The Hidden Real Estate Hack Making Millionaires in 2026 (No One’s Talking About It)

How much did you make last year?

Millions. Millions. Millions.

How many millions?

And then millions.

What you're doing, ain't nobody doing that.

I'm a trailer park kid, man. I grew up in poverty. At one point, my credit score had a negative sign in front of it.

And now you go around and basically leverage disability with real estate. And now you're getting paid from the government on time every time, and it's making you millions.

Yeah, man. It's the ultimate play.

And you can teach that to anybody in the real estate game.

I can teach that to anybody that's not even in entrepreneurship. And they don't even need to own the real estate, which is the crazy part. Real estate.

And so basically anyone, anyone can do this.

If you want to create legacy, if you want to create real wealth, this is what you do.

What it is, Brad Lee back again with another episode of Dropping Bombs today in the studio, folks. I got a real life entrepreneur. I would almost say genius because he's figured out a way to not only you know stack real estate and get very successful within that industry or world or or vertical if I if you will, but he's also started vertically integrating all of these other things and one I think is is the ticket that's the fuel that's the the Medicaid angle. So I want to talk about that. There's a lot of people in real estate obviously, multifamily, fix and flip, wholesale. But you were a cop. Now, keep in mind when you said 500 credit score, down and out in Beverly Hills from a poor family, you weren't a cop then.

When you, you got it cop after the credit score?

Let's go, let's go back to when to when you were just like a broke joke, nothing.

I mean, that was several times in my life, honestly. But no, I'm a trailer park kid, man. I grew up with poverty trailer courts. Um, and I finally got out, became a police officer, was making good money, and even when I got to six figures, right? So, we're talking 2011. Um, I didn't understand about money, man. Financial literacy wasn't something that I learned growing up.

But you were a police officer.

I was a police officer.

In like Ohio?

Yeah. Yeah. Yeah. I could I could chase bad dudes. I could drive a car fast as [ __ ]. I love fighting. But I still didn't understand money. So 2011, I got my house repossessed or foreclosed on. My cars repossessed. I said 500. That's generous. Like at one point my credit score had a negative sign in front of it. And that was a moment where I figured out that man, I just got to learn about money. You know, like how's everybody else doing it? And I became addicted and obsessed to the evolution of money. And honestly, the only thing I thought I was smart enough to do is real estate. I think it's the easiest thing in the world to do. Buy a house for $1, sell it for $10, and hopefully you make something in between.

Well, isn't that the dream? But that's not always how it goes.

Yeah.

So, just just to paint a picture, were you a cop on a cop salary when you started buying real estate?

Pretty close. So, I at that point I was working like part-time like one day a month and I was actually an interrogator for Macy's, a retail store. So, I traveled around the country and interrogating like highle thieves that were stealing from the retail store and I was making six figures. Like they paid me good money to do that.

Who the the department store?

Macy's. Yeah.

So, you were a cop.

Yeah.

When did you stop being a cop?

2015, 2016. I stayed like one day a month forever just because I still. Yeah. Yeah. Because I enjoyed going in making some arrests every once in a while.

I didn't know that that they would even let you do that.

Oh, yeah. For sure. You I mean, you have part-time guys, you got reserve guys. So.

Are you still one?

No, no, no, no.

Why?

This is what I'm doing, man.

Yeah. I mean, do you have to like commit to, you know, staying up to like snuff or something? Like, why wouldn't you remain a cop?

Well, at some at some point it becomes more of a burden, right? Waking up on a Saturday morning going in instead of hanging out with your family when you just worked all week grinding in real estate.

Fun [ __ ].

But think about you got to go to the range.

I'd pay right now if someone would let me be a cop.

But then do it for 15 or 16 years.

I I don't give a [ __ ]. To me, it's like playing Call of Duty for real. Like.

You're going to chase him in your Ferrari?

Yeah, I'll chase him in the cop car. Not in my Ferrari, but I'll tell you right now, I'll chase him in the cop car.

What What's something if you crash it? It's the It's the cities. But there's something in your life right now that you were super excited about when you first did it.

No, you didn't do it yet.

No, but I wanted to be.

Pick something right now, though. There's something in your life that you're doing that you're like, I don't know.

I'd be a cop.

But something is mundane now that you're excited about.

Police work's no different. You get out and you get involved in the politics. You get involved in all the [ __ ]. It's not the cop's version, right? Like you make one arrest, you're tied up for 12 hours on paperwork.

I know, but you said one day a week. Like that would be the cool part. Like, dude, I donated one time $10 grand for this little charity thing and they made me a cop, but it's the honorary. They gave me the badge. Turns out the mayor kind of screwed up because she wasn't supposed to swear me in, but I got sworn in and everything. So, some people argued, "Well, that makes you a real cop." I'm like, "Yeah, right." You know, if I go try to use that badge and do [ __ ], then I'm going to jail, I bet. So, it's not a real cop. If someone said right now, Brad, you go through the training. You got to go through the training and you got to, you know, get legit. But I'll let you be a cop one day a week. I'd pay for that.

You got time for that now?

I make time for that.

Would you tell?

You would do it. You would do it for a little while. And then eventually.

I'd do it. I'd do it every single whenever I wanted to.

Until you get hit with lawsuits, till you get all the [ __ ], you get the body cam, till you're walking through a park and they're throwing water and snowballs at you like New York. Like eventually it's going to get old just like anything.

Oh, yeah. You may be right. I'd have to experience it. But I I I just glamorize being a cop because, you know, you get to chase the bad guys and, you know, tackle people and handcuff them. But then when I'm done, like I just want to go home. Like I'm not going to fill out paperwork and all that.

You don't do all that.

No.

You just throw them in and drop them off down at Clark County.

Yeah. And if someone sues me, I'll be like, "You're not suing me. You're suing the city. Like I'm just acting on behalf of the city."

So removes your qualified immunity, right?

Yeah. Yeah, there is probably some liability I wouldn't be interested in a.

Little bit.

So, you got out of that, but while you were doing that, you were starting to go to Macy's and interrogate highlevel thieves.

Yeah.

Now, I've been on that route, too. Like, I've been the highle thief.

How'd that go for you?

Went well.

Did you ever get caught?

Never.

How How'd you do it, though?

Depends.

Did you have an aluminum foil bag that you walked in, you had stuff down your pants, and you were sticking [ __ ] in?

No. When I was younger, okay, what I would allegedly do, because I don't know if there's statutes or limitations.

You're good.

But what I would allegedly do, cuz I still deny doing any of it, but what I would allegedly do is I would go in and I would find receipts on the floor of the mall.

Mhm.

And the receipt said exactly whatever it was that was purchased.

Oh, you dirty refunder.

Was that was what was I was I a refunder? I didn't know it was a thing.

Yeah, you're a dirty refund, man. I'm a dirty refunder. Now, the only time I.

The lazy thief.

Hey, the only time it was the smart one.

You had no skill about it.

What's the skill for?

The skill was going in and physically taking something and getting away with it.

Well, you know, I've done that, too. And you know what I did?

Now, we're getting to the truth. You see why I'm good at interrogation. You just like.

But you know what I did? Well, I've done a bunch of [ __ ] when I was a When I was a kid, dude, I was not Mr. Ethical. That's why I try to tell people like you can change. Like, I wouldn't do [ __ ] unethical now. Period. Nothing. But before, oh, I've done some unethical [ __ ]. And one of the things I would do is find receipts on the floor, walk in, grab it off the shelf, walk up, and they'd say I'd say, "Can I get a refund?" And they'd say, "Do you have a receipt?" And I'd go, "Right there." Yeah.

And they'd they'd give my money back. It was the craziest [ __ ]. So obviously the bigger receipts, the better. Well, then that graduated into knowing you are going to go buy some [ __ ]. I'd say, "Dude, give me the receipt, right?"

You know, so you'd go buy the [ __ ]. I'd know exactly what you bought. You give me the receipt. I'll go right back there, grab the [ __ ], walk up, and get my money back. So, like, it was a thing for a minute, but I also would go into stores, go in the back, put on a vest if they had one laying around, grab a dolly from the back, load the son of a [ __ ] up, like completely full, and push it right out the door. There's been times where I pushed out a shopping cart filled with merchandise. Allegedly.

Allegedly. Yeah.

Right past the cashiers and I'm just a kid pushing the g You ever heard of Fred Myers?

Yeah. Yeah.

It's like groceries and [ __ ] and stuff. So I would go in allegedly I would go in and grab a shopping cart from the grocery side and then push it around and fill orders from everyone who ordered [ __ ] from me. And I would just throw it in the cart. Throw it in the cart. And the cart would be heaping filled with just clothes and TVs and VCRs and tools and whatever anybody ordered.

And I'd push it right out the door right in front of everybody.

You never got caught.

Never.

All right. So what? Let's say loss prevention approached you. Would you have ran at that time?

They never did.

If they did. Allegedly, hypothetically, if you had got caught while maybe you were stealing and they got on you, would you have run?

Would I have ran?

Yeah.

Probably.

That's good. That means you're committed.

Well, I mean, you don't want to get caught, bro. You don't want to get caught.

No, I would have I would have tried to get away. Sure. But but this was back when there's no cameras and [ __ ]. Maybe there were. I don't know. But this was a long time ago, dude. I was a kid.

I wasn't an adult.

Um, but I would definitely go in and push out grocery carts filled with [ __ ]. It was crazy. Um, thinking back I always think, man, I had balls of steel and I must have been lucky as hell because dude, you picture a shopping cart overflowing with merchandise being pushed right past the cashiers and right out the door. No one ever did anything. I got a good story for you. Ready? Last one. We can move on. So, I worked I was in charge of like four or five stores in the inner city in Dayton, Ohio. Actually, at that time was called Elder Beerman's. And one of the stores was like just got killed every day. They would literally park a truck, back it up to the doors. We had like eight doors. They would jump out of the bed of the truck. They would come in, five, six of them, grab everything on the racks and just run out. The store was so bad. I had offduty city cops that worked for us to help us make apprehensions and [ __ ] cuz we, you know, we at that time we could chase, we could run, we could fight. Now loss prevention, their hands are tied. So what we used to do is we used to tie all these clothes. We'd stick the most expensive at that time like Shanjan, Rockaware. We'd put them all at the front door where we knew they'd come in, but we'd tie them all with fishing line together. So these [ __ ] would come in, jump off the truck, grab the racks, and as they're running out, they get tied up with like seven or eight racks, can't get any of them off there. We'd collapse and arrest all of them.

We should have did that to you.

I was.

You were too good for loss prevention.

I was just lucky.

Yeah.

Dude. How can a guy fill up a grocery cart and push it right out the door right past everybody?

Yeah. One time I was at a I don't know if it was J C Penney or whatever, but I walked in. There was one of those back areas. I pushed open the the doors and I saw a vest that they would wear hanging on a hook. I walked up. I put the vest on. I grabbed a flatbed dolly, pushed it out onto the floor. There was a whole stack of VCRs on display. I freaking loaded up the dolly with as many VCRs as I could put on there.

VCRs. VCRs back when they were brand new cool like high-end VCRs and I and I was pushing it, you know, and I saw this dude coming in the door and so as I was, you know, trying to move like I was not heading towards the door, he held the door and I pushed it right out the door and I noticed that this dude was [ __ ] a manager of the store and I took a right [ __ ] push pushed it outside and then all of a sudden I'm loading them into my trunk and I [ __ ] look over and there's the dude looking out with a couple dudes with him, but I already had them loaded in the trunk. So, I shut this on [ __ ] and drove away.

That was the closest to being caught allegedly that I was ever.

J C Penney was my first job as loss prevention when I was 18.

Well, I always wanted to be loss prevention, too.

I mean, you you kind of were. No, I was I was lost.

Yeah. Just got to change the words around, man. That's it.

But, you know, I can tell you I don't know when people say you can't change. You were broke.

Mhm.

But you were a good dude if you went out. I mean, of course, there are dirty cops, but you would think most cops are trying to stop the bad guy and they're not causing the crime.

Yeah. The majority of them are. Majority of them are.

Good people.

Yeah. Yeah. Good. Good people, man. Just want to do the right thing.

Yeah. So, you were just from a poor family, so you had shitty credit. No one taught me about credit. I had shitty credit growing up. Um.

But I was again, dude, I'd I'd steal some I would not be opposed to stealing from companies. I wouldn't steal from people or friends or like homes. I wouldn't burglarize. Although.

Anyway.

You were a thief with morals.

I was I was a I was a opportunist.

There you go.

And for some reason, I didn't understand uh Well, I actually did understand. It's just I knew I was a kid and I knew nothing major would happen. I knew the consequences weren't that big.

Yeah.

I was a kid. They'd send you to juvenile hall for a couple days. So, again, I I I knew what I was doing. I can't say that I didn't. I just didn't care. Why? They can afford it. It's, you know, and I needed money and, you know, I and I was it was a thrill. And soon as I turned like 18, zero theft. Why? Well, because now I'm an adult. Now you go to jail. So, the consequence mattered.

But, um, now looking back, I can't even believe I was willing to do that. Cuz now, if you listen to the podcast, I'll tell people I'm the closest thing to an angel walking the planet. Is that even possible?

For sure it is.

Yeah, people do change is my point.

Lots of people change. Lots of people change and and we all do, right?

They say a leopard can't change their spots. I say you can, though. Like I would never steal from a company or an individual. Now I've had people overpay me change. Hey, you gave me too much. I've I found a dude's wallet. I mean, he was right there, but I mean, I found a dude wallets on the thing, and you can see there's a bunch of cash sitting in there.

And I'll walk up to him. Hey, dude. You forgot your wallet? He's like, "Oh my god, thank you." Tries to pay me. I'm like, "No, no, no." Because I would want that for me, you know? I want to treat people as I would hope they treated me. So I'm just a good dude now where before I was a little little unethical. I was still a good dude just my ethics were a skew.

Yeah. Well, pain has shifted for you. That's what that's what happened, right? Like the the pain of losing what you've built now compared to maybe the possibility of getting something from the the theft far outweighs what it did when you were a juvenile. When you're a juvenile, the the reward of whatever you stole that far outweighed the pain of getting caught, right? So, you just you just I think that's what happens when we have a flip in what that pain tolerance is in our life. You have to be like that. Same way with me. I would, you know, I mean, even the other night at the hotel gave me like three extra bucks back and I had to correct it, you know, because you know that you don't want to lose what you have now. You've worked too hard to build it.

Yeah, but why would keeping three extra dollars lose what you have? I don't I I see what you're saying, but I don't know if I agree with that because I I of course I'm wanting to be proud now. Yeah. So, I'm saying no, no, no. I'm a good dude. It ain't about what I got to lose. Like, I just do the right [ __ ] now.

And I really do believe that. That's the crazy part. Like, I pride myself on it. But if you wouldn't had the success that you have right now, would you have just flipped a switch when you turned 18 and been like smooth sailing all along the way? Or have you like had different rungs in your life? Right? Like you've had different levels in business or different jobs and at some point you decided like I have to be absolutely 100% spotless if I want to grow this empire, right? Cuz even places in my life, I would maybe take some extra change or maybe not always do the exact right thing. It might not been bad, but you just go through different levels in your life, I believe. And when you're like us, I mean, I listen to your podcast. Uh I mean, you you're you're a faith guy. You believe there's something higher than us. And when you do that, that keeps you from keeping the extra change.

Well, well, that's really why I do it. It's not because I I I'll lose things.

It's the karma. Like, you know, like you do everything right, you hope that it's going to come back to you. No different than networking and doing stuff for, you know, for people in life, you know, like it's givers gain. The more you give, the more you get, you know, but if you go into everything looking for something, then.

Like like if you said to me, "Hey, Brad, listen. I got a I got a Medicare deal for you or a Medicaid deal for you. You know, all you got to do is sign here, put your name here, and here's what we're really doing." And I didn't think it was right or ethical, but I'd make a hundred million bucks, I wouldn't do it.

Yeah. I'm same way.

Yeah. And and I and I don't know when that shifted.

I know it was in my adult years. It wasn't 18 either.

Right?

18 I knew the consequences shifted, but I I I would have still.

If I thought I'd get away with it, I probably still would have pulled some [ __ ].

Sure.

Um, but now I wouldn't pull some [ __ ] period if it's wrong. And it and and this just crazy to me. But anyway, this ain't about me. This is about Todd. Now folks, he was a cop. Got kind of tired of that. Then you went to Macy, started interviewing highlevel criminals. What was the craftiest bastards doing to steal?

Man, they were I Well, it depended on what you're into, right? So like you had the the boosters that would travel state to state and we would work with federal authorities, right, on organized retail crime. I mean, we would put trackers on the cars and chase them. You know, we had people that the federal authorities seized entire houses, you know, because when there were boosters, it wouldn't just be like one store. They'd be hidden Bath and Body Works, Home Depot, Lowe's, whatever. And the feds would create like this entire, you know, interstate criminal charges on these guys and like take everything from them. But account takeovers, identity theft was huge. Those were the big cases. Those are the type of cases that I worked, right, poor a store manager. Uh.

So they weren't stealing, they were scamming?

Both. I mean, you had booster crews that went around that.

How would they boost?

Well, they'd go store to store, right? I mean, they'd have multiple people. They'd have all their they'd have different stuff like their clothes would be lined with foil to get through the scanners, you know, they would run very um intricate operations with with distraction techniques. You know, they would case the stores out. I mean, we had one one of the groups that we had was uh they're going state to state and all they would do is is go to the stores after they were closed, jump into the fine jewelry, and they would smash out the cases. Um, and it was it was right after it closed, right before Fine Jewelry would stick the jewelry in the safes underneath, right? They're getting they were getting hundreds of thousands of dollars each time, but they were going state to state to state. Bang, bang, bang. They would get in, they get out. So, we would follow groups like that, too.

But those are serious criminals if you ask.

Yeah. But those that's kind of what my job was, right? Like it was either a highle internal person like a store manager that was stealing from the cash office or.

How many of those did you come across?

It it was all time, you know? I mean, you you got people all because what you have to remember, here's what I say, right? Let's talk about like when you look at politics in a city commission locally, how much like in a small city, like an average Midwestern city, maybe city council member that's not full-time makes what, $9, $10,000 a year, $15,000 a year, maybe if they're lucky, and you're letting them make decisions on a city that are hundreds of millions of dollars, and people don't understand why cities get bottlenecked. I think stores are the same way, right? Like you're entrusting these people to run a store with hundreds of employees that are making $35, $45,000 a year if they're a regular level store manager back then, right? Like now maybe it's a little bit different. But even a store manager, maybe maybe they're making light six figures, you know, but you got millions of dollars running through that store. The temptation is.

Well, same thing with cops, though.

Well, that's why you get some bad seeds. So, most of the store managers are good, just like most cops are good, but you're going to get the bad seeds and you got to take them down. The biggest ones were employees. The younger employees, they bring their friends in like just giving the friends and family hookup all the time. Or the guy working in the shoe department that sets a pair of shoes out and walks away while his buddy puts them on, walks out of the store.

Or it just doesn't I refuse to stop you. Like if I'm los prevention and I know you and I can be like.

"Dude, come in and snatch two freaking canid, you know, top-of-the-line bice bikes or something. I'm not going to chase you."

Yeah. Well, we would do that, too, right? I mean, part of my job was investigating our loss prevention teams and at that time, right? So, we're talking whatever, you know, 2011, 12, 13, 14. You have these people that are making $12 to $14 an hour that are protecting the store. You're telling me that they're a younger person, they got a group of friends that says, "Hey, man, just shift the cameras to the right or shift the cameras to the left." Um, or they're also doing like second counts in a cash office with a cash office employee. They're the ones that are looking at all the internal reports. Bro, they're making $12, $13, $14 bucks an hour. You think you're not going to get some bad ones that just say, "Man, this is too easy. You know, nobody's going to catch me."

Yeah. So that's why I try to tell people and I'll tell them again, anybody listening, crime, if it does pay, it only pays temporarily and there's always a refund.

There is always a refund.

Yeah. Like I just don't like dude, it's just smarter. I'd rather be broke than than into crime.

Yeah, I'm the same way.

Um, but you're not broke and neither am I. So maybe that's a reason why we're we're winning. I was just reading something last night, I believe it was. I didn't know it was in the Bible. Basically, if you live by God's ways, right, supposedly you'll have abundance and you know, everything's great. And if you don't, well, then you're going to have the opposite. So, I started thinking like, is that why people aren't winning? Like, because they're [ __ ] dirty. Is everybody who's broke dirty? Can't be.

No, I don't think so.

I know. So it's that's what the Bible said.

That's that's one of them, right? But.

It said if you if you live by God's ways, you will be you will have, you know, abundance and you will have health and you will have happiness and everything will be great. And if you don't, well then you will have problems and turmoil and [ __ ] like that. So then you think, damn. So maybe that's why I'm successful cuz I kind of try to do the right thing now.

Mhm.

Do you?

Of course I do. But the Bible doesn't tell you when you're going to have that abundance, right? And I don't think and the Bible also doesn't tell you about all the things that are in between. It tells you what's going to happen in between, right? Like when a lot of bad shit's happen in your life or things get hard. And maybe you've experienced this when you got ready to blow up one of your businesses, right? Cuz you you're you're an entrepreneur. You have multiple businesses. You you've done very well. But my experience right before we're getting ready to blow up a business, things get really [ __ ] hard.

Yes, they do.

For whatever reason. And.

They stay hard if you ask me.

I think they stay hard, too. But like you can feel it like you have this different feeling across you and you're like man everything's just going the wrong way. Like you get an IRS audit at the same time that you're getting audited by a state for something else. You have employee dram like whatever it is. And I think that's you know in the Bible it tells the same way right like that's God breaking us down to make move you know make room for all the best [ __ ] that he's going to bring in down the road. Like that's him getting us to the abundance. You know I just most people forget what happens in between living bad and living right. What would you say the people that are living right, but they can't seem to make it make anything work?

I think they're missing the signs. You know, I think most people that are living feel like they're living right, they miss the signs. Why me? You know, why is this happening to me? Why can't I get ahead? Like, God is probably putting signs in your [ __ ] life right now, right? We're talking about God and saying the f word at the same time. But, you know, in my mind, like, we we have to notice those signs, right? Too often we see something that seems negative and we fail to we fail to see what the positive view of that is, right? Like there's it's like opportunity, you know, and you're probably like this. So many people walk past opportunity because they don't understand it. But why not seize the opportunity? Just like Medicaid services we're going to talk about, seize the opportunity to become the expert later. And I think too often people walk blindly through life, not realizing that God is putting something right in front of them that could change their life literally and they're just not recognizing it.

Do you think it is God doing it?

I think it's God. And if you don't believe in God, it's something else, right? Like if we don't believe in something larger than us, then I think it'd be very hard to live life. That's my opinion. Um, but everybody has different opinions. Something is putting something in front of you that says, "Here's your opportunity." And too many people miss it. For me, it's God.

Why don't you go back and teach your program to all the cops?

So, the the first the first group that I mentored in real estate was two police officers, two homicide detectives. Um, and that was the very first couple that I ever mentored in real estate. You know, now they they retired early. Like one actually came to work for me, um, after she retired from the homicide department. And then they end up retiring a little bit early. They're down in Florida in their dream home. We talked to them about vertical integration and the silver tsunami and buying service based businesses. So they go down to Florida. These are two homicide detectives. Okay. They go to Florida.

What kind of salary are those guys on?

Well, they were, you know, at the in homicide, it depends on overtime, right? But they were six figures, you know, low six figures. Depending on how much overtime they make, they could bang it out. But in the police department, in the big cities, a lot of times you can do like a 5-year drop program where you stay five extra years and you make half a million dollars, right? If you stay an extra 5 years, but that money gets put in accounts, you can't touch till you retire, and you have to commit to those five years. But they were low, you know, low six figures. If they worked overtime, you could bang out probably close to 200k in our area.

That ain't bad.

No, it's it's not bad. The problem is.

What's a normal cop car driving around pulling people over. What are they making?

Like in the Midwest?

60 60 65,000 a year if they got a couple years on.

Yeah.

If they're bringing in overtime, you know, 90 100k, you know. So in today's world with inflation, that's not it's not much.

It's better than a teacher.

Yeah. You can you can live a decent life, but it's definitely not. The problem the problem is in police work, cops wear a badge all day long. They're used to telling people what to do all day long, right? Like they get their way in most situations. They have to uh deconlict a lot of stuff that's going on. So, when they clock out, it's hard for them to take that off. Right. For me, for many years, it was hard for me to take advice from people or to have people mentor me in business because you're used to being right. You're used to telling everybody else what to do. And sometimes it's hard to put your ego away. And I think that's where a lot of police officers challenge is is the ego. And it's not necessarily a bad ego, but when you're the one running the show all day long, five, six days a week, it's hard to look to somebody else to kind of tell you how to live your life a little bit, you know? And I think that's what mentorship is, is changing the way that you think when you're a W2 employee.

How much did you make last year?

Last year. A lot. Millions. Millions. Millions.

How many millions?

And then millions.

Like like tons of millions.

Yeah. I mean, so you know.

I just want to set the precedent. Now we're going to shift into Okay. Because you were just a cop.

Yeah.

Then then you, you know, running chasing freaking criminals. That's still cop.

Yeah.

Then eventually you started buying bu uh just property, just rental property cuz there's tons of people in real estate that aren't making millions and they were sold on making millions.

Sure they were.

And it's technically possible, but what people don't tell you is it's a long time. And a lot of those uh it takes years to to making the same moves to finally get something in the real estate game. Although it is a great industry, you found a way to freaking I say rocket fuel the [ __ ].

Yeah, that's what it is. I mean, we easily do eight figures and then we have a nine figure portfolio, you know, when you take all the companies in.

So, you started by building or just by purchasing, flipping. How'd you get into real estate to begin with?

Yeah, I bought a four-unit building. I mean, since 2011, we matter of fact, my wife, who you you met a little bit earlier, we just started dating. I was at her house one night. And.

Were you a cop?

Part-time and I was I was doing the interrogations and all that stuff.

So, that's another thing. If I was like single, I'd want to date a female cop.

There's a certain population that liked cops. I think that was her. She was a nurse. Cops and nurses. You know what I'm saying? She fell in love instantly. She liked the she liked the gun and the badge and she wanted to, you know, role play with cuffs at night and stuff.

Yeah.

I'm just [ __ ] with you cuz she's in the room with us. But, you know, it gets.

Probably true though.

Nurses and cops cuz you guys are always at the hospital.

Yeah. Yeah. For sure. Highest divorce rate, too. But we've been together. But we were just dating. I was at her house and my house was being foreclosed all at that time. Tow truck pulled in the driveway, hooked up the car. The [ __ ] up thing was is her parents lived right across the street from us.

And we were only like dating for like four or five months that time. So tow truck pulled away with my car. And I had a decision.

My parents saw it.

Oh, [ __ ] it. I had to make a decision. Do I lie about it or do I tell him the truth? So I told my I told her, she's my girlfriend at the time. I told her the truth. Yeah. I didn't pay my bill, right? And.

Clearly.

Yeah. But we told her parents that, you know, I had the mechanic pick it up. They had to do some work on the truck. You know, now I'm now I'm super close to her parents. Her dad's one of my best friends. And, you know, he follows my content. He follows me around. And he's part of our lifestyle. You know, we got season tickets. We fish together. And and now he just looks and, you know, every once in a while I be like, "Man, I'm I'm I'm proud of where he came from." But I asked him one time, I said, "Did you did you know my car really wasn't getting worked on?" He's like, "Yeah, I kind of assumed it. I thought it was funny that the mechanic was coming out 8:00 at night with a tow truck to pick your truck up that you just drove home that day. But anyway, so I figured out I made a change, man. So I had I had a buddy, one of my best friends. His dad was uh a police officer and then he got into real estate lightly, but he was running a security company. He's the smartest entrepreneur I've ever met in my life. Um he ended up being my business mentor, but I went to him and I said, "Listen, I need a change. I have $10,000 on a police retirement account. Wasn't much. If I find a 4unit building in Dayton for $20,000 bucks, will you partner and give me the other $10,000?" He laughed at me. He said, "If you can find a four-unit building for $20,000, we'll uh we'll do business together, Todd." So, I spent the next 5 6 months calling every [ __ ] listing that was out there, negotiating. Um, and eventually I found an owner that had a lot of pain and he agreed to allow me to buy it for 20, it was like 20,750 or some [ __ ]. And my buddy's dad gave me the other part and we and we bought that building. Um, things went good and I paid him off with rents not too long after that.

Could you do the same thing today?

With the price? No. No. I mean, you're.

Well, what's the equivalent of today?

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So you right around $100,000 in our area, you know, but that's but here's the deal. A lot of influencers, they they they build people up on these dreams, right? And the only way to really find home run crazy deals in real estate is to find the deals that nobody else has, right? So for me, I I was in Dayton, Ohio, which is one of the best investing markets in the entire country, right? For cash flow, for barrier of entry. So I was fortunate that I was already in the Midwest. Um, but I can do that same deal today. I can still find quads for $100 to $150,000, right?

Total.

Yeah. Total. Maybe a little bit of rehab work. But at that time, what you have to understand is that 2008, 2009 when the housing bubble crashed, everybody was buying across the Midwest, all these investors of cash. But then come 2011, 2012, none of them have any processes in place to manage these properties. Now they find somebody local that's screwing them over. So now all the investors that had bought from the bubble were trying to get rid of all these properties, right? No different than right now we have all these investors that paid too much money a couple years ago when property prices were crazy. Now they're struggling trying to get out of them and we're finding deals again. It's just all about finding the cycles. So we can't find that number, you know, but at that time the buildings were only worth 80 90,000 too. Now we can buy them 100 150,000 not need a bunch of rehab and they're worth 300,000. So we could find it. But we that that building was good. That was the that was the crack in the dam that I needed to give me my confidence. And then six months later, we buy a second six-unit building, $20,000 bucks on a Friday night. Monday morning burns the ground. We didn't have any insurance, so I lost my last $10,000 that I had saved up on that on that property. So, I was kind of back to square one, but we still had the four-unit building. Um, but that was my start in real estate.

Eventually though, you figured out everything else. Yeah. So.

Just for a lot of people in real estate listening, I know that. Let's get to the part where you now do what you do. Because if I were listening to this, I would want you to show me that part. Like, I got real estate down, bro. I could probably teach you a few things. That's what they're thinking. But what you're doing, ain't nobody doing that.

Yeah.

I don't think anyway. And if they are, they're not willing to talk about it. And you are.

Yeah. There there there's very few. There's very few. But if you if you want to really do it the right way, you realize real estate is not going to make you a crazy amount of cash right off the bat, right? I mean, if you're lucky, $150 per door is like your net net month.

So now you need a freaking jillion doors.

Yeah, you have to have a jillion dollars. So, you know, for me, and I think this is this is important to talk about, right? Because not having any money in real estate, but being in a great market, what I had to become really good at, which ties back into like my interrogation and my police work, I had to be really good at negotiating owner finance deals, land contract, like all this [ __ ] people are selling books about. Like I don't buy into all the sub two stuff, right? Like you.

No.

No.

Because it's No.

Well, Pace is ripping and tearing over there.

You know why?

Why?

Because it's easy. It's easy to do. It might be hard to find the deals and convince sellers, but it's it's a it's a lazy way of real estate. I'm not dogging it. Like you can make money on it, but we just had we just had a dude down in Florida, man, have to give up hundreds of homes. That was the same program. Why?

He just walked away from these sellers for Let's go back to morals. What I don't believe is I never I don't believe in [ __ ] over a seller.

All right. So, I will pay more for a property in some situations if I feel bad about the deal. Like, if I feel like they're giving me too good of a deal, like I want to pay a fair price. All.

Right? I don't want to take a property from somebody, and I don't want to set somebody up. And when you do a sub two deal, there's two things. One, is it illegal? No, it's not illegal. But if the bank finds out that that deed got transferred on a sub two deal, now you have the due on sale clause, right? So that bank comes back and they tell the seller, "Hey, we found out that you sold this to somebody on a sub two deal. Your mortgage is now due in full. You have seven days to pay us off or 14 days to pay us off." The guy that bought it on sub two, you think he's going to give that homeowner the $150, $200,000 they owe on their mortgage now, or is he going to walk away from the deal?

>> He probably doesn't have it.

>> He doesn't have it. That's why he had to do sub two, right? So, he's going to walk away from the deal, and now the seller is going to be left on the hook.

>> Well, he was he was on the hook before. He wouldn't have sub to.

>> But he would have been able to keep the mortgage.

>> He can the guy can give it back. No.

>> Yeah, but you're assuming that he had to give the house up. Maybe he was just a seller that wanted out of the property. You know what I'm saying? Maybe he could have kept making the mortgage payments. Now, if it was somebody that was facing foreclosure, and that's what I thought those were.

>> That's not all. No.

>> Like, why would you do a sub two if you're not in a distressed position?

>> Well, because you might be you might be in a market where you can't get the value for your property that you want to get, right? No different than a land contract or owner finance deal. I'll give you a great example.

>> And that and that's what sub two is. So sub two is let's say you want

>> $4 million for a for a property that's barely going to get you 3.2 and you're going to have to wait a year to get that maybe.

>> If you get it.

>> If you're lucky.

>> So I come along as a sub two guy and say, "Okay, I'll give you four, but you got to give me these terms."

>> Yeah.

>> You got to give me.

>> Which again I thought was smart. Like dude, when I heard Pace doing Pace was on the show before he was even as big as he is now.

>> And I'm like, [ __ ] that might what got him big.

>> He owes me. Pace, where you at, dog? Help a brother out.

>> He does say you you might have blew him up on the sub, too.

>> Well, I told him, uh, find me one. You know, he has a big community. He can find everything. He ain't found me [ __ ] ever.

>> Yeah.

>> So, again, I there's a little bit of that uh uh overinflation with that cuz he said he could find me anything. I said, "Dude, I'll take any sub two as long as it's a it's like a deal."

>> Yeah. But pencil's on paper.

>> Yeah. Like, dude, like, I'll buy a $5 million house right now on sub two as long as I don't have to tie up my capital. Cuz if I got capital over here, let's say, doing 20%.

>> Why would I put it in a home, creeping up at three or four?

>> Yeah.

>> A year. Why would you do that? You wouldn't. So, it's like sub two though, I'll control the property and then if it swings up, but I wouldn't screw the seller. Like, if I if I

>> Maybe not intentionally, but what if the what if what if the market went [ __ ] or let's say you're a dude doing sub two?

>> Well, then the seller would have been screwed either way.

>> And and some of your other businesses go bad. You're like, "Shit, I can't keep afford to pay these owners." You're going to That's the thing with sub two. They're just going to walk away from it. Now, the seller's on the hook.

>> Isn't sub two temporary? Like, don't you have a certain amount of time to to put it in your name for real?

>> You're going to negotiate balloon terms, you know, balloon terms. But let me let me change your mind on that for a second. Why would we need to do a sub two?

>> Okay, now I think

>> Cuz you don't have the money.

>> Okay, but let me change your mind. Like this is the [ __ ] All right, let's call out I'm not going to call any influencers out. All right.

>> Let's call him out.

>> But let's get the bull. Now, I like Pace. I think he does a good job. And I think if I look at any real estate influencers, I think Pace cares about the people that he mentors. All right, that's my personal opinion. I don't know him personally.

>> He's always seemed like a good dude to me.

>> But here's the problem with influencers. Influencers have to create a new name for something that they want to write a book about or they want to sell a course on, right? So, even if we talk about like Subu or Noations or let's talk about the Burr technique, dude, we were [ __ ] doing that back when I first started real estate. We didn't have a flashy name because none of us wrote books about or taught the courses. But when they want to do that, now you got to attach a name to it, right? So, now you say, "Well, it's Burr." So, let's talk about sub two and then we can move on.

>> And Burr is basically where you you buy it and you rehab it.

>> Buy, rehab, rent, refinance, repeat.

>> Yeah. Like this that's just normal real estate is.

>> It's normal real estate but somebody tagged Burr to it and now people are you know making money off courses but why do we need to do a sub two deal you just mentioned it but when I started in real estate I didn't have [ __ ] I didn't have money except for that 1000 but after we blew through that and especially after our second building burned down I became really good at owner finance so in most states and you have to do your own research you can do a land contract all right so let's say somebody has a mortgage on their property I go to them and ask them to owner finance it for me you can't do a promissory and a mortgage note because they have a primary mortgage. So, they would have to take second position. So, that's not a good deal, right? But what you can do is you can do a land contract. And a land contract just allows you to write the same type of terms except you don't have to officially transfer the deed, right? You close twice. You close first with the seller because you take that land contract that you have an attorney draw up and that now becomes a lien on the property that you record, but the property doesn't officially deed to you. And then whatever your balloon terms are, once you pay that off, their mortgage gets paid off, then you close then and that transfers everything officially. So why the [ __ ] do we have to do a sub two if we have another vehicle that's a more legitimate vehicle to get into, which actually has better flexibility for the seller. And here's what I like it and and there's a reason why it's easier to talk people into a land contract. Sub 2 is confusing as [ __ ] Call a realtor today. I'll buy what what what's your favorite steak? Whatever your favorite steak out and I know you like paying for dinner. I will buy whatever you want tonight for dinner if you call 10 realtors and find more than two that can explain a sub two deal in a normal market. Not Vegas cuz they talk about it.

>> Realtors. Yeah. No.

>> Realtors. They don't. And that's the challenge of it. But land contract, the easiest way is that you can make it beneficial for the seller too. And here's one of the things. If you do an owner finance deal with a prom note in a mortgage, like a, you know, the seller just becomes the bank. They have to foreclose on you, right? If you default in a land contract, if we structure it to where the buyer doesn't have 20% equity, this in Ohio, every state's a little bit different. If they don't have 20% equity and they haven't been in the deal for more than 5 years, now all the seller has to do is give you a default notice and come change the [ __ ] locks. So that's how you convince sellers of these, right? Like, you don't have those benefits to a sub two. So, why are we teaching a [ __ ] sub too when we can just teach people how to be really good at creative finance with land contracts and things that have been around forever that you can do that protect both parties a little bit more?

>> If Pace were here, what do you think he would say to that?

>> I would tell Pace that I have developed an empire without using sub two and traditional methods and I can get any of his students to wealth faster than he'll ever be able to by just teaching them sub two.

>> Really?

>> Let's do a challenge.

>> That's a challenge.

>> Now, here's the deal. I'm not

>> You want me You want me to have you and him back?

>> Let's do it.

>> That would be a good podcast.

>> But but let me be clear. I respect Pace. He's one of the influencers that I do like. Okay. And Sub 2 does have a place. So, I'm not dogging a Sub Two stuff. I'm just telling you it's not me.

>> Well, again, I don't know any of it. All I know is it made sense when I was interviewing them. Sub two is just subject to, right? Sub two.

>> And the owner wants to do it. It's like,

>> Okay, what's wrong with that? But I didn't know that they could accelerate the the the mortgage when they find out this and find out that. It's like so you're to me is if no one can know well then it ain't above board.

>> Like bank should be able to know.

>> But they don't they don't tell the mortgage company. So then there's a little shadiness there. So I wish Pace was here and I'll be like explain that because shady if you can't tell everybody involved that it happened well then you're being shady.

>> Exactly. Now, but the and what you're saying there's other vehicles that you can do the same thing just without being shady.

>> Yeah. Much much easier vehicles there. There's much easier vehicles easier to teach.

>> Why not just a lease option?

>> You can Well, you can do that, too. You can.

>> I know, but like there's nothing shady about that.

>> No lease option. You can do That's why I'm saying there's so many vehicles. Why the [ __ ] Why do we have to do a sub two?

>> Is a land contract better than a lease option?

>> Depends on the situation.

>> A land contract ties you into buying that property. If you do a lease option, all you do is have the option to buy it down the road. So, you're not.

>> If you get into a lease option and then the market goes to [ __ ]

>> Now you're like, I don't want to buy this property. But in a land contract, you're agreeing to buy that property.

>> Yeah. But when you say market goes to [ __ ] like markets don't swing that badly unless there's a huge issue like like in what was it 08?

>> 0809. Yeah.

>> Yeah. Like that's market going to [ __ ]

>> The the markets go up and down and fluctuate all the time.

>> Yeah. Like right now where I live, McDonald Highlands, there's about 40 houses on the market, you know, but some of them are 20 30 million, you know, my little old $5 million range.

>> Yeah. Your tiny little shack.

>> There's only there's only three or four of those. So like there's not so much f that kind of inventory. But dude, there's 40 houses in that market. So that would make it a little soft, right?

>> Yeah, it is. And by the way, like there's $30 million houses in there. If you're looking for a $30 million house, you're not looking for a $5 million house. So guess what? There's only a few 30s and a few tens and a few 20s and a few fives, but collectively I guess there's 40. Someone told me, "Well, that's you just let the inventory sell and then it'll be stronger."

>> Yeah.

>> But it's barely fluctuating. We're talking tiny percent. Like what does it matter if the market fluctuates? You buy a house, you buy a house.

>> Yeah. But in in like Midwest, right? Like you're talking millions. The normal real estate person, the normal real estate investor or homeowner, if there's a 15 20,000 swing in their market price, that can affect them, right? So for guys like us that live in tiny shacks, million-dollar mansions, homes, whatever you want to call them, it's hard sometimes to remember how much 15 20,000 can really swing and change a situation for somebody. But you just said it. You're not your main vehicle is not real estate, right? Uh, or at least I don't hear you talk about that being your main vehicle.

>> I want I want to get into it, though.

>> Well, let's go, man. Let's [ __ ] rock. But you just sat here in a matter of seconds and said lease option cuz it was a common sense thing, right? So, if there's an option,

>> You're trying to lock up the property is all you want.

>> That's right. So, if you're in a sub two, sub two, you've agreed to buy that property no matter what, right? But in a lease option, what you do is you want to stretch a lease option as long as you can. And why do we stretch land contracts and lease like balloon payments? No matter what the term is, we want our balloon payment to be for me, I want it to be at least seven years because seven years is the average number of years that it takes our economy to recover if it goes to recession, right? Like that's what we know. So in that seven years, the strategic thing is to choose when you refinance a property, when you balloon out of that property. You know, if you're at year four, like if you're at year three on a balloon and you're like coming to the end of that balloon, the seller's saying, "Your balloon's coming due. You got to pay this shit." But our economy just tanked, right? So interest rates are up or the yield is still high. Um, that might be a bad [ __ ] time to refinance.

>> Grab your nuts.

>> Right? But if you're an owner finance deal, well, you can do that, too. Or you can be smart and you can extend out five, seven years on a balloon. That way you.

>> Only if the guys are willing to, right?

>> Yeah. But you got to negotiate. It's all about It's owner finance is all about finding the pain points.

>> Well, there's a house in Nashville my wife wants. Yeah. I don't want to take capital where it is.

>> Mhm.

>> It'll cost me more to buy that house, but she really loves it and blah blah blah blah blah. So, like I'm like, "Well, [ __ ] dude. Again, where's Pace when you need him?" Like, because the guy really wants out supposedly.

>> Yeah.

>> And it's paid for free and clear, which makes it even better. No.

>> Oh, yeah. Perfect.

>> Yeah. So, I'm like, "All right, I'll buy your damn house, but I don't want to put one [ __ ] penny down." And he's like, "Are you smoking crack?" So, it's like, "Oh, well, [ __ ] I don't know. Like, how do you negotiate these deals? Like, I'll sign right now and pay him what he wants." Which, by the way,

>> He's had the thing on the market for quite some time. And you and you want to know it went from

>> $8.5 million

>> to $4.5 million. And I'm like, I'll give you that.

>> Now, you're going to have to give him something.

>> And supposedly it's appraised at 6.7. I don't want to give him any money down right now.

>> But even in sub twos, you're not usually going in with zero down.

>> If if it's a distressed seller, if it's a distressed seller, maybe they make it sound.

>> But this guy,

>> Yes, maybe he wants out, but if he's in that type of he's probably not distressed.

>> He's not distressed.

>> No, he can afford it.

>> But but

>> So he's going to want some down payment. But in my mind, I'm thinking now look, if I if I give him, for example,

>> Yeah.

>> 30 grand a month interest only,

>> It's like he's getting 30 grand on his money.

>> Yeah.

>> Right. Which is

>> Sure.

>> Good percentage, right? He still owns the damn property. I can't run away with it. So either I give him 30 grand interest only for a year and then I give him 4.9.

>> You got to find the pain point though. What's he do they want more money up front? Do they want a lower interest rate? So if you got any more money, just negotiate better terms.

>> He He just He just said, "I'm going to need, you know, something down." And I'm like, "Well, if I have to put money down, then it's I might as well just

>> Buy it normally."

>> Not really, cuz then you got to go through all the bank paperwork. You got to get.

>> But that's easy. I have a 850 credit score and I like.

>> It's still more complicated. That's why owner finance is good because you don't have to do a full doc loan and it's not on your credit, you know?

>> Well, if the dude said, "Here's my house. Give me 30 grand a month." That's this the equivalent if I handed him his money and he put it in a bank. Yeah.

>> He ain't losing anything.

>> He just he just doesn't get to control that money as easily because it's not actually there for a year. I said in one year.

>> I will pay it I will pay the house off for you. So you basically I'll give you 30 grand a month to hold that [ __ ] for a year and I'll buy it right now. He said I need some down payment. And I'm always thinking where's all these creative finance [ __ ] when you need them? Like.

>> Well, you you give me the numbers afterwards. Let me help you with a contract. Let's see if we can get it for you. But cuz he's willing.

>> I get two weekends. I get two weekends a year, though, if I help you negotiate this deal.

>> Two weekends what?

>> In the house.

>> Go ahead. I won't be there very often.

>> Well, I should see I [ __ ] myself. I should negotiate more weekends.

>> Dude, I'll just let you hang there. If I'm not there, you can hang. How about that?

>> I can't hang out if you're there.

>> Well, if I'm there, you can hang. But there's You can hang in the guest house.

>> There is a guest house, too.

>> Nice. Which is funny because my wife's in my parents, her parents, my in-laws, they we go somewhere, they go somewhere. There's there's no separating my wife and and her parents. So, like there's legitimately a freaking guest a nice ass guest house on the property. It's on five acres. It's it's perfect. But I'm not I'm not taking money out because I'll I'll pay a penalty and I'm making money on that money. So, I just need one year, maybe six months, but one year and then I'll and then I'll pay for it. So, what what's the creative? How would I create Well, let's get to the real [ __ ] Medicaid.

>> We're going to negotiate that, but let's get to Medicaid.

>> Okay? Cuz cuz again, listeners don't care about me and my freaking rich people problems. What I want them to understand is what you did and what you will teach them to do that changed everything. And that is basically I'm going to butcher it, but tell me if I'm right. You basically were doing the whole real estate thing. You were buying properties and then you decided or figured out how to put people with disabilities in the properties and now you're getting paid from the government.

>> Yeah.

>> On time every time. And now you go around and basically leverage disability with real estate. And now you got disastate and it's making you millions.

>> Yeah, man. It's the ultimate play.

>> And you can teach that to anybody in the real estate game. I can teach that to anybody that's not even in entrepreneurship, right?

>> And they don't even need to own the real estate, which is the crazy part. I don't own any real estate. So, so let's get into that. Now, I want you to talk too much so I can learn right here while I'm listening.

>> All right. Gotcha.

>> So, I'm a I'm a dude with a decent credit score and a little bit of change. What would I do immediately to get into that?

>> Well, you you would hire me because I'm the only one in the country right now teaching it, right?

>> All right. Paid. Consider yourself paid.

>> Yeah. All right. Let's go. But could you do it on your own? you could do it on your own. The problem is, and it's not a problem, the problem, however, is is that it's a complicated industry to get into.

>> Don't you need like.

>> You got to have certifications. You have to like you have to understand the Medicaid space because it's Medicaid funded. I mean, it's going to take you 6 to 12 months to get through the certification process, right?

>> And and if you bill [ __ ] wrong in Medicaid, dude, now you're going to prison.

>> Yeah. You fraud. Fraud.

>> You don't want a dick with government money.

>> You don't. It has to be right. Right. So, you're going to have you're going to have audits. You're going to you're going to have compliance. you have to hire teams. Like, it's not a get w, you know, get rich overnight scheme. So, if you're a side hustler, if you just want to build a business like and and walk out without having to put any work into it, it's not the space for you. But if you want to create legacy, if you want to create real wealth, if you want to create a business that can transfer generation after generation to your family or if you want to create a business that you can eventually, you know, exit at 4 to7 multiple on the E IDA, this is what you do, right? But it's a regulated business and that's why most entrepreneurs won't teach it because they're not willing to put the work in and it's too complicated to get into in the first. But I didn't figure this out on my own. Here's how I figured it out. I went to buy a 10-unit apartment building from a guy, an old guy, and he was selling to me for 150,000, which at the time it was worth 500,000. So low I didn't even negotiate the [ __ ] price. I said, "I'll take it." But then he said, he said, "I need 60 days to close the property, Todd." And I said, "Why do you need 60 days, Marty?" He said, "Well, I got to move all the I got to move everybody out." I said, 'I don't want a vacant building.' And he said, 'Well, these are all my clients. I have to move them out. Like, they can't stay here. They got to go to one of my other homes. And I said, 'Well, hold on. What do you do? And then he told me that they were a provider that provided services to those with developmental disabilities, diagnosed prior to the age of 22. And I said, without missing a beat, I said, "Why don't I just buy your company?" Never [ __ ] heard of it. I didn't know anything about it, but I saw opportunity.

>> What' he say?

>> He said, "Well, I'm not ready to retire completely yet, but I I'll think about it." I said, "Okay, well, let's buy the building." But he was also doing mental health group homes, which that's a whole another episode talk about how [ __ ] up our mental health system is. But at the end of the day, he said, "Let me think about it." So the first thing I did was I closed on the building and became his landlord. So I was his landlord. Well, all the tenants were landlords cuz they're market renters. A lot of people don't understand that. They're real market renters. They just get services brought into them from a provider like our company. And then after like maybe a month and a half, he said, "Well, why don't you take over this small section of mental health clients?" So, I went and got my residential facility license to be a mental health group home provider. That was the first step. That doesn't pay a whole lot of money, but it does pay better. And then like another month later, he called me said, "Todd, you that offer to buy the company, you still interested?" I said, "Yeah, Marty, I am." He said, "Well," and he was having employee issues. And he's like, "Well, I think I'm ready to retire." So, we made a deal on the spot, man. He was doing after looking at his taxes, he was doing like 850k a year. And uh I offered him 300k with $10,000 down. Three with 10 grand down. Give that to me.

>> Look, no, that's not the best. Three-year balloon. He wouldn't go longer than three year at like 3 and 12% interest. Okay. But it also had two additional homes that came with it. Three vans, all the assets, and all the clients. So for 850k gross income, I bought it for 10,000. We never put another dollar into that company.

>> Did you did Did you have any real money?

>> At that time? I was doing I was, you know, I was at like real estate. I was doing really well, but I was So, the problem was even though I was building an empire with real estate, I wasn't having the cash flow yet, right? Cuz I had debt. I was doing the Burr technique. I was constantly, you know, whatever. We were building, you know, we were building other businesses. So, it was like, you know, it is when you're investing, you're always dumping your money right back into something. You live like you're [ __ ] broke half the time. So, that's how I felt at that time. But, this company was immediate cash flow. Immediate, right? Like 10,000. We immediately came in and started building Medicaid.

>> Of course. Like dude that was a cash flowing business.

>> It was crazy. I saw the opportunity but it was an.

>> And you own the real estate.

>> And I own the real estate which in most states you can't own the real estate and be the provider. So that's how very early on I figured out we can dominate this market. We can be niche. So we can have our real estate holdings company own the real estate, rent it to these clients. Like we dedicate the building like you can't move in unless you get services, right? And then we have our other company which my wife is the CEO of. And.

>> Is that is that that [ __ ] gray area?

>> Yeah, it's the gray area. But the state knows about it. You're not not telling them about it. Your wife owns the company, the husband owns the real estate or whatever.

>> But if you own both, you can't.

>> Most states will not allow you to own both for that situation. But what you can own both, there's there's all kinds of layers to this, and I don't want to get too far down the road, but you can run a ICF, which is like a nursing care facility for those with developmental disabilities, and you can own the real estate and that. But when you're just doing waiver services, you can't own both in most states. Okay.

>> And so basically, the government's your tenant any any building you buy now.

>> No, not No, they're not. Um the people that are getting these services, they get Medicaid, a waiver.

>> That's the government though, right?

>> Medicaid pays that.

>> Medicaid pays that.

>> That's the government.

>> But the renter, they're a normal market renter because our government wants them to live normally. They don't want them living in a facility.

>> Yeah. But they're paying it. Correct. They're not paying for the rent. They're not paying for the rent. The client, the tenant is still paying their own rent out of their social security or out of whatever funds they have. So, they pay the the landlord their regular rent just like a normal renter would.

>> Do do you ever have default like normal renters default?

>> Never.

>> Well, then it's government-backed.

>> It's not government-backed.

>> Then how do they how do they always pay like clockwork?

>> Okay, let's because they all have payees. Most of them have payees. So, when they have a disability, they probably are not good with finances, right? So they have a payee who's responsible for paying all their bills. Yeah. But they're getting But some of our clients, some of our clients go to work every day.

>> But you could go buy you could go buy an apartment complex where other people would have to worry about renting and the dealing with the getting it rented and you buy it knowing full well that you've got however many people dropping right into those units, right?

>> Yeah. It's not clockwork.

>> I know. But that's a that's a that's an advantage. And then you throw in some sort of amenity whe whether it's a nurse.

>> Coincidentally, she used to be a nurse, too.

>> She's a badass nurse, by the way.

>> Yeah. But like you you throw in a nurse or one of those things. He he finally answered me. This guy um what what that's called. It's called a uh life auxiliary. You ever heard of that?

>> No, I haven't heard of that.

>> Yeah. You throw a couple of those in there, dude. And now they they they have everything that they need. And and you got freaking now you just go start buying up all the property with an advantage because dude, I thought the whole point of real estate is buy a property and then rent it out. Not only do you rent it out, but then you go improve it a little bit and you raise the rate a smidge. And when you raise the rate or the the rent a smidge, well, now the value of the assets more and now you go in and take that, you know, you just borrow it because of course there's no taxes on that. So, you just borrow the the increase in value and you go buy another property and on you go. Well, with this, you can buy the thing and you're guaranteed rent increase because of the tenant that's going in there. I want to change your mind on this. All right. The next real estate guy you have in here, they all think the same thing that you just said because as a look, we have a massive real estate portfolio that doesn't involve disabilities or mental health, right? we have to raise rents consistently because property taxes are going up, water bills are going up, electric bills are going up. You have to raise rents. In this model, we're able to lower rents or keep rents very affordable and never have to raise them because what we've done is we control both sides, right? Let me break down the math for you. You have, let's say you buy a 100 homes in the Midwest, all right, average rents 12 to $1,400, whatever. Okay? your gross profit per door um let's say your net your net net at the end of the month is going to be about 150 bucks on average per door right at the end of the year your net net is going to be 175,000 if all things go went right if you didn't lose a roof you didn't lose hot water heaters you didn't have vacancy crazy 175k on 100 homes basically is what somebody's going to be around there's ways to get more ways to get less you do one of these homes okay because we also have share shared living homes or shared living homes you can move four people in that all have a bedroom and common areas. Okay, you do a shared living home. Those homes are now worth with these services 400k a piece. All right, so 400ks times 20 homes is what? 8 million, right? And your and your profit margins you're going to run true net net margin is going to be around 30%. So in that we're talking a little, you know, between $2 and $3 million. So, if we're able to produce that, right, on a home, we don't have to raise the rents. We just have to cover the bills so that that real estate is flush because that's allowing our other company to come in and be crazy profitable, right? Like, it's there's a trick to it. And that's what's beautiful is a lot of these people might only have social security benefits. They might only get $867 a month. How the [ __ ] do they go out and afford an apartment to live on their own, which is what they're expected to do. So they either have to find their own place, which they're going to live in a complete [ __ ] property, or they have to live with their family, and eventually a lot of the families just can't handle the services these people need, right? Because they can get money from the state to provide their family member the services, but eventually maybe it becomes too big of a burden. So they have to find somewhere else to go. So, we either have this vulnerable population that lives in a [ __ ] property, or we as a company can provide a nice living situation, a very safe environment, a very clean environment, a nice home at a super [ __ ] affordable price. Who else is doing that? Very few people.

>> Yeah.

>> Like, it's a beautiful model. We don't have to jack the rent up because we're making it on the other side of it, you know? Like, and that's we're helping this vulnerable population. And maybe we're not killing the rents, but we're killing in the other space. and you're helping a group that needs the help, you know.

>> And so basically, anyone anyone can do this. So if I'm in real estate already, I probably know what you're saying already. But if I'm just a guy with a little extra money and some decent credit, I can go in and start one of her companies and one of your companies and dial it in and get rolling quick.

>> You don't have to have any credit.

>> So you can teach people how to do this.

>> Yeah. Easy.

>> And and folks, again, he's not the guru that says, "Hey, I'll teach you, but I'm not actually doing it." He.

>> Yeah.

>> He's doing it. My question is why do you want to teach it?

>> Why do you just keep it secret and keep just I call it raping and pillaging? Cuz like you're just free to roam about the country taking advantage and there's no one already there. But if you teach me to do it, wouldn't me and you eventually try to be doing the same area or you just like abundant? There's plenty of room.

>> You asked me that months ago when we when we met. I'm I'm not afraid of competition. Now, am I going to take somebody in my same city and teach them how to do that or in the same state? Probably not. But even if we did in the same state, nobody's going to be able to create the model in the way that we do the model and be on the level that we're on that I worry about that competition. And the relationships, and I'm a relationship guy, the relationships that we have created with our counties and our states are are so deep that I have so much confidence in that. They're not going to because we're we will take the clients that nobody else will take, right? like if if they have some serious behavioral issues or um if they've been kicked out of other units or other apartments for whatever reasons because you have to understand they might be perfectly normal most of the time or they might be really far off to where they're throwing [ __ ] through windows and breaking glass and having you know severe behavioral issues. That's where we've positioned oursel is the company that we will come in and we will help whatever it is the the county agency or the state agency like we'll come in and take those clients that everybody else believes is too difficult. So because of the roots that we've planted I'm not worried about competition and I have no interest in going AC like there's so many millions and millions just in our single state. I don't need to come to Vegas. I don't need to go to California. I don't need to go to [ __ ] Minnesota or Wisconsin or Wyoming or Rhode Island or Maine. I don't even like lobster that much. I don't want to [ __ ] go out there. I'm good where we're at. Are you looking for investors?

>> No, we don't need investor. I don't have investors in real estate and I don't have investors in any business that we have. I I we've we have built it from the mud, man. I don't I don't need other people's money when it comes to that.

>> That's awesome. That's awesome. So, folks, if you're paying attention, hey, if you want to I say, you know, add nitrous to your real estate portfolio because all I'd need is her business. If I already have the real estate portfolio, I can start.

>> Yeah. Placing these people in these properties. No.

>> You could. Yeah.

>> So, I don't have to raise rent. I just need to get the right tenants.

>> You have you can teach me how to do all that and I don't need certificates and nurses or or any special thing. I mean, I know there's [ __ ] to do, but like.

>> Essentially he could do it. Yes or no?

>> Anybody can do it.

>> So, it does you don't need any special background or expertise. You can just do it.

>> There are let me clarify there are tricks there are certain qualifications that the company has to have. Okay.

>> Yeah, but you show me how to get them.

>> Let me give you an example. It might say for you to be the CEO of the company, you have to have one year experience working directly with with disability folks.

>> So, I just hire that person.

>> You just hire that person. Okay. And that's the red tape that we'll help people get around. Like, we'll help them figure it out. I can take anybody off the street that has the grind, that has the will. They're going to have to have a little bit of capital, right? Because.

>> How much?

>> Um, let's say starting off you're going to need at least 10K, right? Just for, you know, certifications, things like that.

>> That's freaking.

>> But let's talk about it. But then when you start your business, the beautiful thing is you can grow it slowly. So you don't have to come in and have 15, 20 employees or 30 employees. You can start with one client, one employee.

>> And you're helping people that need it, too. I I like that part.

>> Well, you feel good about it. And And here's the deal. You fall in love with your clients. You know what I'm saying? Like we have people that are in the Special Olympics or, you know, like they all have like a little quirk, right? Like maybe like we have we have one client that like she loves baby dolls. You know what I'm saying? She's a grown adult and loves baby dolls or maybe they like their hair or one client that like he's just loves sports and you know when you talk to him all you got to do is talk to him about that sport or that team that he loves and they light up and that's what's great about this company.

>> Are they like autistic?

>> They can have any type of disability. They could be autistic. Um, I mean, they they can have, you know, Down syndrome. Can have anything, any disability, and it can be so slight that you might not even recognize it until you're with them multiple times or a couple hours, right? But to see those people light up and for us to allow people to live life on their terms and allow them to live the best life that they possibly can and we're making money at the same time, it's [ __ ] beautiful, dude.

>> That's good. That's a good thing, man. We're going to have to definitely have you back for a part two cuz number one, I got more questions.

>> Yeah, let's do it. Number two, I want to like test it out a little bit and see where see what I see because like you said, I'm gonna look at the program. But for people that are ready to make a move, what do they do? Just hitch on the on the social media. Todd Pulzofficial. And by the way, it's PLTZ, Todd. Put my damn readers on.

>> You're getting up there in age with me, man. You got to put them on.

>> I might have to be in one of your homes soon. Todd PZ official. Um, you also have a podcast. Do you talk about this [ __ ] on there?

>> No, we don't talk about on there.

>> Oh.

>> We talk about business. I mean, you know, I have a lot of friends. We just talk about entertainment stuff with Todd PZ maxed out. Just find it.

>> Um.

>> toddols.com is the easiest way.

>> Yeah. Go to PZ.com. That's the to me if I'm in real estate, I'm heading there right now.

>> Um, you will teach me the ropes.

>> Yeah.

>> Will you like partner with me if I don't have the capital, but I can find the deal?

>> Yeah, we could we could we could do that. Here's the thing. It's not for it's not a course. All right? This is a this is a white glove done with you business. We're gonna help showing people. And by the way, guys, I might mention he ain't looking for everybody. Like this this dude ain't got a course and passwords to sell you.

>> He's willing to teach a certain number of people what he's doing for some reason.

>> Yeah.

>> Um, and I'm one of them. So there's one slot less than you think.

>> You're you're work you're working me on that.

>> So I'd go to toddps.com and get it done. I appreciate you coming and I'll have you back sooner than later. Since you're rich, you can fly back in.

>> We can come anytime, man.

>> All right. Until next time, folks. Keep it real.