0:01 Hey, welcome to today's episode of the Hyperloop podcast. I'm your host, Mr. Daniel Martinez. Today I have a special guest, Mr. Jared Alexander. We're covering a deal breakdown, which is a cool, interesting story that you have in real estate of business. What's your coolers to the store? Jared, that you got for us today? 0:16 Yeah, so thanks, Daniel, appreciate you having me on the show here. And yeah, one of the stories that first comes to mind is a single first single family home I bought. So just a little backstory on this, and I don't know if anybody relates to this or not, but I'm gonna share it is, you know, I just started in real estate is probably about three years ago. And my wife's a school teacher, and we, you know, started getting involved in this space. And then I, at first, I kind of had to sell my wife on the idea of real estate, you know, you know, it's just, hey, we're doing good right now, why do we need to, you know, go out and invest our money in all these, you know, risky, scary assets, you know, is kind of in her mind, which is definitely understandable, I could see where she was coming from. But for me is like, Hey, I'm seeing this as a way to scale. So anyways, we go out and buy our single family home. And so we were first looking at our general location here in Phoenix, Arizona, is where we're currently at. But of course, the market was just hot, you know, three years ago, and it was really hard to find anything that penciled and made sense. Not saying it wasn't out there. But man, we were finding nothing. And so we ended up looking at estate. So we landed on Kansas City, Missouri. And I actually had a good friend of mine who was investing out there and brought a couple of properties. And so we went for the turnkey deal, you know, renter was in place, property manager, you know, and I, so I ended up buying my first home, out of state, never seen it before. And representing myself as the realtor, so to speak, there was not a, you know, I didn't have a realtor involvement or transaction. Right, so I'm negotiating all these deals and, and not only, you know, as, you know, everything I just said, but then you throw it to 1920s house, you know, in Kansas City. So on an inspection report, you can only imagine what comes back on it, right. I mean, friggin foundation work, you know, plumbing, the sewer pipe is about to fall apart, you know, all of this stuff, right? In, you know, and I'm, I'm figuring it out again, you know, the best way to learn is to go through it. So we're, you know, we're going through it and, you know, ended up closing on the deal. And did problems, I was actually very impressed with the, the negotiation process was able to pretty much get everything I asked for, within reason, right. And so we ended up closing on that and everything was good. I started, you know, getting getting some cash flow cash flow to about $200 a month as well. So I'll share share was we bought it for 75,000. And, you know, it was, you know, again, cashflow over $200 a month. So anything I was paying, you know, doing underwriting on that was that was definitely a win for us. Yeah. You know, of course, that's minus, you know, we've factored in vacancy capex repairs, you know, property management fees, you know, of course, minus all the expenses, right? And we're putting that money away, but so then, yeah, everything's going good for about two weeks. And then I get a call, Hey, we need a sump pump. Okay, you know, me, I'm not from Kansas City, Missouri, and I guess they got basements down there. And you got it, they require so bulk is it rains a lot in water floods down in the basement, right. That's another $3,500 repair. Right there. Right. And then, you know, I got some odds and ends, I mean, the stove went out the you know, just just things like that. It was a couple light fixtures and things by all and all within probably a month and a half of this property of owning it. We probably had about $4,500 in repairs, you know? Yeah. And I there was some of the AC I mean, yeah, just just all this stuff. And I'm like just coming at me and I'm like, wait a minute, this is not how this is supposed to go. I'm supposed to just sit back and collect a check here and, you know, fix something maybe six months down the road or something but not faster. Yeah. Yeah. Right. Like this is not that passive. And I even had one time where you know, again, I got a property manager on paying well, I got a call from him at 12 o'clock at night. Saying, hey, the tenants just came home and all the power shut off and there's no Water and I'm like, What do you want me to do? You know, I'm 3000 miles away here in Arizona. And so anyway, it's just kind of, you know, you gotta manage the property manager, you know, things like that. So, to your point, and it was not as passive as I would have hoped. And so that was that was our first deal. Now I will share though, you know, just by taking that step to get involved, we ended up holding that holding on to it for about a year, but over a year, and then got nothing really came up too much after that, after those initial repairs, you know, some audit and stuff here and there, then we ended up selling it for 95,000 A year later. And, you know, we put 2020 25% down for the down payment. So it was a pretty good cash on cash return. I mean, if you look at it, and a year, we doubled our money after we paid all the fees and taxes and really, you know, yeah, and, and so yeah, I mean, oh, no, it turned out good. But it was definitely an experience for sure. Yeah. 6:10 Well, I'm glad. I'm glad you took the step out, I think it's number one, we got to commend you on his next take an action, because like I said, most people will never take action, they'll never buy the first property they'll never understand. And I think it's a there's a path that you go down that it kind of led me to what you do now, which is 100% Worth worth the action. Like you said, you got to lose money on it, because I would have been disastrous, but even lose money. It's still a learning lesson. So if everybody has to start somewhere, so if you're going and going down was messing around by hour, see what happens. Hopefully, you get a good deal. Hopefully at least learn enough that much to negotiate and fill out a purchase contract and get that first part done. And it seemed like he did all that and he kind of worked your way up to doing larger assets. But everybody here, man, you got to start somewhere. You started at a you can't start to z and we hope for the results of making a lot of money in real estate. 6:59 Yeah, absolutely. When I tell you, like you said, I mean, this got my foot over that threshold, right? I got me in the game. And honestly, I want him to go out and tackle like 20 More right then I'm like, Yeah, let's go do this, you know, and which, you know, led me to where I'm at today. So it's, it's been? Yeah, definitely. Quite the experience and a good learning process along the way. 7:22 100% Well, for everybody here, Jared did another episode with us. Please go check it out. We covered multifamily syndications, which is what Jared does work, we will find you online. We have optimal optimal equity group.com And then we're social media. 7:37 So LinkedIn, you can look me up on Facebook or Instagram, LinkedIn and Facebook. Just google my name Jared Alexander, J. R. Od Alexander, and then link or Instagram is Jared. Alexander 2489. You can find me there. Yeah, 7:57 you go. Well, I hope you hope you take your first steps in real estate. If you're looking to start somewhere. He's got to start, hopefully not lose money, but he's got to put the money where your mouth is and you'll experience and learn a lot in the first deal. So I hope you all take action and produce results like Jared did and you know who knows where you ended up? A few years later and multifamily who knows? Thanks for your time Jared. And wherever you're listening, go like share, subscribe, and share with your friends. We'll see on the next episode guys