Welcome to The Accelerated Investor Podcast with Josh Cantwell, if you love entrepreneurship and investing in real estate then you are in the right place. Josh is the CEO of Freeland Ventures Real Estate Private Equity and has personally invested in well over 500 properties all across the country. He’s also made hundreds of private lender loans and owns over 1,000 units of apartments. Josh is an expert at raising private money for deals and he prides himself on never having had a boss in his entire adult life. Josh and his team also mentor investors and entrepreneurs from all over the world. He doesn’t dream about doing deals, he actually does them and so do his listeners and students. Now sit back, listen, learn, and accelerate your business, your life, and your investing with The Accelerated Investor Podcast.
Josh: Hey, welcome back to Accelerated Investor. I am so excited to be back with you wherever you’re at in the world listening to accelerate investor. Just want to say thanks. I’m so grateful and honored to be part of your journey as an entrepreneur, as a real estate investor today I have my new good friend Corey Peterson on the line as they knew because although I’ve known of Corey for a few years, we met officially about a year to 18 months ago at a mastermind event. We talked some about real estate, about apartments and multi-family and we’ve gotten to know each other over the last year or so. And I’m really excited to have him on Accelerated Investor.
Josh: He is a multi-family investing expert. He has a portfolio of over $95 million worth of multifamily cash flowing assets. He is the bestselling author of why the rich get richer, the secrets to cashflowing apartments and his brand new book, which is Copy Your Way to Success. I am excited to read that book when I can get the time to jump into it. And the Multi-family Legacy podcast, Corey is an absolute animal. He is known as the big kahuna. He’s been featured on all different kinds of media outlets. I’m so excited to have you on today Corey. What is going on my friend?
Corey: What is going on brother? Super excited to be here man. This is going to be, I mean listen, there’s, we’ve, you know, we’ve missed about nine times to get this podcast together, but because we both busy but I’m sure as hell we’re glad we’re doing now brother.
Josh: Yes, yes, we are. So Corey I would love to know and I love to know, especially at the end of this year going into 2020. I would love to know what are your big plans for 2020 like help us understand you already had a tremendous amount of success in multi-family. You’re speaking all over the country. You have your own students and mastermind, but you’ve got to have big plans for next year. So let’s start with that. What are you thinking about as far as investments and building your business for next year?
Corey: I have one goal next year and that’s called supplier of fun.
Josh: Fun. Nice. What does that mean to you? Tell me more about the supplier of fun.
Corey: Listen, money does not motivate me at all anymore. Doing deals does not motivate me at all anymore. Even though I left I’m playing the game, the long game. I love the real estate game. I love multi-family, but I’ve never, like at this point in my life, I don’t like say, gosh, I’ve got to go do this or this or this. I just say I want to be on the journey. And whether that’s two to three deals a year, you know, but what motivates me, what drives me is supplier of fun. And what that really looks like. So last year we took all my neighbors to Hawaii, right? And I got to pay and I got, you know, they insisted that they paid for their flights.
Corey: But I paid for the sweet ass house right on the beach. I paid for all of the activities that we did and I got to supply a lot of fun. And so that’s my goal for 2020 is to a little more of that supplier fun. And honestly, you know, business wise, yeah man, we, we will, you know, $25, $30 million in acquisitions. You know, that’s fine. Two or three deals, two or three projects can be more, it can be less, I mean, whatever. But mainly, man, cashflow is good dude. And this business is awesome.
Josh: It is. Cashflow is king. I’ve always said to my audience, funding equals freedom because when you have funding, you can buy the asset and the asset can pay you forever. And when the asset pays you forever, you can have the fun that you’re talking about. So let’s just expand on that for a minute because fun obviously is a big part of your DNA. I’ve seen the new bike, the new motorcycle that you just bought, you’d take your neighbors on vacation, you’ve been amazing places. Have an amazing life. What other fun things do you like to do? Tell me about some of the, maybe one or two experiences that real estate has allowed you to do. Go places, do new things. What are some of your experiences that stand out?
Corey: Like so last year we went and watched the women’s world cup. So we traveled to France and we stayed there for like three weeks, you know, and we brought,, you know, my wife’s sister and her kids and we, you know, we just went on trains and I mean those are the kinds of, it gives you experience. I think the reason I do this business is for cashflow is, and you said exactly. And I’ll tell the story here in a minute about how I raised my first piece of private money. Private money is what has set me free. Out of any skill that I’ve ever mastered. The one thing that has set me free and actually has allowed me to have a lot more zeros in my, you know, in my financial statement than others that started at the same time, is the one little thing which is to be able to raise a crap ton of private money. In fact, I mean I just went to breakfast this morning, raised a hundred grand. That was really cool.
Josh: Nice. That is the one skill, right? Because you, it was really the other skill of finding deals, which is obviously super important, but anybody can go find deals, talk to brokers, talk directly to sellers, look for off market deals, pocket listings. But if a broker or a seller is never going to take you serious unless they know that you can close and you can only close if you have the capital, right. Investors and stuff like that. So going to the women’s world cup is phenomenal.
Corey: Well, I mean it was great. I mean we always go to like, I go to Hawaii a lot. Like my name is Big Kahuna for a reason. Like, listen, if there’s a reason to sneeze and go to Hawaii, I’m going to do it. So we’re going for new year’s, we’re going in April, we’re going to go in fall of next year. We’re actually looking to buy a house there like on the beach.
Josh: Absolutely love it. So multi-family is your passion today. Let’s pivot all the way back to your beginnings.
Corey: This is going to be a great story dude.
Josh: Yeah, I’d like to hear it. I know a little bit about it, but not enough. And that’s why I definitely wanted to have you on this podcast. I love to use this as a way for me to personally connect with people that I want to connect more and drive a deeper relationship with. And so tell me about your early beginnings. What was it like? Were you coming out of another business where you coming out of the corporate world, we’re you coming out of single-family investing?
Corey: I was coming out of used cars, bro.
Josh: Used cars. All right, that’s a new one. Tell me about used cars.
Corey: I barely made it out of high school about the only thing I was good at was copying. And my teachers didn’t like it that much. I found out when you don’t have a degree, a lot of times you have to manage some crap or you sell some crap. And so I sold used cars and that was what I did. I then I met my girlfriend now my wife was 17 years and one day she said, I can’t marry a used car salesman. And so then I said, well, how about a restaurant manager? So then I went to managing some stuff. Then she really never saw me. And it was in that lifestyle that man, I was just starting to get, like fed up of with life. And it didn’t, one wasn’t panning out the way I had planned because I had big dreams and goals.
Corey: I really wanted it to be somebody. And then something magical happened that changed my life forever. My mom was married to this man named Bruce. I call him Bruce Wayne okay. He wasn’t Batman, but he was loaded and he had a house. Guess where? In Hawaii. And so my mom looks at my girlfriend at the time and me and she goes, hey honey, would you like to go to Hawaii? And of course I’m broke and I’m, are you paying? And if you are then I’m down. Like, so that’s what we did. And so we went to Hawaii. And when I get there, I didn’t realize that Bruce had a house right on the beach. And this is in Hawaii, the garden Island, the most beautiful Island ever. And I remember Shelly and I waking up early in the morning and we won. It was on a Cove.
Corey: Do you see? We’re walking this Cove. And then there’s a freshwater stream from the mountains above coming in and into the ocean. And we’re like, oh my God, this is amazing. And we keep watching or walking around the corner and then all of a sudden the sun starts to rise. And as the sun’s rising and the spray from the waves, Shelly and I stand there hand in hand for about 25 minutes, 30 minutes. And we’re just transformed. I’m imagining this was, we’re talking here, I’m telling you man, like it was mystical and magical is the only thing I can, the way that I can describe it. And I remember opening my eyes and looking over at Bruce’s house across the way. And I was like, what does this guy do? Because Bruce had time and money, he had nice cars, fine art, and his phone was not ringing.
Corey: He did not look or seem busy at all. And so I finally got the courage to ask him, what do you do? Guess what he said? He said real estate. And he owns apartments. And now I wish the story got better than that. But it doesn’t, because Bruce was kind of a prick, right? He was a grumpy old man.
Josh: That’s one way to go through life. That’s not your path. You’re the supplier of fun. You’re the sort of fun but man, some people are grumpy old men about it, right?
Corey: Yeah. And he was just, you know, bitter about like life and stuff and, but again, doesn’t matter. I left the Island thinking that Bruce was the big kahuna in my mind. Like I’d never seen wealth like that. And I watched it firsthand and he said, real estate and apartments. Okay, now, then I read this book, Rich Dad, Poor Dad and dude. When I’m reading this thing, all I’m doing is say, but that’s Bruce. That’s what Bruce did. That’s what, and so I went, I mean, at that moment right there, I said, I’m going to be a real estate professional. I’m going to do it. I’m going in.
Corey: So in 2005, I start my company 2005 and I name it Kahuna Investments because I wanted to be the big kahuna, just like Bruce. And so I started the journey and you know, I started off with no money, no credit. And honestly I just was just, I mean book read and I we actually moved to Phoenix, Arizona. It’s where I live now, Phoenix, Arizona. And at the time I was a financial advisor. Actually when I find smartened up, I actually realize that you could pass a test. It’s the hardest tests I ever studied for.
Corey: And you can come financial advisor, they hired me like I can’t believe they hired me. So I passed that test like with a 73, you need a 70 to pass and I was a great.
Josh: You got two more questions right? That you needed.
Corey: Yeah. And so then, but man, I got the best education from one of the best trainers in the world, which was Edward Jones. They’re known in the industry as being one of the best financial advisor training. And really I learned about money. I learned about stocks, bonds, mutual funds, how to talk about money, where to find money, how to approach money, how to put myself in positions with money. And it was a great, great experience until the market crashed. And so I actually kind of put my real estate dreams on hold because I started, I bought like two or three rental properties, but I wasn’t going full time. And then I, you know, I was like, and I am becoming a financial advisor. So I kind of changed my dreams. Well when the market crashed, man, I had grown men and women that I had, you know, moved lots of money for them and placed their retirement money and that was gone. And listen, I realized I had no control.
Josh: No control. And Corey I can totally connect with you on this because I did the same thing. I don’t know if you knew this, but I was a financial advisor when I graduated from college. I finished up my senior year of college football and I went and got my series six and 63 and my life and health license and I got an internship with Northwestern Mutual and I was a financial advisor from 1997 until 2004 almost the same exact time as you. And I got that same education man dealing with clients that were two or three times older than me and managing money as a young 20 something year old and seeing people in 2001 I saw that whole bubble burst. And then in 2004 I saw that whole run up of the market. But it again taught me that people invested, they invested with me because they knew me, like me, trusted me.
Josh: Not because I was 24 years old, they didn’t really care about my age. They trusted me. I got the knowledge first and then I was aggressive as shit in acquiring customers, acquiring clients. But you’re just throwing, you just said I had no control. I had to jump in because I felt the same dang way. When the market crashed in 01 I had no control when the market was running up in 04 05 06 I had no control when their market was crashing in 08 no control right over the stock market because it just moves based on emotion. It doesn’t even move based on real numbers.
Corey: We don’t even know how it, why or why it moves, right. No one knows. And so man, so what happened was I started feeling I got depressed because these people were coming in and would count on me as their advisor and I’m wanting to do a good job and there’s nothing I can do and then I have to move. And charge them a fee to move their money because they’re like, no, I don’t care what it is. Move it to something safer. And I’m like, well we got to charge your feet and my heart left the business. As soon as your heart leaves anything, it’s not a good sign. And so my sales went way down.
Josh: Right. You just can’t get motivated for it. You don’t have passion for it, you’re not going to do it right. It’s just going to let it slow bleed out, right. It happens all the time.
Corey: And so I actually go into my office one day at 8:00 AM, I have a meeting at 10:00 with my manager. And when I show up at 8:00 o’clock, my secretary can’t look at me and I know that I’m done. Like I’m getting chopped. . And my, you know when your numbers are down and so for two hours, you know, first thing I did was print a client list, put it in my truck.
Josh: Yeah, of course. Good move. Would have done the same thing.
Corey: The second thing I did was I sat in my office and I was like what am I going to do? Because I got to come home with a plan cause we still need my money, right? Like I’m making money and we need it as a family. And I remember in that office I made, I honestly, in the quietness of that four walls, I made the deep down, most gut wrenching, everything that I am because I want to do real estate. I really wanted to be like Bruce, I was just being a financial advisor so I could make money to go buy properties. And so I made the biggest commitment besides being married to my wife, that I was going to do whatever it took to be successful in real estate.
Corey: And I left that at 10:00 o’clock I got fired and I felt like Rocky and you know, that lasted for like two minutes. Because then I had to go home and tell the wife. And so when I go tell Shelly what I’m going to do, I’m like, I’m going to be, I’m going to do real estate, I’m going to do it full time and I’m going to win. And she’s like looking at me and saying, all right, okay. All right. And she believes in me though. She believed in me and she’s like, don’t fail. Because what was on the line was everything. My wife, my kids, they say money doesn’t, you know, listen, if you run out of money, like that’s how marriage just get divorced.
Josh: I mean, Corey I see how you honor your wife in social media on Facebook. And I can tell the reason for that is probably because of what you’re about to tell me about the time when you decided to jump into estate and she supported you right over this last 17 year journey. But I see how you honor her and talk about her when you’re together, the pictures that you take on the bikes and on vacations, it’s amazing because you know you made this pivot, you knew you wanted to do it, she believed in you. You had this conversation, right? I’m about to go into real estate full time. So what happens next?
Corey: Man she just said, listen, I believe in you, which just gave me confidence right now. So then I’m like, okay, what do I have? Well, Jones had taught me how to network. So I started going to REIAs, real estate investors associations, and listen, I wasn’t even a realtor didn’t have a real estate license. I just jumped in and said, I don’t care what it is, I’m just going to get in and get full fledge and activity. And so what I was smart about though was when I went to the REIA meeting, I said to the guy that’s holding the meeting, Hey can, I’m new here, can you show me some of the players and because you know, they know their room. And he said, well that guy, that guy and that guy. So guess who I sat next to? The players, you know.
Corey: And I’m like, Hey, where do you like to do your rehabs your single family fix and flips, you know, what does your like, how much rehab do you like? You know, and I’m making them give me their custom detail of what a deal looks like. And I’m like, man, you wouldn’t believe this, but I find deals just like that all the time. Would you buy one from me if I found it? And it looked like that. They said, yeah. And I said, great. And so then I went to work and then I had to like be resourceful. I didn’t have a real estate license, so I found a realtor and I’m like, Hey, listen, I need your login and passcode. You’re not going to want to do all the work that I’m going to have to do, but I’ll let you write up the contract.
Corey: Cool? And they’re like, yeah, no problem. And so dude, I started wholesaling, wholesaling and I started getting in the game of real estate. I was finding deals and wholesaling them to these wealthy guys out of Salt Lake. And they paid me $3,000 grand a deal and it was awesome. And then, but I was really wanting to do, like these guys were making $30,000 rips and I was not making, I was making $3,000 grand. You got t…
Josh: Bruce didn’t get rich with a house on Hawaii on $3,000 commission, right.
Corey: Exactly. So I might, I got to figure out how to raise private money. And I raised my first piece of private money by accident. It’s great story. I’m playing racquetball with one of my ex clients. His names. Well we’re not say his name, but anyways, he’s a retired, he listened to a retirement community and he didn’t have really any extra money per se because he had a bunch of like, you know, assets were already working.
Corey: So I was asking him for his help and I said, Hey, listen, and his name was, we’ll call him Carl. Carl, hey listen, you know, you live in this retirement community, who do you know out there that could maybe help me out? Because like if I could just get like $100,000, I’d probably give him a note and deed of trust and I can do these deals on my own. And so he’s like, well, yeah, I’ll see what I can do. Well, the next day Carl calls me up and he’s like hey Corey, do you still want to do that, you know, 12% he goes, I’m like, yeah. And I’m like thinking, man, Carl found somebody for me. And Carl was like, Corey, you don’t know this, but my home’s totally paid for. I could borrow money at 3% if you pay me 12%. I can make a spread.
Corey: How much money do you need? And this is where you like Carl, I need $85,000 and there was a small pause and he’s like, yeah, yeah, okay. Yeah, yeah. Where do you want me to send it? And just like that I raised, you know, $85,000 but I learned a lot from Carl.
Josh: Dang I should ask for $200,000.
Corey: Yep. So what I learned is in the early on is you never ask people for money. You only ask who do they know? It’s really been golden for me because once you take the pressure away and I was at, because then most people will critically look at what your every, hey listen, I think you could give me some referrals to some people that you know, would you mind looking at my business plan and poking some holes in it. Because if you don’t understand it, no one else is going to right.
Josh: And they’re not going to refer you by asking them if they could poke holes in. It gives them a little bit of a position of strength and power to be able to say, yeah, for sure. I’ll take a look at your business plan. But then when they look at it, they’re like, wow, well first of all, I’m not going to refer you a bunch of people unless I know what the heck you’re doing, right. So it gives them another way to create more of a relationship with you and more of a connection to you. Then when they say like, wow, this is a great business plan. It’s like, well why wouldn’t I invest in this, right?
Corey: Self-select They raise their hand and say, what about me? What about what about me? And that’s exactly what Carl did. And so I realized that was the formula is never ask people for money. Just show the business plan. Tell as many people as you can and the right people self-select. And so I went crazy with it. I let it run once I realized that if you had a credibility kit before, now this is, we’re doing single-family homes. I was just doing before and after pictures, here’s what the property looks like before, here’s what I did afterwards and here’s how much money I made. I started raising, I raised millions of dollars in a short leg and within a year I had about $3 million of capital on the street.
Corey: And that’s moving dude, right. So once I’ve figured out the formula, and honestly I like to say it was like this man that was like a Clark Kent moment where I went into the telephone booth as Clark Kent. And when I mean I raised a piece of private money, I spun around and I was like, you know, I raised private money, broke every limiting belief that I ever had. Because you know, I was a poor small farm boy that, you know, was a used car salesman that filed bankruptcy before and didn’t have, you know, all the things, right. But it didn’t matter. And, but I had good deals and I had a good business plan and people wanted to give me money.
Josh: Yeah. Your past is not a determination or a determining factor in your future unless you harp on it, unless you tell yourself that’s who I am. That used car salesman is who I am today. As soon as you break the pattern and say what I was is not who I’m going to become, what I was is not who I am. It was interesting, I was at Tony Robbins Unleash The Power Within and he talks about the real science of the human body, which I thought this just totally stuck out to me. So I wanted to bring this up for a sec. He said within every two years, every single cell in your body, every single cell that makes up your skin, your eyeballs, your brain, every single organ, every single cell has regenerated. So every two years, literally, although your body might look the same, every single cell is different.
Josh: And so people harp on, I thought that was so powerful, man, because I thought if you literally think like, well because I made this mistake five years ago or I filed bankruptcy 10 years ago, or I went through a divorce two years ago, or I had a business that didn’t work, or client that lost money and you live there and you focus on it, then that’s who you are. But your brain is putting you there because your actual physical body every two years is totally new and different. So it all comes down to the mind, right? It’s to be able to tell yourself…
Corey: It’s mindset, Oh my God.
Josh: Absolutely buddy.
Corey: So now I’m at the, so here comes my fork in the road, another little right hook. I’m doing well, I’m making money, I’m flipping homes. But now I am actually letting work overwhelm me to the point where my son looks at me, says, dad, will you be at my game Saturday? No problem son I’ll be there. But inside I was like, man, I got to look at three properties because I didn’t get them on Friday. So I’m like, I’m a divide, I’ll wake up early in the morning, Saturday and, you know, do these studies and I’ll make any time for the game. And long story short is I came at the very end and my son came off the field crying and he said, dad, you promised, okay. And I’m telling you, man, it’s hard to even tell this story because I mean it broke me my sons.
Corey: I mean that kind of sobbing like you promised dad. And I heard him, I was like, what am I doing chasing money? What, you know, like, you know, my wife’s, you know, my son gets in the car with me, you know, I drove and that made it worse because we’re driving him, I’m driving him home and he’s, you know, and he’s just trying to hold it, but he still loves me because he’s in my truck, not mom’s car. And it’s just, I’m just thinking of myself, Corey, you are failing as a dad right now. This is not what I wanted to do or who I am. And I mean, it was one of my deepest lows as a human being to think, why am I doing this? Like, why did I put money in front of my kids?
Corey: And so I dropped him off and I actually, I mean, my wife’s like, look like gives me that look like you better make this right.
Josh: You better. We’ve all gotten, we’ll look from the wife, right? Just the stare. I’m got to make this right.
Corey: I jumped in my truck and I’m driving around dude, and I’m actually beating my, I’m calling myself, you stupid sob you, you know, how can you do this? Why would you ever do this? And I mean, I’m just physically beating myself up and finally I come and I get some grace and I pray to God and I asked forgiveness and I, and I finally forgive myself. I’m in this really calm state of mind. And then this is when, this is what happens. And it’s crazy, man. I drive by this apartment complex and I’ve driven by it a million times.
Corey: And I used to say, I wish I could own an apartment complex. And in that moment I said, how can I own an apartment complex?
Josh: Yeah. Instead of I wish to, it’s how can.
Corey: As soon as I did, my mind went to work and all of a sudden I flashed back to Bruce. Bruce had time and money. He was living that lifestyle and I knew that this was the vehicle this was, and I mean, I’m going to U-turn. I went to Barnes and Nobles. Now we just go on our phones. So I went to Barnes and Nobles, right? And I bought every book I could on multi-family investing. And of course, the last one I read was called Apartments to Millions by Dave Lindahl. And I understood it. And you know, I found a mentor and then I just got educated in multi-family I’m like, this is the way I bought my first apartment complex in 2011 I raised one point $4 million of private money.
Corey: I owned that property for five years. I sold it about it for $3.2 million. I sold it I think three years ago for $8.8 million. $4.7 million net profit. And that one deal changed my life forever. Now we own like seven or eight apartment complexes. We have $95 million in assets. But I’m telling you, if you believe it, you can achieve it. And I just put myself in motion and it’s really through all my failures, I’ve always been willing to fail. You know, I think you have to be willing to fail in business to succeed.
Josh: I think it’s about learning. It’s about the knowing that we’re not, we don’t know it all, we’re not going to know at all. It’s never perfect. Business is like a playground. You know, I’ve said this on stages, I’ve said this in my podcast and I talked to my students about it. That business is a playground and you only get knocked out of the playground. Like, you know, if you’re playing tag on the playground and you get tagged and you’re out, you’ve got to sit on the side like on the railroad tie and you got to sit to wait for the game to start over. In business you only get knocked out and get tagged and you have to sit out if mentally you tag yourself and sit out.
Josh: Because I’ve seen guys go through bankruptcy, I’ve seen guys go through a divorce, I’ve seen guys get totally wiped out and as long as they have the capacity to get back up and start again and start to work on deals and plug themselves in somehow and mastermind, get mentorship, they can start all over again. I’ve met guys that have lost $1 million of other people’s money in real estate deals and gotten right back up and made the money back and paid everybody back. Every nickel they owed them and are wildly successful and now they have that amazing hero’s journey of success. And the only difference between that guy and the guy that got knocked out because he lost $10,000 grand on his first rehab is because the guy that lost $10,000 grand on his first rehab tagged himself and removed himself from the game. That’s the only difference.
Corey: It’s horrible. It’s horrible that people do that because if you only knew how good it is, I mean, I’m living the lifestyle now that, I mean, I love my life. I love my business. I love the time and freedom that it gives you. And I, you know, like my wife was worried the whole time. She was my biggest cheerleader. And I, you know, I always say like when I made these mistakes and money mistakes and lost money, my wife was there to mend me and kind of, you know, get me all fixed up and mend my wounds and with her songs of praise and her words of wisdom and, and it really just, you know, kind of put me back together and then she would kick me out the door and say, go get him.
Corey: You’re my guy. You’re my man, right? Like you can do this. And really that’s the resiliency. And sometimes, you know, not everybody’s married has that of type relationship, but you find it other places you can find it in masterminds, Metro ships, right? You go, that’s why you get plugged in because you got to find like minded people that think the same way because the power of your brain is so valuable and you have to keep it like you just said, plugged in. Because if you tagged yourself, that’s game over man.
Josh: That’s if. And often, it just takes one accountability partner. One person, like I was in the gym yesterday morning and my son Dominic is in second grade, he plays football with his little buddy, you know, flag football with his little buddy Carson. And Dominic and Carson have battled like, they’re both really strong personalities. They’re both bigger kids that both competing, you know, second grade boys are, well anyway, Carson’s dad is in the gym and, and we’re down in the locker room chit chatting and we’re talking about getting up and getting moving. And he’s 45 years old and he’s really good shape and I’m like, dude, like, what are you doing to stay in shape? He was like, man, I’m in the pool. And then he tells me, he says, you know Josh, why get in the pool? He’s a pilot. He flies for I think Continental.
Josh: He flies mostly weekends, but he’s like, you know why I get in the pool is because I have a buddy of mine who lives in Denver now, Dale lives in Cleveland. His buddy lives in Denver and he’s like, you know what my buddy told me, he’s 50 years old. My buddy told me he swam 80 laps yesterday, a 50 year old, 80 laps, and he’s like, I got to get in the pool and I got to do it because he’s my accountability partner. Your accountability partner, Corey was your wife Shelly, right? She’s like, you can do it. You got it. You’re my man. Go, I got you. I believe in you. It’s all really you need sometimes is one person, right? But if you don’t have, sometimes you’ve got to pay for it. You’ve got to buy it through coaching or a mentor or a mastermind.
Josh: If you don’t have somebody in your ecosystem that believes in you and that can hold you accountable. When I was in my, you know, late twenties, I wanted to get in really good shape. I hired my buddy Mike Tuterone to become my personal trainer. Now Mike was a close friend of mine. I could have said, Hey Mike, let’s work out together. But instead I started cutting Mike checks for $600 bucks every six weeks. And then sure as heck I was in the gym three times a week with Mike and I was working extra. I was eating healthier because I knew Mike was going to check my body fat and I had to cut a check to Mike. It meant something even it was only $600 bucks. It meant something to be accountable to him. So being accountable to Shelly is a huge part of it and if you don’t have somebody got to seek that out, whether it’s a mastermind or mentorship or some group, but don’t make it a group. Like, even if you are in a group, find one person that you can have that little bit closer connection with, right.
Corey: I mean, I told I couldn’t agree more. I think it really is. I can think of about two or three real mentors in my life that honestly made the fork in the road was that guy. You can just that person, that person and that person changed me, right? Bruce was the first one, even though he, he didn’t teach me, but he showed me, he gave me the vision of what it looked like. And you know, here’s what’s funny is we may be buying that house. Just to go full circle with it. On the market right now for like $3.2 a half million or around, I don’t know $4 million or something like that. So we’re taking, we’re going to take a run at it, see if we can complete the story.
Josh: There you go. That’s fantastic. So Corey, let me ask you a couple of questions specifically about multi-family.. Why don’t more investors consider multi-family? You know what, why do you think so many guys take your path? And I took the same path starting with singles, started with single family, and then leveling up over time. And some people never level up into multi-family, but why don’t more people consider it right out of the gate,
Corey: Man, I just think that they just don’t know how good it is. We all read Rich Dad, Poor Dad. Robert always talked about cashflow, no doubt. And somehow a lot of us translated that into well I’ve got no money and I can’t do a big deal. So they just said, well, I’ll do single family and then they get stuck because they get in a rut and that’s kind of their deal. And they end up is a, they’re just a business. They’re just in the B quadrant. They never make it into the I quadrant, which is the investor. Because when you do this business right in multi-family, you get to become the investor. You get to manage. It’s a little bit of both because eventually my money’s working in my deals and I’m really getting passive income for not doing a hell of a lot of work. And I just, I wish, my hope is that more people would understand it, right. Because it does, it’s life changing once you get and realize the power of cashflow.
Josh: Yeah. It’s funny, I never hear Corey, anybody say like, I hear people get into a single family and then they say, ah, it’s too much work, or I didn’t make enough profit. Or it was, you know, I didn’t make enough money or I was just wholesaling and I got out of it. It’s funny, I don’t think I’ve ever heard a multi-family investor that made the jump into multi-family who said that was a dumb idea. I wish I would’ve never done that. Like I was so stupid. I can’t believe I got an a multi-family and I’m out. Nobody does that.
Corey: No. And you know what I think is a different mentality too because like when you play the multi-family and you’re actually, you’re, you’re, you’re conditioning yourself to play the long game anyways. And a lot of times like we’ll go in, I’ll go in a deal where I’m not going to make any money for a whole year. Like my plan, my business plan is the GP will not make some money for maybe one or two years until we get the thing turned around. And that’s totally acceptable because we are playing a very long game that pays us time and time again when done right. So it’s like, you know, you get some acquisition fees to help pay for these things, but it’s not like you’re getting the cashflow always right away. Sometimes you got to do a lot of work first. Now not always. Some deals you can make money right away with the day you buy it. But, but most of us are conditioned to say, well that’d be okay. Like I’m a, you know, that’s not going to change my lifestyle or I, you know, I’m not counting on this today money because I’m looking for tomorrow money.
Josh: Yeah. Yeah. So Corey, when it comes to investing, most people obviously can sit on two seats, right? But within those seats there’s a couple options. There’s the active side and the passive side. So you as an active investor looking for deal flow, what are some of your strategies or tips to be a more successful active investor?
Corey: To ask brokers now? I believe in going to straight to brokers. Most of the time we just go brokers, but to invest in broker relations. In other words find out what they like to do for fun. Like when I’m really in a market and I want to get to know the brokers, I want to start taking them lunch and go out to dinner and getting to know who they are and their, and I should be knowing their kids, their family life, what they like to do for fun or they, you know, a football guy. Do they like to shoot guns? And then that’s where I lead the conversation always. If they’re a Harley guys, man, I’m in. You’re like, we can talk Harley’s all the time. And that becomes my open and really just, you know, man, I’ll give you an example.
Corey: Someone, I’m a Bob Ross fan, I love two hairs in some air, right? And one of my students came in and she brought me a little Bob Ross tree ornament. And I thought, man, how cool is that, right? And that’s like, you know, and so do those types of things for your brokers and you’ll create relationships and guess what? They’ll want to feed you good solid deals. And that’s how I mean that’s, it’s unfair. It’s an unfair advantage when you get brokers a lot know, like, and trust you and they believe that you’ll perform. You can get deals before other people.
Josh: Yeah. Yeah. And that’s the key, right? Just to be in the game, to get in the game, get a seat at the table. Then of course the relationship matters. But now it’s going to come down to the letter of intent, offers, structure, all that kind of stuff. You got to get a seat at the table and we all know that multi-family, the world is not that big. And the community, the ecosystem is not that big. And you know, to get a seat at the table is really the start to get to even look at the deal focus. So much of it is off market. It’s off of LoopNet, it’s off of CoStar. It’s not there. And if they’re, frankly, if they’re there in this market, it’s probably not a great deal. Corey, what about a pound? The passive side. So switch hats to the other seat. What are some things that you’re doing? You talked to your students about that you’re just doing successfully on the passive side to be a successful passive investor because you invest passively but also for recruiting capital.
Corey: Yeah. Now I’m actually probably a really different than a lot of investors out there. We do a six pref and 6% on the backend. So our investors will only ever make 12% return, which I believe is pretty low in the in the marketplace. At least that’s what people tell me.
Josh: Only at 12% like 12% is a hell of a return man. It’s pretty good.
Corey: Well I think 12% is great, right? So, and what I found is that, here’s what I believe that now we fish in really good pond. So. I would say there’s lots of places you can go fishing for money and, but if you’ll go find like I want dumb money but not dumb people, right? I want smart people that have dumb money. I call dumb money anything that’s in the stock market, right. For lack of a better term. And because I feel like I can compete really well with the stock market all the time.
Corey: I can provide consistent cashflow. And some back end return on the backend for investors. And what I’ve found that when we’re talking with a retired person, truly they just look, they want an income stream. I just talked with a guy today, I just raised $100,000 he gave me $100,000 on another deal and he gave me an a and was like, we had a five minute conversation about the new deal, but we we’re talking about the reason he loved working with us is because we were consistent. We were consistent in our reporting, in our communication. We actually told them how we were going to communicate and then we communicated exactly the way we told them that’s important. And a lot of investors don’t do it that way, I don’t think. Or they don’t put an importance of that. But you have to consistently do what you say you’re going to do.
Josh: Yeah. Getting the money is important, but it’s in the follow through, right? It’s like when I see a lot of people on Facebook and rightly so, they say, I bought this building now the real work begins. And because that’s true, right? Getting the deal is part of it. It’s work. But now the real work begins in the, in the value add and the stabilization. It’s the same thing with passive investors, right Corey? So getting the money is the fun part. Creating the relationship, earning their trust. But once they actually wired you or ACH you couple a hundred thousand bucks, now the real work begins and you can’t discount the fact that they’ve wired you the money and take them for granted and not give them reports, not communicate with them, not give them what they want, or if they call, not call them back quickly. The real work begins when you’ve accepted the money. And the truth is if you take the money, now you have not only a legal obligation, a fiduciary responsibility to them, but they have more money. And if you do a good job of reporting and consistency, they’re going to invest more and tell you all their friends.
Corey: Listen, no one comes in on your first deal with a lot of money. They usually do your minimum, like our minimum is $100,000 thousand, so people will give us $100,000 and once they do that and then they get into our communication process and we do what we say we’re going to do, what happens is all of a sudden they’re like, wow, that’s what I wanted. Now all of a sudden they’ll open up $300,000, $400,000 shows up on the next deal. Because I always, I mean, one thing, and you know this as being a financial advisor, money’s everywhere. Money is looking for people like us syndicators that know and how to make it grow. And they’re really just, I like to say, we’re just an alternative to the stock market. That’s what we do. We provide consistent and we’re money managers. That’s what we’re doing. And we do it through the vehicle of, you know, we do a few multi-family apartments. That’s, that’s our vehicle of choice that we know and understand that we know how to make it grow.
Josh: That’s fantastic.
Corey: It’s a beautiful thing.
Josh: So Corey, you run an organization, your Kahuna Boardroom. You have trainings and mastermind events. People have the opportunity to connect with you. I definitely want to make sure that they connect with you through this podcast. Tell us a little bit more about their, how can they get more information about that?
Corey: Yeah, one of the best ways to learn more about what we do and just our teaching is just go to our podcast, Multi-family Legacy podcasts. It’s anywhere you find podcasts, but also our education site is called Kahuna Wealth Builders. And that’s just where we have, um, there’s a free quick start workshop series where, you know, we can teach you some of, you know, basically our beginner stuff that’s for free and we’d love to get to know you there.
Josh: That’s fantastic. And Corey, I wanted to ask you as we kind of round third here and head for home. You know, investing in real estate is, it’s your niche, it’s your business. But everybody, whether they’re in ECOMM, whether they’re in digital marketing, whether they’re in real estate, they’re entrepreneurs, they’re building a business. So what hacks or habits, routines, books, what things have you done that you enjoy the most about your entrepreneurial journey? What things have you invested in or whether, what hacks or habits are you doing that you think has had the biggest impact on you as an entrepreneur? Not necessarily in real estate, but you personally as an entrepreneur. Are there one or two or three things that stand out that have really helped you grow up as an entrepreneur and continue to be successful?
Corey: Yeah, so two things. I think I’ve done this like in the last probably three or four years. It really gave me a one book, so book, Richest Man of Babylon. My favorite book, A 10th Of Everything I Make Is Mine To Keep. It talks about being good money manager. But the other thing, one of the things I did early on in my businesses, I invested in what I call business assets, digital business assets. And I can’t stress this enough because your businesses is your face of your company and you need to have professional images. I didn’t realize how important having professional images are, but in this digital world that we are in, it is vitally important.
Corey: So I hired a, not just a good camera guy but an excellent camera guy that created really nice, you know, images of me and my company and our, our business. And then I also added some video stuff to some really high end quality videos and testimonials and things like that. I really saw the investment pay off like tenfold because people are visual learners and you know, we have the power of YouTube, Facebook and all those things. And so to tell a visual story is very important in today’s world.
Josh: That’s fantastic. Yeah, no doubt about it. I mean we make, I think as a society now we’re making snap judgments about people and organizations and products and brands simply based off of their branding, the imagery the photos and the videos and they don’t, they won’t even listen to the audio portion of a commercial or the audio portion of a YouTube clip or the audio portion of even a podcast until what their eyes, they say, I like the image, I like the video. I like whatever that is, I want to learn more.
Corey: Yeah, absolutely. Very good. Part of that too is just, it’s another thing is just something I’ve done from the very beginning of my, is teach what you know, be a teacher. Teach what you know. No matter if it’s a little, teach it, right. Always have one hand down pulling someone else up that’s a little further down the rung than you and have another hand up of grabbing someone that’s a little higher than you. And that’s the continuum. Never stopped being a teacher. Never stopped a, you know, the student that’s, I’ve done it all my life and I believe it’s served me well.
Josh: That’s fantastic. Well, there you have it, Corey Peterson from Kahuna Wealth Builders and the Kahuna Boardroom. Corey, thanks so much for joining us today on Accelerated Investor.
Corey: Thanks brother.
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What makes the difference between a good REI and an amazing REI? Corey Peterson from Kahuna Wealth Builders and I discuss our journey from financial planners in the early 2000s to real estate investors today, and how we changed our mindset and heart to create the life of our dreams.
Fun is what drives Corey’s passion for real estate because it makes his tropical dreams and generosity a possibility. After watching his trusted financial clients lose big in ‘08, Corey turned to real estate because he wanted to help people make money. He loves multi-family units because they provide the cash flow necessary to be generous with your time and money.
When you’re looking for a real estate investor, don’t straight up ask people for money. Ask them, “Who do you know that might be looking to invest in real estate?”, and invite them to look over your business plan and poke holes in it. If it’s a great business plan, and it should be, then they’ll fall all over themselves to be invested with you. Take the pressure off them and let them feel like they have a little power in their investment decision.
If you really want to be successful in this business, you have to have an accountability partner. Corey was lucky enough to have his wife support his dream, but if you don’t have a supportive spouse, find an accountability partner at masterminds or through mentorships. If you have to pay for one, do it! You have to have someone who holds you accountable and pushes you to get back in the game.
Great relationships are the key to taking your business to the next level. Corey gives his advice for how to build solid relationships with brokers, how to grow your investor network, and how to build trust and rapport with the public.
- Finding, creating, or even paying a support system is crucial for your success.
- Corey shares his hacks that have helped him grow as an entrepreneur.
- What is your real estate “why”? We explore our reasons for chasing the REI life.
- The magic phrase that turns acquaintances into investors.