Unlock the secrets to business growth and wealth creation with Michael Del Prete, Arizona's visionary real estate leader. Journey alongside him from humble Connecticut beginnings to dominating property investment. Delve into the transformative power of mentorship and strategic alliances as he unveils his business playbook for entrepreneurial triumph.
Explore how Del Prete's unconventional career path, from managing bands to mastering the art of selling and networking, paved the way for his business success in today's dynamic real estate landscape. Witness firsthand how personal milestones can shape professional trajectories, offering both stability and opportunities for prosperous ventures.
In this episode, delve beyond property investment as Del Prete shares his blueprint for navigating life's transitions with finesse, emerging victorious at every turn. Gain exclusive insights into scaling a business through the Arizona Real Estate Investors Association, where adaptability and strategic networking reign supreme amidst shifting market sands.
Prepare to elevate your business acumen as Del Prete unveils the formula for wealth-building within the realm of real estate. Whether in bustling Phoenix or your own backyard, learn how to harness the support systems and capitalize on market conditions to transform your financial journey. Get ready to be inspired and empowered to turn your business dreams into reality.
Michael Del Prete: LinkedIn - https://www.linkedin.com/in/delprete/ YouTube - https://www.youtube.com/channel/UCp0tK_os463tPhZqy2gbsJg Instagram - https://www.instagram.com/michaeldelprete/ Facebook - https://www.facebook.com/mrdelprete Website (AZREIA) - https://azreia.org/
Unlock the secrets to business growth and wealth creation with Michael Del Prete, Arizona's visionary real estate leader. Journey alongside him from humble Connecticut beginnings to dominating property investment. Delve into the transformative power of mentorship and strategic alliances as he unveils his business playbook for entrepreneurial triumph.
Explore how Del Prete's unconventional career path, from managing bands to mastering the art of selling and networking, paved the way for his business success in today's dynamic real estate landscape. Witness firsthand how personal milestones can shape professional trajectories, offering both stability and opportunities for prosperous ventures.
In this episode, delve beyond property investment as Del Prete shares his blueprint for navigating life's transitions with finesse, emerging victorious at every turn. Gain exclusive insights into scaling a business through the Arizona Real Estate Investors Association, where adaptability and strategic networking reign supreme amidst shifting market sands.
Prepare to elevate your business acumen as Del Prete unveils the formula for wealth-building within the realm of real estate. Whether in bustling Phoenix or your own backyard, learn how to harness the support systems and capitalize on market conditions to transform your financial journey. Get ready to be inspired and empowered to turn your business dreams into reality.
Michael Del Prete: LinkedIn - https://www.linkedin.com/in/delprete/ YouTube - https://www.youtube.com/channel/UCp0tK_os463tPhZqy2gbsJg Instagram - https://www.instagram.com/michaeldelprete/ Facebook - https://www.facebook.com/mrdelprete Website (AZREIA) - https://azreia.org/
Only I was able to quit my job in a year because coach mentor was a business. We turned it into a partnership and joint venture. So relationships are huge. So if I didn't have a coach or mentor to lean on and learn from their mistakes right, I wouldn't have been able to put my job in here guaranteed, right. So the leverage of other people's money, other people's resources, other people's knowledge, kind of thing, Welcome to small business pivots, a podcast designed for small business owners.
Speaker 2:
I'm your host, michael Morrison, a small business coach and founder of boss, where we help make business ownership simplified for success. We do that with professional business coaching, business loans simplified and much, much more. To learn more, go to businessownershipsimplifiedcom and make sure to hang around to the end of this episode for my recap and coaches corner, where I share applicable action steps that will help you grow your business. Our guest today is Michael DePree. Michael is the executive director of the Arizona Real Estate Investors Association. Michael brings a wealth of knowledge and experience, hosting over 700 transactions from Cleveland to Phoenix. Known for his insightful advice, michael has empowered investors of all levels to achieve remarkable cash flow. His expertise has earned him recognition as a sought after speaker at IAMN conferences and as a featured guest on top real estate podcast. He's been spotlighted by esteemed publications like Inman, cementing his reputation as a leading figure in the industry.
Speaker 2:
But Michael's journey began far from the desert landscapes of Arizona. Hailing from the tight-knit streets of Waterbury, connecticut, he's a living testament to the power of determination and passion. His rise to prominence serves as inspiration, especially for those who understand the hurdles of humble beginnings, his guiding philosophy If you want it bad enough, you'll find a way. If you don't, you'll find an excuse. Let's get to our guest now and learn the pivots he made to build his successful empire. Welcome to another Small Business Pivots podcast. We have another special guest from around the world. How are you today?
Speaker 1:
Wonderful, wonderful Thanks for having me man, Fantastic.
Speaker 2:
So give us a brief introduction and we'll go from there.
Speaker 1:
Yeah, mike Delpre, executive director of the Arizona Real Estate Investors Association. I'm based here in Phoenix, arizona. Outside of being the executive director of the association, I'm also a real state full-time real estate investor Rental properties, fix and flips, airbnb's, you name it. So that's my life, man, and, in short, wow, wow.
Speaker 2:
Okay, so we're going to have a lot to talk about because we haven't talked real estate on the podcast yet. But the first thing is, I always ask people where they're from. And then what is one thing, if someone were to look, looking to expand their business or maybe move to the area you're in, what is that area known for industry-wise for business?
Speaker 1:
Got it so well. I'm originally from Connecticut so, but I've been here in Phoenix since 98-ish around there. So this is home now. So I'm here in Phoenix, arizona, and I would say you know, traditionally Phoenix has always been like a retire man, like a retirement tourism, you know kind of situation. But over the last decade, man, it's totally expanded. I would probably say man we're. We have a lot of stuff, a lot of industry here now, but I'll probably mainly like chip, like Intel's out here. Chip companies technology has been really a big thing here. The electric vehicle plants are here, so I would probably say it's leaning towards that way as well.
Speaker 2:
Technology. So are you getting some of that influx from California and some other states, or is that just you were kind of breeding that for and it's getting bigger, yeah?
Speaker 1:
I mean California for sure. I mean, at one point it's probably not majority of it was California I think we're getting 280 new people a day coming to Phoenix. We're probably one of the top five fastest growing cities in the country. And, yes, a lot of Silicon Valley kind of stuff, like we have Intel here and I'm going to chop it up, but there's a Taiwanese plant that just came here and they're you know, they're getting those high level executives from San Francisco coming out here versus you know, uh, you know smaller jobs.
Speaker 2:
Yeah, no, that's wonderful. I appreciate you sharing because, as business owners, we're always looking for new opportunities and some grounds that we haven't explored. So appreciate you sharing that. So our purpose here on the show is to help small business owners. A lot of them are stuck. Uh, sometimes they're the bottleneck of the business and they typically are known for working in the business, not on the business. We've heard that phrase before. So our purpose is to help impact them through your and I's failures. So let's get started. Got them. Where do you want to start? How did you get into, how did you get into entrepreneurship? That's nothing that you just dive into, yeah, well how far back do you want to go?
Speaker 1:
I think by most entrepreneurs, you know, it's kind of something. That's kind of something you've always did since you were a kid at some level. Accidentally you would do something and realize it was an entrepreneur. Like entrepreneur, even the word entrepreneur is kind of like it's not new, but it's kind of more of a phrase now. Yeah, um, but yeah, I mean, I would say man, I was in, man, what, oh, I got so many things I did. But let's keep it fairly short. Like my early twenties teens yeah, um, I was, you know, band management throwing concerts. Uh, look, you know, just bring an act of town or local bands, so I'd put all them together and I would sell tickets. So that was the whole gives many people in the room as possible and and sell those concert tickets with a good band, a local band that could go out there and sell tickets to their friends and family. So that that's how I I would say it was a good start to the entrepreneur world.
Speaker 2:
Did you go into it with confidence? I know a lot of business owners. We have a lack of self-worth, or or something similar. Did you just go all in or was there some challenges, mindset wise, that you had to overcome Well?
Speaker 1:
being at that age, you were just doing. There was no even like strategy or plan. It was just like hey, I'm, I'm on to something you know. So it's like.
Speaker 1:
So how it really worked out was there's what's called street teams, so record labels when they want to push, push an album before Spotify and all you know major, all the internet was like you'd, you'd have groups of people go to concerts and pass out flyers, cds, records and all that stuff. So I joined one of those street teams for record labels so I'd get paid by the record label to talk to DJs and go to concerts and you meet all the right relationships, cause every concert promoter, every DJ wants the newest record label stuff. So they were those are your inside scoop. So when I started meeting all those resources, now the concert promoters are like will you promote my concert? The deed, you know. Then you know the DJs and you start connecting all the pieces. Then the local community starts coming to you and saying, hey, you're this guy that knows everybody, can you get me on? So you're like, oh, okay, all right Then.
Speaker 1:
So it's like you start giving people these opportunities. Then you start going, hey, I could throw my own concert, I can call the record label myself. Yeah, right, so then? So now you're putting your bands on your concert ticket to open up for that national band. Then you're like, well, shoot, why don't I just start my own clothing company? Then I started making my own t-shirt up. Then you know what I mean. So at the concert I have the bands opening up and even the main artists potentially wear my t-shirt, while I'm selling the merchandise on the side. So that's how well was there a plan all in.
Speaker 2:
I just rolled with it Fearless.
Speaker 1:
You were fearless at that age.
Speaker 2:
And? But you did mention something that a lot of businessmen do, something that a lot of business owners need to realize. And I just had one approach us yesterday. So we were a business coaching company, so we helped small business owners build a business that works without them. So that's everybody's dream right? We don't want to go in the office 20 hours a day and put out fires all day. So they said I want to expand my business, but I hate selling. Hmm, and I said I don't know if I can help you. You are the. You are the face of the business. You've got to make those kids. So even at your young age, you learned one of the most important parts of being a entrepreneur, and that is connections, selling things like that. That's awesome. So how did you move from that to where you are today? Was there something happen?
Speaker 1:
So yeah, a lot of things happened. I, my wife, you know, and then we had a kid. Oh there, you go into story. So you know, realize that, you know. Hey, you know, being out in a nightclub Three in the morning, yeah, doesn't fit with a one-year-old, and he just not was for me personally. I just didn't fit.
Speaker 1:
So I went and I got a job and I was working, you know, 50 hours a week getting paid for 40 kind of things, and in the cuba cool. So it was great. I worked at Verizon wireless. So if you, you know, if you're out there and you had a cell phone issue, you were probably yelling at me, so, but that, so I went down that world. But it was a blessing in disguise because, once again, like you're always like looking for opportunity, like I, if you're sitting here, you, like you ever have that feeling like you know you want something more, you want something better, but you just you don't know what it is, you're trying to figure it out. So that's where I was at Verizon. I was like I don't belong here, I'm like I need to be on my own, you know.
Speaker 1:
So there's a guy at the water cool, you know, they'll go to old water cooler talk and everyone's complaining. And so some guy happened to say, hey, you know, houses are cheap out there, and this is Phoenix and oh nine. So it's like houses are 30, 40, 50 thousand. But but just putting two, two and two together, I just remember was the boom happened. I don't know, for those who remember the boom, the last real estate boom, and like what it was it oh four or oh six, oh five. Yeah, everything exploded. So I'm like, hey, man, houses were like 300,000, so why are they 50? Now? It's like curious the economy.
Speaker 1:
Yeah, yeah, yeah. So I was like what's going on out there? So, but I was also watching HGTV and you watch them making those 80, 90 thousand dollar checks on the flips. Yeah, it was all kind of like snowball together. So I started getting curious and doing research as to like what's going on in the real estate world. And you come to find now we're miracles on sale when most are like run for the hill, you know, run away. No, if, if the grocery store best buy puts a loss leader out there and they're like, hey, free grapes, free eggs. This week Everyone runs, yeah, and goes, buys eggs. But when the real estate was on sale, everyone runs the other way. So I kind of just went in and figured how can I get in this business While working and is there something here? So that research led me to the real estate world.
Speaker 2:
I love that story. We're also approached by business owners that don't want to work outside their job because they don't want to work for free, and I'm like then you might not be a business owner Because there's a lot of free work that you've got to do, which is kind of like what you did. So you did some due diligence on your own while you had a job.
Speaker 1:
Yeah, 100%. Oh man, like cuz you had that crazy schedule is like my days off were Sunday and Wednesday and I worked from 2 to 11, so it's like it was an hour away. So now I'm getting ready at 12 to be there by 2 and drive and then you get home at midnight. It's like I had to wake up like 5 6 in the morning and from 6 in the morning at 12 To do family errands and try to figure out this Real estate thing that your family members tell you is a scam, right yeah right, yeah, yeah.
Speaker 2:
No, that seems like yesterday. It's Q4 of 2023 as we're recording, but that just does not seem that long ago because it was just so chaotic, kind of like the pandemic. It's like you'll never forget that either. You know, those are certain times in history that we just can't forget. So you started, you bought one or two or three, or you just had you do that?
Speaker 1:
Well, I started off with a strategy called wholesaling real estate. So the key there was when I was searching, I was like, how do you fix and flip right, I don't have credit, I got a job but like I don't have 50,000. I don't know how to fix anything. How do you get the money? Like, just didn't understand, you don't know what you don't know. And then it's like, okay, how do you become a landlord then? Well, okay, after you buy this house and fix it up, you make 800 bucks a month. Gross, minus expenses. You're at 102 300 bucks a month. How do you get rich and quit your job on 300 bucks? Didn't understand what it was.
Speaker 1:
So then I found wholesaling. No money, no credit, 5k in 30 days. Bam, that's my life right now. So so I found a guy in YouTube who had a hundred videos and he taught it for free and, to give some context at that time, that was infomercial time, like Swipe your credit card for 5k, get the books, get the CDs. It was pay-to-play, so to speak. So this guy having these videos was unheard of. So I watched them all and it's something crazy. Mike, I applied the information. Oh, oh, you took action. You took action. I know a lot of your listeners do take action already, right, you know, of course, of course.
Speaker 1:
Yeah yeah, yeah, but like the people you know or you're trying to get into, you might if you're an entrepreneur and you're trying to get into something new, you might. You're comfortable. Yeah right, you might not be. Like you are interested in real, say, you still have to outside of your business. You still got to do that research and that legwork. So I applied it, man and I, and I did my first deal in 45 days and it made 4200 bucks Wow, I was. So I was like, hey, that takes me what month and a half two months to make this ever rising. You know Whatever was at that time? 40k a year, right, and I made four grand.
Speaker 2:
Yeah, in minutes it probably seemed like so. Listeners, there is a point to this conversation, because a lot of small businesses have Extra income from time to time, and I'm a big believer in that. You shouldn't put all your eggs in your basket, which your basket is your business. So a great resource or additional income is real estate, and so we have an expert professional here, this sharing not only just how to do it, but how to create a business out of it. So that's the purpose. I just want to yeah, I don't want to lose any listeners on why we're talking real estate but so your business. So you, once you've established a business Framework or whatever you want to call it, what were some of the challenges that you started with?
Speaker 1:
really. And one is education, right. Like you know, once again, you don't know what you don't know, so there's ways to do it and the ways to do it right. So it's like the information of taking on this whole new world, right, the. This is the American dream, the biggest purchase of your life, and I got to do this every day, you know. So it was the information of how to do it right and, most importantly, deal flow. So we're talking marketing, right, you know, getting leads and so in our business, for at least the wholesaling part and buying and selling real estate, the highest income generating activity is analyzing deals and making offers. So I had to figure out how to get as many people in front of me as possible to say yes, raise my their hand and say I'll sell my house. You know.
Speaker 2:
So at an early age, you not only learned connections and sales, but now you're into marketing. I'm just reminding our listeners that you can't just have a successful business and not have your hand in the cookie jar somewhere. So you, you started with all that and you started building that. How long were you at Verizon before you Felt comfortable enough to step away? That this is, this is really turning into a business One year, one year, okay, yep.
Speaker 1:
And there's a key element that allowed me to do that was Because when I was working on my second deal, I just reconnected long story short, or reconnected with someone I went to high school. What that happened to be in the business as well. So we connected and he this is amazing, it's like so, if I went into your job today or any of your businesses and I needed to learn your position, you could see the invisible. You could tell me my hurdles, my obstacles, my frustrations Right off the bat in my first two weeks or a month. So he knew he asked me to bring when we first meant to bring all my leads, everyone that ever told me no to bring those to his office. I'm like what do you want them for? You know, yeah, he knew I comped the property wrong, I analyzed it wrong, I wrote the wrong offer, I just went about it wrong.
Speaker 1:
So he, he turned 20 leads, 20 pieces of paper. I had right. He turned them into four transactions and about 15, 20 came my bank account within three months. Wow. So I say all that I was. Only I was able to quit my job in a year because coach, mentor, it was a business. We turned it into a partnership joint venture. So relationships are huge. So if I didn't have a coach or mentor to lean on and learn from their mistakes, right, I wouldn't have been able to quit my job in a year, guaranteed right.
Speaker 2:
So the leverage of other people's money, other people's resources, other people's knowledge, kind of thing, that's powerful because, as a business coach myself, I share with some of our clients from time to time that I even have business coaches like, yeah, cuz we use. You said it beautifully. You said we don't know what we don't know, and I know that there's uncharted territory, that I haven't been, so I have business coaches that are well, you know past, where, where I want to go just to keep learning and Evolving, because eventually someone's gonna leapfrog over you if you don't. That's usually what happens, and so so you started this business. You left your job. Now what'd you do? Freak out, cuz you got a baby at home and a wife.
Speaker 1:
Yeah, man, it's like. So netball it was more, it was. You felt a little bit more comfortable because I had that person with. He was in the business five years already. So what I learned was I, I was able to market, I build that skill and I was able to make the phone ring, and he yet. So traffic times, conversion equals revenue. So he, I was able to bring the people in, he was converting it and that was the relationship right. He leveraged me, I leveraged him, so that's why it works.
Speaker 1:
So we did that for about two years and then I learned that, um, we've done my failures and mistakes. That, yeah, you know, when you do a handshake deal and Money starts to come into play, when I can 30 deals a year, you know, averaging 10 to 20k a deal, right. So it's like it's actually when you haven't made that money before things get blurry and forgetful. You know we forget things, right. So importance of everything on paper I was told, I was taught that, um, when getting into a relationship, negotiate like you hate each other and run it like you love each other, and once it's all on paper and you guys don't see eye to eye no more, the paper says how you exit the business, not just getting in the business and who owns 5050, whatever it is.
Speaker 2:
There's a lot of other things exiting a business or running a business that need to be talked about one of my past business partners always said if you didn't get it on paper, it wasn't said and it didn't happen.
Speaker 1:
So hey, and in that person that does have any type of paper, they're gonna probably get more leverage than you, yeah no, that's, that's awesome.
Speaker 2:
So are you saying the business partnership did not work out, did not? Work out, because my next question was what would your advice be to people looking to partner with someone? Is there anything that you learn from that? I've been in a Distractive partnership myself and I have plenty to say, but what did you learn or what'd you come out with that Others in the paper part.
Speaker 1:
Yeah, the paper One. Okay, knowing your values, right, you know some of it sounds like cheesy at some. Core values leaves like who are you and where do you want to go? And and do they have those same beliefs? Right, and same visions? But then you guys both can't be the same Person like integrator and like visionary, like all that. You guys have to have different skill sets. I feel you both can't be you know. So at that, that's some of it I learned. And take your time.
Speaker 1:
I was mentored by I don't know if you ever John aster af from the movie the secret, no, so I went under. We'll talk about coaching I paid for, paid him, I think it was 20 grand for one year to just Learn because he knew what you know. So, but he one thing. First thing he said it was he courted his CEO when he wanted to take himself out of the CEO position. Nine months of just getting to know the person, like, are we on the same level? Are we on the same page? Do we have the same goals? Right, you know, and is this the right person? Because another thing I learned was From an old friend was you get like, when you hire someone, all the skeletons come out of the closet on day 90.
Speaker 1:
Oh yeah every time Right. So it's like that kind of concept, like so yeah, when you meet a friend or cuz whatever your old friends it's like, oh man, so exciting, got this, got this, want to change your lives together. But you know I want to slow down.
Speaker 2:
You're preaching to the choir and I am not trying to toot my horn, I'm just trying to toot experience because, I as a business coach and and I know there's clients listening because they they kind of they don't question, but I can kind of see their eyes like moving around because I always say the number one reason why business partnerships do not work is because of misaligned values. And I have them Established, their core values, and then I say go slow to go fast. I mean you just, we did not preempt that, we did not talk about this Off air. I mean you're, you're coming from, from my world.
Speaker 1:
So let's, let's check this out. I was listening to go like always say, find someone that's doing what you want to do and copy Right. And and it's so funny cuz I was like I'm trying to work on my like, my membership model and stuff. So, anyways, and I want to be a better public speaker. So I was watching this YouTube video. I was about a pastor and it was about communication and he has his membership program. He charges 13 bucks a month and he has like 2,500 members. Right, I'm like man, that's like 30 G's a month. I love that.
Speaker 1:
And the guy was asking the same questions How'd you do it, what he's like? Oh, I just watched this. My competitor or whoever I look up to, I want I just copied what they did, so he's like. So why? How'd you come up with $13 a month? Oh, they were 14 Like he's like. I literally just copied them. So, at some level, the information, the resources, it's right in front of us. So we want to take it to the next level. Just get around that coach, that mentor or Friend, whatever it is. Yeah, copy at some level.
Speaker 2:
Yeah, we had a Guest on not too long ago that was mentioning why would I sit here and try to figure it out myself when I can get a mentor coach that's already done it and at least I can get to their level. You know, at least that gets me off the ground floor Instead of trying to figure it out on my own when everybody else has already figured it out. The ground level stuff, you know.
Speaker 1:
So I I think we're all conditioned at some way, like or it's really hard for me to even break to this day. At times it's like if you want to done right, do it yourself right, like that's just like Engrained in us at some level, right, I don't know, for me it is.
Speaker 2:
Yeah, no, I think it's. It's most of us. So you're listening to small business pivots, a podcast created exclusively for small business owners. This podcast is sponsored by boss, where business ownership is simplified for success. Boss helps make business owners create a business that runs without them. With business coaching, business loans, courses, events, additional resources and much more go to business ownership Simplified comm to learn why small business success starts with boss. If you're enjoying the podcast and want to stay up to date with all our latest episodes, make sure to hit that subscribe button and if you're loving what you hear, give us a thumbs up or leave a positive review. Your support means the world to us and it helps others discover the show too. Thanks for tuning in and don't forget to hit subscribe. And, like now, let's get back to our guest. So you're on your journey, your entrepreneurial journey. You're expanding, you're getting bigger. You came up with this organization. Is that part of your scaling process? You want to talk about how you started expanding and Really getting successful.
Speaker 1:
So it goes back and just kind of like when I was talking about the music, it's like you just realize what's in front, being able to identify what's in front of you and being aware of your surroundings. So it's like I, the Azaria, the Arizona Real Estate Investors Association, has been around Arizona for 21 years. So we've been representing investors, giving them education, resources, market information, and it was founded by a gentleman named Alan Lankson 21 years ago. So I've been a member for 12 and then I started teaching here five years ago and I took over as executive director two and a half years ago. So I was just like an investor and I was a part of the association always and I leveraged the Relationships and the networking, the trainings, the coach, all that stuff I did here. So it was kind of like five years ago I started giving back by Because I was in the same seats as everyone else in real estate changed my life.
Speaker 1:
I've Tremendously, but I was also look at it is educate to dominate. So I always said, hey, I'm an authority once I'm in front of that room and what that means, I can now Help people and teach people and do more real estate transactions. So that was part of the, the ideas, this they already had 2000 members right like, or what just about yeah. So now I'm like an influence of those in front of those people. So one help them the best I can and if some deals happen, even better. So yes, so that yeah.
Speaker 2:
Yeah, it's. You know, for a lot of business owners we, we work too hard and I see a lot of business owners where they network, network, network and I ask them who their target audience is and and then where they're going, and oftentimes I find they're just Socializing, they're not networking, and so you kind of put it in a different context of getting in front of your audience. And so for a lot of business owners, make sure you're networking at the right places where somebody's interested in whatever you have to offer. I mean, that's a, that's a golden tool right there for any business owner listening.
Speaker 1:
Yep, so yeah, so kind of. That's kind of like. So so now you know, I'm still in the business, I'm growing my business, I'm doing flips, I'm doing wholesale deals and buying rentals, so it's just a natural progression. And then, as COVID hit, I think that changed obviously everything for everybody at some level and the, the Founder, was like hey, man, it's well, it's actually time for me to exit my well or do my wealth plan like I'm. I had a plan to stay as an investor for X amount of time and With COVID and my plan it's I don't want to stick around anymore, yeah. So he wanted to move on. So that's where I came in and took over the organization, just kind of picked up where he left off. That's nice.
Speaker 2:
So Back to your real estate business. Any pivots along the way that you would contribute to your success today.
Speaker 1:
Pivots. I mean when we, when COVID hit, was one right, so it's like so in Phoenix it came to a point where everything was starting to Boom again right when COVID hit. So it gets to a point as our landlord, the return on investment, the cash and cash returns, are lowering. So it's not profitable to be at some level Landlord at times here in Arizona if you don't get it at a low enough price. So you got to look at different markets. So I started looking in Cleveland and Ohio in the Midwest for those opportunities. But before we have to build a team. Wealth is a team sport. So I needed to build a team out there. So I said let me start wholesaling, like buying and selling deals in Cleveland before I become a landlord there. So COVID hit at the same at that time as I was thinking about that transition as Phoenix. If the market drops 10% on a $500,000 house, that's a big hit yeah, in a month or whatever, right Whereas 10% on a $60,000 house isn't a big of a deal.
Speaker 1:
So what I noticed? I Pivoted and I put my whole business in Cleveland the buying and selling and rentals and I Could. There was not as enough. Everyone was on standstill in Phoenix like what's gonna happen. The world is changing so everyone stopped. So if I stayed in Phoenix and I didn't take, you know, do something virtually which I thought was almost I'm, so I'm at the kitchen table type of guy yeah right, we got to set the table belly-to-belly, do a deal, shake hands. No, and you're talking about buying and selling houses over the internet. During COVID it was, it kept my business alive, like I had to make that big adjustment, scared, nervous, not knowing a whole new market, knowing nothing about it, knowing anybody. Keep and fly there right now.
Speaker 2:
Yeah, make it work that's so Powerful, as well as some of the other things you've mentioned and not just applicable to real estate. I know for a lot of business owners, the ones that continue to evolve and adapt during the pandemic are Far, far away from the ones that just stuck with the status quo.
Speaker 1:
Yeah, and every, not even just COVID. Right, even think about the changes, laws, regulations, ai, like all this stuff happens. Yeah, right, even we do events here. We do 15 events a month and now it's like they do. Well, but some people just rather be on zoom and network. Right, like I got to adapt. I got to offer streaming.
Speaker 2:
Now, like, just got to do it, yeah, so learn to earn, and it's. I tell my kids all the time that that you know the ones. When they hated school I was like, well, if you hate learning now, I don't know how far you're gonna get in life, because you learn more after you get out of school, or you should, yeah, to be successful. So Funny story about the, the zoom, and how people some people prefer that and you might have been this person, I don't recall but so many people when we do a pre-call for our Podcast and a lot of times people will be late and they don't recognize Realize that our first pre-call is a phone call and they're like I was sitting on zoom waiting because we're just so conditioned to do the same thing all the time and Don't realize, you know, and so that's kind of funny how we get. So before COVID, zoom, we're not doing zoom, it's face-to-face across the table, like you talked. And then after Pandemic, it's like everything zoom, no phone calls, no, face-to-face, just fast, you know.
Speaker 2:
So we're funny how we adapt so fast and then we get stuck in that place. So Any so a business owner, let's say, has a successful business. They have some extra income. They've never dabbled in real estate, any first tips or tricks of advice that you would have for them, so they don't have that nervous moment like you did at first.
Speaker 1:
But always, I'm always reverting back to education and the circle people. So real estate investing is an ideal. Investments, an acronym, right, and ideal stands for income. So you generate income, whether it's flipping houses, cash flow Mainly. If you're a business owner right now and you have your own business and life going, you're probably gonna want more streams of income. So cash flows probably the keys, right, so you have the income coming in now.
Speaker 1:
D is depreciation. So the government provides Benefits to those. Provides jobs, shelters, housing, energy, like all that whatever. There's benefits for all us entrepreneurs that the government offers in the tax code. And now, if you don't know what it is, you got to learn it or you got to hire the professional then understands it. So real estate has what's called straight-line depreciation. So you could depreciate one of your rental properties for 27 and a half years without even spending any money. The government just says, hey, there's wear and tear, take a loss this year, right? So, once again, tax accounted for professional advice, right? Yes, yes, buttons Want to let you know. You, that's one thing you could look into when it comes to real estate.
Speaker 1:
So imagine if you had ten of those houses, right? Yeah, so we had a lot of high-income earners like doctors, engineers. They come in here looking for this, you know, stream of income or losses at some level. Right, yeah, there's equity is the E. So you are buying a rental property and Every you'll say you leverage the bank and you get a loan for, for the property and you don't pay the Well, you're responsible for the payment, but you put a tenant in there. So now your, your loan is going decreasing based on the tenant paying it down for you. So while they're paying it down, time happens and the a is appreciation. So now and Over, history shows every 10 years the house can double. So now, 10 years from now, your house is potentially doubled. Plus your tenant has paid your mortgage down for you Now and the L is leverage.
Speaker 1:
Once again, other people's money, other people's resources. Oh, if I wanted to buy you know Apple stock right now I don't even know the price, whatever, it is few hundred bucks probably. If I want to buy 10 shares, I need 100% of the money. Yeah, I want to buy a house. Depending on your loan product and how creative you get, you need from three and a half percent to 25 percent down. Yeah, right, so you get the leverage To get these assets. You get a five hundred thousand dollar asset for three and a half percent down, like that's, that's amazing, and so it's powerful that you're even on here sharing that information.
Speaker 2:
One thing that stuck out was you talked about getting Professional guidance, and I'm not talking about a coach or mentor. I'm talking about yes and a count. Because, yes, I see so many business owners still trying to figure out their own accounting because they think they're saving themselves 500, a thousand bucks a month or whatever, and I'm like, oh, no, no, no, you got to have a cost accountant that knows what they're doing, because you're not only wasting your time trying to figure it out, but you're also missing out on benefits, like you said, like that the IRS, the tax code, allows you to have. There was a Famous politician I don't want to get into his name, I think we all know who it is but he said hey, if you want to get mad at the system, don't get mad at me for using the system. Get mad at Congress. They're the ones that made the rules.
Speaker 1:
We all have this. Whether you're the CEO on the golf course everyone gets mad about makes millions a year. They you have.
Speaker 2:
We all have the same access to the same tax code yet some of us use Professional, experienced people to find those you know tools and benefits for business, and that that's what makes the world go Around, because you're providing jobs, you're providing Spaces for people to rent that maybe can't buy a home, you know multiple, so helping the economy and so on. Your Businesses, what would you say Do you have like a management company? Because I know for a business owner, if they're trying to run a business I know that some have mentioned Well, I don't want to have to deal with tenants and all that what would you, what advice would you give on that area?
Speaker 1:
Higher property manager. Just like hiring, the count is your wealth is a team sport once again. So like for here at the RIA, we have it set up what we call business associates, which are kind of like vendors or sponsors, right, but they're vetted, they've been in the market and business for a minimum of five years. They've been with. Some of them has been with us for 20 years, so you could walk into places like us and there's already the the estate attorney, the eviction attorney, the property manager, the licensed agent, the insurance company, the hard money lender, the regular lender, then spent pest control, the air conditioner company.
Speaker 1:
We have all like they're find a place, what has that? And you always have these all these. You just leverage these professional services. You don't have to do. Yes, you got to be the brains, you got to coordinate it. Yeah, maybe you want to manage the property yourself for the first year or six months, but it's in the day. If you're not getting into the business because of toilets or tenants, yeah, there's someone to handle that, just like your, your business, you know.
Speaker 2:
Are. Is your organization common in other states or is that unique to where you're at?
Speaker 1:
So there's it's called RIA, our EIA, so real estate investing association. So the I'm under an umbrella called the national RIA. So you go to national RIA org and he goes, find our local RIA, and it's putting your zip code or your state and there's licensed ones in every state.
Speaker 2:
Yeah, that's a powerful resource right there to have it all under one roof and guidance. Yeah, you got these people that do it for a living every day.
Speaker 1:
They serve real estate investors. So, and yeah, yeah, even if you you don't have to use them, at least pick their brains. Get in there, learn what's what and then go do what you got to do.
Speaker 2:
I hope the listeners can see that all this information is applicable to any business in any industry. I mean, the things that you've touched on are Assets that any business owner can use to successfully build their business. Any last words of wisdom, or have you shared at all? No, no no, no.
Speaker 1:
So. So because we're entrepreneurs here and I always say the more streams of income, the more financially healthy you are right. So, like. So one point of that is what I wanted to go with. I was like the big. I Got into the business, deal by deal. I bought my, I got into it was my own job was chasing deals, right. So it was a self-employed but I was doing everything and what I would come to realize like these from wholesaling and fixing, flipping the real On the real players were the guys that ran a business, was successful in their business and they took the profits from their business and parked it in real estate.
Speaker 1:
I love it. So if you're, you're a listener. That's kind of part of the reason why I'm glad I took over the organization, because now I have like an education networking Organization. That's a business. We're not the Ria doesn't buy and sell real estate. Yeah. So now I have like the membership income, education incomes. Now, like as an owner, when I get my, my profits right, I'm just gonna go park it in real estate and get all the benefits and let it preserve and grow over time Versus, you know, buying liabilities, cars and all that stuff. So if I could share anything. Take your profits, learn the real estate business, link up with someone that knows real estate and Look into putting your your your money into real estate over time, long, long long long play here.
Speaker 2:
You've mentioned so many keywords that we forget about. Over time is one of the key word he said over time, we're not gonna be a YouTube influencer overnight driving Maserati's and all that overnight, in fact. A little tip I know someone that lives out on the west coast and he has a very nice One of those types of cars and he's like oh, at least once a week Some kid will come up to me and offer me a thousand bucks to take some pictures around his car. So don't believe everything you see on the internet about these overnight sensations. It takes time, just like what you're saying. So I'm so glad you you mentioned that for all the the younger people out there. So how can someone get in touch with you or follow you?
Speaker 1:
Yeah, well, you know, if you're looking to invest in Arizona or you are in Arizona, check us out, as Rheaorg azreiaorg Check us out. Check out our calendar, check out our podcast. We have a podcast as well, all about real estate investing. It's on the website I'm we're on all social media platforms YouTube, so just look up. Arizona real estate investors Association Check us out?
Speaker 2:
Are you open to someone reaching out to you personally?
Speaker 1:
Yeah, by all means.
Speaker 2:
I would someone do that.
Speaker 1:
Yep front office, though on our website or on, I'm mainly on, I'm on everything but for the connect with me at Michael Dell preets is my handle on Instagram.
Speaker 2:
Just send me a message and we'll put that in the show notes too. So, all right, you've been a wealth of information, thank you for your time, if there's anything we can do in return, and I wish you continued to access, and thank you again for your time. Thanks for having me, man. Thank you, welcome to the recap and coaches corner. Recapping today's episode, michael and I deep dived into the vital concept of passive income and the strategic art of building wealth. Real estate can be a powerful pathway, but more than that, diversifying your income streams is what's essential. As we discussed, most wealthy individuals have multiple streams of income beyond their primary business. Now for our coaches corner. Your actionable tip this week is to take the time to assess your current resources and opportunities. Look for ways to leverage your skills, assets and networks to create passive income streams, whether it's through real estate, investments, digital products or other ventures. There are countless possibilities waiting to be explored.
Speaker 2:
Start small, but start today. Your financial wealth begins with a single step and it starts now. And don't forget to build wealth. It is a long-term play, so go slow to go fast. Thank you for listening to small business pivots. Please don't forget to subscribe and share this podcast if your business is stuck or you need help creating your business to run Without you. Go to business ownership Simplified, calm and schedule a free consultation to learn why business success starts with boss. If you have a guest or topic suggestion for our podcast or just want to talk anything small business related, email me at Michael, at Michael D Morrison calm, we'll see you next time on small business pivots.