{"id":103400,"date":"2018-11-01T00:02:55","date_gmt":"2018-11-01T06:02:55","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=103400"},"modified":"2023-02-09T20:31:01","modified_gmt":"2023-02-10T03:31:01","slug":"biggerpockets-podcast-302-making-100k-deal-peoples-money-time-experience-cory-nemoto","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/biggerpockets-podcast-302-making-100k-deal-peoples-money-time-experience-cory-nemoto","title":{"rendered":"Making $100k\/Deal Using Other People&#8217;s Money, Time &#038; Experience with Cory Nemoto"},"content":{"rendered":"<p>Ever had an interest in house flipping but felt you needed help getting started? Today\u2019s show covers that exact topic!<\/p>\n<p><strong>Cory Nemoto<\/strong> is an extremely humble but successful house flipper in Hawaii who is CRUSHING the game. On today\u2019s show, Cory shares his personal strategies for keeping his pipeline full of great deals, what techniques he uses to make a minimum of $100k on each deal, how he partners with new investors to make everyone money, and his brilliant tips for building relationships with those most likely to build his business. You do not want to miss Cory\u2019s unique strategy for using &#8220;debt-quity&#8221; to get deals brought to him before anyone else!<\/p>\n<p>Cory has been so successful flipping houses in Hawaii that he\u2019s moved his system to Seattle, where he\u2019s crushing it there too\u2014all using very simple methods built on relationships and creating win-win scenarios. If you\u2019re looking for a can\u2019t-miss way to build a profitable house flipping business, listen to this one!<\/p>\n<p><a href=\"https:\/\/itunes.apple.com\/us\/podcast\/biggerpockets-podcast-real\/id594419649\" target=\"_blank\" rel=\"noopener\">Click here<\/a>\u00a0to listen on iTunes.<\/p>\n<h2>Listen to the Podcast Here<\/h2>\n<p><iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC7049666844\" width=\"100%\"><\/iframe><\/p>\n<h2>Read the Transcript Here<\/h2>\n<div style=\"overflow-y: scroll; max-height: 400px; background: #eee; padding: 20px; border: 1px solid #ddd;\">\n<p class=\"p1\"><span class=\"s1\"><i>This is the BiggerPockets Podcast show 302.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>With those investors we consider them partners. So it\u2019s good because they\u2019re not just in it for the interest but they\u2019re vested in the deal. So they want to make sure we hit our marks and they\u2019re our extra eyes on the deal because they\u2019re vested in it.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>Like I love when other people around me are vested in the same thing that I am, because we\u2019re all on the same mission.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>You&#8217;re listening to<\/i> <i>BiggerPockets Radio, simplifying real estate for investors, large and small. If you&#8217;re here looking to learn about real estate investing without all the hype, you&#8217;re in the right place. Stay tuned and be sure to join the millions of others who have benefited from biggerpockets.com. Your home for real estate investing online.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> What\u2019s going on everyone? This is Brandon Turner, host of the BiggerPockets Podcast here with my co-host Mr, David Greene. How are you doing David?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> I\u2019m doing great Brandon. I\u2019m here with you, I\u2019m looking at Hawaii in the background and it kind of distracts me from your oddly shaped face. So something better to look at than you when I\u2019m recording this thing.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah that\u2019s why I do that. I got to make it not so scary for the children out there. But speaking of Hawaii today we have a guest actually from the island of Oahu here in Hawaii. He\u2019s a guy that David and I met a while back when David and I were hanging out in Oahu. And we were instantly blown away by this guy. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Cory Nemoto, Nemato I hope I\u2019m not butchering his last name. Super good investor, flipper, getting into multifamily and some other stuff in the future, he tells that whole story today. It\u2019s really good. And he\u2019s got so many good points today. I mean like first of all you guys are going to be blown away with the fact that he makes like their target on a flip, like when I do a flip I\u2019m like, \u201cI\u2019ll make 20 grand I\u2019m happy.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">They don\u2019t do a flip if they can\u2019t make 100 grand per flip. And they\u2019re doing like dozens a year which is fantastic. But anyway just so many good things like how they make their thing, how they keep their pipeline full. He talks a lot about that. How they get deals continually. I also thought he\u2019s- you guys will his discussion on like we\u2019re marketing versus relationship and getting deals.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And I thought that was fascinating and then don\u2019t miss when he talks about debt-quity. I\u2019m not going to say anything more about that. Debt-quity is fantastic, something I\u2019ve never heard before on this show but I\u2019m totally going to start implementing this into my own investing. So with that said, we got a couple of house cleaning, housekeeping things to take care of.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I don\u2019t know we call it that, including today\u2019s quick tip. Alright today\u2019s quick tip is very simple. In the show later on you\u2019ll hear us talking about books. We talk a lot about some of the books that have impacted our lives a lot. And Cory makes his point where like when read the book he shares during the Famous Four, he said when he read that it like totally resonated.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Because he knew that was like true and he didn\u2019t have words for it. Now I feel the same way when I read Rich Dad Poor Dad it was like it put words to what I was feeling. And I know David you said the same thing about So Good They Can\u2019t Ignore You, right. So the quick tip today is very simple, read books like real estate, business, personal development books.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And when you find a book that is like, yes that is what my soul has been doing, like pay attention to that. It means that that is where your strengths lie, right. Anything you want to add to that David?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> That\u2019s exactly right. Most people don\u2019t know where their strengths are. They\u2019re just frustrated because this isn\u2019t going as good as they thought, they\u2019re not hitting their rhythm. Well this is a way to like speed up that process. You kind of tool around, you read every book you can and when you find the one you\u2019re like, \u201cThat guy gets it I like that.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">That\u2019s you, right. That\u2019s absolutely where you found your spirit book basically. Like this book is expressing what\u2019s been in my spirit. That\u2019s where you know this is your wheelhouse and that\u2019s where you should put your attention towards like improving in that area. Like you always say Brandon you got to double down on your strengths not improve your weaknesses.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> I say that. I don\u2019t know if I\u2019ve ever said that in my life.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> Yeah that\u2019s all you say, all the time. Because every time I tell you that you could do better with something you\u2019re like, \u201cNo, I\u2019m just going to double down on my strengths and no improve at everything.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> I don\u2019t say that like concretely and nicely. You\u2019re better with the words than I is. See what I did there? Alright let\u2019s get to today\u2019s show sponsor.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>Today\u2019s support comes from Fundrise. Look if you\u2019re listening to this podcast you probably already know how tough it is to find truly exceptional real estate projects. You\u2019ve also probably felt the pain of finding those projects but not having enough capital to get the deal done. And that\u2019s where Fundrise comes in.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>Fundrise enables you to invest in high-quality, high-potential private market real estate projects. I\u2019m talking anything from high rises in D.C. to multi-families in L.A. institutional-quality stuff. And each project is carefully vetted and actively managed by Fundrise\u2019s team of real estate pros. Their\u00a0high-tech, low-cost online platform lets you track the progress of every single project, and keep more of the money you make. <\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>And oh, by the way, this is awesome, you don\u2019t have to be accredited. I\u2019m telling you Fundrise really does feel like the future of real estate investing. Visit Fundrise.com\/biggerpockets to have your first three months of fees waived. That\u2019s Fundrise, F-U-N-D-R-I-S-E.com\/biggerpockets.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Alright let\u2019s get on with today\u2019s show. Today\u2019s show like we said is Cory Nemoto, super legit, awesome very intelligent, very smart and very savvy real estate investor who\u2019s doing flips both in Hawaii as well as in Seattle. And you hear about that a little bit later. The last thing I\u2019ll say before we jump into the show is I\u2019m going to be hosting another live webinar this upcoming week.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So I want you to come. Go to biggerpockets.com\/webinar to see I guess this week\u2019s webinar or future webinar if you\u2019re watching this in future I won\u2019t specifically say what this week\u2019s is because you might not listen to this for months. Who knows? But anyway I do a lot of webinars and I teach different topics and this week I think you\u2019ll like it so biggerpockets.com\/webinar. And with that let\u2019s get to today\u2019s show.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Hi Cory, welcome to the BiggerPockets Podcast. Good to have you here.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Good to be here thanks guys. It\u2019s honestly a huge honour to be on the show and all.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Thanks.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> I guess before we get into it I have an important question for you Brandon. How and when are we going to get David to move to the island with us?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> I know. He comes out-<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> I mean it just happened or what?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Well he\u2019s like the creepy uncle that like lays on your couch and stays for like months and he hasn\u2019t left yet. Okay he finally left but he could be like the adopted Hawaiian pretty soon. Is that right David? He\u2019s just ignoring it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> I\u2019ll take it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> It probably depends on if I\u2019m referred to as the adopted Hawaiian or the creepy uncle as far as maybe I\u2019ll move in with Cory and he and I will take over the world. And you can have your couch to yourself Brandon.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Alright not a creepy uncle, a loving uncle that sleeps on my couch. No, you got your own bed here, it\u2019s good. Alright we will get David over here to the island but as you said, Cory here is a Hawaiian house flipper but also flipping in other areas as well, at least ironically mild stomping ground. So we\u2019re going to talk about that today and kind of how you got into that. But before we get there why don\u2019t we just go to the very beginning. Like how did you get into real estate?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Oh it\u2019s a long story but I\u2019ll try to keep it condensed because I think it\u2019s the first time I\u2019ve ever really thought about it recently of how I really got started. And it\u2019s a pretty interesting story. I basically read Rich Dad Poor Dad, and that book changed my life. And my dad has been telling me to read it for the longest time.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And I was basically telling him like I hated to read at that time, this was probably like around 2011, late 2011. And finally I picked it up, I read it and that book hit me like right straight in the feelings. Because every word that was coming out of that book was exactly how I was feeling. So I closed the book and I basically was like I called my dad, \u201cHey I read the book. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I read Rich Dad Poor Dad.\u201d And he was like, \u201cOh good.\u201d And I said, \u201cYeah so I\u2019m done with school. This is like my last year in college.\u201d And he was like, \u201cOh whoa, finish it up\u2019. And after taking his advice I decided I\u2019ll just finish the last year in school.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But in the book he recommends just going to the local REIA club and kind of meeting people, that\u2019s how you just get started. Just go and just start talking to people even if you don\u2019t know anything. I was in Riverside California at the time so Southern California. It was May 2011, so I met two investors out there.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And they basically were like, \u201cHey you want to learn how to do this?\u201d and I was like, \u201cYeah.\u201d And they said, \u201cOkay well we\u2019re looking for a few hungry people.\u201d He asked for my business card of course I didn\u2019t have one, so I kind of just scribbled on a piece of paper. I gave him my number not knowing that he\u2019d call me back. But he did. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So when he called me back, it was a week later, they invited me to go to Starbucks the normal meeting grounds for investors. And I met with them and the first thing he asked me was why real estate? And I didn\u2019t know how to answer that question because at the time I read a book and I didn\u2019t want to tell them, \u201cOh I\u2019ve just read this book and it told me to go to this event.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So I basically couldn\u2019t answer them. And he was basically telling me, he told me if it\u2019s for- it was pretty dramatic now that I think about it. But he wrote down on a piece of paper and he was like, \u201cIf it\u2019s for these two reasons, then this conversation is over. And we\u2019ll part as friends but we won\u2019t do business together.\u201d <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And the two words were basically money was the first one and the second one was kind of like for the image like the notoriety of being an investor. So for the image I didn\u2019t care, I was like I\u2019m not here for the image but I\u2019m here to make money. That\u2019s why I picked up the book and I got all excited is I want to make money.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So I couldn\u2019t answer his question and he saw me struggling, so what I realized is that was the first time somebody was asking me like what\u2019s my why.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> And I never had someone ask me that before. So it was basically he told me to go home, I\u2019ll think about it and send him an email. And if it\u2019s good enough he\u2019ll call me back. So I did that and I gave it a hard thought because I thought this is a great opportunity. And he called me back and he decided to give me a shot.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And the shot was basically me door knocking for a year for these guys. And door knocking I mean if anyone of you guys out there have door knocked before it\u2019s kind of like the worst.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> It\u2019s horrible, yeah absolutely horrible.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah it\u2019s not fun. I mean I love dogs but during that year I hated dogs. Every time I ring the doorbell I mean they were like my worst enemy. But so I door knocked for them for a year, they were doing this pretty unique shot at just actually pretty advanced it\u2019s called, I see you guys refer to it as Back Flipping on the forums, so I kind of researched it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But it\u2019s basically they were flipping jumble loans, so non-conforming loans. At the time it was 2012, so the market was still recovering. There was a lot of people upside down with jumble loans. And in Riverside I think anything over $475,000 was considered a jumble non-conforming loan. So what they would do is they would have me go and knock on all of these- they had a list.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Right so I knew these people were upside down. And it was sad I mean they don\u2019t want to see me. I\u2019m the last person they want to see but once they taught me what they were doing, I realised the value I can bring to these homeowners. Because what they were doing was they were going after homeowners who were upside down on their mortgage.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">They had jumbled loans, they had to have been current with their payments and then they had to have wanted to stay in the house. So basically they would go the homeowner\u2019s bank, negotiate with the bank, to buy the note at a huge discount. And the reason why the banks at the time would want to sell at a big discount is because it\u2019s a jumbled loan so they can\u2019t sell it through Fanny May.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">They can\u2019t sell it in the secondary market, so they\u2019re stuck with this toxic asset. So they would negotiate with the banks to buy the note at a discount. And then they would have the homeowner go and refinance, get another loan. And that\u2019s the reason why they have to be current with their payments is because they could get another loan to re-fi.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So like if the property was worth a million dollars or like they owed 1.2, the investor may go in and buy the note for like 800. And then go have the homeowner re-fi like 850 maybe even nine. So now the homeowner they\u2019re not upside down anymore in fact they may have equity, right. And the investor got to make a decent profit and the banks got to liquidate a toxic asset, so everybody won.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s cool.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> When I saw that, I thought in real estate investing it was just buy and you rent, you\u2019re just a landlord, at the time. And when I got out of that portion, as horrible as it was door knocking for them, what I got from it was that investing like these strategies can be so powerful. Like everybody won in that deal, even the bank. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">At the time nobody cared about the bank whether they won or not but they did. So I realised what I can bring to other people with that strategy. So after I graduated, moved back home I knew I needed more training so I went to more meetup groups, got some mentors. And it\u2019s kind of pushed me to where I am today I guess. It\u2019s been a long road.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> And I started from the very bottom I didn\u2019t know anything.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Well what I like about what you\u2019re saying is it\u2019s so true and I think people look at investing like we\u2019re a bunch of sharks oftentimes, coming in to just like make money, despite and nobody else is going to make anything. But like at the end of the day a lot of investing is really like about trying to help make sure we have win-wins and helping everybody. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The bank needed to get out of that loan, you needed to learn how to invest in real estate, the investors needed to make some money, the homeowner needed to not end up in trouble and end up losing their property eventually. So it\u2019s kind of that helps everybody kind of thing, and that\u2019s kind of the ideal form of investing.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So tell me how you got from that to I guess working in the house flipping industry. What was it like? Maybe I even backtrack to like what came next? I mean what was your first deal that you did on your own outside of those guys?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> So after that I started researching all the different strategies in investing. And I actually started wholesaling. I chose wholesaling because to me it seemed something that I could scale, something that didn\u2019t require a lot of capital which I didn\u2019t have at the time. So started wholesaling. I wholesaled my first three deals to my partner Jonah and he is a developer and house flipper here in Hawaii as well.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And he\u2019s like a mentor to me and I\u2019m partner with him on deals even to this day. But my first deal when I wholesaled it to him I kind of asked him I said, \u201cHey do you mind if I worked the project with you? I\u2019d love to see how you do it.\u201d And I mean of course he was like, oh free labour, yeah absolutely. So I worked the project with him and I learned so much.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Just from even that first because it was a Subject-To deal actually and I didn\u2019t know how to close a Subject-To deal at the time. So Jonah was luckily there by my side and I met him at the meetup group like our local meetup group. He was the one talking about how to structure a subject to deal. And I was like, \u201cI have a subject to deal like in the pipeline right now.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So he was the first guy I called and then he helped me close it. We rode down and through and I just kept blasting out my mailers, my marketing. We did three wholesale deals, kind of like mini flips for me because I gained experience from those.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> I actually love way of wholesaling as well. And by the way for those who don\u2019t know what wholesaling is you\u2019re basically finding good deals and you\u2019re not working on them yourselves, you\u2019re flipping them to a flipper usually and a flipper goes and does the work, right. And you make kind of a fee in between.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And won\u2019t go into deep specifics on how it\u2019s done but lots of information on BiggerPockets about it. But yeah I love that idea of taking like yeah wholesalers can make decent money. But what you did is you said, I don\u2019t want to just be a wholesaler I want to learn, I want to grow I want to get experience.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So hey, can I follow you along? I absolutely love that strategy. I think it\u2019s fantastic. Because what you did is you went and found a deal, you brought value. You weren\u2019t just going up to the guy and be like, \u201cTeach me everything you know and take every Saturday from now unto eternity to spend time with me.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And you were like, \u201cNo I got this deal here, I brought you value now you teach me. And like it\u2019s such a good regime. What I\u2019m noticing about the beginning of your story is just like relationship, relationship, relationship. I mean like you started right with that last you went to a meetup right. And you met those people and you got connected with them and started learning how to do it there.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And you went to a meetup in Hawaii and met this guy and started learning there. I actually want to throw a point out there to everybody it\u2019s like BiggerPockets and real estate is cool online like we all hang out, people on the forums listening to the podcasts. But like there\u2019s nothing like getting out there in real life, sitting down for a meal or a drink or whatever and talking with real life investors like networking.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Like you learn so much and you\u2019ll grow so much in those experiences because it stretches you because people are kind of afraid to get out there and network. So Cory do you have any advice for people who are listening to this maybe they haven\u2019t been to a local meetup or a real estate club or anything like that. What should they do that first time? How should the approach people?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Well I think like you said it\u2019s super vital to kind of get out there in the community. I feel it\u2019s the only way if you really want to take this serious because your network is so important in whatever market you\u2019re in. and I was talking to David earlier but it\u2019s like when you go to a meetup, it doesn\u2019t matter how much experience you have.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Like you have something to offer somebody whether it\u2019s your time. Like when I first started I didn\u2019t have anything to offer except sweat equity and my hustle. But that was worth a lot to somebody and I did well for them and I think that the thing for someone who\u2019s new and may be intimidated about going to these events is that you got to know that you do have something to offer.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And you just go to find the right person that is looking for what you got. Whether maybe you do have some cash lying around and you\u2019re willing to pay to play. Or maybe you don\u2019t have cash but you\u2019re willing to put in the hustle for somebody to learn like I did. So there\u2019s something that you can give to someone else and someone is there most likely to receive that.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> Cory I want to take your point and expand on that a little bit. But before I do, we need a little bit of background on you. How many houses are you guys going to flip this year? What are you track for?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> So right now we have 13 in progress, we have five in Escrow, year\u2019s closing I think this year we\u2019ll probably hit maybe 25.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> That\u2019s awesome. And what is your minimum profit you want per house?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> So we don\u2019t do a deal unless it\u2019s six-figure profit or more. We look at two things. It\u2019s the net profit and then the ROI. So in Hawaii especially we won\u2019t do a deal unless it\u2019s a six figure profit. But at the same time we\u2019re still keeping the eye on the return on investment right the cash on cash return. Because if we\u2019re tying up a million dollars and we\u2019re making 100 grand I mean yeah it\u2019s a good deal we\u2019re making 100 grand.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But we could have took that million and we could have done-<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> Have done three deals.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Three deals exactly. We could have done three deals and made 300,000 tripled the return on the same amount of money. So a lot of time we leverage everything. So like we\u2019re responsible to our investors as well. That we want to get the most return for their money.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Yeah. So here\u2019s the point I want to make because we were just talking about relationships and how you&#8217;ve formed relationships and how you started at meetups, and I just know for those who don&#8217;t know Cory, Brandon and I met him and immediately we were just like, &#8220;Dude I just like and trust that guy.&#8221; Like five minutes into knowing Cory and you&#8217;re just like he&#8217;s either a professional conman or just a genuine dude who makes you think that he is, right. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Like he&#8217;s got that strength. And that strength has translated for Cory into flipping an average of two houses per month which is really good but is not like overwhelmingly busy, right. And then he&#8217;s saying we&#8217;re also leveraging out a lot of what we&#8217;re doing. So that&#8217;s even less work he&#8217;s doing, but he&#8217;s averaging $100,000 or more on every single deal. So you can do the math and see 25 deals a year what that&#8217;s turning into right.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">That is how valuable relationships are. Cory has figured out I don&#8217;t need to be the one swinging the hammer, I don&#8217;t need to be the one raising the money, I don&#8217;t need to be the one doing hardly any of this. I need to be the one who&#8217;s developing relationships with the people that find deals, and that&#8217;s where 25 deals I mean $100,000 a deal like 2.5million in gross profit before it gets splits up. So just let that sink in. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And then Cory what I want to ask you is for those who&#8217;re like, \u201cOkay David shut up I get it, relationships matter. What the hell do I go do now to form them? Like how do I build relationships?&#8221; Can you share a little bit with us of like how you got started and what tactics you&#8217;re using to build relationships and knowing who you need to build them with?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Right. Well I guess first before I go into it I mean in my deep core I&#8217;m an introvert. Like I really am. And after a networking event or a big networking event like it takes all my energy. And I guess I call myself like a functioning introvert like I can function at an extrovert level but it wipes me out. And I get it, I get the introvert mind set where it&#8217;s intimidating or you\u2019re unsure about talking to somebody or initiating conversation. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">But what I found helpful is just showing up is half the battle. So whether it\u2019s a meetup group or maybe you&#8217;re hosting your own meetup group, that actually believe it or not takes the pressure off of you a little bit because you can put it on someone else, but you\u2019re controlling it. So I mean that\u2019s a great way to build a network.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Another way that I kind of gave as a recommendation to a group was that any time when there\u2019s a big event whether it\u2019s one of those large training companies that come in through town, I would go and not to be sold necessarily on the products but to be there like kind of looking at who\u2019s hungry and who\u2019s somebody I think I can work with.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Because everybody there, most of them are new, they\u2019re not seasoned yet but they\u2019re hungry they\u2019re there for a reason. Like those are the perfect people to start building relationships with where and maybe you\u2019re on the same level. But it\u2019s a little bit easier coming from the same level to build your confidence and building some sort of network.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">When I was wholesaling my goal was to build a big buyers\u2019 list and obviously market for deals. So our huge strategy was building a network of other wholesalers to co-wholesale deals with, or tap into each other\u2019s buyers\u2019 list or tap into each other\u2019s deal flow. And I met a lot of those people at those types of events. Like I\u2019ve been to hundreds. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">I would still go. I don\u2019t have enough time now but I would still go to those events if I ever felt that my pipeline was getting a little dry, I would go there. And kind of I don\u2019t want to use the word recruit but that\u2019s kind of I\u2019m looking for somebody to help. And of course when they\u2019re by my side I give them everything. All my working materials, I give them like every strategy that I use, the lists that I pull. And it\u2019s because I want them to do well.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And I don\u2019t make them sign any non-compete or first right of refusal. Like I just trust that and if they can take down the deal themselves I\u2019m happy for them. But if they can\u2019t I know that I\u2019ll be at least on the top three call back list hopefully.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> I love that attitude of just giving like if you help other people, what\u2019s that Zig Ziegler quote right if you help other people get what they want you\u2019ll get anything you want or something like that.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I love that quote.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah like you\u2019ll get everything you want if you just help everyone else get what they want. And you mentioned this idea, first of all I think that\u2019s fantastic. It\u2019s finding people who are new, who may be going to these real estate events whether it\u2019s- you guys if you\u2019re listening to this everybody go to biggerpockets.com\/events. And you can find a list of local events all around the country happening, just from BiggerPockets members.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Just like, \u201cHey let\u2019s meet at this bar or this restaurant, at this Starbucks and let\u2019s get together and talk.\u201d In fact, I did one last week at a beach down here in Maui, like just hanging out with cool BiggerPockets people. And yes check it out, start going to those things. But then you mentioned pipeline and you said if your pipeline started to dry up, you would start networking again in that way. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">So I\u2019m assuming that you\u2019re using this networking skill to find deals. Can we spend some time on that because I mean yeah finding deals where you can make six figures on a flip is really hard, right. Like I mean most people I know are like happy with 20 grand right. So first of all finding those deals is tough, so you must have a really good pipeline and it sounds like you\u2019re using these people and relationships for that. So let\u2019s go there next, so how are you finding deals today?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Yeah I mean that\u2019s absolutely it because for me I was actually invited to speak at women\u2019s investing network where it\u2019s all women. So they ask all smart questions. It could be a little intimidating. But the first time they invited me to talk, they asked me to talk about deal flow because we did have a strong deal flow. So I knew exactly like what the secret is.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And I know everybody is looking for the secret to how do you build such a big pipeline. And I mean there really is no secret but if there is any it\u2019s building your network. And let me explain because I know it\u2019s going to sound- people want something tangible and indeed it\u2019s true, the group wanted something tangible. So I gave them the parable of like I don\u2019t even know if I told it right.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">But of the two guys who were in the village and they\u2019re tasked to go fetch water at the top of the hill. And one guy would lag buckets every day take it back to the town and sell his buckets and he\u2019d make money every day. While the other guy would spend his time digging a trench right, so that one day he would tap into the well and all the flow would be his, right.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">So the guy lagging buckets, that\u2019s like marketing. Like if you market enough you\u2019re going to get deals. It\u2019s just a numbers game. But the moment you stop marketing or the moment you stop lagging buckets is the moment your deal flow shuts off. So to me it\u2019s proven in Seattle as well which a new market for us, but what you want to do is spend time teaching others. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And giving them all your resources and everything you can for them to succeed. And that\u2019s just one more person that will be out there, shopping deals for you. And when they get a deal, you\u2019re going to be the first one they call because you gave them time and the energy to teach them. Right, and even if they don\u2019t, it\u2019s all the better for them. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">It\u2019s good on them and so I mean that\u2019s how you truly and you\u2019d be surprised how fast you can build that pipeline. So I know it seems like it could take years and I\u2019ve been doing it for years so I have built so many relationships and that\u2019s why it can\u2019t shut off. And in fact I don\u2019t really market anymore. I get off market deals, like pocket listings.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And even MLS I mean MLS is constant of course. But if ever my deal flow started to slow down, I would go to those training events and as soon as they drop the $30,000 or $50,000 price tag and you see the hungry motivated people they\u2019re ready to go but they just can\u2019t because they can\u2019t afford it, that\u2019s when you come in and help them. And say, \u201cOkay I\u2019ll teach you everything I know for free.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s cool.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> That\u2019s really smart.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Yeah like that\u2019s what I told the group because they wanted something tangible and I get it like they want the secret list or the secret marketing piece, and there is no secret marketing piece believe it or not. And there\u2019s no secret list, right I mean it\u2019s all a numbers game on the marketing side. But something tangible on building your pipeline or your network is just that.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Finding, going next time there\u2019s a big event or something, go there and as soon as they drop the price tag, you come in and just help the people who can\u2019t afford to do it. And then it\u2019ll pay off, you\u2019re going to donate your time, and some people will take advantage of your time but those people don\u2019t last long in your circle. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> It\u2019s something that I learned from I think it was Toral. Actually you and I both know Toral right in Seattle.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Yeah thanks to you man.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s right I connected you guys. I totally forgot about that.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Oh yeah you put him\u2026 Toral man.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s\u2019 funny.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> He\u2019s a good friend though. Him and his wife Grace like I love those guys.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah they\u2019re fantastic people, that\u2019s funny. Alright anyway so yeah Toral does that up in Seattle where they have like meetups on Saturday morning where they bring out like wannabe up and coming investors. And they teach them everything that they know about finding deals. And then of course these people go out and find deals and who they bring them to? To Toral like it\u2019s just that same relational thing. I love that.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> He gets it.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah he gets it. And now I know why you guys are good friends like that makes sense because you guys both have that same relational thing. So let\u2019s go back, what are you teaching these up and comers to do to go find deals? Like what are they doing to bring you deals?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> So what I teach them is the marketing side. And I\u2019ll give them all my resources, I\u2019ll give the spreadsheet I use to run the numbers, the websites I use to pull comps, even if they need a realtor resource, I will refer them to a realtor who I trust that if they find a deal like I will close with that realtor. So I give them all the resources that I would have if I was in that position that I need to find deals.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">I don\u2019t hold anything back I\u2019ll give my marketing the postcards I\u2019ve used, the lists, where to go. Even the spreadsheet that we use to run the numbers like I give them all the resources and then I\u2019m also there to help with questions and stuff. Because things come up like if they get angry phone calls and I like I always give them the warning.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">If you do enough mailings you\u2019re going to get the crazy callers. You\u2019re going to get the people who\u2019re like they\u2019re just in a bad mood. And just warning them to not get intimidated by that because that\u2019s what happens when you do direct mailing. You get people upset for some reason about you sending them a mailer yeah.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> I know people are very touchy on that. But sometimes like yeah you sent me a piece of paper in the mail, you\u2019ve ruined my day.\u201d I\u2019m like, \u201cCome on buddy, there\u2019s people who didn\u2019t eat dinner.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I don\u2019t see you calling Dominos all mad right I mean Dominos would-<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> But here\u2019s something to think about when it comes to that right because I have quite a few properties now across the country and they\u2019re all out of state. So I show up on everybody\u2019s out of state absentee owner list. And I get so much mail that if I don\u2019t check it for four or five days like the post office will stop sending it to me because my mailbox backs up.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">It\u2019s like I\u2019m drowning in it. So if you think that your letter is going to be the perfect font or style to catch my attention in the middle of that, you\u2019re insane because it\u2019s all going to the garbage and I\u2019m probably going to be casting you out of my head like what you guys are talking about right. However, if I know you and I like you and when I think of real estate or ugly houses or messed up houses I immediately think of Cory, who do you think I\u2019m going to call?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Right, there\u2019s something to be said for why those relationships are so important. Direct mail is what you do when you don\u2019t know anybody, it\u2019s better than nothing, right. But you\u2019re way better pouring you time into relationships you already have with people you already know, pumping those people and saying, \u201cHey when you hear of someone who there\u2019s a death or you have a hoarder house or you just see a nasty ugly house, think of me.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Right, like pounding it in their brain. That when you see nasty house you think Cory Nemoto or you think Brandon Turner, because that\u2019s what\u2019s going to get you that phone call. And I bet most of us like I learned this with real estate, right. If everybody listening right now thinks of like if you had to sell your house today, who\u2019s the first person you would call?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Everybody has somebody that will come to mind. Like very few people have no one at all and those people are the ones who\u2019re going to go google someone. So all these realtors that are out there chasing like SEO and putting marketing dollars into finding strangers, you\u2019re going after a very small percentage of people. The people who know me, they\u2019re going to call me. They\u2019re not going to find your SEO staff.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And that\u2019s like where like Cory you hit it right on the head. You know you\u2019re introverted but you didn\u2019t let that stop you finding a way to bring value. You just created an atmosphere where an introvert can thrive. Like what you said is when you host your meetup there\u2019s no pressure on you. I don\u2019t have to walk around introducing myself to people and feeling awkward and like where am I going to sit and what do I do with my hands?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">I don\u2019t know, right. They come to you. They\u2019re like, \u201cOh you\u2019re hosting it,\u201d you\u2019re like, \u201cYeah, what\u2019s up? Who are you? What\u2019s your name?\u201d and you get to take control of that conversation which is what every introvert needs, right. Because this might be a surprise but Brandon and I pretty introverted too. We turn it on for the podcast and we come alive and when we have to meet people we do.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">But just like Cory said, when we\u2019re done it\u2019s like collapse on the couch and like oh I\u2019m so glad that is over. It felt like a workout. So what we do is we create environments where our personalities will do well in that situation. Brandon always talks about like he\u2019s created this image for himself where he just goes and stand against the wall and people are like, \u201cYou\u2019re Brandon Turner, right?\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And they come talk to him and he doesn\u2019t have to do anything but answer their questions. It\u2019s perfect. So whoever you are like-<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> What do I do with my hands in the corner?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Yes that\u2019s Brandon. I don\u2019t know what you can make of that. Instead of making excuses and saying, \u201cI can\u2019t do this I\u2019m not an extrovert,\u201d you say, \u201cWhat would I need in order to be able to do it? How can I do this? And then how can I work towards creating that environment to thrive in?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Exactly, yeah.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> So Cory I have a question, I want to move to you mentioned Seattle is now another market you\u2019re working in. so first of all you live on the island of Oahu still, correct?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Correct, yeah.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah you\u2019re flipping houses now also in Seattle which is I mean yeah it\u2019s like the closest plane ride probably but it\u2019s still thousands of miles. Like you\u2019re not local, right. So a lot of the people listening to the show right now are going, \u201cI want to invest in real estate or I want to flip houses, I want to wholesale I want to whatever, but I live in an expensive market.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Like I don\u2019t think you can get more expensive than Hawaii. Like I mean it\u2019s just maybe like some areas like the Bay Area or New York City. But it\u2019s crazy expensive. So all those people who say they can\u2019t do it and they have some excuse on why they can\u2019t you\u2019re proving them wrong every minute of every day. So how are you doing it? How are you investing not only in your own market but in another super competitive expensive market that you don\u2019t even live in?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Right. I mean that\u2019s a good question. And I mean I think people\u2019s mouths would drop if they saw what we pay for a tear down here in Hawaii. Like a million dollars does not go far I\u2019ll tell you that in Hawaii. If you\u2019re a millionaire in Hawaii it\u2019s like that doesn\u2019t mean nothing. But Seattle is just as expensive, it\u2019s close. It\u2019s a high price point market, very competitive.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And to be honest it\u2019s all about leverage for me. And I mean I bring out the three points and it\u2019s basically OPM Other People\u2019s Money, OPT Other People\u2019s Time and OPE Other People\u2019s Experience and Expertise. And because I can\u2019t be everywhere all the time and we got even on the island alone we have a bunch of flips in various stages. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">They all need to be checked regularly. Things do sift through the cracks no matter what. I mean flipping houses is a dynamic thing. It\u2019s so dynamic and complex. Like you\u2019d be shocked at some of the fires that you have to put out in some days. So in order for me to still keep the focus on the big picture in pushing the company forward but still making sure it\u2019s thriving, I have to leverage other people. And that\u2019s a huge thing.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">I wouldn\u2019t be able to do this without other people, all my team, partners, other investors. So we took the same thing we\u2019re doing in Hawaii which is we built a crew that we trust. It\u2019s taken years to build trust with them. And we\u2019ve built a team of other investors who want to help on the projects just to see how like we do things but also some of them they bring money to the table too.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And of course then they\u2019re partner. Right, we\u2019ll do maybe an equity split or we\u2019ll give them interest or we even do what we refer to as Debt-equity. So we\u2019ll give them debt and equity. So we might give them I don\u2019t know 10 to 12% interest or maybe 20% or 30% even of the equity of the net profit depending on how much they bring to the table. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And whatever is higher at the end of the deal is what they will get. Whether it\u2019s the interest or if the deal runs long, they get paid their interest share. If their interest becomes worth more than what their equity is, they\u2019ll get their interest. So they\u2019re kind of safe either way.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s awesome I\u2019ve never heard anybody doing that before, Debt-equity I\u2019m going to footnote that word.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Yeah, we\u2019re doing that a lot actually and it\u2019s working out really great because we have investors who they\u2019re not just lenders. They don\u2019t want to be passive lenders, they\u2019re like don\u2019t even talk to me until it\u2019s done and we\u2019re ready to sign docs or whatever. And there\u2019s investors who want to participate and they want to be in the mix with us, because it is fun. It really is fun.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">So with those investors we consider them partners and it\u2019s good because they\u2019re not just in it for the interest but they\u2019re vested in the deal. So they want to make sure we hit our marks and they\u2019re our extra eyes on the deal because they\u2019re vested in it. I like I love when other people around me are vested in the same thing that I am because we\u2019re all on the same mission.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">We use that a lot but back to the main point we took that model from Hawaii and we\u2019re using that in Seattle as well. So the only difference is my partner Kikoa he\u2019s managing everything pretty much up there. And he\u2019s good on like more of the design side and the operations side. I get my jollies off of like the deal. Closing the deal, putting the pieces together, funding it, finding it.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And he does too and I still enjoy the operations side too but I know where my strengths are he knows where his strengths. And we actually own the construction company out there now. So he\u2019s been GCing all the projects but he has project managers that he has under him. Whereas here in Hawaii we have a GC and he hires out and I just manage the contracting team.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">So I manage the general contractors. That\u2019s the only real difference. But the way we approach basically entering the market is the same how I would do in any market. And actually whether you believe it or not Brandon you were a huge role in us getting established in Seattle because you put in touch with Toral.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s awesome.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> And you probably don\u2019t remember this but I messaged you I was like, \u201cHey dude do you know anybody who\u2019s a player who\u2019s out in Seattle?\u201d and you were like, \u201cI know just the guy.\u201d And you set me up with Toral and I met with him up there and it was like right away we hit it off, because I mean Toral\u2019s huge. He does a lot of flips and just like us. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">So the very first meeting I\u2019ll never forget this, we met he just came back from like a flight or something and he took the meeting. So I was very grateful. But all of his issues that he was talking about because he has so many deals, were the same issues that we deal with. So right away I was like hey man I know exactly where you\u2019re at. And I knew and he\u2019s so generous, him and Grace his wife. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">So they really helped us get established because I mean I didn\u2019t know how to fix a chimney, how much a chimney costs for a fireplace. We don\u2019t have those over here right it\u2019s we don\u2019t even insulate our houses because you don\u2019t really need to. So all that little stuff, he\u2019s helped Kikoa a lot there because there is differences. But we do the same model of finding deals.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Like Kikoa is out there networking he\u2019s meeting all types of new people and now I mean he\u2019s well established. A lot of people know him out there, I think they wonder like where does this guy come from, this guy from Hawaii because we are doing a few deals out there. And I\u2019ve gotten to know a lot of great people just from basically embedding yourself in the market.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Yeah that\u2019s awesome.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> And that means going to groups and meeting new people.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> That\u2019s cool. I thought I was supposed to spend $50,000 on a course that would teach me how to have all this stuff magically fall into place so I didn\u2019t have to go meet people and make friends and put on pants.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> I still don\u2019t put on pants. But we\u2019re Hawaiian and in Hawaii you don\u2019t wear pants. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Right.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> I don\u2019t know if I can claim to be Hawaiian yet, I\u2019m what do they call me, a Hali, that\u2019s okay. I\u2019ll tell you why a Hali.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I\u2019m here.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> I\u2019m here yeah, I\u2019m here it counts. Alright so if people want to listen to episode by the way with we\u2019ve been talking a lot about Toral and Toral is awesome and his wife yeah very awesome couple, love those guys. Listen to the show, we interviewed Toral on 189 I think it is. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So biggerpockets.com\/show189. In that one actually he talks a lot about networking as well. So very good episode of the podcast. But with that we\u2019re going to shift gears here and head over to the next segment of our show, The Deal Deep Dive.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>There\u2019s rarely a sure bet with investing. Outcomes are nearly impossible to predict but Simplisafe is an investment you can be sure about. This is home security that\u2019s going to protect your family around the clock and save you money doing it. So start SimpliSafe\u2019s prices are safe and honest, 24\/7 professional monitoring at just $1499 a month.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>There\u2019s no contracts, no pricey hidden fees. And if you don\u2019t love it after 60 days you can return it for a full refund. That\u2019s a guaranteed investment. On top of that it\u2019s fantastic protection. Wire Cutter, PC Meg and C-NET all named SimpliSafe their top choice for home security. <\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>So you know your home is secure. Protect your home like I do with SimpliSafe and support us by visiting simplisafe.com\/pockets. Let them know we sent you. That\u2019s simplisafe.com\/pockets S-I-M-P-L-I-SAFE.com\/pockets.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Alright let\u2019s get to the Deal Deep Dive. These are the questions that dive deep into one specific deal. So Cory, you got a deal in mind?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Okay first of all before I go I\u2019m going to have like seven or eight specific questions. But just overarching like what is this? Is it a house? Is it a flip or what\u2019s the deal?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> It\u2019s a single family flip that we did earlier in the year. And it was interesting because we almost didn\u2019t want to do it. And I\u2019ll lead you to why.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah okay. Why don\u2019t- I\u2019ll see if we can bring it in these questions. But I\u2019ll ask the first one. How did you find-no let\u2019s go, why did you not want to do it? Let\u2019s go there first. Why did you not want to do it?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Okay. Well for one the projecting net profit was like 80,000 so it didn\u2019t hit our mark, right. We were shooting for a six figure deal and that one didn\u2019t. And that was the first one and it wasn\u2019t an easy flip. It wasn\u2019t like we can get in and out, it\u2019s a lipstick. It was a full gut type of flip and those take time and we were going to leverage hard money on it. So we were bleeding I think it was like $129 a day, like I count it by the day even Sunday. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">When the guys aren\u2019t working we\u2019re losing money. So that\u2019s why we almost didn\u2019t do it. We almost wholesaled it we were going to wholesale it but we brought a couple of our guys down they were like no, it\u2019s too tight I don\u2019t want to do it. So we were like, don\u2019t worry if you don\u2019t want to take it we\u2019re going to charge forward and we\u2019re going to take it down. But I was kind of like iffy about it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Okay. Alright so how did you find the deal?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> So it was actually my partner Kikoa, it was his friend. So his friend was facing foreclosure. So that was another kind of reason an extra push for us to get in there and help him out. So he was able to talk to the bank and have them agree to a short sale. So it was a short sale, somewhat of a pocket listing because it probably would have went on the market maybe as an REO, we don\u2019t know.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But what\u2019s interesting is it took basically we put in the offer and for sale approval took like seven months. So we didn\u2019t hear back till the next year so this year. And finally the bank\u2019s like, \u201cHey we accept the offer only if you can close in 14 days.\u201d And we were like, \u201cOh what offer is this?\u201d like really we know we make hundreds of offers and like 14 days, who made that deal?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Because we never do, I mean we can close that fast but we always try to shoot for at least 20 days and just to give us cushion. So when it came up like hey they accepted your offer but you got to close in 14 days, you\u2019re like, \u201cWell who wrote that offer?\u201d but it turned out it was the one we wrote like half a year ago.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah. I remember on one of the episodes of the podcast we had long time ago, I think it was Ernst &amp; Young his first time on. He talked about the short sale time machine. And he said a short sale time machine is basically when you put an offer in and it just goes, like you don\u2019t hear from it for months maybe even years. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And then all of a sudden it comes back and if they take your offer, the property has probably risen in price dramatically in that time. But it\u2019s like you could always say never mind at that point, but yeah I remember that being a really funny episode.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> It\u2019s like a stock option basically.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah you\u2019re buying an option-<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> You can go with it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> That\u2019s hilarious yeah. Short sale time machine I\u2019ve never heard that but it\u2019s so true.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah. Alright so how much was it? How did they want? How much did they want? How much did you pay for it? What were the numbers there?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> So they wanted 45 but that was even more too tight but we took it down to 475. It was a three bed two bath about 1,100sqft on the tax records. But we had our guy go in and measure the entire house and it was actually 1,300sqft. So we were able to list it at 1,300 but we just disclosed that it does not match the tax records.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Was that in Hawaii or where was this property located?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> It was just in Hawaii. It was in Makakilo. So it\u2019s kind of like the west side which is actually booming right now. Like it\u2019s being more developed, if you\u2019re willing to put up with the traffic.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah the traffic is horrible. How\u2019s that light rail coming?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah I know, right.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> If you guys want to hear a great story, just look up the information on the Oahu I don\u2019t know- they call it light rail whatever that is, like the monorail light rail whatever.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> The rail project.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah the rail project in Oahu is the most depressing story. It\u2019s like if you drive through Oahu there\u2019s this gigantic rail built from one side, from Honolulu it goes way out west and it just never got finished. And they\u2019re still working on it many years later.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> And it actually affected us a little bit. I don\u2019t know if it was this year or in the last year because there was a shortage of light concrete because they were throwing it all on the rail. So the prices just went up and then there was no supply because a lot of it has to get shipped in and stuff.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> That\u2019s fascinating.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah it hit us a little bit on that even more I mean when you say rail out here it\u2019s just a nightmare.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah people get very angry about it. Anyway so check it out go to Wikipedia or something. How did you negotiate it? You kind of already told us it was a short sale. Any other negotiating things in there or should I move on to the next question of this?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> That was pretty much it. I mean the bank kind of just told us, said, \u201cHey, close in 14 days or we\u2019re moving on to the next buyer.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Alright, how did you fund the deal? 475 plus the rehab?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Right so we funded this hard money and then we brought in our equity partner. So hard money and basically private money and on this deal it was funny because we had a short closing time, like a shorter closing time. And we knew right the guys we wanted to partner with his name is Jason, he\u2019s a great guy, he\u2019s an up and coming investor.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I mean he\u2019s already been doing this for a while, he has investments in the mainland. So Kikoa called him up and said, \u201cHey,\u201d because we already talking about doing a deal with the other. And he said, \u201cHey we have a flip coming up it\u2019s just a small raise it was like about 75 grand that we needed to raise. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And he said, \u201cOh yeah I can do that,\u201d but he was actually on vacation in Cancun at the time. So it was like okay we need funds in like now. So he was scrambling trying to get stuff notarized, trying to figure out how he can wire it. And he ended up having, he couldn\u2019t do it from over there, he tried but we ended up having to wire the money as soon as he landed.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And we just made closing, and it went fine but everybody was kind of sweaty for a little while. It was like I don\u2019t know if we\u2019re going to even get this deal before we can close this thing. But yeah we used had money and private money.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Okay so basically this Jason guy brought 75k and then you used hard money for the rest of it, correct? Pretty much is how-<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Correct.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Okay, awesome. What did you do with it? Like it was a flip, correct? Like if that\u2019s a short easy question, you flipped it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah so we had to do pretty much everything. I think the only think we didn\u2019t really replace was the windows. We left it with jalousie windows. I don\u2019t know you probably see that a lot in Hawaii now right, the jalousie windows?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Is that like the slats that open up?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah, the slats.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah I got those in my basement. I\u2019m ripping them all out here next week.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Right. So over here I mean since we\u2019re not really subject to the harsh weather like in Washington, it\u2019s common to have these older houses with jalousie windows. And so we decided to keep those windows in, but we did all new flooring, full gut of the kitchen. We redesigned the kitchen actually and did our exterior work.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">It was a lot more than what we wanted it to be. We knew it was going to be a gut but it was extensive.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Okay so how much did you totally spend on it? Do you remember?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> We spent 85,000 which it could have been more. But we were really tight on it. So in Makakilo you don\u2019t necessarily have to go all out with the rehabs like we definitely wanted to make sure we didn\u2019t over-rehab the project. Because you want to put out a product obviously that\u2019s desirable. But you\u2019re also keeping an eye on the bottom line right.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So we didn\u2019t use our normal high end like laminate that we would us or the waterproof vinyl flooring that we use. We used like a standard laminate which is thinner. But it still looked nice and it was definite we put out a great product. And the biggest thing for this deal is that we needed to get it done quick because it was a tight margin.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Right it was the margin that we probably wouldn\u2019t have done given several different attributes. If we weren\u2019t getting pressured by the bank, if we didn\u2019t have Kikoa\u2019s friend kind of counting on us, we may not have done it. But since we did decide okay let\u2019s charge forward, now it\u2019s like okay we really have to keep eyes on the timeline, the budget. And we hit our marks and we were able to get the rehab done in 30 days which is fast here.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> At the end of the day it was a three month closing to closing. So that\u2019s also a fast flip, I don\u2019t know really what it is like in some other markets. But for our here, it\u2019s pretty fast.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah it\u2019s awesome.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> How did you feel about the outcome?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Actually after it was done I was satisfied. In fact it did teach me a lesson just like just because the profit\u2019s small, it doesn\u2019t mean it\u2019s not a good deal. Because if you can get in and out, like I think what I have to put more weight onto is the velocity of the money. So if we can turn it quick then actually it\u2019s not just that all the while in that deal. But it\u2019s a little bit extra, has bonus because you\u2019re turning back their money faster.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> What did you end up making on it?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Our gross profit was $154,000 so we sold it for $703,000. Our gross was 154 and that was at closing. And then we paid out Jason\u2019s 75. So we made about 78, 900- something. so that was like a gross return if you\u2019re looking at the entire amount if you count hard money the gross ROI was like 13.5%. And for me that\u2019s garbage.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Basically we would pay a 12% lender just as much but we do all the work. So like but we don\u2019t value it on the gross ROI, we value it on the private money ROI or the net cash on cash. So basically Jason\u2019s 75,000 that he tied up which we could have used as a gap funding for another project, that\u2019s what\u2019s really limited.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Because in our situation since we built up a good credit with our hard money lenders, they opened the books to us so it\u2019s unlimited capita. And they have unlimited capital. So that\u2019s not what we should value our ROI on because ROI is a metric just to let you know whether you\u2019re getting the most out of your money.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Right, so when we look at the net cash on cash, it\u2019s 105% return. We tied up 75 grand of Jason\u2019s money which we could have used on another deal, but we made 78,900. So it is a great ROI, when you look at it from the private money ROI cash on cash return.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah that makes sense. I mean there\u2019s return and there\u2019s cash on cash return. And the fact that you made 100% return over in three months which if you were to extrapolate that to an annual, you got 400% on your money like on an annual basis. It\u2019s crazy. Now how did you split that with Jason at the end of the day? What percentage did he own? Or was he just getting interest or how did you structure that?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> So this one he was equity and this one we split 50\/50 with Jason. Normally we wouldn\u2019t go 50\/50. I think we\u2019ve only done that one other time. And that was because one of our partners brought in all the money to do the deal, we didn\u2019t even pull hard money. But with Jason\u2019s situation, at the time, actually this is some back story that probably will make sense of the deal, is Kikoa and I were in the middle of a huge capital raise.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So I think we had to raise $500,000 in three weeks for I think it was two separate deals other than this one in Makakilo. So I mean we could have closed this deal in Makakilo but for one, it wasn\u2019t at the top of our priority list because it was smaller than what we usually do. But at the same time if we could still use our cash on those deals which we did, then we still have Jason that wants to partner with us.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And if he puts in like all the gap funding within that short amount of time plus we needed it, to me it\u2019s worth 50%. And plus he was helping project manage the job as went through it. And because Kikoa and I were actually travelling in the middle of that project too. So by the time we came back the deal was like almost done because it was a 30-day renovation.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And Jason really pulled weight with that. So for us I mean yes we signed on for the hard money but he brought the money to close the deal, he brought 100% of the gap and then he also managed it. So it was only fair to go 50\/50 with him in that situation. But that\u2019s very unique we usually don\u2019t do 50\/50 yeah unless-<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> Have you done deals with Jason since then Cory?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> I was just talking to him the other day and we\u2019re looking at other deals. He has one or he did have one in Kalihi that he was- I don\u2019t know if you guys know where that is. But it\u2019s kind of like downtown. It was an off market deal I got to ask him about it to see if it\u2019s still on the hook. I think he was a probate at the time. But yeah we\u2019re definitely going to do another deal.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> So that\u2019s why I\u2019m asking because if you get caught up in thinking well I don\u2019t need to give away 50% for the money, I can borrow it cheaper, that\u2019s true you might be able to, right. But you\u2019re cutting yourself off from all the rest of the deals that that relationship could bring you. So that\u2019s a variable you need to throw into the equation when thinking about like that comes up with me.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">People say, \u201cWhy did you give that person so much?\u201d or \u201cWhy are you doing that for this person when you didn\u2019t do it for them?\u201d because I know that person is going to benefit me in other ways, so it makes sense to butter their bread. Where the person who comes to me and all they\u2019re saying is, \u201cI got the money and I want half the deal and they\u2019re not giving anything else, we\u2019re probably not going to do it.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Exactly. And there\u2019s so much truth to that, what you said. I mean because that\u2019s exactly how I feel too, is like if you\u2019re bringing more to the table, every deal is different right I mean like this deal was different because we had to do a pretty big capital raise for two other deals in short period of time. So we couldn\u2019t really do all three unless we dipped into our real personal pocket.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And we could do that but we prefer not to. We prefer to raise money and partner with other people. So we bring it all together and we\u2019re in the journey together. And in fact it sounds so corny if you say it that it\u2019s like it really isn\u2019t for me I kind of really. But I mean I think I can speak for Kikoa as well, it\u2019s not really about the money.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Like when that first mentor of mine and investor sat me down at Starbucks and told me like, \u201cIf you\u2019re in it for the money and if you\u2019re in it for the image then you\u2019re not going to make it and we\u2019re not going to do business together.\u201d That\u2019s true. I feel that is true and for me it\u2019s like of course I\u2019m in it for the money, I want to make good money and build a legacy.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But it\u2019s more than that and part of that is the journey of it. And I\u2019ve had so much cool experiences with other investors. I\u2019ve learned so much just from working with them and how they do things, that I wouldn\u2019t trade it for a few extra dollars.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah I love that. It\u2019s like that phrase that I say a lot right, like 50% of a great deal is better than 100% of no deal. So like you said, hey we may not have been able to do this deal if it wasn\u2019t for giving away part of the profit. And it\u2019s just that same thing we\u2019ve been reiterating over and over in the show is like relationships matter. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Working with other people, not being a loner like getting out talking with people working together deals that\u2019s what it\u2019s all about if you want to be successful in this business. Now before we move on to the next segment of the show, I\u2019m curious like what do you see for your future? Do you want to continue flipping? Are you guys going to end up different things, rental anything like that?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah actually so for the house flipping side, we\u2019re actually a little lower than what we would normally be I feel. And well we\u2019re kind of downsizing a little on the house flipping side because we\u2019re going to be moving more towards acquiring multifamily assets. And also we\u2019re starting a hard money fund of our own which we\u2019ll have running soon.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So we\u2019re moving more towards passive and more predictable income for cash flow. But I mean we\u2019ll always flip houses I mean we love flipping houses that\u2019s the bread and butter. And I think we\u2019re at the time in our company that we\u2019re ready to expand to acquire more passive income.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah that\u2019s awesome. Very cool. Alright well let\u2019s shift gears now and head over to the next segment of the show called our Fire Round.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>It\u2019s time for the Fire Round.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>LinkedIn Marketing Solutions is the de facto environment for B2B marketers and advertisers to drive brand awareness, generate leads and build long term purposeful relationships that result in real business impact. Advertising on LinkedIn\u2019s network of more than 575 million members is precise and powerful.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>With the ability to effectively target the right message to the right people while they\u2019re in their professional mindset resulting in higher quality leads, more website traffic and higher brand awareness. When it comes to marketing your business it\u2019s all about reaching the right audience at the right time and connecting with them when your message will resonate the most.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>So if you want to target your customers where they are, engaging every day and when they\u2019re ready to make a decision, LinkedIn can help you. LinkedIn has the marketing tools to help you target your customers with precision, down to their job title, company name, and industry. <\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>To redeem a free $100 LinkedIn ad credit and launch your first campaign, go to linkedin.com\/biggerpockets, that\u2019s linkedin.com\/biggerpockets for your free $100 ad credit. Terms and conditions apply.<\/i><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon: <\/b>Alright let\u2019s get to the Fire Round. These are the questions that we pulled direct out of the BiggerPockets forums and we\u2019re going to fire them at you for some quick back and forth here Cory. Number one, let\u2019s see prices have gone so high in real estate. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I\u2019m trying to figure out where the best locations are for higher profit margins when it comes to buying, renovating and reselling. Would it better to buy high rent properties in good locations? Or would it better to invest in these smaller, cheaper properties? What do you think?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah I think it\u2019s a tough question because every market is different in their own market cycle. So I mean even if maybe the country as a whole is trending down, it doesn\u2019t mean that every market in the United State is a down market. Some may be booming. So it\u2019s hard to answer that question but what I would say I guess to know the fundamentals of your market like where you are, and when I say your market I mean like your close market.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Like I\u2019m on Oahu, I\u2019m not talking about Maui is a different market. Honolulu County is kind of my zone right now. And if I\u2019m looking at deciding on what I should buy here, right now Honolulu has softened I feel. So I\u2019m a little bit more conscious in the luxury space. We do have a couple of luxury flips that we\u2019re going to be hitting the market.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And I\u2019m trying to wrap them up quick because I know it\u2019s softening a little bit. And so I would say if you\u2019re feeling iffy about it, then do a flip more in the manageable range. More where there\u2019s a bigger buyer pool if you\u2019re nervous about where your market is at. Because once you go to the higher end flips and you\u2019re trying to do a luxury rehab or development, you\u2019re automatically limiting your buyer pool.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Right, because it becomes the threshold and even like the million dollar mark is like a psychological barrier. So once you start hitting those higher ends you just got to know that your buyer pool is going to be smaller and you got to plan on longer days on market. And if the numbers still work I mean whether you\u2019re in a down or not, I mean as long as you\u2019re budgeting for the length of time and you\u2019re very conservative, then I mean pull the trigger.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Alright, love it. Alright next question.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> I really like this next question I want to see how you\u2019ll answer it as a relationships guy. So this is someone who wants to hold a contractor open house. I\u2019m thinking of inviting multiple contractors to a flip property to walk everyone through at the same time, as well as explain some of the scope of work I need. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Seems like it could be efficient and makes sure everyone is bidding the same and maybe create some competition for better pricing. Anyone see any drawbacks to this approach?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Well yeah. I mean I could be the perfect guy to ask that question or the worst guy to ask that question because for me, I could bid out projects if I wanted to. And I honestly know I would get a cheaper price from other contractors because I\u2019m embedded in the community, I ask my colleagues how much their renovation cost, who they use.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And so I know I can get it cheaper. But to me the trust that I have with my General contractor, it\u2019s hard to match that value in my opinion. And when you kind of bid it out like that, I feel that it diminishes, you\u2019re just that guy who bids it out. And you\u2019re not someone that a contractor might see as a long term client who\u2019s going to want to put all his effort into making sure that you\u2019re happy.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Right because if he knows that you guys are building a relationship and maybe the first couple flips or jobs you\u2019re going to pay full price. You might pay full price for that. But then you can start talking down and say, \u201cLook I got other jobs right so are we in this together or not? Because if you\u2019re not then that\u2019s okay.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I totally understand, you have a business to run I got business to run but I\u2019m here to build a long term relationship. And the beauty about building a long term relationship for me is that I trust my team. So I can focus on other things, and there are hiccups. I mean believe me, there\u2019s hiccups no matter what.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Sometimes things slip through the crack, but whenever we have those tough conversations it\u2019s never out of haste. Because I know that our general contractor, he has my best interest at hear. And I\u2019m the same way, like I want him to make good money on the deals. And he shows me his bottom line like when he prices it out in the cost analysis it has all the actual cost of construction and the materials and the labour.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And then he puts his percent like this is what I want to make on this job and he trusts me to show me that number. A lot of contractors don\u2019t want to show you how much they&#8217;re going to make on that. But that\u2019s because we have the right relationship and the benefit of us having that now is we can cost engineer projects better.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Because I don&#8217;t know where he&#8217;s sticking his profit right. Like who knows maybe he frontloaded all of his profit on the demo. And then I tell him, &#8220;Okay well the demo seems high I&#8217;m going to do the demo myself and save this much money.\u201d And then he&#8217;s like, &#8220;No I can&#8217;t do that,&#8221; because he hid his profit in there.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">When you build a relationship with a general contractor enough to where he&#8217;s willing to show his profit and keep his money on the outside of the cost, now you have a little bit of an advantage because you can cost engineer the project in a way that most people who don&#8217;t have that relationship can&#8217;t.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah I love that.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> So relationship is huge for me. I know like there\u2019s totally conflicting ideas and that&#8217;s fine with me. So I guess see what works for you but I think if you want something sustainable and long term if that&#8217;s what you&#8217;re trying to build then it&#8217;s worth investing in people and relationships. Otherwise maybe you&#8217;re only going to do a couple of house flips and you&#8217;re going to get that reputation of you only hire the cheapest guy. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Yeah there you go. That&#8217;s such a good answer. I liked it. So what you understand Cory is an amateur would look at how much is it going to cost me, how cheap can I get it? Right which is why I love this question there&#8217;s nothing wrong with the person asking it. That&#8217;s a good idea like, \u201cWell I could bring them all in, I can walk them through and save some me time. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cIt forces them to bid themselves down.\u201d But what you&#8217;re going to end up from that, is a contractor that is desperate for the most business and that is willing to take the worst deal right. They&#8217;re going to have resentment and you&#8217;re going to go to the back of the line whenever they get busy because they&#8217;re making the least money out on your deal. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">You won the battle and lost the war. Where what Cory understands is I live in Hawaii everybody wants to surf and go to the beach. It&#8217;s hard to get someone to even show up to do this job, right. I&#8217;m paying more money because I know that he\u2019s going to get his dudes to show up and work on my deal and I get my house fixed up in half the time you do.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Because when you beat them up on the price they&#8217;re not going to ever hit their deadline, they&#8217;re not going to do good work, they&#8217;re going to cut corners because you did that to them, right so you really can&#8217;t even complain about it. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And you&#8217;re going to pay twice as much in carrying costs so you&#8217;re going to lose the money because you&#8217;re going to hold the house longer. You get that Cory and that&#8217;s why I love that you&#8217;re the person I asked that question to because sometimes we get very near sighted and all we&#8217;re looking at is our side rather than how do I make it a win-win for both people.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Right yeah.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Cool. Our next question comes from Kimberly and Kimberly asks where who and how can I connect? Basically Kimberly is asking-let me just read it. Hope everyone\u2019s writing as well. I\u2019m writing to you because I\u2019m finding myself getting stuck in my own head about beginning to invest. I\u2019m working on credit and debt and I\u2019m getting overwhelmed with the idea that I have to wait before I can start investing.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">I know there\u2019s other people\u2019s money, OPM but I don\u2019t know how to start that conversation with someone. And I love that like how do you when you\u2019re new to real estate, how do you even start that conversation of can I use your money, private money, hard money whatever. So how would you respond to Kim?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Well that\u2019s always the toughest part. I feel getting started, it\u2019s all about momentum I feel and there is something to it. And I was telling one of our- he\u2019s a partner now with us on a deal but his name is Richie out here. And the deal that we\u2019re doing was his first deal. And I told him like get ready because after we close this you\u2019re going to get it\u2019s momentum.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Things are going to start happening, it\u2019s going to get easier to talk to people, it\u2019s going to be easier to raise money because you have experience, even though we\u2019re not even closed out yet on the first one. And sure enough he\u2019s got two more deals and he\u2019s raised the money for those deals, he\u2019s closed them on his own he doesn\u2019t need me.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And that\u2019s what I tell them and pretty much any partner who partners with me is if it\u2019s their first deal, the goal is that after this deal you don\u2019t need me anymore. But you still want me hopefully right. But for him he doesn\u2019t need me anymore, he can close deals on his own he knows exactly what to do even though we haven\u2019t even finished the first one.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">But he did need the momentum. And in order to create the moment you got to just get moving whether it\u2019s sending a mailer out and stumbling over your words when the phone calls come in, you\u2019re moving. You got to just move and maybe it\u2019s you\u2019re birddogging a deal to an investor and you just, \u201cHey can I tag along? Can I just ride the flip route with you?\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And starting somewhere everybody has something to offer. Again I\u2019m circling back to that again but it\u2019s like you have something to offer. Even if she goes to an event, she has her time or her energy and her motivation to give to somebody. And maybe they make her do what I had to do, door knocking. Then you got to really ask yourself how bad you want it.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">But you\u2019re building relationship and then if you get a deal hopefully if that investor is a relationship type of guy, he\u2019ll let you just help out and ride the deal through and use that as credibility. But in order to even start to be able to start talking to people about borrowing their money and even having the confidence to ask, because that\u2019s the hardest part is just asking.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And just kind of maybe pitching a deal or understanding what the deal looks like and putting it together like that can be very intimidating and hard. But in order to even get to that point where it\u2019s your first time asking for money, like you have to just get moving, whether send mailers, dive for dollars, network. There\u2019s no real clear tangible answer to that other than to just get going.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> No I think that\u2019s perfect, like you said just get going, get moving. The answer is how do you talk to somebody, you open your mouth and start talking and then you figure it out. You build the moment and yeah it\u2019s got to start by that. So I love it.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> And it can start with a relationship too, like if you do build a relationship with somebody who is credible and you\u2019re probably asked to the dirty work, paperwork, take phone calls, whatever you got to do to provide value to that person, then with their permission they\u2019re a partner. So if you do find a deal and your partner or your mentor likes the deal and wants to take it down, now you can use that like hey I have a partner.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">I\u2019ve brought this deal I got to raise money deal are you in? This is how it\u2019s going to work. You kind of got to ride the coattail sometimes. But not for free. Maybe if you get lucky but I\u2019d say always provide but I wouldn\u2019t want anything for free. And I hope everybody listening is the same way. Why would you want something for free?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Like I don\u2019t ever want to win the lottery. If I win the lottery I\u2019d be so depressed because I don\u2019t want to think that if I ever get to the top or if there ever is such a thing, that when you are there that people say you just got lucky.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah I want to earn my keep, right I want to earn my way. Earn my keep be here for real yeah I love it. Alright well dude we got to go to the last segment of the show which we lovingly refer to as our Famous Four. Let\u2019s get to the famous four the same four questions we ask every guest every week. Number one, favourite real estate book.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> This is a tough one. I\u2019ve read a gazillion real estate books and I can\u2019t recall all of them. But two that stick out to me is actually Jay Scott\u2019s book. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Oh yeah. Book on flipping houses yeah.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> That he did a long time ago. Yeah I think I was like one of the first buyers I think of that book because when it came out I was like, \u201cAlright I\u2019m buying that.\u201d And I got so much out of that and I don\u2019t know if it\u2019s just because I was new so everything was content to me. But I really took a lot out from that. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And I think it was those book where he has like typos in the book, I loved that.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah that first version was very raw.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Okay did you guys do another version or something.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah we\u2019ve updated a few times since.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Oh okay I liked the one with the typos because then I was like this is real to me. This is like a house flipper, a real investor writing a book.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> He doesn\u2019t know how to spell.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Shut up I read a book about him.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s hilarious.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Yeah I love that. That was great real estate book for me. I saw him out on Toral\u2019s event actually. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Oh yeah that\u2019s awesome.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> And I didn\u2019t get to say hi or anything but I\u2019m in a picture with him and I was like, \u201cThat was him. It\u2019s the guy that wrote the book that I enjoy.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s funny. Well you have to meet Jay Scott someday. He\u2019s a super good dude in fact we\u2019re actually releasing- I don\u2019t know if I\u2019m supposed to announce this. But I\u2019m going to. We\u2019re actually releasing a second edition of that book coming up here this coming winter.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Nice.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Yeah so there\u2019s added content kind of flipping in today\u2019s market how it\u2019s changed a little bit. But we\u2019re really excited for that launch. But anyway if I\u2019m not supposed to announce that everyone just pretend you didn\u2019t hear that. Put your earmuffs on. Alright moving on, question number two.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Cory, what is your favourite business book?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I have so many favourite business books. But I mean other than the hundreds that\u2019s been already mentioned and actually I know this book has been mentioned already. But The Goal Giver has been a huge influence on me. And it\u2019s funny because I just read it this year but it\u2019s been a huge influence on me because I kind of always felt that that was the right way to do business. And the right way to approach business.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And just reading it from the book it was just like the experience I had when I first read Rich Dad Poor Dad, is like it was everything I was already feeling. But somebody else was telling it to me. So I took so much from that book and I believe in the teachings in that book 100%.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s cool.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> And to give without expecting and things happen.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> I had a very similar experience when I read So Good They Can\u2019t Ignore You. I was like, \u201cThis is what I\u2019ve been doing all the time. Somebody else is doing the same thing I\u2019d never talked to them. I\u2019m on the right path.\u201d So it\u2019s cool whenever you find that like your spirit book. This accompanies the spirit that I have.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">For Brandon there\u2019s like 100 books like that because he\u2019s read every single book in existence.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> I don\u2019t think. No but always say when I read Rich Dad Poor Dad it like put words to what I\u2019ve been like feeling in my soul.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Exactly.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Exactly alright moving on.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Alright you live in Hawaii so what are some of your hobbies?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Believe it or not so one of my main hobbies that I don\u2019t have much time for anymore but I got to make time for it is Brazilian jujitsu. I love the sport.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> BJ Penn has a facility out there in Oahu, right?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Yeah I think he has like two or three now.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Have you met him?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I\u2019ve never met BJ Penn. No I\u2019ve never met him.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Never?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> No. yeah he\u2019s from Hilo so he\u2019s from the big island. But he does come to Oahu a bunch but I haven\u2019t met him before.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> I plan to get into that so you have to show me your ways someday.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> Oh yeah totally. You got to be careful because you can get hooked.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Good.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I\u2019m telling you. Just like surfing.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Brandon is going to fight like Dorsum in Street Fighter II that\u2019s going to be his style. Like he stretches his arm all the way across the entire screen to hit you. Yoga. <\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s how you do it.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> Alright next question.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Brandon:<\/b> Alright my last question today. What do you think separates successful investors from those who give up fail or never get started?<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>Cory:<\/b> I think the biggest thing that I could say is kind of drastic but I would say the biggest difference that I see is the people who basically burnt their ships if you know that saying, the people who had that moment where they\u2019re 100% committed and there\u2019s no turning back because there is no back, those are the guys that make it to be honest.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Because you have to make it. I mean I\u2019m not saying to be reckless about it. I mean if you got a family and all that, you got to be responsible. But at the same time, you live once, right. So there\u2019s going to be a moment where you have to make that decision. And whenever that decision is least risky I guess, then take the leap.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">And you got to make sure that there is no one foot in one foot out. And then just go 100% forward because we default to comfort. And even if there\u2019s any slight chance of retreat then you\u2019re going to take it when things get tough. But when you eliminate all that and you burn your ships officially, then those are the people who I see that make it.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\"><b>David:<\/b> That\u2019s great.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> That\u2019s really insightful.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> Cool. Well Cory this has been amazing I love talking to you and I love you sharing some of your skills here. Can you tell us where can people find out more about you?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Well unfortunately our website has been saying coming soon for like almost the whole year now.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>David:<\/b> Your websites on Hawaiian time?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah. People are always like hounding me and they\u2019re saying, where is the website. It\u2019s almost up but for now I mean I\u2019m on BiggerPockets but I\u2019m also big on Instagram now. I\u2019m trying to be more, and I love Instagram because it\u2019s pictures. Facebook is kind of like I\u2019m just spammed on there. But I mean I go on Facebook a lot too.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But Instagram feel free to message me. I always try to get back to everybody as much as I can. I know you guys\u2019 show is massive so I might not get to that-<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah you might not get to everyone.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> But try, is what I\u2019m saying.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> And you\u2019re at cory.nemoto N-E-M-O-T-O correct?<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Correct, Cory, C-O-R-Y. N-E-M-O-T-O.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Perfect yeah.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Instagram.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yeah go follow Cory let\u2019s build him up on followers, you got 849 right now we\u2019re going to get him to 10,000.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Okay alright.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Alright dude, well this was fantastic like David said we love talking to you. You and I got to connect here soon maybe we\u2019ll go do some Brazilian jujitsu when I\u2019m in Oahu in a few weeks. So yeah we\u2019ll hang out.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah let\u2019s do a deal too. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> I think that would be fun we\u2019ll flip a Maui house that will be fun. Alright dude.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Yeah that\u2019s be fun.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> This was fun so thank you very much and we\u2019ll love to see you around. For everybody else thank you for listening to the show today. If you have not yet left us a rating or review please do so iTunes and Sticher and Google Play and all that. It helps us a lot. And if you\u2019re not a part the BiggerPockets social network, go create a free account biggerpockets.com.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And you get all goodies when you sign up. And by goodies I mean I think there\u2019s like a free eBook or something cool like that. Alright that\u2019s it. So without further ado Cory you want to take us out, just say for the BiggerPockets Podcast my name is Cory signing off. That\u2019s all you got to do.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> for the BiggerPockets Podcast my name is Cory signing out.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Yes that\u2019s good.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Aloha.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Brandon:<\/b> Aloha.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Cory:<\/b> Thanks guys.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><i>You&#8217;re listening to<\/i> <i>BiggerPockets Radio, simplifying real estate for investors, large and small. If you&#8217;re here looking to learn about real estate investing without all the hype, you&#8217;re in the right place. Be sure to join the millions of others who have benefited from biggerpockets.com; your home for real estate investing online.<\/i><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\"><b>[End of Recording] [01:28:20]<\/b><\/span><\/p>\n<\/div>\n<h2 id=\"podcast-youtube-video\">Watch the Podcast Here<\/h2>\n<p><iframe loading=\"lazy\" title=\"Making $100k\/Deal Using Other People&#039;s Money, Time &amp; Experience with Cory Nemoto | BP Podcast 302\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/kgcWBP0X3nI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2>Help Us Out!<\/h2>\n<p>Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds and instructions can be found <a href=\"https:\/\/www.biggerpockets.com\/forums\/25\/topics\/161423-do-you-listen-to-the-bp-podcast\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>. Thanks! We really appreciate it!<\/p>\n<h2>This Show Sponsored By<strong><br \/>\n<\/strong><\/h2>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-95450\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/01\/fundrise-review-300x66.png\" alt=\"Fundrise\" width=\"300\" height=\"66\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/01\/fundrise-review-300x66.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/01\/fundrise-review-768x168.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/01\/fundrise-review.png 775w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Fundrise<\/strong> enables you to invest in high-quality, high-potential private market real estate projects. I\u2019m talking anything from high rises in D.C. to multi-families in L.A. \u2014 institutional-quality stuff. And each project is carefully vetted and actively managed by Fundrise\u2019s team of real estate pros.<\/p>\n<p>Their\u00a0 high-tech, low-cost online platform lets you track the progress of every single project, and keep more of the money you make. Oh, and by the way, you don\u2019t have to be accredited.<\/p>\n<p>Visit <a href=\"http:\/\/fundrise.com\/biggerpockets\" target=\"_blank\" rel=\"noopener noreferrer\">Fundrise.com\/biggerpockets<\/a> to have your first 3 months of fees waived.<\/p>\n<h2>Deep Dive Sponsor<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-77567 alignright no-display appear\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/03\/simplisafe.png\" alt=\"simplisafe\" width=\"271\" height=\"58\" title=\"\">Check out\u00a0<strong>SimpliSafe<\/strong>\u00a0Security\u2019s DIY home security systems; an affordable, wireless, cellular, and customizable system that doesn\u2019t require a contract!<\/p>\n<p>Try it today with a discount:\u00a0<a href=\"https:\/\/simplisafe.com\/pockets\" target=\"_blank\" rel=\"noopener noreferrer\">simplisafe.com\/pockets<\/a><\/p>\n<h2>Fire Round Sponsor<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-102474 \" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/09\/LinkedIn-Logo-black-300x81.png\" alt=\"\" width=\"237\" height=\"64\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/09\/LinkedIn-Logo-black-300x81.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/09\/LinkedIn-Logo-black-768x208.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/09\/LinkedIn-Logo-black-1024x278.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/09\/LinkedIn-Logo-black.png 1280w\" sizes=\"auto, (max-width: 237px) 100vw, 237px\" \/><\/p>\n<p><strong>LinkedIn Marketing Solutions<\/strong> is the de-facto environment for B2B marketers and advertisers to<br \/>\ndrive brand awareness, generate leads and build long-term, purposeful relationships that result<br \/>\nin real business impact.<\/p>\n<p>Go to <a href=\"http:\/\/linkedin.com\/BIGGERPOCKETS\" target=\"_blank\" rel=\"noopener noreferrer\">LinkedIn.com\/BIGGERPOCKETS<\/a> to redeem a free $100 LinkedIn ad credit<\/p>\n<h2>In This Episode We Cover:<\/h2>\n<ul>\n<li>The two reasons you <strong>should NOT<\/strong> get into real estate investing<\/li>\n<li>Figuring out your <strong>big &#8220;why&#8221;<\/strong><\/li>\n<li>Cory\u2019s unique strategy for<strong> getting started<\/strong><\/li>\n<li>\u00a0What exactly <strong>&#8220;debt-quity&#8221;<\/strong> is<\/li>\n<li>How he makes a MINIMUM of <strong>$100k on each flip<\/strong><\/li>\n<li>The\u00a0<strong>networking strategy<\/strong>\u00a0Cory uses to keep his pipeline full<\/li>\n<li>Where he finds hungry, ambitious, and like-minded people to <strong>partner<\/strong> with and his brilliant strategy to connect with them<\/li>\n<li><strong>And SO much more!<\/strong><\/li>\n<\/ul>\n<h2>Links from the Show<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Forums<\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/webinars\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Webinars<\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/events\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Events<\/a><\/li>\n<li><a href=\"\/renewsblog\/bp-podcast-189-500-deals100000-wholesale-paychecksystems-work-tarl-yarber\/-\/\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Podcast 189: 500 Deals, the $100,000 Wholesale Paycheck, &amp; the Systems That Make it Work with Tarl Yarber<\/a><\/li>\n<\/ul>\n<h2>Books Mentioned in this Show<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.biggerpockets.com\/richdadpoordad\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Rich Dad Poor Dad<\/em><\/a> by Robert Kiyosaki<\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/flippingbook\" target=\"_blank\" rel=\"noopener noreferrer\"><em>The Book on Flipping Houses<\/em><\/a> by J. Scott<\/li>\n<li><a href=\"https:\/\/www.amazon.com\/gp\/product\/1591848288\/ref=as_li_tl?ie=UTF8&amp;tag=biggerpocke0a-20&amp;camp=1789&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=1591848288&amp;linkId=38b36ec4d7f04940982657b0c0084ad3\" target=\"_blank\" rel=\"noopener noreferrer\"><em>The Go-Giver<\/em><\/a> by Bob Burg &amp; John David Mann<\/li>\n<\/ul>\n<h2>Fire Round Questions<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\/61\/topics\/598315-top-best-strategies-on-finding-off-market-deals\" target=\"_blank\" rel=\"noopener noreferrer\">In your own experience, how or what have you done to find deals off-market?<\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\/616\/topics\/589642-wholesalers-agents-and-investors-how-are-you-finding-your-deals\" target=\"_blank\" rel=\"noopener noreferrer\">How are you finding your deals?<\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\/67\/topics\/591746-the-highest-profit-margins-for-flipping-houses-in-us\" target=\"_blank\" rel=\"noopener noreferrer\">Would it be better to buy higher end properties in good locations maybe?<\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\/311\/topics\/587847-what-do-you-guys-think-about-seattle-vs-silicone-valley-in-future\" target=\"_blank\" rel=\"noopener noreferrer\">I am considering to invest a property either in Silicone Valley or Seattle area. What do you guys think? <\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\/67\/topics\/614340-contractor-open-house\" target=\"_blank\" rel=\"noopener noreferrer\">Anyone ever hold a \u201ccontractor\u201d open house (so to speak)?<\/a><\/li>\n<li><a href=\"https:\/\/www.biggerpockets.com\/forums\/12\/topics\/594848-finding-trustworthy-contractors-inspectors\" target=\"_blank\" rel=\"noopener noreferrer\">How to source trustworthy contractors and inspectors?<\/a><\/li>\n<\/ul>\n<h2>Tweetable Topics:<\/h2>\n<ul>\n<li>&#8220;Even if the profit is small, it doesn&#8217;t mean it&#8217;s not a good deal.&#8221; (<a href=\"https:\/\/twitter.com\/home?status=%22Even%20if%20the%20profit%20is%20small,%20it%20doesn&#039;t%20mean%20it&#039;s%20not%20a%20good%20deal.%22%20BP%20Podcast%20302%20biggerpockets.com\/show302%20%40biggerpockets\" target=\"_blank\">Tweet This!<\/a>)<\/li>\n<li>&#8220;Every deal is different.&#8221; (<a href=\"https:\/\/twitter.com\/home?status=%22Every%20deal%20is%20different.%22%20BP%20Podcast%20302%20biggerpockets.com\/show302%20%40biggerpockets\" target=\"_blank\">Tweet This!<\/a>)<\/li>\n<li>&#8220;If you&#8217;re in it for the money and the image, then you&#8217;re not going to make it.&#8221;\u00a0(<a href=\"https:\/\/twitter.com\/home?status=%22If%20you&#039;re%20in%20it%20for%20the%20money%20and%20the%20image,%20then%20you&#039;re%20not%20going%20to%20make%20it.%22%20BP%20Podcast%20302%20biggerpockets.com\/show302%20%40biggerpockets\" target=\"_blank\">Tweet This!<\/a>)<\/li>\n<\/ul>\n<h2>Connect with Cory<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.biggerpockets.com\/users\/CoryNemoto\" target=\"_blank\" rel=\"noopener noreferrer\">Cory&#8217;s BiggerPockets Profile<\/a><\/li>\n<li><a href=\"https:\/\/www.lwin-nemoto.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Cory&#8217;s Website<\/a><\/li>\n<li><a href=\"https:\/\/www.instagram.com\/cory.nemoto\/\" target=\"_blank\" rel=\"noopener noreferrer\">Cory&#8217;s Instagram<\/a><\/li>\n<li><a href=\"https:\/\/www.facebook.com\/cory.nemoto\" target=\"_blank\" rel=\"noopener noreferrer\">Cory&#8217;s Facebook Profile<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>On today\u2019s show, Cory shares his personal strategies for keeping his pipeline full of great deals, what techniques he uses to make a minimum of $100k on each deal, how he partners with new investors to make everyone money, and his brilliant tips for building relationships with those most likely to build his business.<\/p>\n","protected":false},"author":17340,"featured_media":118211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4565],"tags":[],"class_list":["post-103400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-podcast"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/103400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/17340"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=103400"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/103400\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/118211"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=103400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=103400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=103400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}