How a $70K House Became His Path to Financial Freedom with Sid Shamim

Name: How a $70K House Became His Path to Financial Freedom with Sid Shamim
Uploaded: 2026-08-25T18:22:00+00:00
Duration: 39 min 52 s
Channel: The Real Estate Investing Club

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

00:10having a great day great week wherever you are and whatever day it is for you as always on the

00:16podcast it is friday so we're bringing that good friday energy to you and uh it is a nice and

00:23sunny

00:23day here and i'm sure it's sunny where the person um our new guest today is coming from it is

00:28sid

00:28shamim um down there actually you know sham i said i forgot where you said you were calling from but

00:34i

00:34remember it was a sunny place yeah um sid does a lot of stuff he's in multi-family he's in

00:41medical

00:41um and they also do lending he has over 500 million app assets under management so a lot of experience

00:49to go into houston is where sid is there we go man that that fled my head there for a

00:54second

00:54and he's calling from houston sid i'm excited to jump into this thanks for hopping on

00:59hey thanks for having me absolutely um i told you before we got on here we always like to start

01:05with

01:05stories we like to hear how people got to where they are so why don't you take us to the

01:09beginning

01:09of your story in real estate and just tell us how you got here um i came in as an

01:15immigrant um came

01:16for school did my master's all i wanted to do is just like you work for microsoft and ended up

01:21not

01:21accepting a job he was you and i was just chatting about it um then i moved to uh texas

01:27for an oil

01:28and gas job and started living uh renting a a unit in apartment complex a fun fact today i own

01:35that

01:35apartment complex no way that's awesome yeah so if i can do it everybody can do it that's cool you

01:42actually uh you know we've had tons of multi-family guys on this show but you're the first one that

01:46i've

01:46talked to who you know bought the apartment complex they used to live in that's uh that's pretty cool

01:51i feel like i read a book like one of the big guys out there did that same thing i

01:55saw somebody there

01:56as well same story yeah i remember yeah how was that uh i mean i don't want to derail us

02:01too much but

02:01how was that purchase process for you is it kind of bittersweet you're like thinking about all the

02:05old days living in that apartment no the the bigger idea uh the bigger problem was that i was trying

02:10to tell my wife like i don't want to get emotionally involved with the transaction because that's not

02:15a good sign right so it took me uh um it came that property came to me three times and

02:20first two times

02:21i said no to it uh because numbers are not making sense and all of us emotion driven third time

02:27they

02:27came with a very low price and it worked out but you know it's uh when you're in life or

02:37in

02:37professional life or in personal life and you're in both sides of the spectrum um you know what life

02:43is all about and you stay humble i mean one day you're here the other way you're somewhere else

02:47yeah absolutely um so you didn't start you know buying huge apartment complexes you started i'm sure

02:54in a humble position why don't you take us back to that first deal you did and tell us kind

02:58of how

02:58that went and how it snowballed after that absolutely i was doing single family rental

03:03uh fix and flips mostly um rental houses that's all being single working for an oil gas company and

03:10all of my other remaining time was just buying houses and putting on rent and um i always wanted to

03:17um ever since um ever since i got into the earning stage in my life where i was actually doing

03:25a job

03:25i always thought like i want to have my my job income as a as a secondary my primary income

03:31should

03:31my passive income and that is the time and there's no gurus out there there's no youtube about

03:36passive income and financial freedom it was just a natural thing that everybody should uh everybody

03:42knows they just don't cannot articulate and that's how i started single family got up to a point where i

03:47was uh owning over 30 houses and i quickly realized that that's not the way to scale and then start

03:53selling um the last house i sold in 2021 that i bought for 70 000 in eastern texas sold it

04:00for 420

04:00uh 423 to be exact you bought that in 21 you said no okay i was gonna say damn yeah

04:08i bought it in

04:102000 uh 2011 2010 right okay the terrible so about a 10 year hold yeah okay yeah 10 11 year

04:19hold and

04:19um i mean the number looks awesome too big but in reality it took me 10 years yeah and that's

04:26how the

04:26houses appreciate um at one time i got to a point where it's like okay well um i heard somebody

04:34and i

04:34joined a local uh mastermind group and realized that if i want to really scale i need to go buy

04:41one bigger asset where i can afford an employee and uh the economy skill is there the uh contracting and

04:48management is there all all that good stuff that comes with multifamily and apartment complexes and

04:53i went ahead and bought first of my my first apartment complex back in uh 2013 2014 time and

05:01it worked out and i would look back yeah and i kind of want to highlight or underline something you

05:06just said you you wanted to buy something where you could afford an employee um you know how i started

05:12and how i hear so many people who are just starting to get into real estate they they think they

05:16want

05:16to buy small and this is how i was when i first got into real estate i was like i

05:21even like in

05:22commercial i was buying self-storage facilities and i thought i want to buy small self-storage

05:26facilities because that will mitigate the risk the downside won't be as big if i screw up it's not

05:31going to be a problem that the issue with that thinking is there's actually more risk in smaller

05:37deals because small deals can't afford anything really they can't afford they can't afford maintenance

05:44they can't afford property managers they can't afford the things that you need to run a business

05:49as a business and that's why they fail and i just want to kind of underline that because that's one

05:54of the aha moments i had through my career was there's no point in buying small because small

05:59doesn't really give you that the risk protection that you're looking for it actually makes it worse

06:04because you don't have the cash flow to deal with the problems as they arise and it sounds like

06:09you uh you ran into that same kind of issue or the same kind of realization as you were as

06:14you

06:14are coming up the worst thing it also i mean i want to add one other thing when you buy

06:18a small

06:19uh not only that you're in a cash crunch at all times but you also get burned on your own

06:25right

06:26especially when you're doing something else and you have a w team jobs and you're doing real estate

06:31on site well at that point you have to make a decision it's a lifestyle choice versus a financial

06:40freedom right is that really what you want and um when i started i was super young and in my

06:46mid and

06:46early 20s and didn't know better right and that's all i knew and i was like oh i'm i'm doing

06:52so much

06:52awesome than my peers and that's what i want to continue doing and you just don't know what you

06:57don't know and those years yeah once you realize that the business model is different um imagine you go

07:04to a biggest uh shopping mall in your city houston have a biggest i think third biggest mall in city

07:14um and and just realize that that commercial real estate has been owned by somebody sold by somebody

07:20been sold maybe dozens of time in last 10 years and that's how people do big transaction make

07:26real profit so that was the uh aha moment for me it's like somebody told me like this asset was

07:33recently sold like wow 350 million dollars but you know six years ago that i heard yeah um so what

07:40once you kind of had that realization and you pivoted towards focusing on larger assets what were

07:46kind of the growing pains that you you had to go through in order to really become the operator that

07:51you are today yeah i want to make sure um i'm sharing this with your audience um we usually so

07:58currently we've got 35 plus projects between texas and arizona uh that i'm um involved in all of our

08:07use and assets we manage ourself so overall plus minus on a broad spectrum we've got about um 150 plus

08:14employees um and we i started that journey back in like i said 2013 2012 in multifamily mostly um

08:23um and after three years i quickly realized that i'm in a people business i'm not in real estate

08:28business um and we interviewed i personally interviewed so far today i interviewed over 1300

08:35people 1400 plus uh close to 1400 and we retained 150 we couldn't hire or terminated the remaining of

08:43those um and i quickly realized right after that it's like you know if i if i don't build my

08:49culture

08:49my my company won't sustain so my biggest growing pain was to quickly realize that um

08:57hire the right kind uh of people for for the budget that allows you per property and and onboard and

09:05train them well and you know and support them for the results um that was the biggest learning we i

09:13had

09:13i still joke around with my core team we are plumbers we are electricians we are we know everything it's

09:19our

09:19uh my hands are too deep into operations at the moment always have been um i can tell you apartment

09:25complex operators you know if you ask me hey which of your property is using too much paint i can

09:30tell

09:31you that um the the you know the cost for resurfacing and painting and all of that i because we

09:38have done

09:38all of those things from from the root level gone up to start building employee uh employee network um so

09:46those

09:46are those were the um i feel like initially when i did all of those single family uh projects

09:54gave me so much grinding habit that uh that helped me uh in multifamily but until i got to my

10:00first

10:00eight projects it was very hard because i could not able to afford a supervisor or a full hr a

10:08full

10:08recruiting team or a marketing team and things of nature so was wearing too many hats at the time

10:14um but you know turned out okay turned out so far so good yeah and i i uh you know

10:20i've watched

10:20people like alex tramosi and you know all those different business gurus and you know i i don't

10:27feel like there's any way around of wearing all the hats um when you're starting out i was just thinking

10:33about back to when i started there's there's no way to to bypass that people always say higher and

10:39higher and you know the bigger the your team is what's going to get it done which is true

10:43and you do want to hire but um i always thought like if i could go back and give my

10:47my just starting

10:49out self advice on getting to the team there's there's no way around what i did to get here uh

10:55because at the beginning you don't have any cash and that's what you need to hire people

10:58um and so you do need to scrape by you do need to uh to kind of wear all the

11:03hats until you can

11:05build your portfolio to a size where it can sustain that um which is again another reason why you should

11:10go big you should uh think big because that will get you to the point where your your income can

11:15sustain a larger team you can start to build that culture do the hires that are necessary to uh to

11:21support uh um a really class a operating team um so you're not only in multifamily you're also in

11:28medical why why medical i've i've known nothing about it so i'm going to be you know very very

11:34i'm going to be an idiot when i ask these questions but i'm always interested because

11:38medical has such a you know a lot of investors really like it as an asset class um tell me

11:43why

11:43you chose to to invest in medical and why you like it today before i say anything i mean the

11:48more we

11:49know the more we realize that we don't know right so even if you ask me about apartments um

11:54sometimes i joke around like these um underwriting mumbo jumbo spreadsheets are for

11:58investors and for for lenders for operator like you and me we know what asset in what location

12:07will produce and what will be the expense so i sometimes tell my teams like yes good you did a

12:14good good job on underwriting but tell me exactly what the cash flow free cash flow look like after 12

12:19months right and as far as i'm concerned if you tell me areas that i know if you tell me

12:24a property

12:25in just one average rent i can tell you how much i'm going to pay for that i don't have

12:28to underwrite

12:29it um but still you know still a lot of things don't know going back to your original question

12:34about the medical before i got into truly truly multi-family uh up until my first second third and

12:41four deal me and my wife and my wife is a physician and we wanted to look something into medical

12:46line of business um and we looked very deeply into urgent cares and and er's and those kind of things

12:54and it just did not span out because my wife was in a residency at the time and um it

13:00was no clear

13:00cut answer to any of that we were brand new and guy from single family houses working in oil and

13:06gas

13:06going to run urgent care or critical care it's uh uh was so but we we did but that was

13:12that thing was

13:13you know always back our mind long story short we recently um realized that the market is cyclical

13:21on every single asset class um in our our philosophy have always been like anybody else really is we

13:30wanted to go for mission critical um recession resistant uh essential services and boring uh businesses

13:40um medical just fits the box uh and that's how we started getting into it so what we focus is

13:47mostly on

13:47the speciality clinics um you know if you've been to a cardiology or you've been yeah your nose throat

13:54those guys yeah and these guys you know um it's extremely hard to to lease up a place when it's

14:02vacant well once it's lease up it's it's it's going it's very predictable right these guys are not

14:08moving out just because they found a cheaper end down the street right yeah like apartments and those

14:13are uh medical offices rented out triple net right it all kinds so they're um net leases they're triple

14:20nets they're um gross plus they're all kinds of what we try to do is try coming from apartment complex

14:26background managing an asset like this is like one tenth of the work yeah nothing really uh but we are

14:35we

14:35look at both what we look for is uh our tenant quality uh would the the bigger difference between

14:41apartment and medical is you know um when medical it's a lot more upfront work meaning knowing the

14:48data knowing the market exactly how the uh the key players are moving around in and in play in that

14:55area right now versus apartments you know you you might know some good data going in but that data

15:00going to change in one year right and you're going to continue operating your apartment uh well enough

15:06medical like you said those um those asset types are more predictable their uh their tenant is more

15:16high caliber um and for that reason you know eventually you can hire high caliber staff faster

15:23enough and i know there's a lot of um like sub niches within medical uh and i know nothing about

15:32them you've mentioned you like clinics and you said micro hospitals what are the different medical

15:37offices that you can buy like what give me a little lesson on on buying medical like what is

15:42what are the options when you start looking into it yeah i think so obviously the the wide variety

15:49right um obviously number one is um you buy a medical office that's uh generalized right primary care

15:56you go to a doctor and then uh and that building has been multi-tenant and these aren't like it's

16:03not you're not buying full hospitals i'm sure all hospitals are owned by the whoever you know is

16:07running it multi-care up here in washington whatever you're buying the small offices that surround the

16:12hospitals or that or a lot of times we buy uh we go by community hospitals building so the community

16:20hospitals wanting to become um uh become a leaseholder and don't want to be a land landlord

16:29several advantages for them because they can pull the cash out and they can grow their business that

16:34way that's a very one there's one classical way for most of these hospital networks to grow that

16:39faster because they're now going to sell the building think of it this way you are a physician you

16:45bought a building for a hundred bucks i'm just throwing an example here you bought a building

16:51for a hundred bucks you start establish your practice three years down the line your practice

16:55is so good you're doing you're making enough money now all of a sudden you can afford uh a hundred

17:01dollars rent for a year on a six gap you can do the math what you can sell it for

17:08so what you bought for a hundred bucks you can sell it for six hundred bucks yeah so when you

17:12buy

17:13especially those physician groups or those hospitals or small micro community hospitals

17:18when they build those buildings those their cost was pretty low 10 years ago and now they're

17:25willing to repay the rent because their revenue is sustainable they're predictable they can now set

17:31it on the cap rate not on the cost of construction if that makes sense yeah it's very beneficial for

17:36them for me as an as an investor well i'm getting a much more predictable cash flow

17:43commercial asset that's mission critical and then uh you know start going away from from economy

17:50anytime soon yeah um and what what is medical trade trade at you mentioned six caps is that

17:57is that where medical is or if it's if it's if it's a newer built in in uh in a

18:03primary location

18:05you're looking at lower five caps um if it's um but a lot of times

18:13the the that feel is um a lot of times it's it really depends on you on how you source

18:20the market

18:20who are you approaching because a lot of physician groups they're not they're not thinking about

18:24selling yeah they have never sold a building right and and when you go to them and you share this

18:30idea with them it's like oh shit i'm sitting on this this asset for 10 million dollars for the last

18:34five years and i should have i could have had that money oh so that's how that's how you get

18:40your

18:40leads um is you're actually approaching the physicians themselves uh because they they're

18:46the they were the original builders they're the owners um so interesting okay that makes a lot of

18:50sense um and so clinics and micro hospitals though that those are your main those are the people that

18:57you approach those are the ones that you you primarily look for yeah yeah makes sense and do you um

19:03do you look in areas that are you know not dfw whatever chicago do you look in small suburbs

19:11um outside or are you only yeah we do that's one thing that i've learned and last um we started

19:16about

19:17three years ago on that on that um line of business um and i quickly realized that um the industry

19:23is kind

19:23of entirely different than what i was doing in multi-family multi-family is obviously you know

19:27tenant-driven you need you need jobs and all of that same case in in medical as well as job

19:33and

19:33uh population grows there but those uh secondary markets of um let's say where you live there's

19:41an embassy or there's a secondary market or even a tertiary market a lot of times they are mandated by

19:45the government to have some kind of medical facility there so they're not interesting they're not even

19:51they're not moving out right um so those markets are very interesting um people see it differently let's

20:00say if you're coming from a multi-family background you may not look at those markets to secondary and

20:05tertiary market well medical is different we do look at that um we like those markets especially

20:11secondary market or or tertiary market because my my seller is oblivion of what he's missing out

20:22i'm the angel uh in the dark for them yeah yeah it makes a lot of sense you said there

20:28are government

20:29mandates are some of these subsidized by the government or how does that work yes a lot a lot

20:35of those um depending on which state you are in um there could be a case where government is subsidizing

20:41the property tax over there or subsidizing some of the um uh uh state or federal tax over there or

20:49even

20:49in some cases their reimbursements from the insurances are much higher much much favorable

20:56because they are required to stay there in the presence either by a local government standard or by a

21:02federal government standard and just now that you still have population there somebody have to provide

21:06healthcare with her huh interesting i did not know that so their property taxes are lower because

21:12the government needs that kind of service in the area and so they're incentivizing them to to stay

21:17there to be there um versus leave and i'm assuming all those benefits roll over with the property now

21:22with the actual the tenant and so if you know when you buy the property you get that that benefit

21:27of

21:27reduced property taxes which is huge especially in states like texas holy crap they have the highest

21:32property taxes i own a couple self-storage facilities out there and every year i get that notice like

21:37your property taxes are going off i'm like guys come on what are you doing um anyway so uh i

21:45just

21:45want to clarify it's just funny to clarify for your audience that case of being incentivized by government

21:50is very specific to um to state county level and in other factors so again we're not advising

22:00and investment decisions so you know do your due diligence yeah that is a that's a lesson i've

22:07learned the hard way a couple times so yeah awesome man well i just took a peek of the clock

22:11we have

22:12run it down so it's time to jump into the quick question right are you ready yep cool it starts

22:17with

22:18education it could be any form could be a conference you've been to mentorship program you've been a part

22:23of movie you've seen anything like that i just need two recommendations one for general life wisdom and

22:27then one for real estate joan um i'm a guy who uh read a lot of books for fun but

22:35i pick one for

22:36learning so there's at least one or two books that i try to read two to three times every year

22:41at least

22:42uh it could be marketing or sales so it could be things that you want to learn uh people call

22:47it

22:47skill building or or or um any other way so that's just my strategy i mean if you know you

22:54can be very

22:54well worse and and talk a lot on several topics when you're reading a lot of books but as a

22:59business

22:59owner you got to know what you're doing because you've been hitting a lot of hats and past and you

23:03want to you don't want to lose touch what uh what specific book could you recommend that you that has

23:09kind of had an impact on you in terms of the um i mean i'll pick um sales marketing book

23:16uh alex's

23:18hundred uh hundred million uh lead was really good i read that a lot i had a very good friend

23:23um don

23:24is that the one is that the one that he got the world record with yes yeah yeah um i

23:31also like the

23:32atomic habits um and there's a art of persuasion that's also depending on who what you're doing at

23:37what time it's it's really important uh my personal favorite is um and i'm working on on a different

23:43version of that is really how people how you manage people and um how you team so there's a

23:49a good friend of mine don runner um he wrote a book um how to build elite organizations um it's

23:57not for

23:57everybody but if you are really trying to go to that level um just know that you're not into the

24:03business that you think you're in you're now you're running a recruiting business really nice i like it

24:09all right next question is for your younger self let's go back to the sid who was got that first

24:15job out of college i think you said oil and gas go back to him look him in the eye

24:19give him one piece

24:20of advice moving forward and that was so bad i have to like at least 10 advices um

24:31uh stay open-minded uh i went to a really good school and i thought that i'm the best

24:36like oh shit i was zero uh stay open-minded you gotta know what you don't know and you don't

24:44know what you don't know so stay humble and figure it out be inquisitive figure out what

24:48else going on in the world yeah that's the the danger and the benefit of being a newbie being

24:54naive is you just don't know what you don't know but it's a benefit because then you're just going

24:58to be taking actions that more wise people would not take but sometimes it works out so um but no

25:04understanding that you don't know most of what you need to know when you go into a new venture is

25:10very very crucial um that leads us to the next question this is about the u.s it is a

25:15big place

25:16there is a lot of opportunity out there give me the single metro you're most excited about investing in

25:21today today um well i want to give a general answer and a specific answer any any um if you're

25:30looking at multifamily look for uh states and cities that are not overbuilt um you want to go

25:36you want to be there um i know tennessee's super hot but i know i also know builder these guys

25:42have

25:43only two things a hammer and a compass and they're going to find where it's needed so be be inquisitive

25:48about um use in that particular case i think it's a it's at this moment it's positioned well it's not

25:54been overbuilt like dallas or or austin um noxial i think tennessee is probably also a secondary market

26:01this could be really good um in case of medical all midwest is very high on the occupancy um it's

26:09very hard to build over there um the population is steady so there's not too much build too fast

26:15um so i love midwest um for both of the areas really yeah is there any um specific area in

26:22the

26:22midwest um or even state but if you yeah midwest i think you you want to definitely look into

26:27um oklahoma tennessee um arkansas uh those are the areas where new construction on medical side

26:35is not too fast because the population is not not growing as fast right um but there's still people

26:42moving in i mean phoenix was a great example you don't want to go to a city like phoenix because

26:47that grew super fast and now same as austin they they both grew super fast and now they're

26:53they're wobbling you know their rents are going down and publishes so much build builder came in

26:59with the compass and like i'm gonna build the heck out of that city and and that's what happened

27:03yeah yeah makes sense all right next question is about finding deals it all starts with getting

27:09in contact with the seller and pen in that purchase agreement so what is your favorite way to

27:13generate leads and find new deals the bigger the deals the better for you to not to fool yourself

27:20meaning if you're going for 25 million dollar deals and up for apartment complexes it's extremely hard

27:27to cold call somebody and there's a buyer who's willing to sell it with you they're going to go for

27:31full service if it's a good asset so building relationship with brokers um know your five percent

27:36of the brokers who are doing 80 percent of deals in your city um every city every major city have

27:43five

27:43percent of the brokers who are doing most of the deals um if you're new just know they're not

27:49going to give you their best deals and you got to figure out a way to to make your peace

27:54finding

27:55the right deal and pay a little bit more to to win that bit yeah that's only to be unfortunate

28:00to

28:00build a relationship unless and until you you're born in a in a real estate family and your dad had

28:05a

28:05lot of relationships but once you uh once you do buy that that first deal with them that that does

28:11start the relationship and then they they see you as a performer they know that you're going to be

28:15buying um and so they're going to be starting to bring more deals to you um so yeah i mean

28:20i'll

28:20we'll put that in the bucket of broker relationships and we hear that so many times especially with

28:24larger assets broker relationships are key um i will say on the smaller side if you guys are looking

28:29for smaller deals off market is definitely definitely viable there you can do cold calls you can do

28:35mailers texts whatever it works very well for smaller deals because uh that's you know brokers

28:41you know they're they're not getting a commission on 25 million dollars they're going to commission on

28:46one million dollars two million dollars and there's not going to be as many of them there so

28:49um leads us to the next question this is about lessons learned not every deal we get into goes the

28:55way we expect it in fact pretty much every time something goes wrong and that's when we get to learn

29:00a

29:00lesson so what was a deal that went a little bit sideways for you and then what was the lesson

29:04you pulled from it

29:05a couple of those uh after right after covid i have a couple of deals that were

29:08heavily centered by restaurants and happening places and i thought i'm going into a really good

29:14location well after covid um most of those businesses were closed and that particular sub market was

29:22um badly affected um lesson learned i think the only lesson learned i knew how to clean up a property

29:31from criminals and uh and uh homeless squatters and all of that i mean i know it all uh i

29:37spent my own

29:38personal money to support those those clean up um i had investors involved and the other thing you can

29:44do is like be very proactive and clear about your communication with investors um i had a guy that

29:50was helping me with that operation and i asked him to wear a life life life vest with a camera

29:57body cam and

29:57record every single thing and i started reporting to my investors what we were what we were doing over there

30:02at the night time interesting that's actually i want to hover on that topic just briefly because i uh

30:08i buy self-storage facilities and in self-storage it is man just property crime is so hard to deal

30:16with

30:16because people will break into your facility and try to break into doors steal people's things

30:20um and it's not i have not found the cure for it yet it's just something that i kind of

30:25underwrite

30:25and i and i know can happen in an area how do you deal with property damage with property crime

30:31um that kind of thing you know um car provider net do everything um meaning the the easiest stuff first

30:41obviously you know uh lights and cameras and alarms going to help you uh obviously in in such

30:47storage you cannot alarm every single uh uh storage place i can understand that uh the other easier

30:55thing is to uh get complete get very very comfortable with the with the local county and

31:01and police and and and and city um it's it's easier said than done but you gotta be consistent

31:08um that's one thing that's that you know that produce most results um in houston or in texas we have

31:15a

31:15call number called 211 my company is a is the most callers uh we did the most number of calls

31:22last year

31:23um about 1800 calls uh for one of the properties that we were trying to clean up and wow now

31:30they

31:31know us right what you can also do is you can actually give one of the one of the storage

31:37if

31:37it's vacant as a as a break spot breaking um you know put some uh donuts and a tv and

31:45some music and

31:45a small fridge for for the sheriff on the route and they can come in and they can take a

31:52break there

31:52and that sometime helps um so those are i've got like nine points in our firm we have an sop

32:01for

32:01everything and sometimes i know as my employees but i tell them it's like if you can break that

32:06sop i would love that and i would not ask you about the sop unless things go wrong right yeah

32:11so you do

32:11mistake i'll show you hey we told you not to do it and that's where the sop comes out so

32:16it's

32:16security also have the little sop over there nice yeah that that's an interesting idea of having a

32:22break spot um all right and then on the other side of that uh sometimes things go right and those

32:28deals

32:29stand out in our mind as our favorite so what is your favorite deal that you've done so far

32:36um recently today um in january we bought something out of foreclosure um every single

32:42deal that i paid too low it's my favorite deal um a location matters quite a bit right um it's

32:50um

32:50it's one of the every talk about location location location it's really um uh important where you're

32:57buying the asset uh we've got one deal that we're sitting on forex equity uh equity multiple

33:01uh we haven't sold it yet um can i still go get a forex equity multiple today probably not uh

33:09well let me take it back i think this is the market where it's those kind of assets are possible

33:14uh

33:15or pricing are possible um and those happen because we bought in the right location we did the right

33:21renovation at the right time and we focused on um operating a skill set smooth and capex um that one

33:31thing allow newbies they have a budget of two million dollar on renovating property the lender is

33:36asking them for the update and next thing they know they blow up that two million dollar on the

33:40renovation well in uh properties residents still don't have their dollars being fixed they're not

33:48going to pay you the rents if you're painting the whole property and the toilets are in their

33:53toilet or their work order is not being completed there's no point in investing that money so

33:59knowing what you're investing in is extremely important it takes maybe it takes one extra

34:03handyman or maintenance guy on the property to fix more work orders that they have ever seen

34:09versus changing the whole roof on the property or paying for half a million dollar job right

34:16so those are the important things yeah we also do uh i can talk about operations all day long but

34:23we

34:23we have a different way of doing water conservation uh we don't go blindly change all the toilets and

34:28hope that the water will come down uh we have an entirely different unique uh uh proprietary way of

34:34doing things uh water conservation nice man well maybe i'll have to have you on again uh we can talk

34:40we can get deep into the weeds on how to reduce opec expense um but for now we're going into

34:46the

34:47second to last question this one is about ai it is here to stay and it is affecting every

34:52business that implements it into theirs so how are you implementing ai in your business today

34:57i see a glimpse on your face when you talk yeah you're right yeah i d person and i'm the

35:02i'm the

35:02same way uh we um terminated our contract on the crm we built our own crm and our ai bot

35:08actually

35:08scheduled uh so we're using a lot a lot in the marketing side uh we have not touched um much

35:14on the

35:15automation of reparative tasks but i have a guy uh that we recently um uh hired offshore um and he's

35:24going to help us on implementing some of the invoice posting and reminders and back-end uh administrative

35:30work um i have not able to find an ai way of raising capital so if you know any let

35:38us know

35:38that would be awesome we're we've seen quite quite a bit of cost um by removing some of the

35:45nonsense and and and operations and uh now we realize i mean i'll give my uh marketing cost came

35:54down from four hundred thousand dollars a year in portfolio wide to uh 120 and we dropped it by

36:02getting rid of apartments.com getting rid of all the expensive crm uh we bought built our own crm

36:08in-house it took us 90 days uh which i was you know not expecting but it saved quite a

36:16bit

36:16that's awesome man what'd you guys use uh like cloud code or replet or so we we did um so

36:23we so the crm

36:24that we use is we white labeled uh go high level oh yeah okay but we but we did all

36:31the automation

36:31and the ai calling ourselves so if the lead comes in all of the ai callings happen uh

36:38to our bot um and then on the cloud code side that is more towards i feel like it's more

36:45towards

36:45capital raising side where you can do automate your marketing your branding and things of nature

36:50uh so we can we're working on it we'll see how it goes um but i think my first target

36:57is to automate

36:57as much as i can on the operation side our goal has been uh for last three years is reduce

37:04as much

37:04administrative work from the property manager and only give them we call it big five which is

37:09your renewals your collections your marketing your property condition and your work orders

37:15if they can handle those fives those big five i don't need a smart really super smart manager i can

37:21train somebody who is just good in a system manager and they can be a manager yeah yeah most of

37:28my team

37:29they don't post invoices uh our corporate does and now we're going to start ai posting those invoices

37:34and paying paying those invoices and all other things very cool have you guys played around with um

37:40ai voice at all uh like having it taken and um you know duo do delinquency calls um you know

37:47take

37:47in anything like that you guys are using mostly uh tour setup at the moment and i think when

37:53reminders are going as the next um it's not been fully implemented we're at the moment we're trying

38:00to do a delinquency uh uh conversation and then third thing that we will be doing is the uh well

38:06before delinquency i want to uh uh do the uh renewal reminders and conversation about renewals

38:12very cool yeah i mean i could get really deep into that one but uh it adds we've run the

38:18clock down so i

38:18do need to push us into the very last question and this is for the listeners you've given us a

38:24lot

38:24to think about i'm sure people want to reach out get in contact with you this is a two-parter

38:28where

38:28can they find you and then what can they expect when they reach out well people can uh look for

38:33my

38:33name on um on linkedin or they can go to our website at www.headwayinvestment.com

38:41um we they can also call us um i don't remember our phone number we have three phone numbers that

38:48they can call on a ghl uh but if you give me a second i'll tell you that i'm sure

38:54i have it in

38:55the um in the submission that you guys did and so i can i can also put that in the

39:00uh show notes below

39:01so if you guys want to reach out i yeah it's 281-559-7061 perfect and i will put all

39:10of those links and the phone number in the uh comment in the um the section below so if you

39:15guys click a little more in the description it's going to pull down that full description and in

39:20there you can find sid's links all right man well that wraps it up thank you very much for hopping

39:26on

39:26the show thank you absolutely for everybody who's with us today thank you guys for showing up you are

39:32the reason we do this so if you guys have any questions reach out to me gabe with the real

39:36state investing club.com if you guys want to support the show just leave us a comment review anything

39:40like that other than that i hope you guys have a great week keep rocking real estate and i look

39:46forward to seeing you on the next episode thank you

How a $70K House Became His Path to Financial Freedom with Sid Shamim

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