Mentors Collective Entrepreneurs

Real Estate Investing Strategies with Josh Steinberger

September 15, 2020 Dr. Jay Feldman / Josh Steinberger Season 2 Episode 24
Mentors Collective Entrepreneurs
Real Estate Investing Strategies with Josh Steinberger
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Mentors Collective Entrepreneurs
Real Estate Investing Strategies with Josh Steinberger
Sep 15, 2020 Season 2 Episode 24
Dr. Jay Feldman / Josh Steinberger

In this episode, we do a deep dive into real investing with one of the greats, Josh Steinberger. Starting from nothing, Josh has built a 9 figure real estate empire without spending a dime of his own money. I had to find out HOW and on this episode, you can learn too!

Facebook.com/joshsteinberger
Instagram.com/joshsteinberger





Support the show (https://mentorscollective.com/support)

Show Notes Transcript

In this episode, we do a deep dive into real investing with one of the greats, Josh Steinberger. Starting from nothing, Josh has built a 9 figure real estate empire without spending a dime of his own money. I had to find out HOW and on this episode, you can learn too!

Facebook.com/joshsteinberger
Instagram.com/joshsteinberger





Support the show (https://mentorscollective.com/support)

Jay Feldman :

What's up everybody and welcome to the mentors collective and entrepreneurship. As you know, I bring you the best guests to talk about things that I'm not an expert in. On this episode. I've got something really special for you. He's a serial entrepreneur. He's dabbled in real estate, business coaching. And he's got a lot of exciting stuff going on. He's got a got a really long list of golden nuggets for you this episode, I spent a few minutes chatting with him. I think you're gonna have a lot of value in this episode, Josh Steinberg, thank you for coming on the show with me. Pleasure,

Josh Steinberger :

Jay. No worries. Thank you for having

Jay Feldman :

me. So we just had a really good chat, pre show about some of the awesome things you've got going on. I really want to pick your brain about real estate investing because I know you started from scratch, you started not knowing anything. And now you've got this massive portfolio. So we're definitely gonna talk about that. But first, this shows a lot of aspiring entrepreneurs, entrepreneurs who are just kind of starting so just briefly, would love to hear about your journey. I think hearing the journey of other entrepreneurs, how they started and what they've got their hands in is super helpful for people. So go ahead and give us your story.

Josh Steinberger :

Awesome man started out I didn't come from a silver spoon or a gold spoon or anything like that I wasn't you know, hard up or bad off my, my parents. My mom was a stay at home mom, my dad was a carpet installer. So super blue collar, you know, working class family didn't have what you would call any kind of investment background obviously, I was severely paycheck to paycheck, etc. So my journey really started fresh out of high school, I really got Delve straight into sales and learn everything about that. And I think something that really helps helped me in my journey in business was the fact that I spent years going door to door before I ever ventured into being an entrepreneur. So I my teeth kicked into me I had 2 trillion people that told me no no matter what, so that, you know, allowed me to level up everything that I had going on. And what you don't really realize is your key components to business to then understanding, you know, down the road of my steps in my process. Now I look back and I go Wow, that's really what would lock me into to being as successful as we have. So farm so I got lucky in my circle that I was able to get into a decently paying job that allowed me to stack and squirrel away some nuts. And, you know, obviously when we start getting into investments and real estate and things like that first thing that everybody asks is, you know, where do you go is a cash is it? You know, do I have to find a property? How do I put all the whole deals and part two pieces together? So in the process of my journey in everything sales related, actually Grant Cardone was somebody that was very influential in my life back then granted have $2 billion worth of real estate at that time, he was a sales guru guy. So as he started transitioning into real estate, he started putting out tons of free content out onto YouTube and everything like that. And so really digesting everything that he had for free. So everything that I learned in real estate, how to buy property where to find people that have property, when I started buying real estate, I never used $1 of my own money, so I never had any cash invested into it. So how to do that whole process, literally was was acquired through the information that I got on YouTube and Facebook, Instagram, from people like grants and then local guys that were big that were killing in the market here. through, you know, real estate groups and things like that meetups and really learning to network with people local catch up.

Jay Feldman :

So you had a pretty decent paying job after you had already kind of gained some experience in sales door to door hearing no kind of building up that fortitude that it takes to go ahead and start your own thing and start your own business to put away some money. And then you kind of sought out this information on real estate investing on your own and never bought an online course or anything like that.

Josh Steinberger :

No, no, yes. I never had any kind of online courses. No, you know, when I started into this journey by eight years ago, it was probably when a lot of the coaching products and programs and things really kind of started getting going so back then it wasn't like a normal thing to you know, just Hey, pay me 100 bucks a month or a year or whatever, and you get all this information. People were just flooding the market with it mostly for free, which is all the information still out there. You know, like is it through through third party programs and things so it's obviously faster and more specific. If you have somebody that you follow this a coach that's going to do it with 50 people you can ask specific questions, get specific answers opposed Screaming through hours and hours of, you know, content and things like that. But you know, there's there's value in that on both sides of it, somebody that's going to go into a group, you ultimately want to be able to add value to that group too. So I always tell people to go and get as much content as you can get from, you know, the internet for free. understand everything. So you can ask impactful questions that are going to actually give you you know, movement that are going to actually move the needle opposed to just beginner level surface level stuff that is out there. So literally Google double that it makes people you know, unfortunately, the guys that are mentoring, you know, people that are moving up a lot of what it sounds like your audience is really going to vibe with. You don't want to ask what you know, what you would think is a dumb question.

Jay Feldman :

Because there I couldn't, I couldn't agree with that more kind of, and that's kind of how I learned as well, I everything that I learned about marketing about PR, I learned for free from mentors and from online resources. And all of that information is out there. I might not be packaged as pretty as a lot of people might put it into a $10,000 online course but it's there. You know how to look for it. And the other thing that you said, being able to ask impactful questions is super important. Because you can hand somebody all of the information packaged nicely, they're still going to have questions and being able to have someone to give you the right answer to those questions is super valuable. Let's go ahead and jump right into real estate investing. You said that you started with none of your own money invested. You tell me a little bit about how you got the ball rolling, starting from nothing?

Josh Steinberger :

Absolutely. So you know, one of my big things in my come up and process of everything was like I said, I had I had worked through multiple different levels is management as his jobs go, right. So nine to five, I'm trading my time for money. And fortunately, a lot of the people that I was looking up and looking into real estate and all the things like that the reason I wanted to get into real estate is because I wanted to not trade my time for money anymore. I wanted to have money be invested into my bank account, or all ultimately be attracted to me so that then I could buy more time and spend it with my family. And so this is, you know, one of those that kind of becomes a really a double soared because Be honest so in about five years I didn't see my kids and my wife nothing went straight into you know grind mode the carrot was dangling out there and it was homeless like every year we buy a bigger house and a new car and and things so every time I like well once we hit this you know financial level we'll totally scale it back and I'll retire you know goal was to retire at 35 Here I am, you know, you're out of 35 pseudo retired at the moment, we just moved to Kansas City. So, you know, that's really awesome on kind of our processes. It's a catch 22 on the dig deep and grind so buying without any any money, so I don't have any cash back then. Right. So the initial process for me and getting into real estate was so that you know, so that we could retire early need to have that cash, we don't have any cash. What do we do? So we focus really heavily into tons and tons and tons of local Facebook groups that had 30 4050 people that did a happy hour and a lot of it started out as local realtors so a lot of realtors you know young realtors get in they want to get in the game. Unfortunately young realtors don't usually have a crazy income since they just start selling properties, but they get into the selling properties to learn more information about investing in real estate that ultimately allows them to be close enough to some of these bigger deals. So a lot of guys will start these groups and have the a bunch of young entrepreneurial minded realtors come to it that have information on big deals but don't have capital don't know how to do the deal. Don't know, you know, all the moving pieces usually have two or three key guys that that will be brought into these networking groups. And you can kind of go in and kind of pick their brains so as long as you you know, ultimately anything in real estate. For me what I've learned in the in the years is you got two different options in order to buy it you got most of the time transactions are happening right now in the investment side are going to be either you bring the money or you bring the deal very rarely are we having you you got guys that have a boatload of cash that are sitting down buying the finding their deals, acquiring their deals, writing the deal and doing the entire process at that point, they have employees. So in the interim in between hundreds of millions of dollars where you're a business, you have your own employees Got a lot of networking that occurs. And so getting in tight with the guys that have the money that have done the deals and things like that, if you can find a way to find an acquire, you know, Hey, I got a deal you want to look at and kind of working your way through it, they'll kind of the key you into it. And what I found was, for me, my first handful of deals was that we were able to work deals out where I went out, we acquired the deal, I had a manage and own construction company in Cleveland. So my value proposition was I'll do all the remodeling, all the all the work that has to be done to the property, at cost. And in exchange for it. I just want equity so you don't have to pay me anything. You pay me the closing funds when we refinance the property. So I'm going to put all the cash up front, you know, doing all the work and things carry it for eight months, 12 months, 18 months, depending on, you know, how long it was supposed to take. And then once some property was able to be refinanced. I get all my capital that I had to put in for materials and things paid back. And my labor costs it at costs, but then I would also maintain my equity. So anything above there if we you know, it was a million dollar profit that we had done And the refi proceeds I get 35% above and beyond what my cost basis was into the deal and so my first two or three deals we did just like that now obviously I came in a situation where being able to do the work myself I was able to put a lot of sweat sweat equity with my staff and my employees into a bunch of deals that we did where the realtor that brought the deal into the group that you know ultimately this is where we network right so the realtor comes in so it has no ideas no credit has no cash has nothing he's just like I got a deal. So I was in all these groups is basically just the contractor guy looking for roofers or siding, you know, whatever they had that they need to be done on these properties that people were buying and then it turned me into Okay, cool. So instead of me trading my time for your cash, let me get a bigger piece of that and you can delay my instant payment so it makes you happy because you're not having to front the money. The bank is excited because everything looks on paper a lot better and juicy, you're up front and then we can roll that money into the tax free back end.

Jay Feldman :

Gotcha. So interesting model you are definitely coming at this from a pretty unique angle, being able to do the remodeling yourself. Now. What about options for people who maybe can't contribute in that way, finding somebody who's coming out of like me like, I'm not going to go do any remodeling. I know nothing about remodeling, I've got some money. I don't have, you know, a million dollars sitting around to buy a house, what are the options? There's a financing through a bank, can you still crowdsource money from the rich folk in the Facebook groups? What would a more general approach be

Josh Steinberger :

so 100%, so the process is exactly the same. And so what happens then is if you're the other guy, you get a smaller slice of the pie, but you have no capital put up front and you have very little bit of time. So you have to either bring the deal, or you have to fund the deal. There's two sides of the coin. So if you're the new guy, just getting in you scour leutnant, you make 2000 offers on problems. You see you learn all the information through YouTube pages, etc, on how and what the underwriting you want to have. So my underwriting criteria for everything, we love to hear the number 10%, right. So ballpark numbers, if I get 10% I can find somebody to sell this property to fairly quickly or bring it to somebody that's going to find a way to value add and make it worth even more. So if they In case it's a juicy deal if you have a juicy deal it's fairly easy to find somebody that's going to be able to take in one you know a networking group like that and go Hey, I got a deal I got this property it looks like this, here's what I think ballpark numbers would be put into it would be etc. So really square one is learning how to underwrite property and there's so much information out there I can talk to you for six hours and do whiteboards and all the things on that which is all you know, fun and boring at the same time so but hundred percent for me was I spent probably the better part of a year watching literally YouTube videos Grant Cardone on a whiteboard and thousands of deals he underwrote on just free time all the time. Bring the deal talk about the deal on his little his, you know his his thing. He turns around on the whiteboard, scribbles it all down Okay, here's what it is. Here's what it is. I like that deal. I don't like that deal. Here's why here's why not. So finding somebody that's very successful in that space. Now we can do the same thing by finding somebody locally that's in a you know, real estate market that's specific to you to say, Hey, what's this market specifically do I want to look at and what are the criteria that you know people are asking You're buying into where I can then go back and start scouring the internet for stuff and and finding option number two with that would be to start calling first for rent signs. So once you understand how to underwrite a property like that you start calling you know properties that are available for rent, or for rent, they have vacancy, if they have vacancy, it's a possibility that there have half the properties vacant and the landlord's just over wants to get out. So if that's the case, you call the front side and say, Hey, I might be interested in buying your property and open up that line of conversation. You do that 100 times a week eventually at some point throughout the end of the week, you're going to have an opportunity where you have two or three you know owners that are at least saying I'm open to selling make me an offer, here's some information, scribble it all down in a notepad take it to one of these networking events and talk to me

Jay Feldman :

I love it. So I guess I like breaking things down into steps. So for someone looking to get into real estate investing, watch a ton of videos and learn how to underwrite properties, I guess at first is learning the business. Number two is figure out how you're going to fund the the investment Whether that be taking out a mortgage or finding somebody to help you handle that payment,

Josh Steinberger :

let's assume that the funding thing is down the line a little bit. So, upfront here at step two, you're going to say either you have the money to fund the deal yourself or you don't if you have the money to fund yourself, you don't even have to go and scour the business know anything about it, go to the meeting, say I have cash, who's got deals that needs cash, they will come out of the woodwork. So I'm assuming most people that are starting out that are that we're talking to right now we're going to be the guy that got no money, right? So he doesn't want to do it out of his own pocket. So assume that the end of the rainbow is got the cash that's the last step the bank is going to fund the deal no matter what everybody's scared to death, if there's vacancy, I'll buy a property tomorrow that's got not one renter in it as long as under the performance, etc, etc. A bank is going to write me a loan Freddie or Fannie is going to insure it down the line. Ultimately, we want to see be worth a million bucks so that it's easy to flip into a federally insured loan. So step one is gonna be learning the business, find out all the ins and outs through the meetings, all the stuff, you're gonna wanna spend some time and underwrite hundreds and hundreds of hundreds of deals outside of that. Feel free to go bang on some doors with a broker call guy up, hey, I want to go look at this property and walk properties to be able to get comfortable and knowing what you're staring at and whether or not you're ever going to make a deal. I walk probably at least I probably walked at least 100 properties by myself that had zero clue what the hell I was, I kind of understood how to underwrite it, I had no idea what long term it was gonna take me to fill it with tenants, or any of the any of the back end business stuff of it, but I got familiar with staring at it. So then you know the products really well. So you can walk through, if you walk through 100 properties, and all of a sudden you walk through one that doesn't look like all the rest, it's in that much better condition, you and your head are automatically and be like, Ooh, this one might actually be something that's good. And at that point, now you have a value proposition to talk to somebody. So if it's still priced wise, you kind of understand a little bit of underwriting now you know that you get that one deal. Now you can take it to somebody and say, Hey, man, I've looked at 101 properties. 100 of them were turds, and they were coveted rats and tenants that were horrible. This one had a lot of the same stuff. You know, it's not going to be a diamond in the rough, but it didn't have have, you know all the water tanks were replaced in the last couple years in attendance that were really clean. And it seems like they probably pay their rent, you know, something that was a little bit out of the ordinary, that's moving in the good way to where you would say, hey, this would actually be something I would want to buy. So where you can start to identify that property as the one that you want to do, no matter what you do, you're going to look at 100 properties to buy one every day, no matter which way you go down the road, eventually, it doesn't matter if people are going to email you to trillion properties, you're gonna have to look at all of them stare at the numbers, you know, at the end of the day, you want to be able to know what you're looking at. And the only way to do that is to touch and feel so. So first one you want to do is get online understand what all the parts pieces are. Second, when you want to do is then start to go and look and touch and feel the properties and want to do it right away and, you know, waste a broker's time completely, you know, but eventually, at some point here, you kind of get comfortable with the numbers where you can say, All right, now I think I want to go and see these, and I'm serious about actually buying something to where, you know, hey, if I find the one, I'm going to get this deal done, the broker is going to get paid. That's all that requires. And then you know once Step three, after you've Find a property that seems you know it doesn't smell bad and you like the way that all the things are put together, put it to the internet. So in that process, so step one is going out and getting all the information. At step one, you should be entering all the local Facebook groups, you should be making friend requests to everybody that does multifamily or flips or rentals or whatever real estate product that you're looking at doing in your local market. All that information is out there once you pick like a bigger guy ish, it'll, it'll sort down through their friends list of the people that are doing it and you'll see kind of the moving movers and shakers go to a couple of those, you know, those events, the networking events that they'll all be talking about in their on their Facebook page and going out Friday, six o'clock it's that you know bonefish grill at the bar six to nine is happy hour drinks and we're all going to talk real estate etc. So really getting comfortable in like those circles, that everybody talks about everything. Everybody shares everything. You know, the one the one thing that's that's shown real true to me and in my journey throughout all the businesses that my wife and I have built is that The more that you have genuinely that you know what you're talking about, the more you want to give. So everybody is super scared. You know, they're like, Oh, are you approachable? Like, I go out to dinner and we drive you take Lamborghini, for instance, I have like a valet, Oh, come on, there'll be a group like, whose is that? And I'll hand the keys. The valet says, I don't know, it's not mine. People are so scared initially to approach people. And there's a way Let's be honest. We don't want any, like, any creepy stuff happening. But you know, at the same point, you know, Hey, I got a question about this or that, you know, send a Facebook or an Instagram message. You'd be surprised at how many people actually get that or don't get filtered back to them, obviously, how you and I ended up being, you know, associated here and getting on the pockets.

Jay Feldman :

Yeah, exactly. And anytime someone asked me a question via dm on Instagram, if it's a meaningful question, I'll answer them. You know, there's never someone that I'll blow by and I love giving back and the more you learn, just like you said, the more you do want to give back and contribute. So that's awesome. Jumping back into real estate. We spoke a little bit About the steps now, you mentioned multifamily single family, for someone who's starting out and thinking about investing their money into real estate, what's a good place to start?

Josh Steinberger :

Really, it's a personal preference and depending on the market that you're in, and what products are there, so it's a catch 22 because everybody always wants to start it with or, you know, dip a toe, I only want to do a deal. I want a single family. I did technically, I guess, have single family first because as I gained my own financial stability, I as we bought new houses, instead of selling the house that I moved from, I would always just, I'd refi it into like a 15 year and put a tenant, I never made $1 on those deals because my refi my, my mortgage and all the stuff I rent literally was like dollar for dollar, but in my head, it was like 112 and a half years I'll have that property for free and who cares what it cost because the tenants pay it and it's out of sight out of mind. So either I refi it or you know we sell it and throw it in the garbage or I keep it and pretend like it's not there and eventually it's worth some money. So I didn't start that way but it wasn't, you know, a source out there. Like a single family rental, my actual like, my focus was always 30 units and above is my first, underwriting is the same bank financing as the same actually bank financing is easier over a million dollars. Once a property is valued at a million dollars and above, it's 1000 times easier to actually get a bank to lend on it a couple different criteria and differences as far as that goes. But as far as like credit and underwriting and things like that go to you personally, then it becomes a business and it's completely different. So sometimes we get in a situation where a property is actually my underwriting, I could probably buy it for $100,000 less than we do. We actually buy it for more than I want to buy it for simply because it's it's simplifies the underwriting process at the bank. Obviously, that's, you know, advanced course level stuff. So you know, eventually you'll have conversations with the banks, whoever's writing your loans, those are the ones that become your best friend. I probably have five to $10 million worth of deals with the guy that writes most of my commercial brokerage loans just because we throw him equity on it. He rolls his closing fees into it uses it as part of the down payment. And then obviously a lot of these are getting brought to the bank. So when you're asking a question about money, where do I get money? How do I get money? All the things like this? He's getting that question every day, but 10 times more because he's the bank guy. A lot of people not every single person that comes across the docket obviously has the fortitude to be able to get financing. And so by by networking with those people, now you become the guy that's, you know, hey, I'm gonna throw you a slice for it. You know, you scratch my back, I scratch your back, and by greasing the wheels and every which way we go on it. Now I get a phone call, Hey, I got a deal that a guy can't really perform on what do you think we can throw him? You know, I've already done all the underwriting the banks, your number one guy going to do your partnership on it cuz they want to make sure that they can get the loan done. So if the bank doesn't think it can get done, they won't even call it but the banks like this is a slam dunk man. His home runs awesome deal. He just can't perform. Okay, cool. So he brought the deal. So now we're back to square one back to one right you bring the deal. So now we just treat him like he's the guy that brought me the deal. We throw a little bit extra on to the broker. Now the broker gets let in on the deal. Now he's getting more than just his brokerage fee, because now he'd be comes an equity partner of mine for bringing me the deal we throw the original guy back in the property the deal. All I do is go cool so I love so you know, the biggest key is most important thing I can I can like beat to death is find people that are doing deals and get around. synergy is real. And nobody does deals in this world by themselves. It's 100% getting to know people knowing what people are doing and bouncing ideas off of people up down in silence.

Jay Feldman :

That's great advice. And absolutely, if you put yourself in a circle where everybody is talking about these things and doing these things, you're eventually not only going to learn a lot more than you would otherwise but you'll get involved in these deals and this is not something I gotta get gotta get better at putting yourself in those circles and networking which kind of we're doing now. So single family you've done it you've tried it over time I guess when you actually cash out on the deal that's or cash out of the house that's when you can make some money, but not much passive income to be seen there.

Josh Steinberger :

You single families rough because at the end of the day, the mortgage is going to be most of it. You got one tenant in there if the tenant leaves you have it and it sits vacant for two months and mortgage payment on that. Two months offsets your entire year's worth of income, you know, over the years unless you really get like, buy crazy, cheap, cheap and have all kinds of cheap money and it's and then you're dealing with you know houses that are you know, $30,000 house at that point is God problems right? It's an old house. It's a beat up bungalow that's going to need a roof. It's going to need water tanks and hot water and God forbid one of those things happen to go wrong. Now you have an issue with the property's vacant and you got to put a bunch of money into it now two or three years worth of income are gone because you know, you had it there. So, single family I don't mind I prefer to buy a portfolio from an old guy that wants to retire somebody that bought you know, to single families a year for 20 years. He's got 40 houses, he wants to dump them and move to the beach cool. I'm gonna treat that like an apartment. It's 4040 in an apartment isn't usually they're kind of similar in an area the lending criteria and it gets different because they're different parcels and there's a ton of other moving parts to the actual deal but as a whole then I can look at and compartmentalize all of it as one big package if you're going Start out you're really in a single zone a real reason to do singles like that is usually to flip them and this market right now is scary as hell to do anything in that aspect of it. I have a couple buddies that do scares the living hell out of me. Honestly I don't flip. I do lend to guys that do flip. So, you know, good news for me as it becomes it's a heavily risk market. So the lending my indirect notes on that, you know, someone's got cash and they're watching this like I don't really want to get into all this stuff. I don't want to do attendance or, or any of the other stuff that goes with investing like that. There's an option to physically lend you find it. Same thing goes same meetings and all the groups and things and people are bringing deals all the stuff they need cash, so you're like cool, I learned for 12% it's backed by a mortgage, you already know that the house is bought for 30 you're giving them 42 it should be worth 90 as it is sitting today if you were to have to sell it etc. If you wanted to flip it finish a flip yourself. If the guy got in trouble, you got a lot of options there. Make sure you have proper documents. Everything's done by the attorneys. You have proper insurance. that's always an additional option to it but for the grand grand scheme of things man single families usually just that they don't make enough dollars to make sense unless you're buying multiples at the same time duplex triplex quad your first one getting out, you know get a jump a duplex or try and live in it so that it's paying for itself at the same time you can get used to all the parts that go to that that's not a horrible idea.

Jay Feldman :

That's actually what I was going to do. I had a duplex all lined up. I had my lending lined up. I did my walkthrough. I was like as my first walkthrough ever, I noticed that there's probably some problems my inspector went in, who was a friend of a friend, and he was just like, Don't buy this property. There was cockroaches there's Yeah, you know what it is what it is, I put a lot of time into it. And from there, I was just like, Alright, I'll put real estate on the under the side burner for a little while. But yeah, awesome, the duplexes what I was gonna do ended up not working out but one day, one day,

Josh Steinberger :

anything under four units is usually considered a personal property. So anything above For four to six units is when they start to call it commercial loan. So somebody that has, you know, FHA all the things like that you have the ability to actually loan into a duplex tri or quad really kind of simply. So even the guys that are moving in in their first or second home, a lot of times, it's it's usually a simple option, it doesn't require a ton of lending.

Jay Feldman :

Yeah, it was pretty easy. I was gonna, I was planning on living in it, and I really want to, but I was going to, but the loan options are better is what you're saying it's easier to get financing. If you're going to live in a home that's less than four units.

Josh Steinberger :

Yes, four units or less is usually the same as if you bought any single family home doesn't matter what it is, they all treat them very much the same, they go on an appraisal process as opposed to a cash flow analysis, etc. So, you know, in theory, if you get four doors on there, two doors are going to cover your mortgage and your maintenance that allows you to actually still have one door left outside of your own personal residence to you know, make some cash on. And then obviously, it's personal loans that sticks with it forever, here for the length of the loan. So it'll allow you to refinance it under personal context and get your cash out and eventually, maybe Move out of there because you can have up to four separate loans, personal loans at the same time four separate individual mortgages. So then you can, you know, you live in it for a year, it's under your personal mortgage and nothing changes, but then you move into your own home. Now you can rent out that unit make more cash flow, and nothing has to change on that property. Very

Jay Feldman :

cool. I'm learning a ton about this. Right. Thank you. I do want to spend a couple of minutes talking about the real estate environment right now. We're actually looking to buy a house in South Florida. And you know, if it's value for me, it's value for everyone. So what do you think is happening right now? Obviously, interest rates are low. I don't think people are selling what has it been like for you as a as an owner? And what do you think is going to happen for people who are potentially investing right now? Right?

Josh Steinberger :

So I can speak from different angles on this one because I'm currently I'm selling to personal properties that I lived in this last couple years. So my last single family that I lived in in Ohio is currently on the market hopefully is actually under contract should close in 52 days I think are left on that. Thank God has been a nightmare on that side of it. Same thing. COVID so on The things listed here what's going to happen what's not going to happen, you know, we can get top dollar then it's Oh, there's not so many buyers but there are buyers now the buyers are thinking that they have all the power. What I will say is that the market in the lending market and everything right now we also just refinanced a $3 million loan 90 days ago, just past 90 days. So right at the height of all the scariness everything like that. I'll tell you walking into the closing room at for that that Freddie loan, the bank said yeah, we're gonna take $300,000 a year loan and keep it so $300,000 we thought we were going to take and the property with us put it in our pockets pay back investors with etc. Freddie last minute said because of COVID people not going to pay rent because they had all the governors who just released all the halts and the holds on tenants having you know, evictions and things like that. So now they're like, well, the banks are freaking out, right? The banks are going, alright, if everybody doesn't have to pay rent, what happens when everybody starts defaulting on these loans? We're the ones that are holding paper on these. Those guys are just gone. Oh, it's gonna screw my credit like everyone else in the country. That's an employee I can say is just like the stock market it the lending requirements are right now in such a whirlwind of crazy so you definitely want to be working what I would tell anybody out there buying a personal home or investing, spend a little bit of extra time getting to know your broker that's doing the loan. So whether that's your bank, whoever and make sure they really really really know who they have, they have people they can call favours in from that are on the all of the sides, the appraisals the through the title, company, all the things because when something pops up, that would trip up a normal loan, this is going to have like a, you know, guy, broker go I don't know what the hell to do with this, somebody that season that has people like to call favours into you'd be surprised how quickly they can, you know, move alone, two tenths of a point and all of a sudden that alone, you know, the deal makes sense, again, where it didn't make sense two seconds ago. So that's one of the biggest keys. You know, with the craziness of everything going right now. COVID or not, you know, everybody just put a halt on the ability to potentially evict tenants through the first year. And so I don't expect that to happen a moratorium is going to go away because somebody's gonna end up getting sued in the event it becomes a major problem. So we're not too scared of it, I'm still collecting rents 90% of what I was pre COVID or better, my tenants that aren't paying because they're claiming COVID would not pay me because they took a dump and you know, fell off the toilet yesterday, if they would, they would have made up some other excuse. It wouldn't matter what it was so COVID or not, they're just using the new flashy term that's on the news and why they're gonna say it. People that pay their bills are going to pay their bills. So as long as you properly screen people, you make arrangements and you become open with your tenants. Obviously I don't personally deal directly with my tenants but all my my guys on the ground, my feet on the street, all banging doors, we all put signs out, you know, everything is said if you're going to have a problem, you're going to be short realized two things, we will evict your ass when I can legally and when I do, I will come after you for your background because nobody said that your rents forgiven they just said that you don't have to pay it right the second and you can't be evicted and thrown out on the streets. It doesn't say anything that we're giving you free rent. And so when you explain that to A lot of times it makes it a little bit more, you know, straightforward. half the country is right now is making more money on unemployment than they did at their job at Wendy's. So my tenants actually are got a pay raise, and then they think they're not going to pay me. Well, we have a problem with that. So once we explain that to them, they're like, Oh, dude, no problem. You know, I thought I was going to be able to pay you what I was making, and now I get 200 bucks a month more than I thought it was going to have when I got the lease. So yeah, no problem. We'll make sure you know, every time I get that check from the government every month, whatever, you know, as soon as it clears me we're paying you and making arrangements. Sometimes we have to bump rents and so collected on the first through the seventh we move it we have tenants that we shuffle the 14th so you know anybody listen to this right now, real estate, is the only safe avenue that anybody can go into because it's a tangible hard asset outside of gold and silver. So unless you're going to buy something that you can ultimately have people are going to have to live under under roof at some point, no matter what doesn't matter what happens in the country, who's the president who's not the President, what the stock market's doing, etc, people gonna have to have a place to live. And so you know, this is what Why I got so deep and hard into real estate when I did was that, you know, at the end of the day, it's it's something that can't go away minus a, you know, a freak fire or tornadoes and you know all the things that happen like that. And you know, with the Fed printing trillions and trillions and trillions of dollars right now, you know $1 becomes 50 cents. Well, in theory, if that happens, people are just raising the rent just goes up to offset it. So the only thing that will raise at the exact same thing, no pace is inflation is going to be you know, in real estate rental property because they can fluidly you know, within six months just add it's another hundred bucks a unit.

Jay Feldman :

Yeah, that's so true. So right now, do you think now's a good time to buy or not a good time to buy obviously, interest rates are low, but prices seem high and buyers are demanding prices that don't seem to exist? Our plan right now and I just say this because I don't know if anyone else listening is going through the same thing is you gotta have an election coming up. We have a pandemic, no one's being evicted. A lot can happen in the next few months. That might be trigger some changes, I don't know what those changes are going to be or when they're going to happen. Let me know your thoughts on that.

Josh Steinberger :

Well, like you said, there's a lot of moving parts and and a ton of fear. And so what all very successful people have told me is that when there's fear out there high levels of fear, there are opportunities abundant. And so there are people that are that are not willing to sell right now that will be willing to sell tomorrow or in a week, or three days or an hour. Who knows. So what we say right now is that you need to be the expert and be persistent. And so there's always a deal going to be there. Whether it's a high market, a low market, the market is going gangbusters and everybody thinks their property is worth twice what it's worth. Cool. Well, you wait till something in their personal life happens that they now have to dump the property one way or another. There are deals out there every day no matter what. Because there's fluid circumstances and personal life that supersede the economy, things that happen in the economy and supersede personal life, etc. So one side or the other. You just want to be out there. So like this comes from my door to door side. It's just be the guy that's in their face banging doors. All the time in their face you I am Here I am, here I am, I want to buy your property. I'd love to, oh, you want way too much money for it's not worth that. But then stay in contact with them all day long so that you can get to a point where it's a deal. If you always buy $1 for 75 cents, you'll never go broke.

Jay Feldman :

I love that it's always a good time to buy as long as you find the right deal. Absolutely. That's all really good stuff. You know, it's just to wrap this thing up. I would love to just hear a little bit about what you're currently working on as an entrepreneur. I know we just talked about something really interesting before the episode and then just leave us with any kind of pearls of advice for people who are struggling to build what you've built get their own Lamborghini. Any final final tidbits of wisdom for the audience.

Josh Steinberger :

Absolutely man appreciate it appreciate you having me on and let me you know kind of share my story with everything too. So my wife and I are working on on a new brand here that we called my wife will cut you just because for years and years and years and years right being married to the same one we just celebrated this week actually we're celebrating our 12 year wedding anniversary so you know you're at the pool and the girl looks at you funny you look over The wife gives you that look, look back, I'll cutter. Okay, so that was where were the idea and the process became is a thing and it's spitballs. And all of the ridiculousness that that goes into an idea becoming a product and a product becoming a brand and then a brand becoming a product suite. So we're really diving deep on on the process of coaching entrepreneurial couples, or wives or husbands or both sides or one side or the other. Because just like my marriage with her was got to a point where it's very, very close to ending mostly because like we talked about through you know, a little bit ago, I spent five years where I wasn't home, I would come home, I'd be home within 10 minutes, I'd be asleep with my dinner laying on my lap. I get up at four o'clock in the morning, go to the gym at 430 and I'm gone all day until eight o'clock at night at home. Sometimes I kiss the kids and that's it. And so, you know, there's only so long that that that can happen until, you know, you start to have the question of, if you can't be home or you know, we'd have things planned and I wouldn't be there. Why because I can call her and say, Hey, I got a client, I got a customer base, you know, they said they're available and they got it, they're ready to sign a contract. So which is more important the contractor is going to dinner tonight? Well, the contract at that time was more important because we're building a new business and a brand and all the things so the business needed an influx of cash, cash flow, cash is king. So I gotta go do what I got to do in order to keep the business doing what it needs to do and flowing money to us so that we can live the life that we were living with came down to, you know, what I ended up finding out was not the fact that I missed a dinner, she understood that I wasn't there for dinner. But what it started to come into was a conversation that was really impactful to me and really finally got my head out of my own ass with it. And that was, if I if I have an appointment in my schedule with my customer, and it's at six o'clock, I'm there at 548 I'm never late, and if I'm in two minutes late, I'm calling. Well, I would regularly say yeah, my day Today, I'll be home at six and not show up till 815 830 because I stop and go to another client or go here or send a contract and visit the office and lose track of time. We'd have dinner And I would regularly have a phone call at two o'clock in the afternoon from a client that want needed me to come to Hey, it's best tonight. Can you be here tonight at 630 I have dinner with my wife. I'd either push her back or move her around. And what ended up being was that she wasn't important enough in in my life for me to hard schedule that as an appointment. So if it was another client, I wouldn't call the other client and say, Hey, I gotta move back our appointment I got another customer got me I would just tell the customer I got another customer meeting at that time I need to reschedule were you available tomorrow, the next day whenever else and so what seemed is something that was super, super, super tiny and trivial to me was hugely impactful for her and I in our relationship. And when you start to delve in and look back in the process of building businesses, I can't do what I do without her. She was ultimately my CEO. So she does did all of our bookkeeping, all the onboarding, hiring, firing all of the house mom stuff at the, you know, at the company, and I never respected that process of her doing all that and then also still Being life where I did all of that. And as a husband, I just kind of negated my responsibilities and made my own excuse because it was cool to grind. It's cool to get up at four o'clock come home at eight and then go on social media and say, do maggot 16 hours in a day, get up at 430 and, you know, take a picture of the sunrise, you know, hey, all you guys watching this right now are still asleep. I'm already in for two hours for the day. At the end. You know, the 2019 2020 became so cool for that to be the narrative for so many people. Now, what's cool is that I get up at 10 o'clock in the morning and I have a smoking a pancake and I hang out and I get on social media real quick. And I'm like, Hey, I just woke up you guys have been working for three hours of chumps you're trying to get you should be trying to get to this life not continue to put you know, get to 23 and a half hours and sleep for 25 minutes for the day. The whole reason that we we grind and we do that so long as so that we we think it's cool. And then at the same point, it becomes kind of a dick measuring contest. And even for the chicks with Lady bonus, you know, one way or another, you know, the grind thing is only so cool because it's contest is it The guy that's doing the most you can outdo me because I'm out doing doing doing. Okay, cool. When I was that guy, I didn't drive a Lamborghini, right? I only got to the point where I could have cars and do all the things and go on trips and have lunch on the yacht with, you know, cool people. Because I learned a friend of mine, his name's Mark Evans, he's big real estate guy. So anybody that's in here, listen to this right now. He's one of the guys for sure to take a look at and check into. He just a book has just came out, it's called formule the magician or magician reveal something, something to that effect, find it, you'll see it. You can like it. If you send it over LinkedIn, I'll send over to you it's definitely impactful for anybody that's getting into real estate. It's the conversation ultimately was about all of the grind and all the coolness that that is where the reality is. It's really cool to learn to be a magician to take your time and make it 20 hours but only working an hour a day. You know, multiplying your time opposed to adding your time and then getting paid for your time. So when we were you know, we started talking about buying time or Working getting paid for my time. At some point you can only there's only 24 hours in a day. So you have to sleep You have to eat, you have to see your family. So there's only so many hours a day that you can get paid for. Even if you're making tons of money by the hour, the only way that you really incrementally change that massively as we start to figure out how to multiply that and the only way you start to multiply those by buying your time back to where you're getting the equivalent of, you know, 100 hours a day worth of work done in 20 or 10, or eight or you know, whatever physical input impact that we have to do to get the business to move the needle. We want to be able to multiply that throughout all avenues that we have going on.

Jay Feldman :

Yes, I love that and you can I guess you can buy your time back in a few different ways. Yours is real estate, you probably have a team that helps you support the business. And I do the same thing and that's that's everyone's goal. Who's watching this thing is not trading your time for money. I've played that life. I saw that life doctors who are making decent money, but absolutely miserable working, you know, 10 hours six days a week. Doing the same thing every single day. And until you're 6070 years old, that's just no way to live. I really appreciate you coming on this episode. I know you do couples business coaching, I hope to be a part of that one day once I find my power wife, and if you're she's out there listening to this, I'm single. And there we go. Thank you so much for all this let's definitely keep it open line of communication. I'm going to tag all of your social handles for anyone who wants to connect with you. But just so they know what is your most responsive like medium? What's the best way to get in touch with you

Josh Steinberger :

right now best way to get a hold of me is going to be through Instagram I have a couple of days but they ultimately for me anything that's impactful so anything that goes through the Instagram to you know tunnel, make sure that it's not weird and not surface level right? Make sure you get the information but whether it's real estate, couples, whatever, you know, anything in business or life that you're going through, most likely I have crossed through that bridge. You know, a lot of times people ask, you know, really successful people is like a super common questions like What would you do if you lost a little remark? I was that guy. I went from a $500,000 Your salary, so losing all of my mike influx and was essentially fired three and a half years ago, I built another company back to $10 million within eight months. So what would you do? How would you do it all of that process to it? been there done that. And like I said, even though I'm young guy when it comes to marriage and things like that, most likely through all the things that we've done, have accelerated through all so feel free to send me messages. My views are really good about sending everything over to me. And, you know, half the time I just sit down my phone. I'll respond, you guys.

Jay Feldman :

You heard it, guys, give Josh a follow. And if you're listening to this episode, and you want to give it a share, take a screenshot. post that on Instagram, tag me and I'll get you a gift. Thanks for tuning into this episode of Mentos collective. And Josh, you're the man. I appreciate it. You're a king and I look up to you and I hope to have you as a mentor going forward. So thank you.

Josh Steinberger :

Thank you.

Jay Feldman :

See you next time. Thank you so much for watching this episode of the mentors collective. This is Dr. Jay Feldman. And I just wanted to take a moment to thank you so much for your support and also asked you for a little bit more If you can take the next 10 seconds and write us a review on iTunes, Google Play or Spotify. Just let me know your feedback. It means the world to me. Again, thank you for watching. If you love this episode, please share it with your friends, share it with your family. Until next time,