, who was a partner on it and couldn't couldn't get a loan. And so I went back to the seller and I said, Hey, Mr. Seller, there's this thing called a lease option, and you want to do that on your apartment complex.

And he was like, OK, so we bought that apartment complex in June basically on a lease option. And because I had done it a couple of times and taken a class, I knew what I was doing. I was able to save that deal using creative financing. And it never occurred to me that I would want to buy something on a lease option because I thought that was a distressed buyer. They couldn't get a mortgage. Well, here I was, a distressed buyer, couldn't get a mortgage, so I bought that on at least option in June.

And we rehabbed about 10 of the apartments. And then in June, I went to a retreat and told these stories to some people there. And a couple of months or a couple of weeks later, one of them called me and he said, hey, I found a piece of land in a downtown Salt Lake. It's in an opportunity zone. We can tear down the warehouse and put up a 60 high rise apartment complex. And I was like, that sounds cool.

What do you mean? He goes, I don't have any large multifamily experience your partner on it.

I said, Sure. Use the general contractor so you could build it, but he didn't know how to do property management stabilization, lease up any of that stuff, and I said I'm on there. So I found a guy who could underwrite it. He'd done commercial development before and we made a little team and and we close on that one in January. So it's again, goes back to networking, learning how to run the numbers on your deals, knowing who to call when you have something.

I if you'd asked me and six months ago, if I build a high rise downtown and that's crazy. But the funny thing about that here is where it comes full circle by rebranded away from the lease option business that I named my business high because it was about us rising higher together through real estate. And what two months later somebody comes to me and says, let's build a High-Rise. I mean, this manifestation, you put it out there. I thought it was a little bold of me to name my company and have a skyscraper as this as the logo.

But then look what happened. And the guy, the broker who is selling us that piece of land, selling us that project is the guy from the area, from the very first area who said if you can skip residential and go straight to commercial, you should do it.

Oh, and so it all comes around.

If you just know the right people to call, you know who to talk to, you will have opportunities come up. If you just keep learning who people are and you keep learning how to recognize a good deal, you can put it together and just be creative.

And this whole thing with six kids at home and during the whole carone, I mean, are they in school right now?

Like I mean, how do you like what's that like? I mean, how do you manage that much of a business, like with six kids at home?

I just did a podcast interview where when you found out I had six kids, we've been homeschooling for about ten years.

So now we know you're homeschooling your kids in addition to building a massive empire like the math empire investment firm Nuts.

I well, that's why that interview really just went left. We ended up not even really talking about real estate because all we talked about was how to run your life and simplify your life so that you can focus on your real estate. We just talked about homeschooling and housework and just time management and delegation and all of that. And so I don't homeschool in traditional way. I don't do anything the traditional way. So I I'm all about like Tim Ferriss, cutting corners, being efficient, like how can we do this in the least amount.

I'm lazy. I don't want to wholesale and hustle. Obviously I'm not going to home school that way either. So we're very creative. We associate, we just put ourselves right in the mix and meet people who are doing it in a way that's very clever, creative outside the box and extremely efficient so that we can get more done in the same amount of time. I think Bill Gates had a quote that was like, I always look for my most important jobs and give them to the laziest people because they'll figure out how to get it done the fastest.

Is does that sound familiar?

Yeah, I actually quoted that on that. Other people say like, oh, how do you so much done? Well, first of all, you don't do it all. That would be stupid. How do you how do you how do you get it all done. Well, I don't do it all so polite. I don't know how you could be a mom of six kids. I said, well, not very well. You let things go, things fall, things you just have to learn how to how to focus on what's really important and stop trying to control every little bit of thing in your life, because that is asking for a heart attack.

All right.

So two things about first of all, what was that other show just gave? People want to listen to it is out already. Is it coming out?

It'll be Whitney Soules, the syndication show, the real estate syndication show. And that's dropping on November 2nd. So lots of just little life hacks to get more done in less time. Barry, I love those type of shows anyway.

So very, very vocal. And the second thing is, have you heard of the book, the what's called the five hour school week? Have you heard of that? It's called David.

All right. I think you talk about Aaron's book. Yeah. Aaron's book. The Five Hour School. OK, all right. You've heard of that one. Yeah.

Yeah, I heard him interview on your podcast. And so I went and looked him up. And I know now Facebook air quotes friends with him. He's got any clue who I am. But yeah, he he homeschools. And again, that very efficient, creative way. We're even a little more free form than he is. But I joined his wife's group. And now if you're if you definitely she's got it going on like you need some help there.

Definitely reach out there. Yeah.

Aaron and Colleen, they're like good people. Just fine. When you were explaining the four hour work week and how you apply that to home school, and I was like, that's exactly Aaron.

Like, that's that that was ironically enough, definitely. All right. Very, very cool, man.

I feel like we could just talk for hours and hours, hours, but we got to get the thing.

Moving on to the last question I have before move on to the famous for what do you need right now in your business?

What can our users or listeners or members bring to you to help you out in your in your world?

I am really looking to scale up very quickly. A financial independent retire early. We're looking to get out of the way to my husband is in right now and I would like to take on some much larger projects. I work. Very well with people who are new and looking for some mentoring, so if you've got a deal, especially a larger commercial deal that you don't know what to do with, or you're looking to place some capital with somebody who will be that mentor to you and walk you through and give you the passenger seat view of how these deals work, I would love to talk to you.

That's my favorite thing to do. I always end up teaching no matter what I do. I always end up turning around and teaching it. It's just I can't I can't help, but I just love it.

That's awesome. All right. Well, with that said, let's head over to the last segment of the show.

It's our famous for. All right.

This is the famous for the part of the show where we ask the same for questions every week before we ask those questions to UMUR. Let's hear what's going on this week over in the Bigger Pockets podcast network.

Hey, it's Ashley from the Real Estate Rookie. And on last week's episode, we had Joe Roberts and Steve Rosenberg and Joe one twenty thousand dollars at the last bigger pocket conference to buy a property. Steve Rosenberg is guiding him through the whole process of doing an out of state deal to make you go back and listen.

All right. With that, let's get to the famous for. All right. Question number one, and would you have a favorite real estate related book?

I've been dreading this question. I don't really read real estate books, but so 20 years ago, I read Rich Dad, Poor Dad. Last year, I read the book on real estate property management by this guy. What's his name again? You're talking about me?

Yes. You got your book. And my my husband bought it and he listened to the audiobook version and now he's like, oh, did you do this or do that? So I had to listen to that one just to defend myself, because suddenly a guy who's not even in my business is all up in my face about higher. And that's why I read that one last year. And then the one that I'm working on right now, it's an e-book, actually.

It's a lead magnet that my partner on my Little Rock property, John Stober, did. It's about how to underwrite multifamily properties and that he is a spreadsheet animal. So breeding. If you need to learn how to underwrite properties, go get that e-book. And he has a spreadsheet that you can download and a more complicated when you can purchase it so that when I'm getting through right now, I do know how to underwrite multifamily properties, but he takes it to a whole new level.

So I'm really trying to making there.

Yeah, I love having those people in your life like I have. Walker, like Walker Meadows is my like underwriter slash VP of acquisitions. And like, I just love having those people, like they like I can get it right. But he can underwrite. Right. I think it's like different like. Yeah, yeah. The difference between being able to do it and liking doing it, it's a great way to put it.

It feels like for Walker to do that work, whereas we could do it. But it feels heavy. Yeah. Yeah, that's it. All right.

Next question, David Greene, what's your favorite business book? Crucial Conversations by Carrie Patterson. Hands down best. I don't think it's just a business book. I think it should be a human book. If you are a human over the age of about ten, you should read this book.

I have it on my shelf. I haven't read it yet, but now I'm inspired to got to read it.

So along with that, I would say nonviolent communication by Marshall Rosenberg. It was basically what taught me how to stop trying to control everyone. Everything that people are their own people and crucial conversations gives you the tools to go into how to actually have nonviolent communication. So my son was diagnosed with autism when he was eighteen just last year. So we knew for a long time his whole life that something wasn't quite right. But he has a kind of autism that makes him argue, complain has his withdrawal is to is to get out of doing social things, is to yell and complain and argue.

And so he really forced up to step up our game to be better parents. And so I read this book off of the personal NBA book list so that I said, well, this has got to help me. Right. It was life changing. It will go it will improve your relationships. Like I said with my son, it will improve your business negotiations. It will improve your ability to communicate on any number of topics. And the reason I like it as a business book, because it basically boiled these skills down to the high achievers that they were interviewing in the business world, the CEOs, when they were trying to find out what they all had in common.

It was this this set of communication skills. So if you have to, you have to read it.

Yeah. Cool, awesome, awesome.

OK, when you're not raising six kids and building a real estate empire, what are some of your hobbies?

I am one of those people who has a thousand hobbies. If it is a hobby, I'm doing it like I put my kids in music lessons and I sit in the room while they're doing it and I cheat and take lessons with them. I come home, I practice, I get on YouTube. So I play the piano, I learn how to play guitar. We learn how to sing. A couple of years ago, I played rugby for a while.

I really love all just anything, any knitting, like I said, knitting in the community. I just I love hobbies. But right now what we're really getting into is. With the whole passive income thing, as I just decided, I wanted to go hiking the Appalachian Trail, just I knew somebody who did it and and I was asking how they did it and how they rearrange their lives to be able to do it and take that furlough from work.

And I thought, you know, this passive income thing, we should go do that.

I don't want to do an Iron Man or the hard work at the 5:00 in the morning. Crazy stuff. But for whatever reason, this Appalachian Trail thing got into my brain, even though it's going to suck way worse than an Iron Man, I think. But it doesn't I don't even care. It's I just cannot get it out of my head. So we're just starting to hike around Salt Lake and get our kit together. And that's our that's our new hobby.

And now that the winters come in, we're we're buying some snow shoes. Like, it's just I love hobbies. I love creating things of learning new things. I'm all about it. Very cool.

Very cool. Are you take your family on the Appalachian Trail with the goal or working out how that's going to work and how that's going to look.

And it's going to be a few years. But would there is a trail in Utah that we want to through hike before that, but we'll probably just have our kids come up and see us at the campsite every night or drive someone to sleep in our own bed on the weekends or something like.

Cool. All right. Last question of the day for me. What do you think separates successful real estate investors from those who give up, fail or never get started?

Real estate investing is 90 percent the belief that you can be successful and only about less than 10 percent the nuts and bolts of the strategies. And so I think if you divided those three people among those groups, people who never get started are the ones who don't believe that they can do it. They don't know it's a thing or they don't think that they can be successful because they listen to their their in-laws or they listen to their friends who tell them or they listen to horror stories.

How I lost everything in the 2008 crash. So they don't believe that they can do it. I know when I started this, my family was very, very concerned. And my sister called me and she said it's is I never want to be one of those people in your life that you disassociate yourself from because I'm a negative influence on you. So even though I don't know what you're doing, I don't understand it. And I'm terrified for you.

I want to know they want you to know that I support you fully. And I always want to be here for you, because if you are trying to better yourself and move on into a different realm, I want to be here with you and for you. Who else has somebody say that to them? That's cool. Most people don't have that kind of person in their lives, and so they don't believe that they can do it. They never start for the people who fail.

It's usually because they don't have enough of the 10 percent nuts and bolts, they haven't learned enough about how to be creative, how to be a problem solver. Their husband's an I.T. guy. That's what they do to solve problems under fire and then design a system around it. And then for the people in the middle who give up, it's usually a combination of those two things. They don't quite believe it and they don't quite have enough of the tactics or the network or whatever.

And so they kind of get started. But it's hard and they don't really have both ends of those tools. And so they just kind of peter out. Great dancer. Yeah, I don't think we talking we don't talk enough about the whole like just the belief, like I'm such a big believer in the confidence is so important in this.

Like knowing that believing that you can do it, which I think is why podcasts like this are helpful, because people like, you know, if Emma with six kids and moved across the country, if she can do it, like, I can do it as well, I can figure this thing out.

And so once people start to hear other people doing it that are just like them, like, wow, maybe I really can do this. And so this is why, like, you're just getting started. Just if you did nothing over the next six months, I'm not saying you shouldn't do anything, but if you didn't listen to podcast for six months, but you were consistent on listening to this podcast like or other real estate podcast, just listen to other people who are like you doing things like you'll you'll gain such more clarity and confidence and momentum to be able to start really your own, you know, growing just as a person.

So, yeah, everybody here can do it. Everyone listeners can do it.

Just you got to believe in yourself and you'll you'll you'll make it.

So this is why I don't read a lot of ton of real estate books. I'm finding I'm getting more up to date relevant information from podcasts, YouTube, Ria's. By the time a book hits the shelves, sometimes it's just not applicable. So I do read the first 30 percent of a lot of books and then and then move on. So but the podcast, I think by and large and the people you meet are going to be the best education you can get.

Yeah, so good. All right. Wonderful. Last question of the day. For people that want to know more about you, where can they find out more about you?

My website is High Rise DOT group, so H.I.G., RISC, G.R. up and I am Emma Powell. Twenty eight on Facebook and LinkedIn and I also have a group on Facebook about it's like a dating service between passive investors and active investors. So if you either have a deal or you have money that you want to place, it's a place where you can get together and talk about whatever the SEC will allow you to talk about publicly and just to meet people and to figure out when you have a deal, who's funding it or if you have some funds, who has a deal.

Very cool. Well, I mean, this has been fantastic. Appreciate you being here today. Thank you. Thank you so much for having me. This is this has been really fun. So I really appreciate coming on here and just looking forward to all the people that you know that I'm going to meet through the podcast. You guys have put up. It's been life changing for me and just really proud to be a part of that.

Thank you. Thanks. All right.

That was our show with Emma Powell. Fantastic. I feel like my head hurts a little bit. Just learning all that stuff today. But those are some of my favorite shows, is when we really dive deep in the topics. What do you think?

Yeah, and Emma made it seem kind of effortless, didn't she? I mean, she did big things, but it wasn't this horribly stressful, terrible experience. I mean, I think this is a really, really good roadmap for how to do it right.

You know, I want to five weeks, I think five or six extra gym analogy. Just bring it full circle and wrap it up. What I think the reason that is, is because Emma just showed up every day at the gym, like even though she didn't know how to use any of the machines when she got there, like she literally just showed up and asked questions, it was like, well, you show me how to use that machine.

Like, I'm not sure what to do next. Hey, what's that room over there?

Do I if you went to the gym every single day and just became part of the culture of the gym and talked to people and started obsessing about it, and I don't mean that in a bad way, you would naturally just like almost almost effortless effortlessly or at least to the outside world, it would feel like you just naturally became successful in because you're just showing up to the gym every single day.

And that's exactly what she did here.

That's a great example. First off, nobody likes strangers. I mean, maybe you like strangers, but you're still a little iffy. You don't know what to think of them. No, most people are that way. But when you see somebody all the time, even if you've never been introduced, there's a level of comfort and familiarity that comes with that. And then second of all, if you're in the gym all the time, you know what everybody else is.

Workouts look like, you know who to spot, you know who to emulate. You know, who wants encouragement, who makes eye contact with you and who wants to be left alone because they have their headphones in the brain. And that's a great point. If you just get in the gym at some point, someone is going to say, hey, can you come spot me on this thing? Because they've seen you around enough, they're going to start teaching you how to workout.

Yeah, that's awesome, man. All right, well, with that said, we better get out of here. Hey, if you guys, by the way, have further questions on some of the in-depth stuff we talked about today, for example, wholesaling lease options subject to seller financing, br. These are all topics. You can go to bigger pockets any time you want to and go search. There's a little like magnifying glass in the upper right corner.

Just search for that term. You will find like blog post, webinars, podcasts, all that stuff on there generally for free, just like just go listen to it or read it or watch it or whatever you got to do. Also, I wrote a book a few years back called The Book on investing in Real Estate with no and low money down.

And in there I have a chapter on lease options, another one on wholesaling, another one on BRX, another one on syndications and and more and more. And so if you want to know more in-depth stuff, if you want to read a book on it, go check out that one. It's kind of a good, like, high level overview of all those topics, especially go really in-depth on lease options in that book, because I think they're pretty cool.

So check it out.

Get from library or from Amazon or bigger pockets dot com slash store.

All right, well, I'm going to go go by the mobile home parks, what happened today, David? Anything fun? No, I'm resting right now. I caught a little bit of a bug over the weekend, so I'm just kind of hear it.

I can kind of hear in your voice, man.

I'm glad that that that you did some of the heavy lifting today, because I needed that. Well, well, good. Well, thanks for being a good friend there. All right.

This is David Greene for Brandon Jim, Tour Turner signing off.

You're listening to a bigger pocket's radio simplifying real estate for investors, large and small. If you're here looking to learn about real estate investing without all the hype, you're in the right place. Be sure to join the millions of others who have benefited from bigger pockets. Dotcom, your home for real estate, investing online.