hey welcome to the H podcast I'm your
host Daniel Martinez today we have
returning guest Ian Hertz he is out of
Philadelphia they didn't see your hands
because now you can do it now you can
see it see see your hands there we
go if you have not checked out this
other episode please go check it out we
covered real estate The Good The Bad LPS
GPS raising money and today we're
covering deal breakdown we're cover cool
interesting stories Ian what is your
cool interesting story you have for us
today we kind of luded it in the other
episode but let's let's hear the full
story today yeah man I would say the
number one deal that absolutely changed
our lives was a 76 unit apartment
building that we did during covid it was
76 units our we got a phone call from a
wholesaler friend of ours and he called
us up and he said hey man I got I got
this 76 unit apartment building she
wants to sell it I said okay and as I'm
hanging hang up the phone he says oh by
the way she wants to own her Finance 90%
of it I said okay whatever so hang up
the phone and walk over to my business
partner's office I said hey Dan I just
got this phone call they want to Shane
and his partner want to wholesale this
76 unit apartment building they just
want to flat fee and uh the owner wants
to owner finance 90% of it he said no
effing way this is whatever I
said all right Dan I'm going to take the
meeting off I go I'm going to go do it
on my own he's like all right all right
I'll come so we go and meet with her and
the way we actually got the lead and the
reason she wanted to contact us was
because we had written a book on what we
were doing Section 8 Housing and what we
were doing really well at that time and
she had kept tabs on Us online was kind
of I guess Facebook stalking us knew
about us so we sat down and discussed
with her about purchasing her facility
Well she was talking to us and she was
talking to two other groups so we went
toward the facility now mind you this is
in August of this is in August of 19
we're touring the facility we're doing
everything we submit our offer well we
wound up well I'm sorry we submitted the
offer she came back she said do best in
final so we said to ourselves we said
most but keep our keep what we need to
do well everyone with owner financing
most people are like oh yeah just do a
do a a 30-year note and do this interest
rate so what we did was we started
toggling the interest rates and the term
so we were able to give her a better
interest a better price and we carried
it out for a 40-year term because the
other thing she told us in this meeting
was I need $20,000 a month to take care
of my mother it's her property I want
the $20,000 a month so she can have
inare home or inhome care well she you
know she's basically on hospice and I
don't want to send her to a nursing home
and I said so we knew that so what we
did was we toggled the numbers to the
point where we had to pay her roughly
20,000 bucks a month to make that happen
for for her so from there what happened
was she didn't actually go with us she
went with another group which I thought
was weird but what I did was I called
her probably a few months later now mind
into we're going into December January
somewhere in there we're getting ready
to buy a 34 unit apartment building we
need to raise some capital for it so I
called her up I said hey Judy know
you're coming into some money you're
probably getting ready to close White
House you want to invest with us I
thought we had a really good
conversation so that's why I was willing
to call her like we connected on a lot
of things she worked for the police
department we worked for the fire
department you know we had a lot of
similarities and when I called her that
day she said no actually the deal hasn't
closed the guy that I wanted to go into
contract with is playing all kinds of
games he was trying to do some tax
saving things because it was on three
Parcels it wasn't going to work it was
all this other crap and basically when I
called her that day she said to me she
said you know what I think I screwed up
the property to you and Dan I said well
if you're in contract I don't know if
you can legally do that and she said I'm
actually not in contract let me called
my lawyer called her next day dude not
even 24 hours later we're in her
lawyer's office sitting there like two
little school girls we like oh yeah you
know we're like negotiating all the
little terms of it and we had a sign
contract right there me and Dan are just
like trying not to scream we're walking
out the lawyer's office like both like
giggling and we get out to the truck and
we're both like yes we did it we got it
under contract and we were so estatic
and basically from there it took a few
more months to close we had to do some
stuff we actually had to wound up taking
over management for her leading into the
purchase the whole thing was a mess
overall but we we got the deal done at
the height of covid in June of
2020 wow that is a story yeah man well
and it gets better I mean we it I'm not
going to spoil it but it does get better
I promise so so let's jump a little bit
into things so you got the lead off a
book yeah so we wrote a book it's called
subsidize it's on Amazon and basically
what happened I mean dude you know you
get all these real estate meetups and
whatever else everyone's like oh how do
you do this how do you do that and you
just like at a certain point you're like
I can't tell everyone the same damn
story over and over again so what I did
was I hired a ghost writer and I told
her my whole story sent her every
presentation I ever done and I said I
want to turn this into a book and she
turned it into a book and now we sell it
or at the time we were advertising to
sell it uh to generate some addition
leads and capital investors and
ultimately that she saw that and that's
what led her to contacting us amazing
amazing uh I I I'll commend you for
following through and just producing
that because you don't even know you did
not expect that deal coming in off of
that book I guarantee you it was just
something to get off your chest to you
don't have to talk about that
anymore yeah it was 100% it was like how
can I help the most people without
having to talk to every single person
and like podcasting isn't like what I
dude we're talking seven years ago right
right like podcasting is not what it is
today where I could just hop on and tell
everybody's story and it's omnipresent
and Evergreen that was the best way to
do it at that time you know amazing
amazing so can you say how a deal ended
because yeah so yeah 100% so basically
that deal was the first deal that we
actually raised capital for we needed a
million bucks to do the deal so I wrote
the 100 people that I thought that had
$225,000 and I just called every body
dude I mean I called everybody and when
we did that we wound up raising the
million bucks and then we operated the
facility from June of 20 all the way
going into August of 21 September of 21
right around then we decided to
refinance it so 16 well it was like 14
months later or 16 months later now
remember we bought this thing for just
shot we 4.95 million and we put a
million bucks in between down payment
and get you know doing renovations and
cash flow of operations to do all the
renovations that we needed to do and
then we got a valuation of $9.8 million
and refinanced it for basically seven
million bucks got a seven figure payday
and quit our jobs the next day after we
paid out our investors and paid
ourselves out we literally quit the next
day and that was it that deal right
there allowed us to quit and then
furthermore it gets even better Judy is
now one of our biggest Capital investors
basically her her sister split that 4
and a half million bucks her mom had
passed and now basically she has
reinvested almost every single dollar of
that with us side by side on a bunch of
different deals that we've done and you
know but that deal there doing the owner
financing built that relationship to
ultimately trust her to allow us to do
more deals together and build that
Capital base and continue to grow so
they became a mutually beneficial
relationship from there on out you know
because we performed on what we said we
were going to perform on to the point
that she had had the confidence to be
able to not only own her finance a $5
million building with us but then
actually take her actual cash and most
people would just go spend and enjoy and
reinvest it with us which has been to me
the real stamp of approval no I I think
the this story is amazing it's amazing
because I think the book part of it you
you had to make decision to get the book
number two she followed up with you you
followed up with her to kind of
hey you did what you say you did like
this is like years in the making
overnight success years in the making
you know yep yeah everybody sees that
like I want to do that I'm like dude
that was seven years of grinding our
and that's what I'm highlighting like
this this is deals like this happen over
consistency and time like you're not
you're not GNA do opportun you're not
gonna have opportunity like this if
you're you're you're doing it part-time
it's just just be honest yeah well we
kind of looted this into the other
episode is like most people take their
foot off the accelerator like I had a
bunch of success and then boom they're
like I'm comfortable and they don't want
to do what it takes to get to the next
level but we all have a responsibility
to get to that next level so I think
it's amazing that she's a lender for you
too because one thing that we're
noticing too that when you deal with
high value individuals if you do good
business you get repeat business up into
including capital A lot of our sellers
are turned into lenders for us too as
well and I think it's I think it's
another highlight is when you do good
business it come it circles back to you
yep do what you say you're going to do
be transparent we talked about it in the
other episode if you do exactly what you
say you're going to do people start to
trust you and like you said it's like
man what he told me that he was going to
do he actually did it you know what I
trust that he says he's going to give me
8% monthly or 10% or whatever you guys
are offering you know it's like if he
says he's gonna do it I trust that it's
G to show up and you know what if he
doesn't I'm sure he has an answer and
he's gonna tell me why it's not showing
up and how I'm going to be squared away
and I think that's I think that's what's
important and people forget that we're
here to do the the right thing at all
times and too many people get greedy and
say oh I'll do it on my own or you know
they're more worried about themselves
and they are actually that overall
picture to say the least absolutely man
this has been amazing amazing episode I
appreciate you having that story and
being consistent enough to produce that
story and results because I think it's
it's as it's aspirational inspirational
inspirational aspirational I don't know
I'll take it either way it's a win it's
it's it's a big win and I think I think
it inspires it could have inspired a lot
of people just to be consistent and you
you had a job up to that point you still
we were career firefighters for the city
of Baltimore up until that point we
refinanced it oh yeah when did we ref we
refinanced it early September and I just
remember SE well September 28th seven
days after my daughter's birthday we we
quit like literally that deal got done
let the money hit the account we kind of
stared at it for a minute and I was like
I'm done I mean there there was some
other going on but in the grand
scheme of things that deal put me over
the edge and that was it and we
basically said listen man like we're
each putting five years of our pay away
and if we can't figure out how to make
money over the next five years and we
shouldn't be in business anyway and at
that point we had already been in
business for seven years and we were
paying ourselves basically if not more
than what we were making in the fire
department and we said we'll figure this
out the day we quit we literally tripled
our business over the next 12 months and
that's how we ended up where we are
today with you know almost $70 million
of real estate I mean it's just wild
like that one deal that we're all
working towards it could be a wholesale
deal a single family deal could be
anything there's one deal out there
that's going to change your trajectory
and when you find it and you do it then
you figure out how to recreate that what
did you do to get that deal how do I do
that over and over and over and over
again and that's what we look to do
every single day I think I think there's
multiple points of that I think your
first deal because it kind of puts the
light of the W over your eyes you can
actually see the opportunity cuz then
you got paid on it and then there's like
the the one strategy that accelerates
you and then there's like that one big
deal that using that strategy that takes
you to the next level and you're Off to
the Races hey man you got to hit singles
if you you know you're not swinging
hitting in the Batters box if you're not
swinging at pitches you can't hit a home
run dude right like or Wayne Gretzky you
you can't what score a goal or whatever
shoot Miss 100% of the shots you don't
take or whatever it is right you got to
get out there and do it how many people
you know sit on the sidelines that
aren't willing to swing the and again if
we never did our first deal there's no
way we could have ever done this
deal out of the gates let alone ever
being in business right like it's just
it's just a home run of a deal and I'm
so appreciative of what Judy did for us
and how we were able to get that deal
done and you know there's something
bigger in the universe I'm not a god
person but something whatever's out
there was looking out for us and it
worked out the way it was supposed to
working people find me online I got
Equity warehouse.com mention your
podcast mention your book let's let's
spread the love hope learn some
information Equity warehouse.com you can
check out how we co-invest with our
friends and family you can find us on
all the social sites at Equity Warehouse
I do the most on in Instagram the most
communitive if you want to DM always
happy to chat to anyone we have a
podcast it's called real estate Reserve
podcast we just bring on real people and
talk about real things and finally if
you want to check out that first book
that we wrote and I might never write
another book because it takes a lot of
work but it is on Amazon it's called sub
subsidized a guide to government yeah
subsidized a guide to government funded
rentals or something along those lines
it's a red cover check it out it's a
good book and if nothing else you're not
going to do Section 8 it talks a lot
about what to do in your rentals or not
to do in your rentals to not have
headaches and we did pour a lot of blood
set and sweat and tears in there and you
can really get how we were thinking
early on in our investing careers and
hopefully it can help get you going in
the right direction there you go thanks
for coming on Ian go check them out
please go check out the other episode if
you like this one go check out the other
one H we'll see you on the next time
thanks for tuning in thanks again have a
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