Build Passive Income That Replaces Your Job

The Real Estate Investing Club

Join an active community of RE investors here: [https://linktr.ee/gabepetersen](https://linktr.ee/gabepetersen)  0:00 Introduction & Why Passive Income Matters 1:12 Russ Morgan’s First Real Estate Deal Mistake 3:45 Why Traditional Rentals Can Hold You Back 6:10 Discovering Investor DNA & Personality-Based Investing 9:20 Matching Real Estate Strategies to Your Strengths 12:05 The Power of Partnerships in Real Estate 14:05 Best Passive Income Strategies in Today’s Market 16:30 How Land Investing Creates Consistent Cash Flow 19:00 Finding Deals Through Direct Mail & Market Data 22:15 Building Wealth Faster with the Right Mindset 25:40 Lessons from Failed Deals & Bad Partnerships 29:50 Using AI to Scale Real Estate Investing  **BUILDING TRUE FINANCIAL FREEDOM THROUGH REAL ESTATE INVESTING 💸** In this episode of The Real Estate Investing Club podcast, I sit down with Russ Morgan from Wealth Without Wall Street to break down one of the most important concepts in real estate investing: creating passive income that exceeds your monthly expenses. If you’re serious about achieving financial freedom, quitting your W2 job, and building long-term wealth through real estate, this episode is packed with actionable insights and powerful mindset shifts. 🚀  **WHY MOST REAL ESTATE INVESTORS STRUGGLE 🤔** Russ shares his early experience with a “perfect” rental property that actually held him back for over a decade. Despite generating cash flow, it lacked scalability, control, and alignment with his strengths. This highlights a major issue many investors face: choosing the wrong real estate strategy. Not all investing models are created equal, and more importantly, not all are right for YOU.  **INVESTOR DNA & FINDING YOUR PERFECT STRATEGY 🧠** We dive deep into the concept of “Investor DNA,” a framework designed to help you align your personality with the right real estate investing strategy. Whether you’re into short-term rentals, multifamily investing, land flipping, or passive syndications, understanding your strengths and weaknesses can dramatically accelerate your success. This is one of the most overlooked aspects of building passive income streams in real estate.  #RealEstateInvesting #PassiveIncome #FinancialFreedom #LandInvesting #CashFlow  Want to learn more about our guest? Connect here:  [https://go.wealthwithoutwallstreet.com/realestateclub](https://go.wealthwithoutwallstreet.com/realestateclub)  Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at [https://www.therealestateinvestingclub.com](https://www.therealestateinvestingclub.com) or click here: [https://linktr.ee/gabepetersen](https://linktr.ee/gabepetersen)

Transcript

00:05all right we are back with another episode of the real estate investing club i hope you guys are

00:11having a great week great day wherever you are and whatever day it is for you it's actually been

00:16a week or two since we've done podcasts because i went to disneyland with my daughter and my wife

00:22it was the first time that i took my daughter to disneyland she's three and man it was an

00:28experience i haven't been there in probably 20 years and uh it was uh long lines but it was a

00:33lot

00:33of fun we i'd made the mistake of going on pirates of the caribbean as the first ride and i

00:38forgot

00:39that uh for a three-year-old that is actually a scary ride so it was a bit of a

00:43traumatizing start

00:44but we got to um uh it's a small world after that and she uh she perked up so good

00:49experience but uh

00:50it is a good day for a second reason because we have russ morgan with with us on the podcast

00:54here

00:55from wealth without wall street russ has a lot of experience in real estate but he really tries to

01:00focus in on creating passive income that exceeds monthly expenses for all you new guys out there

01:05and so this if you guys have been looking to get into real estate and looking to create that passive

01:10income um to the point where you can live off of it versus uh versus some type of w2 or

01:15anything like

01:16that this is the episode to jump into russ i'm excited to jump into it thanks for hopping on

01:20yeah man and you probably have to sell some real estate as a result of going to disneyland

01:26yeah that's another thing that kind of surprised me it was like uh i think for you know we didn't

01:30have to pay for our daughter um because she's slightly under three but for the two of us i think

01:34it was 600 or 700 just to get into the park and i uh i remember it being like 100

01:40bucks to get in

01:41so i guess inflation has hit disneyland pretty hard um russ uh i told you before we get on the

01:47the show we always start with stories we like to hear how people got to where they are uh so

01:52why

01:52don't you take us back to the beginning of your story in real estate and just tell us how you

01:55got

01:56here yeah man so i was an investment advisor way back when certified financial planner a buddy of

02:02mine in my office had been very successful in real estate himself he owned multiple mobile home parks

02:07lots of probably 150 doors and then he decided to go down you know to buy an apartment complex route

02:13and turning them into condos and he has one unit left and he says man hey i sold this unit

02:19and actually came back to me a couple months uh ago in the form of a bankruptcy and to be

02:26honest i

02:27don't want to have to go back through the marketing process i know that you're interested in getting

02:31and investing outside of the markets you want to buy it from me i'll sell it to you literally at

02:35what

02:35i have in it i was like oh this sounds great he said it cash flows i've already got a

02:39renter in it

02:40all the things right so the perfect example for somebody wanting to get into real estate you know

02:46dip your toe in this seemed like a no-brainer and so i did it and gave us the worst

02:51thing i ever did

02:53for 11 years the 97 a month or whatever that thing cash flowed at and when i finally sold it

02:59and i

03:00probably if you looked at the roi it was you know five or ten percent whatever some people are like

03:06that

03:06was great you got all the appreciation got the cash flow and everything but for me game it was

03:11horrible and the reason was because i couldn't influence it and i didn't realize that my profile

03:17wants to be able to influence things and it was in a college town that was 100 and something miles

03:22away from me and none of my nieces or nephews or children wanted to go to that college and so

03:27i

03:27couldn't put them in there like i thought and i didn't i thought all investing was going to be just

03:33like that and so for 11 years i didn't buy any other assets outside of wall street and that's my

03:39entree into real estate obviously i have a lot of real estate in different areas now and i've i've

03:43learned there's a lot of different ways real estate is a very very broad term as you know and i

03:49think

03:50that the more people start to understand about who they are and they start investing it starts to

03:54unlock doors for them like a different name nice yeah and that's something that i feel like we don't

03:58or is not often talked about is uh doing real estate in a way that gives you energy um like

04:05you said there are a million ways to actually do real estate it's such a huge umbrella term it's not

04:10uh you know there's a lot of businesses that you can start within real estate there's a lot of

04:14different asset classes there's a lot of different models that you can pursue um and if you start down

04:19a path that is not conducive to how you get energy how you enjoy um interacting with real estate it

04:27kind of it puts a bad taste in your mouth even if you are you know relatively successful even if

04:32it

04:32is a cash flow positive experience for you if you're if you hate uh you know doing short-term

04:37rentals or if you hate doing dealing with tenants um and that's all you're doing is you're just

04:41buying single family houses and you're having to deal with the property management um it's going

04:45to drain you and it's not going to be something that is really going to give you that freedom that

04:50you want and so i'm glad that you brought that up because that is something that we uh that is

04:54not

04:54often talked about um once you once you kind of turned around so you said there was an 11 year

05:00gap

05:00um you had that bad taste in your mouth you didn't like that first experience in real estate what kind

05:06of brought you back well i was listening to a podcast episode with tom wheelwright you know the

05:12tax-free wealth guy robert kiyosaki's cpa and he was talking to the owner of the colby index maybe

05:19you taking that assessment where it's like a disprofile or culture index or myers-brick colby

05:25is a version and they were having a conversation and tom was saying how whenever his clients come

05:30to him who are thinking about getting in business or real estate or whatever he'll typically look at

05:35their colby index to know if they'll be successful i thought that's a really interesting thing and so

05:40we went down this road to trying to understand behind the scenes what what's going on with us

05:45individually and how does that play out into the things we're investing in and i started doing this

05:51for myself and we ultimately built this thing we call the investor dna which takes into account kind

05:55of our personality assessment but also the traits the way we see the world and i was like man i

06:01i

06:01understand now why i hated the long-term rental world because i couldn't influence it and so i told

06:06my business partner he had a long-term rental is actually coming up and we've interviewed so many

06:11different people in the short-term rental space and this is going back in 2019 and i said why don't

06:17we turn that long-term rental that you have coming up don't renew it let's make it into a short

06:22-term

06:22rental he goes dude i don't want to manage that thing i was like i don't either but here's what

06:26we

06:26know you and i know business why don't we take one to go find somebody who wants to run something

06:32like this teach them how to do it create an operator profile and then we can scale this thing as

06:37big

06:37as we want to because now we don't have to do it but we can influence it and i said

06:41well

06:41let's use one the very first one we did we netted like twenty two hundred dollars a month on it

06:46and we were off to the races like okay we're brilliant and so we scaled from zero units we

06:50taught this operator how to run it and gave him he'd actually been a business owner 15 years in

06:55the remodeling space and it just left that exit that business and so we gave him an opportunity to

07:01take this business and make it his we scaled from zero units to 25 units in about 18 months and

07:07for us

07:07it was it was feeding who we were internally and so that just led us to another deal so then

07:13we got

07:13into the land investing land flipping space where we started buying raw land putting an operator installed

07:19an operator in the deal and then turn around and sell it on owner finance terms and so then that

07:23started creating cash flow so those two elements is what i figured out is for us real estate is another

07:29way to create a business we don't like necessarily real estate per se i mean we're agnostic to anything

07:34but we love business so any way that we could turn an asset into a business and then have some

07:40level

07:40of influence we were wanting to influence the operator the marketing the management the cash flow

07:45side of it that's what i love about real estate that's what's kind of fed our fuel and every single

07:50month for the last six years now we've actually been sharing those different places where we're

07:56building passive income including the other 19 or 20 that we have as well with the world nice man

08:02um so you mentioned the colby index and then you said that you kind of built your own um test

08:08or

08:08whatever you call it uh personality tests to figure out how people fit into real estate go into that

08:16just briefly tell us what are the categories you guys have kind of dissected um for different

08:21investor profiles yeah so we end up trying to partner with colby and they said um you know it's

08:2750 an assessment we said okay great what if we bought a thousand they're like it's 50 times a

08:34thousand and so we're like oh man that that seems that seems like a lot uh especially since we were

08:41trying to to give it to the world for free as if we could and so we actually partnered with

08:47the group

08:47disc i don't know if you're familiar with disc but they have kind of franchisee model and so we were

08:52able to get their pricing down to a level that we can't give it away for free but i think

08:56we charge

08:57like ten dollars or something um whatever it is it's a small amount and what we did with if you're

09:02familiar with this disc is four categories you have your drivers right the people who who love the the

09:08the benefits of everything how how quickly can i take action and how quick what's the result of it

09:13then you have your influencers like myself who wants to be involved who thinks spontaneously right

09:18who hates the mundane then you have your steady calculated people that you know are always trying

09:24to figure out like what you know what's the volatility in this right they they hate spontaneous decisions

09:29or your analyticals your calculated people who are more your engineer types and they're always like

09:34show me the facts i don't care about anything else and so for us what we did is we've you

09:39know at this

09:39point i think we're episode 750 or something on our podcast we've interviewed experts like yourself in

09:44every different category you can think of and one of the common questions we ask is what's your

09:48category and tell me what do you love about it and also what do you hate about it and so

09:53what we did

09:54is over the years we've been just feeding that into our algorithm to maybe basically say if you're and

09:59then we figure out what your profile was and so when we we have this matrix of all these different

10:03investment opportunities and what we say is like okay take the assessment know what your profile is and

10:08then go look at all these different options and depending on your profile either you start with the

10:13pros or you start with the cons like for me i tell people like me if you're like me you're

10:16an influencer

10:17you're spontaneous you you love excitement don't start with the pros because everything's a pro

10:23you're excited about everything go to the cons go figure out all the things you absolutely do not want

10:28to do and as a result so then you can start looking at investing so if i was doing a

10:32multifamily

10:32deal right and i'm a driver profile who just wants to see the facts i can analyze whether or not

10:37the

10:38operator is a good deal i can see what the return is i know i don't want to necessarily be

10:41involved

10:42in it okay i can make a quick decision or if i'm a profile like myself and i'm looking at

10:47long-term

10:47rentals and i can say okay yeah great i don't want to you know do the daily details but am

10:54i going to

10:54be able to talk about this am i going to be able to send people there what's going to be

10:57my level of

10:58you know in engagement in it and if it doesn't have lots of upsides which again long-term rentals just

11:05is steady eddy it's the stuff that the the c's the s's a lot of the d profiles will love

11:10so i love this

11:11about this and that's why you know we hear people hate on short-term rental who hates it it's the

11:16people who don't want all that volatility who do don't want the interaction so it's not that it's

11:20good or bad it's just whether it's good or bad for you interesting um have you guys i'm just you

11:26know

11:26as you were talking i was just kind of thinking about the implications and um a lot of times you

11:31know i always suggest people do bring on partners or partner with with other you know other people who

11:36are interested in investing because i love partnering i i feel like it's uh you know there's

11:41pluses and minuses you can if you do it incorrectly if you get the wrong partner then it's a real

11:45problem but um i really like uh bringing separate skill sets to one team uh to to you know to

11:52go

11:53farther and to enjoy it more um so have you how do you see this working in uh in teams

11:58have you guys

11:59applied this to you know people who want to start a partnership who are looking for a partner

12:03maybe they're i don't i can't remember the categories that you said maybe they're the

12:07driver and they need somebody to balance that um have you go into that a little bit more yeah no

12:12absolutely well what is the old uh in african proverb if you want to go fast go alone if you

12:17want to go far go together right and some people go i like to go fast i'm like yeah but

12:22if you're

12:22going fast in the wrong direction it doesn't get you there quicker right so uh absolutely the together

12:28is what we believe for us i think it you're trying to find those matches right a lot of times

12:33in our marriages we realize that our partners are typically the opposite of us and so it is the

12:39true you know you complete me moment here this is what happens in investing and i think you should

12:44have that and also you know obviously we've advanced this to a level to where it starts to look for

12:49our

12:50weaknesses right it knows my profile is going to fall in love with the person i'm talking to

12:55and not necessarily look at the few assumptions that are being made on the pitch deck that actually

13:00you know swing the whole deal and so it tells me it tells me that it says either you need

13:06to go get

13:06somebody to analyze this for you right like in a partnership or you need to pay someone to go do

13:12that so i definitely think there's a lot of value in those partnerships finding people to do that stuff

13:17and my business partner i actually do everything together we invest in everything together so

13:22you talked about kids we have uh nine kids between us so our investment company is made up of these

13:28nine kids like one of the names of them is based upon that so yeah it definitely is it's more

13:33fun i

13:34think when you're doing like together with other people that's funny yeah i've been using ai recently

13:38to um help me identify because you know we all have blind spots um so whenever i'm i'm underwriting

13:43a deal i always ask it uh what what what are my blind spots what am i not seeing um

13:48it's been

13:48really useful that way um all right so we are almost to the time uh we've just been crushing this

13:55time clock here so before we move to the quick question round i do want to ask about your

13:59individual investing you've talked about land notes you've talked about storage um you've done a lot

14:04what has been the one that kind of you felt uh is the best opportunity for you and uh that

14:11best

14:11opportunity for today's market yeah so um the land stuff is the easiest for us because it probably

14:18represents maybe 33 000 a month of our passive income it is you know we've done hundreds if not

14:24thousands of properties right now because it's all done on owner finance terms most people hear us

14:28talk about that and they assume we're buying property in seattle or san francisco so it's like

14:33no we're not doing that we're buying like five and ten thousand dollar lots and turning around and

14:38selling at three four x but on owner finance terms which allows uh people who can't otherwise go get a

14:44bank loan for something like that doesn't need a real estate agent involved in that allows us to

14:49kind of work within the inefficient marketplace we we also got in i mentioned the short-term rental

14:54space uh space has been a place that we enjoyed for a long period of time but yeah the the

14:59different

14:59syndications uh whether it be you know self-storage um the multi-family stuff um there's been just a

15:06number of these different things that i could kind of point to nice um yeah let's dig into the land

15:12a

15:12little bit so you mentioned you're buying five to ten thousand dollars for the purchase price where

15:17where are you guys looking like what's your uh um what's the metros you're kind of circling around

15:22yeah so we actually go to wherever the land sellers are right so it's interesting most of the

15:29property we're probably buying is new mexico colorado utah tends to be um a lot of the area

15:35now we do do texas and florida but um it's out in the it's away right so most of the

15:42stuff is probably

15:4350 to 100 miles from the nearest metro and it's people the people that are buying this stuff people

15:49ask me all the time who would buy that like that that lot was flooded i'm like yeah and and

15:54we get

15:55a video from the guy who's like bought it and is riding this four-wheelers like through it and he's

15:59just having the time of his life or it's out in the middle of the desert who would buy that

16:03and the

16:04guy sends a picture of like this humongous rattlesnake he shot that was what it was about or the the

16:09property it's like in nowheresville colorado and they parked their rv on it and now they're living off

16:15the grid and so you know there's a saying that every barn there's a pick for every barn kind of

16:19thing and man every one of these properties we're finding as long as there's a market where people

16:25are buying and selling land that's what we're looking for we're trying to find a land obviously

16:29has no prop no buildings on it so it's just raw land a lot of times we find people who

16:34are out of

16:35state owners who've inherited the property in some shape or form it's like probably the thing that's

16:39sitting in your garage that has value but you don't necessarily see it as valuable it's taking up

16:44space and their place is taking up you know property tax fees every single year and so we go

16:49in and we buy it they feel uh grateful that we we purchased it and then we turn around and

16:54we try to

16:55sell it to the neighbors first sometimes that about 20 of those people will buy it and then we just

16:59go

16:59out and we market on facebook marketplace all these different land websites and we find somebody who

17:04wants it and and we turn it into a car payment yeah makes sense um what size are you guys

17:09looking for

17:10five to ten thousand i'm sure you're you're sitting in the acre acre to ten acre kind of thing yeah

17:15i

17:15mean we've bought a quarter acre properties uh all the way up to you know 50 100 acre properties but

17:21yeah it depends right the different areas that you're in so we go into you know defunct um

17:28suburbs and stuff like that where they were going you know the developer was going to you know take

17:31and do a 20 acre prod and he you know broke them all up and we end up buying five

17:36or six lots out of

17:37there or out in the middle of nowhere interesting yeah land is one of those things um speaking about

17:43how you get the deals i feel like land has the highest response rate for direct mail um is that

17:49what you guys are finding too or are you guys doing cold calling yeah no it's all direct mail so

17:54we'll

17:54send out a hundred postcards to people uh with an offer and our rate is somewhere between four to

18:01five percent so four to five out of the people will respond if it's higher than that our prices were

18:05too

18:05high if it's lower our prices were too low and out of those four to five that respond we'll end

18:10up

18:10buying probably two to three oh nice and i'm sure you get the how do you get the value is

18:15it just uh

18:15you're just kind of like a price per acre that you'd consider offering or is it the beauty of it

18:20is the

18:21market tells us so we literally go and we see what other people are selling and similar stuff for

18:25in that same area so again that's why we have to go to where the land sellers are so it

18:30gives us a

18:31market and then yeah we we base everything off that but our goal is we're gonna pay or is to

18:37pay

18:3725 cents of what we're buying it at sometimes we'll go up as high as 30 35 cents on the

18:42dollar

18:42depending on where it's at yeah yeah that makes sense cool man well we have run the clock down so

18:48it's time to jump into the quick question round are you ready yeah all right starts with education it

18:53could be any form could be a book you've read movie you've seen conference you've been to mentorship

18:57program you've been a part of we just need two recommendations one for general life wisdom and

19:01then one for real estate yeah so right now i'm a part of genius network joe polish's group that's

19:08where i'm trying to continue to hone my business owner marketing skills and everything like that

19:14everything that joe polish does is pretty excellent so i would tell you to to go connect into that space

19:21from a real estate perspective i mean the the world's so wide there to to tell you where where

19:28to lean in i don't know if i have an answer to that one i mean it would be too

19:32easy for me to tell you

19:33you know read rich dad poor dad or something like that probably 80 of the people that come on this

19:38show have said that so if you yeah i mean if it's okay i'm gonna i'm gonna self-plug here

19:44i would say

19:44go to welltwatwallstreet.com uh forward slash real estate club and i'll make sure we have a link to

19:50the investor dna because the investor dna would tell you what types of real estate that you would

19:55really be more in line with and that may be the best training tools knowing yourself before you go

20:00invest in because everything might sound good to you but maybe the opposite or wrong thing for you

20:05yeah i mean that does sound like a um you know that did not exist when i got started and

20:09i've been

20:10through i've tried a lot of different real estate tactics and there's quite a few that i did

20:14not enjoy it so had i had i known that before it'd be good to sidestep that so it sounds

20:18like a good

20:19resource for people um genius network that's a that's a good recommendation i've actually been

20:23looking for a new um uh mastermind kind of uh you know mentorship program coaching program whatever

20:31you want to call it but um i've heard genius network a a few times so it sounds like it's

20:36a good

20:37good group to join oh i mean some of the top people in the world are there we ran our

20:41own

20:42mastermind we called it the passive income mastermind we ran it for five years masterminds

20:46are tough they're really hard to run and be a part of i've learned a ton because basically

20:50i got paid to hang out with super successful eight nine figure entrepreneurs but i mean it is hard to

20:58do and then when i joined his i realized how poorly we were running ours because i mean they do

21:03it at a

21:04super high level so yeah for the right person i would definitely encourage you yeah i was doing

21:08something like that um but now i've scaled down i only do one-on-one coaching now but we only

21:13do

21:13like two to three people at a time max and i don't want anything more than that it's just uh

21:18if you

21:18scale past that i just feel the quality or at least i could not get the quality up um and

21:24i you know i uh

21:25i don't want to give something to people that i don't can't stand behind and so um people who run

21:30masterminds who run coaching programs and do it well there's uh it's definitely you know they deserve

21:36whatever income they're getting it's definitely worth it all right next question is about the u.s

21:41it's a big place there is a lot of opportunity out there give me the single metro you're most

21:46excited about investing in today the single metro well you know one of my good buddies is in the

21:54self-storage space and he and i have been talking about self-storage a lot and he's telling me

22:00the ohio market kind of the the midwest market is a great market right now for a lot of these

22:07mom

22:07and pop operators in that space and so i'm kind of following his lead there as far as like where

22:13that

22:14goes if i was giving you a second market i mean this is really wide because we're now starting to

22:19look into um the assisted living space and and we've been digging into lots of different areas but

22:26texas is one of those areas that you have a huge uh baby boomer population is as well as florida

22:32and you know whatever they call it the the golden wave or silver wave or something like that i mean

22:38silver tsunami i think yeah i mean we're we're just sitting there for that so either one of i mean

22:44those two spaces to me right now is still very prime the um the assisted living space because it it

22:51really has kind of come down to a low when you coming out of covid a lot of those institutions

22:57really were rocked pretty hard and so there's still some good buying moments there yeah we've

23:02had a few people on that um are are now turning their attention to assisted living i feel like it

23:07has uh you know i always say stay away from shiny objects at least for myself because every time i

23:13i go

23:13to a different asset i have to learn it and i'm not as good as i was i was you

23:17know so i just stick to

23:17mobile home parks rv parks self-storage facilities i know how to run them but assisted living is

23:22definitely something that um i see the opportunity there i see why people are invested in that asset

23:28and it makes uh makes a lot of sense yeah i mean the whole deal what you just said there

23:32deals don't

23:32create uh passive income people do and so you got to find the operators in all the deals so i

23:37would

23:37not be operating any of this i'd be researching the experts for sure yeah exactly all right next question

23:43is for your younger self let's go back to the russ who was just getting started um so many years

23:48ago

23:48when he was uh buying that i think you said the condo that first condo he was buying go back

23:52to him

23:53look him in the eye give him one piece of advice moving forward yeah one don't do it

24:00but you know what i didn't know then is financial freedom is when passive income exceeds monthly expenses

24:06and even at that point even though i was buying an asset for quote-unquote cash flow i don't know

24:10if

24:1097 a month was true cash flow but it was something more than what i had is i still was

24:15thinking in the

24:15accumulation space i was still trying to buy assets for the future upside and that didn't give me a

24:21more time back right and now i have a 20 year old so you have a three year old i

24:25have a 20 year old

24:26and i'm about to have another one 18 this leave you know graduates this year i don't get that time

24:31back and so if i could have bought that time back by creating cash flows instead of just trying to

24:37build my business you know i'm grateful that i was able to do that but if i could have built

24:41something

24:41alongside of me then that would have given me so much more freedom to be present that i i don't

24:47think i was during those moments yeah yeah and it's what a lot of people don't realize is it does

24:53not

24:53take people think that you need to you know have 100 200 300 doors in order to um cover your

25:00expenses

25:01but you really don't you can get there very quickly especially on the commercial side you can

25:05cover your expenses in one or two deals um you know and i don't know people don't people don't

25:11realize how quickly you can get there and i feel like if they did they would a lot more people

25:14would

25:15jump into real estate not that there aren't a lot of people there's a ton of them but um yeah

25:19you're

25:19covering your living expenses is not that hard of a hard of a task um for for most people out

25:25there

25:25and it especially wasn't for that that you know 20 year ago russ yeah yeah exactly when you're just

25:32getting started you just got your apartment and whatever it is if i could just go back to those

25:37expenses man yeah i don't want the lifestyle but i want the expenses all right next question is

25:46favorite way to find deals um it all starts with getting in contact with the seller and

25:50pending that purchase agreement so what is your favorite way to generate leads and find new deals

25:55yeah there's an old saying that opportunities find cash and if you don't have access to cash

26:00opportunities find somebody else's cash so the the best way to do it is become an opportunity magnet

26:06right and and that's just what we've been doing forever so the podcast has just been a way for us

26:12to talk about how we build cash how we stack cash and that we're always looking for opportunities so

26:17you know when people are talking if they say to me you know what do you do you know what

26:21do you do

26:21i say oh i help people build passive income greater than the month expenses and and the conversation

26:26will ultimately lead and i just say look i'm an investor and it's amazing how many emails every

26:30single day i'm sure just like you opportunities are constantly coming and the key is is that there's

26:35no good or bad investments it's just good about investors i think that's robert kiyosaki's life not

26:39mine but i try to follow that meaning that my my job is to become the best investor i possibly

26:44can

26:44so if i'm telling the world i'm an investor all these opportunities are coming at me i have access to

26:49cash

26:49i've been stacking cash then i have to be able to do due diligence understand how to vet these

26:54operators figure out what the deals are so i don't have to go looking for deals if i'm out there

26:58looking

26:58for deals i'm in a bad situation so i've turned it to where the flow comes to me and uh

27:04at this point

27:05in time you know i just need uh more more cash to do more deals yeah yeah and i mean

27:11one crucial

27:12element of what you once you mentioned is you kind of built a presence built a brand um that you

27:18put

27:18out there into the world in order to attract all this and what everybody listening it is it's not

27:23as hard as you think to actually achieve that you can hop on podcasts like this one um you can

27:28start

27:28your own podcast you can just post you know once or twice a week uh and it starts the snowball

27:34and so

27:34if you can and what russ mentioned like deals start coming to you is 100 true once you get that

27:40presence out there so you just need to start get the ball rolling and eventually um you know the

27:44snowball will get bigger and bigger and you'll start to get deals coming towards you

27:50all right next question is lessons learned not every deal we get into goes the way we expect it

27:57in fact pretty much every time something goes wrong and that's when you get to learn a lesson

28:01so what was the deal that went a little bit sideways for you and what was the lesson you pulled

28:04from it

28:06yeah almost every deal that's gone sideways is in an operator situation and you know the the key is is

28:15that you want to get in deals with good people right because when you get in a deal and you're

28:20dealing with a bad person it's never going to be a good deal if you get in a deal with

28:24a good person

28:25it goes bad it won't end up being a bad deal because they'll figure out a way to fix it

28:29and that's what

28:30i found is that you know the deals have gone sideways you know you know obviously there's been some

28:35good intention but it's when i get in a deal with a bad person who you know is not up

28:41and up

28:42doesn't you know the the assumptions that were made were were very fabricated and so we've seen

28:48you know where we've invested i you know i have several opportunities where i've turned 100 grand

28:53into 15 and um and when i look at it it was a lot of uh just bad things they

28:59weren't using the money

29:00for what they said they were using it for they were yeah bad valuations and uh didn't have the people

29:07you know in line so a lot of those mistakes was me not realizing that i need to start vetting

29:13the

29:13people more and understanding what those assumptions were and so those lessons for me is trying to

29:18figure out what are those key points because sometimes one or two percent on a certain thing

29:22assumption can make a deal an amazing deal but also if it's the opposite way it can actually kill

29:28the deal and make it completely not worth the the money that you put in it yeah yeah and that

29:34yeah i mean

29:34that goes back to just choosing partnerships carefully um get into partnerships slow uh make

29:39sure that you understand who the person is you understand their value system and everything

29:44aligns with what you want in your investing career um because man that is like you said that is uh

29:49such

29:50if you are in a good partnership meaning that both of you guys are aligned and you have good

29:56intentions um things are going to go wrong every single deal something's going to go wrong but you'll

30:00figure it out and you'll come up with solutions but if it's a bad partnership then uh it's not fun

30:07that's for sure um all right that takes us to the next question this is oh i lost my spot

30:14give me one

30:14second oh this is a new question that we've been asking it's about ai um ai is here to stay

30:19and i try

30:20to implement it in as many places as i can responsibly do so um so what is a way that

30:24you're implementing ai in

30:25your business today yeah my business partner sends me a text i think every night about midnight because

30:32he's sitting there spending two hours after all his family goes to bed and he's he's looking at how to

30:39use uh open claw and all these other resources the the simplest way that i use it is to help

30:47me

30:47organize data right when there's so many people that we meet on a regular basis so every one of our

30:52meetings are recorded and it's you know trying to remember stuff is really hard so we i just use

30:58recorded meetings and then i can summarize notes and put the key points and allows me to follow up

31:03correctly also lets me remember you know whose birthday um that i should have been saying happy

31:08birthday to and some of those things so um we're integrated in ultimately making it kind of our little

31:13uh you know ai ea if you will uh to to do some of those basic tasks but yeah there's

31:20we're we're zygotes in this phase like i just know there's so much opportunity but also um i make

31:26all the same mistakes of using it just like everybody else is like a fancier google i mean

31:32that's uh that's a good start is using it as a fancy google um it is you know uh reminders

31:38and

31:38organizing data is is it can do it better than absolutely anybody out there um and i should i should

31:44have said this i would my team would kill me but like dude what do you mean the the best

31:48way we use

31:49it in our business is that we actually took five years of our passive income mastermind that we did

31:54run we took every one of those calls everyone i mean we we interviewed some of the you know greatest

31:59investors in the world and we took all of that and actually use it to help us hone in our

32:05investor

32:05buy box so we run a passive income lab it's like this 12-week course where people can get the

32:11first

32:11500 a month passive income and so when they build their investor dna they get to use that investor

32:16buy box tool to help them hone it so i don't know why i think about that but because i'm

32:21not spending

32:21a lot of time on that side of the business i forget but yeah that's probably the best way in

32:24our

32:24business we're using it yeah yeah and that's that is a really good use case especially if you have

32:30conversations that have been recorded that you can feed into these systems yeah to to give it

32:36something to work on i've almost i've been on the fence about buying um what is it called the the

32:40limitless pendant where you it's a pendant that you wear and it just records your conversation

32:44um yeah i would be i you know i've wanted to buy it just because of that it can you

32:49know start

32:49synthesizing your mind and and what you're talking about but i see the other side of it where it is

32:55kind of encroaching on other people's um privacy and i don't you know i i understand why i wouldn't

33:02want to be in the same room as somebody wearing one of those so i haven't haven't bought it yet

33:05but i see the value well i know a lot of people especially when they go to these masterminds or

33:09events where conversations are being publicly shared right not in the private conversations

33:14and they'll i think it's called claude or whatever is the one that's most common out there and they'll

33:18just hit the button and so then it just records the whole conversation that's being recorded or

33:23being talked you know and then it'll summarize it give you the key points to follow-up metrics and

33:28stuff like that because that's what we you need you join a mastermind you ask the question about

33:31masterminds show up you're like man people ask you after when you're leaving hey what was your top

33:36three takeaways and you're like oh i'm gonna have to go back and flip through these pages of notes

33:40yeah but if you're like well why don't i just take ai and say what were the top three things

33:46that apply

33:47to me and you know it's crazy if it knows enough about you how accurate it can be yeah all

33:54right and

33:54that leads us to the very last question this is for the listeners you've given us a lot to think

33:58about i'm sure people want to reach out get in contact with you is a two-parter where can they

34:02find you and then what can they expect when they reach out yeah so we built a landing page i

34:07mentioned

34:07earlier go to whatswallwallstreet.com forward slash real estate club and on there you can get access to

34:14every free resource we have so we have a podcast that we do twice a twice a week we have

34:19all these

34:20different resources the investor dna we have a free community have over 10 000 investors in that

34:25do you want to join that and have conversation with other people around the world that are doing

34:28investing um and interact i mean i always say you know you hear the saying that you're the five

34:34people that some of the five people spend most time around but if you're the one listening to this and

34:38you're trying to invest in real estate you're trying to build passive income and you go talk to your

34:42brother-in-law and they're investing in the markets and like you're stupid you you talk to your your buddy

34:46at work and they're like oh i got my money my 401k you're stupid then who's that five people right

34:52you're not going to get rid of your buddy at work or your brother-in-law why not build yourself

34:56into

34:57a community that allows you so taking our podcast what we did is just take it into a community

35:02and so on there you can join that free community as well perfect i'll put that link in the show

35:07note so if y'all want to reach out all you got to do is click a little more in

35:10the description

35:10it's going to pull down that full description and in there you can find russ's links

35:16all right man that wraps it up thank you very much for helping on the show yeah man thanks so

35:20much for

35:20having me absolutely for everybody who's with us today thank you guys for showing up you are the

35:25reason we do this so if you guys have any questions reach out to me gabe at the real estate

35:29investing

35:29club.com if you guys want to support the show just leave us a review comment anything like that

35:34other than that i hope you guys have a great week keep rocking real estate and i look forward

35:39to seeing you on the next episode

35:41thank you

35:42you

35:43you

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