Foreign.

You're listening to the Master Passive Income Podcast Network.

Hey guys, this is Charles Heman and we're here for another episode of the Master Passive Income Multifamily podcast.

And today we have a special guest, Austin Hare.

Austin is a real estate developer who specializes in finding locations that allow his clients to scale faster and his investors to compound Safer.

With a career spanning over a decade as a professional wakeboarder and more recently as an American Ninja Warrior finalist, which was really cool, Austin brings a unique blend of discipline and calculated risk taking to the world of real estate investment.

He now shows others how to find the locations that stack the deck in their favor.

As an expert in passive investing, he finds low risk, high return opportunities.

By marrying these two realms, Austin ensures that both his tenants and investors realize substantial returns.

Austin's been featured on NBC's American Ninja Warrior, CBS Sports, ESPN, and he has more than 25,000 downloads of his podcast, Helping Healthcare Scale.

He has spoken about the real estate at the association of Organizations and the Dental Entrepreneurial organization.

Welcome to the Master Passive Income Multifamily podcast where we guide you to invest in commercial real estate with a special focus on raising money from others to buy bigger and better deals.

And now, here are your hosts, Charles seaman and Erica McNew.

Morrison.

We're thrilled to have you.

Can you give us a little more insight?

And yet.

Certainly sounds like you live quite a life.

I was gonna say it sounds like.

Sounds like you covered everything pretty, pretty succinctly there.

But yeah, you know, I think a lot of times people ask the question like, how did you go from Wigwarter to, you know, medical, retail, real estate, like, it's such a, such a kind of odd transition or whatever.

And you know, I'm happy to tell that story if you want me to.

Absolutely.

Yeah.

And I guess I will say first of all, like, I feel like everybody has a unique story, you know, like if you really dive down into it, like nobody really knows what they're going to be doing when they were a grown up.

And so, but anyways, you know, for me it was just, I grew up wakeboarding in South Carolina.

We moved onto a lake, got really into it, decided I wanted to pursue that professionally.

And so just like real estate, it's kind of like you gotta have a really delayed sense of gratification because like, you know, real estate is like a get rich slow scheme, I like to call it.

And then the same thing, like, you know, when you're waking up early in the morning and you're putting your Body on the line.

Like you're getting beat up and.

And trying these new tricks.

Like, it just takes a long time to, you know, attain a level of success.

But anyways, yeah, I was.

I was traveling all over the world, loving what I was doing.

Ended up buying a house that I could do.

It's called house hacking.

And that's where people.

So, like, I found a place on a lake and I was really.

I mean, April 2011, it was like the bottom of the market.

Paid 185 grand for this house.

And then I brought in some roommates.

It was like a four bedroom house with a guest house on a lake.

Two stories, pool and hot tub.

I mean, you know, these things don't exist anymore.

It was run down, so I did have to fix it up.

But I was getting paid over a grand a month to live there, you know, and I had this master bedroom suite with like its own private balcony, like, overlooking the lake on the second story.

It was just.

It was great.

And so I was like, man, real estate's pretty cool.

But I.

I kept wakeboarding.

And then as I was kind of getting out of wakeboarding, I started opening up some fitness centers.

And I was growing them by what you'd call de novo in the healthcare world, which just means like startup instead of acquisition.

But we did.

We did a little of both.

And so I ended up working with my partner to find our fourth location.

And in my head, I was kind of like, you know, I want to stay away from Kissimmee.

Those demographics are garbage.

Because I lived in Orlando.

I want to be Winter Park.

Like, that's the coolest, sexy area.

Everybody's got to be there.

That's where I need to be.

And so he ran an analysis, competition and demographic analysis.

And what we found was Kissimmee was wide open.

I mean, tons of room for growth.

And Winter park was super saturated.

You know, really high rents, tons of competition.

And I just, I had no idea because you can't make good decisions without good data.

So we ended up finding a good spot in.

It was really like the Lake Nona area, but like Kissimmee on the way to Kissimmee.

And I ended up getting in a disagreement with the franchisor.

They made some major changes to make it really difficult for the franchisees to operate profitably.

So I'm really thankful for that because because of that disagreement, I sold the gyms in 2019, like, literally November of 2019, right before COVID And so I got.

I got really lucky that I dodged that bullet.

And he invited me to start working with him full time on the real estate side.

So I was like, you know what?

I have this, had this house that was working out really well.

I had, during that time I had bought another residential property and I had, it was a duplex, so I had Airbeat and Bead, my first house that I bought.

And then me and my wife lived upstairs and we Airbnb the downstairs of this other house.

So I'm like, yeah, like, I like real estate.

Let's do it.

So we started to look for specifically healthcare related projects because, you know, when we sat down together and we decided, what do we want to work on?

He had been doing urgent cares.

But it's like this just seems like a really, like, you know, this was in 2019, 2020.

We were still kind of thinking about the Great Recession, right?

Which I mean, people still do, but it's like, how do we get something that is like safe asset, that we can get like safe returns?

And so the healthcare field just felt like a little bit more of a blue ocean because there's a little bit less people chasing it.

But we knew it was at the time recession resistant.

Now we know it's also pandemic resistant and inflation resistant and just, you know, health.

People are going to need health care right now that comes with its own set of challenges, which I can get into later.

But for the most part, you know, it's a growing, the patient base is going to continue to grow as long as people keep aging.

So we're like, yeah, let's do it.

And we really started focusing on the site selection component as a way to cast a wide net.

And that way we can do our analysis and we can try and broker these deals for these clients.

But whenever anything is available, you know, if they've got good credit, they got at least, let's call it 10 locations or they've got private equity backing or they're in urgent care that's backed or owned by the hospital.

You know, that's a really strong credit tenant.

So let's, let's buy the real estate for them.

And that was kind of how we started working together.

And really that, that came about because my partner one time, gosh, it was, it was a couple years before we started working together, but he was doing an assignment for an urgent care where he was looking for a location and he flattered two years, he found a great spot and he like was ready to go sign a lease, give it to the landlord.

The landlord said, hey, sorry, I only Want to sell?

I don' I don't want to rent.

And the urgent care is like backed by the hospital.

They're like, well, we don't buy real estate.

We only do our operations.

And the deal fell through.

So that's what, that's what got his wheel spinning.

He's like, dude, we're bringing all this value and nobody's capitalizing on it.

So like it was kind of like when we started working together, marrying those two rounds.

So yeah, that's how I got into real estate.

That's definitely a heck of a story.

And it sounds like you have really good insight.

You were house hacking before it was cool and you had the, the foresight.

Sell the gyms before the pandemic hit.

So, you know, you have.

I got very blessed.

You know, it's often that bigger pockets is credited with term house hacking, but it sounds like you can beat them to the, the gu.

Yeah.

So I, I was doing that before I heard about bigger pockets.

But in fairness, it wasn't my idea.

I'm.

I got the idea from Rich Dad, Poor Dad.

So I read Rich Dad, Poor dad when I was 19 and then I started doing actually with with houses.

So I just had like, I find a lease to a house on a lake and then I'd sign the master lease, take on the risk of guaranteeing it for 12 months.

And then I find individuals to pay each room that would.

My goal was to get the like, if I did a four bedroom house, my goal was to charge enough for the three bedrooms to pay for my rent.

So I live for freedom.

But it wasn't called house hacking at the time.

But like I gosh, something in Rich Dad Poor dad is like what gave me the idea to do it.

So I can't take full credit.

Well, you know, as a big fan myself, I can, I can always attest how much I learned from that.

So, so I'm curious.

It sounds like you've probably read some of his books.

What lessons have you found most valuable from them that you've applied in real life?

Yeah, it's funny.

So I guess I should preface it with like, there's a lot of each leave the bones type things.

So you know, I read that book in the Four Hour Workweek and the Entrepreneurial Myth, the E Myth when I was like 19 and I thought, man, I'm going to be like super wealthy getting passive income and retire by the time I'm 22.

Right.

And it's like you can't just go read three books and know everything.

So I will say, like it, he definitely sells a lot of concepts.

That makes them sound easier than they are.

But I think the concepts are solid.

You know, partnering with people that are smarter than you.

The four quadrants was really helpful for anybody who is not familiar with it.

You have employed and then if you start your own llc, you become self employed, which means you're just doing all the work.

You just don't have a boss, but your customers are your boss.

Then you become a business owner, which means that like you have employees, you have people doing stuff for you.

That's, it's like pretty high level stuff.

But then really what he puts in the fourth quadrant is the investor.

And that's when you're kind of just sitting on the board and you're not really doing any of the day to day operations at all.

You can just kind of maybe help with a little bit of a strategic decision.

So that's kind of the way that he categorizes it.

And yeah, that was really impactful to me because I'm like, oh man, I'm, I'm just self employed.

Like, I think that I'm a business owner, but like, I do all the own work myself.

I just, I have an llc, I don't have a boss.

So really trying to think about how do we partner with the right people.

I mean, he was a huge real estate fan, so that definitely got me interested in real estate and buying real estate.

Of course the timing was great, but.

And then I, you know, I think it was just kind of like the way, you know, he called it his rich dad, which was not actually his dad.

He was a hustler.

And then his poor dad was his, like highly educated, got his bachelor, you know, his or his doctorate and like was a college professor.

And I was like, that got me thinking too.

It was like, yeah, like, you know, in school, what did I learn?

Like, I never learned how to balance my checkbook.

I mean, okay, maybe, but like it was like half of a, you know, half of a semester of government economics.

And then it was like, I never learned how to apply for a mortgage.

I never learned about credit card debt.

I never learned like about compounding interest or compounding, you know, in the stock market.

I never learned about sales.

I never learned how to create a resume.

Like, I learned about the Pythagorean theorem, you know, and so like that book was just like, man, there's so much that you can learn out there in the real world that like the school just does not teach you.

So that's probably a long winded answer to really what was a short question.

You know, it was, it was an insight and probably a very truthful one because I think a lot of people often are misguided by what they learn in the school system.

But then you go out here and you see the real world and you're absolutely right.

So let me go the other way.

What do you find that impacted you from your experience at a wake quarter, various contests like American Ninja Warrior that you've been able to use in your business that's made you successful?

Yeah, so I kind of touched on it a little bit, but I think, like, there's a lot of principles that are parallel to success.

Like a lot of success principles that are parallel in whatever industry that you're in.

And so it's actually what I found out was it's quite common for a lot of athletes to do really well, like when they retire.

You know, it was a difficult transition for me to go from like, being a wakeboarder to being a real estate guy because, like, that was just my identity.

That was all that I knew.

But the, the things are, the hard work just trumps all.

So, you know, there's a lot of times where you don't feel like putting in the work.

You know, like in wakeboarding, if it was a little bit chilly one morning or it was like really early, you know, you have to get out there and you have to get in the water, like, and it's.

And it's cold and it's.

The conditions aren't great, but you, you just have to get up and do it and suck it up and do it anyway.

And so it's like, with real estate or any business, there's just a lot of things that you don't always feel like doing.

And so just like getting in the process of doing things, like, regardless of what you feel like, I think were some of the lessons that I learned.

And the same is with, with Ninja Warrior.

Ninja Warrior.

You know, like, we go, we have a gym in Orlando that we go to, which is awesome.

And we, we get to train with some like, really, really good people.

But a lot of them are like 16 to 20 years old.

I'm 37.

Like, you know, they weigh like 125 pounds.

And it's like, that's great for like, your strength ratio.

So like, a lot of times it's like, man, I don't feel like going in and doing like, everybody else is better than me.

This is, this is not fun, blah, blah, blah.

But if I Can just get myself to do it.

Like, it's like getting myself to just take the first step.

Usually what I find is like, you know, I walk out like feeling a lot better because of like the action that I took.

You know, it's about taking those little, it's about the effort that you put in, you know, and then that creates a level of like contentment and happiness sometimes more than the actual results.

So I think that's one of the things is just like focusing on the, on the process work, like doing the actions regardless of what you feel like and then you actually feel a lot better, you know.

So I struggle with, is acknowledging the micro wins, but when I do, yes, the same across the board.

Like I might not, you know, I'm not going to close a deal every day, obviously not even like really every month.

But when you take those actions, like you reach out to investors or you reach out to leads or you, you know, whatever it is that you're doing.

So it's those celebration of those steps or the acknowledgment of the work that you put in rather than the outcome.

Well, you touched on something really important there.

And it's probably something I heard, I've heard from just about every person I know.

Any type of success in life and it's going through the process and doing what you need to do even when you don't want to do it.

Yeah.

What has that been in your journey?

Yeah, that's everything, you know, like, I mean, yeah, there are some days where I do, I do feel like it for sure.

But you know, if I only relied on the times that I felt like it, then I, you know, I just wouldn't really, I feel like I wouldn't really get that much done.

So.

Yeah, I don't know, I think like, maybe for people listening, the, you know, having structure.

Jocko Willick talks about that.

It's like discipline equals freedom.

You know, it's like if you do the hard things first, if you have structure, then you have freedom to do other things later.

So it's like, it sounds like a conundrum.

It's like, how can I if I have discipline, like and I'm doing these really hard things, like I don't have freedom.

Well, you know, you're gonna, you're gonna be forced to do something one way or another.

So you might as well force yourself into doing the hard things so that you have like for instance, if you wake up at 5am and work out and then do all the, your sales calls as an example like before 11, like you've got freedom in the afternoon versus like if you just kind of relax and coast and like wait for, you know, you want freedom, you're probably going to end up taking a job and they're going to be, the employer is going to be forcing their agenda on you.

Right.

So that's not freedom.

I mean, sure, you have nights and weekends, so everything has, has a trade off to it.

But it's like, I guess like the, the, the way that I've been able to handle it or approach it is like getting better about, okay, okay, this is my time that I'm working.

You know, regardless of what I feel like if I have this time blocked off, then it's like, okay, what, you know, what am I, what else am I going to do?

I'm sitting here in front of my computer, in front of my desk, like I might as well just get the work done.

Yeah, for sure.

Well, absolutely.

That's.

What does that consistency and discipline look like on a day to day and, and how you show up sourcing like acquisitions for the healthcare that you're in right now.

Yeah.

So, you know, here's a little peek behind the curtains, but what you mentioned was our podcast helping healthcare scale.

So we get clients by a couple of different ways.

You know, it's number one is inviting them onto the podcast.

We do what's called content based networking.

So we're interviewing them, we're learning about their business, we want to promote them and provide value, you know, so they can talk about their, their business, our audience.

But then also we're, we're wanting to figure out will this be a good partner for us?

You know, is this somebody that we can do the site selection, is this somebody that we can buy their real estate?

That's a big part of it.

And then, but you know, to gain trust of a 50, $100 million organization takes time.

Like a 45 minute one on one conversation is great, but it's in combination with staying in touch with them, following up with them with emails and then trying to see them at the events.

You know, there's a couple of events that people go to every year.

You know, in the, in the intro you talked about the, what's called the American Dental Support association, the ADSO and then the deo.

Dental Entrepreneurial.

Entrepreneurial organization.

You know, it's, it's doing those touch points.

So I think like some, maybe some helpful context for the audience would be like, you know, my partner has done hundreds of free site analysis for these different Groups, I mean, hundreds and hundreds of hundreds.

It takes a lot of time.

And the result is that there's five good clients.

You know, there's been some deals, of course, a bunch of deals along the way.

Like, you know, a bunch of deals.

Right.

But like really like for the ideal outcome, it's like five of that.

So it just.

Now one good client in our world can, I mean it's a, it's a, that's a lot, they'll bring you a lot of deals.

Right.

But it's just, it's the, it's the at bat thing, you know, you just have to have a lot of at bat.

So does that answer your question?

Yes, it does.

And it sounds like you have a phenomenal database to syndicate multifamily if you ever decided to get into a different niche.

That's for sure.

Very cool.

What has been your, I guess your least favorite part of the specific nature and with healthcare?

Yeah, you know, I think that, Well, I can just talk about the challenges.

You know, there's definitely a lot of challenges.

So I would say that one of the.

So we've kind of focused on being tenant driven and that means that like where the tenant wants to go when they give us an assignment, we'll go there.

When we're doing a deal in Oregon, my partner does a lot of, of PD Pacific Dental out in California, a lot of their master lease brokerage and then we live in Orlando.

So I would say that one of the challenges is like when we're talking with a group, they think, they automatically think, hey, you know, we want, we want local boots on the ground.

Right.

Like it's a, we have to overcome that first of all because there's this, this assumption that like you have to be local to know what's going on.

And so ironically, when you work with a local broker in our situation, they're almost always involved in some sort of, they always have some sort of landlord relationships.

Right.

So it's like, it's hard to tell am I really getting like the best place for my business or am I getting the place that like my broker is going to get a double fee from?

Because he, you know, he gets a, he gets to represent the landlord and now he has represent the tenant and he's making the full commission.

Like that's, there's not really, there's a financial incentive to not have the group's best interests at heart.

Whereas in our case we don't.

You know, we're just our analysis, you know, again, to combat the kind of Negative sentiment around working with a non local broker.

It's really the same process.

I mean there you, you know, whether you're local or national, you're going to be using the same, you know, costar and LoopNet.

And maybe they use subscription services like we use Pitney Bow, maybe they don't.

You know, a lot of people use Buxton but like those are literally the same regardless of where you live.

The only difference is going out and flying, you know, flying into town for like a day to just source all of the off market opportunities, you know, that are vacant that you can look up.

So yeah, the process is really the exact same.

So that's one of the obstacles we have to overcome.

Another obstacle too is just the groups want to, a lot of groups want to buy their own real estate.

So you know they hear about, I think it's due to a lot of gurus just saying that real estate is passive income.

So I mean a lot of groups that like are really trying to grow and scale think, oh yeah, we got it on the real estate, we got it on the real estate.

And so they will sometimes forego good locations because they don't want to lease, they want to buy.

But then you know that it's requiring a lot of people don't under, they kind of underestimate that 20% down payment.

You know, you think like when you lease you throw your money away when you own like, you know, you're building equity.

It's like well what are you know, putting a 20 to 30, really right now, 35% down payment is a huge opportunity cost to what else you could do with that money?

And then most of your monthly payment is not building equity.

You know, it's like taxes and insurance and interest and there's very few, very little of that is going to the principal pay down.

So we have, we just.

That's the other issue is dealing with groups that they want to buy the real estate at all costs.

And so even developing it, you know, like that's, that's a really, that's a lot of work to develop and it's not really until they go through like the school of hard knocks I would call it where like they try and buy the real estate on their own and then they, you know, it's like, well the bank doesn't want to lend because they're already stretched out or they can't raise the money because they're funding it for operations or they don't have the manpower on their staff to oversee a development deal or oversee like you know, the brokerage, the signing of the leases or all that sort of stuff.

So there kind of, sometimes there has to be a little bit of a learning experience for them to come back and say, okay, you know what, why don't we partner with you guys on this?

Yeah, I do a little bit of business brokerage and I definitely have found like according to how quickly a company wants to scale, like if they're looking to scale multiple locations within a three year period, I'm like purchasing the real estate is only going to, you know, slow you down.

Now if you're looking to do an acquisition and retain the real estate, that can be great.

But then in that situation, sometimes it's like you're making a personal portfolio decision versus what's best for the actual business, like you based on location.

So yes, definitely a little bit of a learning curve to that.

But interesting challenges and I guess what are the interesting solutions that you have for those challenges as well?

Very, very neat.

Yeah, yeah, yeah, exactly.

Like, you know, I think that especially it's funny, like the less kind of like the less sophisticated you are, the more you want to own the real estate, right?

Which when you can least kind of handle it.

So it's like you can get to a point, you know, we work with groups or have worked with groups once they get to like let's call it 80 locations, maybe 70, maybe a hundred at some point you're doing so much real estate, like you just have your own in house real estate team.

Right?

Like that's when it totally makes sense to like, let's do a real estate play.

But when you're trying to scale up from there, it really is a, almost like a distraction, you know, and like maybe you can do it if this is not your first go around.

Like if you have a lot of, you know, personal wealth built up from another venture and now you're trying to scale a new company and you want to start a separate fund, like yeah, that absolutely makes sense.

But a lot of founders just don't understand or even like the C suite executive team just don't understand really the resource equipment that it takes to have what is really a real estate organization, you know, on the side.

Absolutely.

And I guess when you, with the duplex, when you bought that, going back in your journey a little bit, did you live in that?

Did you house hack that or you just bought that with investment loan?

Yeah, so we were, you know, I was living in this house.

I said it was run down.

It was also in like a pretty bad neighborhood.

And so as I was looking to get married, I was like, you know what?

I don't, I don't think my wife is going to want to.

Want to live here.

Exactly.

So let's look for a new spot.

So I found this.

Yeah, it's kind of a funny story too.

Like the, it was a.

It was a house that was directly next door to a place that I used to rent.

And so it was kind of funny because, like, I had.

I was looking to go, you know, buy the house in a safer neighborhood.

I went over, I looked at one house because I just, I knew this property from like living next door.

I knew the guy, he had died and looked at one house.

And then for whatever reason, like, I ended up kind of being like, you know, you know what?

I think I broke up with that girlfriend at the time.

And I was like, well, whatever, I don't have to buy another house.

It's too much headache.

So I'll.

I didn't make an offer or nothing.

I just, I left.

Well, then the owners talked to the neighbors who I said hello to as I was passing.

They're like, hey, why didn't this.

We never heard back from this person, blah, blah.

Anyways, long story short, they got in touch with me directly.

They.

Because I never talked to their realtor.

So we set a side letter.

They dropped the price.

This is like 2015, I believe.

So they dropped the price from like 395 to like 315 if we could go directly.

And it was like a 2600 square foot house, you know, seven bedrooms.

It was a duplex, two stories on the lake with a pool, same type of thing for 315,000.

And I was like, okay, well, if you're going to drop the price that much, sure.

So really, like the deal just kind of fell into my lap, you know.

And, and so, yeah, we ended up.

I ended up living upstairs.

I did long term rentals downstairs.

And then what happened was I was still renting out my old place long term, and I was literally what you call a slumlord.

I had a bunch of different people.

Like, I had a master lease to a guy who couldn't, he couldn't round up the roommates to pay.

So he's like, hey, man, sorry.

Like, here's my rent.

I can't get these guys to pay.

So I was like collecting individual checks.

They were destroying the house.

It was miserable.

Well, when I was traveling for wakeboarding, I would put up the upstairs place where I lived on Airbnb, and it rented out Every single weekend.

So I was about.

I put the other house up for sale, my original house, because I was so over it.

And I was like, you know what?

Before I actually sell it and throw the towel, let's just try this Airbnb thing.

So what?

Back then, it was not hard.

I mean, I had clothes in the closet, I had food in the fridge.

Like, people rented it out.

They just didn't care.

It was such a different time frame.

And sure enough, that thing did really well on Airbnb.

And so I'm like, man, this is interesting.

So I ended up getting married.

Me and my wife lived upstairs, you know.

You know, to my.

Now that.

That.

That girlfriend did work out, we're living upstairs.

We kick out the roommates downstairs, and we remodel that place to do an Airbnb.

And.

And that's kind of how we got started with that.

And.

And then that kind of led to buying some luxury Airbnbs and some wedding venues.

How very, very cool.

And way to optimize your real estate.

I, like, get out on the weekends while you're doing your traveling.

Very neat.

Yeah.

You know, so, again, I guess I got lucky in the sense that, like, I didn't have to take because I was scared to buy a house for Airbnb because it's like, wait a minute, you know, it's 100, whatever, you know, $200 a night.

Like, well, my mortgage is 1200 or 1700.

Like, that means I got to get at least eight nights booked.

Right?

Like.

Like, I was.

I was like, I don't know if people are going to want it.

Right.

And of course, like, at the time, the demand was huge.

I just had no idea.

But I got really lucky in, like, how I was able to dip my toes in before I went, like, all the way in.

And I guess the metaphor there would be like, you know, if you want to get into commercial real estate, you know, you can probably dip your toes in by being an lp.

Right.

By being an investor before you go all in on just, like, syndicating your own deals.

Like, there are, like, different steps to it.

Yeah.

Let me ask you a question about that.

So that's something I've actually debated with many people, and I'm curious to hear different perspectives on it.

So for somebody just starting out, where would you.

What would you advise them?

The benefit of being the LP first before going out and syndicating their own dealers?

There are so many things that you have to learn when it comes to real estate, you know, like, I guess it totally Depends on the scope of the project.

Maybe if you're doing a residential single family fix and flip, that could be something.

You might just have to get your hands dirty.

But even then, the stakes are lower if you are an investor because usually it's a less, you know, lower requirement to do that.

But you know, when it like the limited partner.

I just learned this, you know, maybe, maybe a year or two ago, which is kind of embarrassing.

But limited partner means like, you're limited to the amount of money that you invest as your loss.

The general partners are the ones signing on the debt and taking on the risk.

So you're, you're generally usually responsible for the entire amount of the debt.

So in a deal where you're doing a 70% loan to value, say it's a million bucks, well, your limited partners are going to be responsible for the 300,000 or whatever it is.

If you have three of them at 100 grand each, it's whatever they commit.

But you're responsible for the $700,000.

Now, the chances of you like the asset dropping 30% is like pretty low, but still it's a risk that you, you should consider.

And then there's just, you know, the, it's, it is difficult to get banks to approve of you, right, to like you're signing on the debt.

But the banks need to look at your bal sheet and your personal finances and they want to know that you're a strong candidate.

And if you're getting started, you might not be strong enough.

So you got to take on partners.

And then how much construction is involved?

You know, have you ever done construction?

Have you ever partnered with the crew?

I mean, I think like, you know, just in like the, the small, like the residential construction that I've done, like I should call it, like rehab has just been a nightmare.

I mean, it has been so miserable.

Now the difference in the commercial real estate world is like, we pay a lot more money.

We work with commercial contractors and like, I mean, it's insanely expensive.

You know, it's night and day, but they get the job done.

So that's kind of like the trade off.

Like, like it's hard to find residential guys in my experience that really do a good job.

And if you're not doing this full time with a full team of guys, like, if you're just doing one deal, I mean, you're pretty much stuck, you know, going with the, the best bidder.

You know, maybe it's maybe not the highest, maybe not the lowest.

Maybe it's somewhere in the middle.

But like, I've had extremely bad.

I mean, like, eventually I get the job done one way or another, but it's been extremely painful working with these guys because I, you know, because I'm doing so few residential rehab projects that I don't have a good crew of people that I can work with.

So I don't know if that answers your question or not, but that's my.

Take, you know, it definitely does and I can actually relate to that.

So I, I don't have a ton of residential real estate experience, but from a lot of my friends that do, and they, even the ones that do flips and burrs regularly, they routinely complain about finding how difficult it is to find contractors.

And thankfully on the commercial side, it's not nearly as bad.

So I'm, I'm glad for that.

I mean, you pay for it, right?

But you can afford.

There's more margin in a commercial deal if you're just, you're doing it at such a bigger scale.

You can't really, you know, if you're doing a, call it a 5, $400,000 house with a $30,000 remodel, like, you just can't afford to get like this really top of the line commercial crews.

The margin is just not there.

Yep.

Well, let me ask you a question to get ready to wrap up with.

And so for anybody who's brand new that's listening today, what's the single biggest recommendation you would make for them if they want to start getting active in real estate?

Well, you know, I think like getting involved as an LP is a great way to do it.

Like, my first stint at commercial real estate was as an lp.

It was before I started working with my partner.

You know, I invested in the deal.

Honestly, I had no idea.

Like, I didn't even know.

I didn't know what the equity slits were.

Like, I didn't know him, percentage he was taking or I was taking.

I just, I looked at the ROI and it was old roommate of mine, so I trusted him and I just did it.

So I mean that.

I think that's my top recommendation.

I think the other way to do it would be.

Well, there's several different ways.

I mean, you could be a broker if you wanted to.

Like, then you can go out and start sourcing deals.

But again, like, that's gonna take a really long time to build up the relationship.

And I think maybe another way, a third way would just be being a, Almost like an apprentice or like a.

I'm blanking on the word right now whatever you do when you're in school and you go intern, sorry.

Yeah, being like an intern with somebody, you know, like getting almost like a low level job or an internship with somebody that you respect, it's like, hey, how can I provide value to you?

Like, the thing is, a guy who's doing a hundred million dollar deals or more, they're, they probably really have a value of having you as an intern because like you're going to be, they're going to be spending more time explaining things to you than the value that you bring as like, you know, a coffee deliverer.

But like somebody who's kind of needing help, you know, they're looking to grow, they've done more than you, they're at least ahead of you.

I think if you can be like an intern or just say you want to learn, like come on board, like, you know, help them whatever you can, I think that's a great way to really get your feet wet and learn some of the ropes in commercial real estate.

Excellent.

And for everybody listening today who wants to connect with you, what's the best way for them to get in touch with you?

Yeah, I'm pretty active on LinkedIn.

It's just Austin, like the city hair, like on your head.

So reach out, you know, shoot me a message and we'd love to connect.

Excellent, Austin.

Thanks so much for sharing your time and your wisdom with the listeners and we appreciate you being on today.

Thanks.