Founder 2 Founder

i think it's about the $70 trillion of wealth is going to be transferring and half of them is real estate and half of them is business don't get me started on this one because I got a long conversation you can buy a house for 62,000 oh not here in California for sure but in business 1 + 1 becomes like 10 and I keep telling him you are not going to own any of our properties maybe my daughter will own it my son is here by the way teach the fisherman to fish instead of giving you fish it's just fun doing real estate every day is different i think the home service still anti crisis proof sign me up man i I want to start my own home service business just talking to you for the past

[Music] hour welcome everyone i'm Soro Margin today we're going to be discussing with uh my friend Jason about investment real estate uh business he's expert in the real estate and flipping jason welcome to have you here oh thanks Ardor i'm super excited when you called me last week I was like "Oh my god we're doing a podcast i miss doing this." Um just because the conversations we've had ever since I've known you it's always been great conversation i can't wait to tell the whole world you know you know my story and you know and and I want to learn more about you know the home services side and how you can do rollups and how you can grow your business i think there's opportunity there and I hope I can give value to the audience uh with real estate and all the things that we're doing uh what we're focused on for the next few years not just in real estate but on the healthcare side i think it's going to be interesting for a lot of uh viewers here which direction to go should I go to the business direction or should I go to the real estate direction or should I go both right like I'm sure by watching these videos you guys going to learn a lot and make your own decisions which path is correct for you [Music] okay Jason tell me a story like uh are you born in US or you came here first generation second generation where so I I came here when I was 16 it was a soap opera story where I grew up with my dad knowing the fact that my stepmom was my real mom wasn't my real mom so I grew up for years my whole life you know first 15 years of my life uh that my stepmom was my real mom and then 1996 so you guys probably know my age now 1996 my mom my real mom came from the United States visited me in the Philippines and say "Hey I'm your real mom uh would you like to go with me to the US?" And you know just like any other countries everybody wants to go to the US right you know start a new opportunity so you moved here when you were 16 yeah pretty much yeah went to high school here grew up here in Southern California and I don't think I can ever leave Southern California this is home for me right that's why you know I'd rather do my real estate business here yeah even though it's better out of state but come to realize you know home is home you know we know everything about Southern California how did you get to real estate oh my god real estate um you know we used to own a couple of restaurants we own a ramen restaurant and a sushi restaurant oh interesting and I'm not even a chef but I know I love food and I love serving people i love customer service i love just making people happy so I did that for a few years and during a pandemic the restaurant business kind of went down i got into real estate in 2021 and I've never looked back you know sold our our restaurant shut down one and we sold the other one and now we're you know going full on on real estate and I don't want to go do anything else because I love what I'm doing that's interesting can you tell me uh I have no idea about real estate only thing I know is like I bought my house that's it but other than that I don't invest in real estate can you share uh more knowledge wisdom and about real estate how everything works i can tell you that's a really good question so when I got started in real estate um I literally did everything but before I did everything I took a lot of mentorship program joined a lot of mastermind I joined a lot of community really invested on myself on education and other people so you believe it's better to invest in your education first before blindly going it's it's plain and simple right if you want to be a good you know engineer you want to go to school as an engineer right if you don't go to school in engineer you're gonna have to work 10 15 20 years to really learn everything about real estate or business they don't really teach in school right they they don't teach you in school that's one thing um so I I was hungry in real estate so I took a lot of that so I've literally learned from wholesaling real estate to fix and flip and owning rental properties you know buying creative financing properties um and then that's what led me to where I'm at now which is I've done so many transaction the past few years just on different categories of real estate hey guys don't forget to like us subscribe us follow you're going to find all of the links in the description below how you did your first one so my first one was a fix and flip so we did one in LA it was pretty scary i did it with three of my best friends you know i was like "Oh shoot we made almost $60,000 on this deal." You know can you give me the details of like how So you know we found a deal through a wholesaler um and then we analyzed it you know we weren't really good at analyzing deals but it looked like the spread is there how much you bought it for uh we bought it for 500,000 500,000 was a deal was the deal how much you had to come up as money uh we put 10% down payment so $50,000 about 50,000 plus closing cost about 60 grand that we spent you know I mean we had a contractor right the idea here is to really uh have other people do what they're good at do what they do right so we would go in on the weekends you know Saturday or Sunday you know for four weeks and help out a little bit right so we kind of learned a little bit about that we spent about $50,000 on renovation mhm um and I think we sold it for about $675 so we we made about $50 $60,000 on our first deal and now you got to think about we got to split it in with three other people right i mean honestly we probably worked maybe 30 40 hours total you know and and when you say work it's not hard work you're like go do this so we were all working i was still running my restaurant at that point and you know I decided you know I told my boys you know like hey I want to do full-time in real estate so everything was history from there and you know it's been a great experience there's you know there's ups and downs right just like any business you know failures and successes so so first one you did it with your friend with partners correct correct have you ever did like yourself like or you always partner 100% i did out of state flips i did them i did When was your first your own deal so my first out of my first deal by myself was out of state so I did one in Michigan did you visit that yeah so I was wholesaling at that time so I was getting a lot of deals i get to pick which one is a good deal which is not a good deal right um so I found one in Michigan and I'm a type of person where I would just take charge you know if it makes sense and it feels good and it and the numbers are there I would do it right so no matter how hard it is you know we'll figure it out as an entrepreneur you know we're not we're not too analytical so we'll figure it out so that was probably one of the hardest thing cuz we flew to Detroit Michigan and the house was like 2 hours away from there i brought my contractor with me it was a trip because he brought his toolbox with tools flew in a plane brought our tools with us and then you know we did the rehab find couple of painters here and there man how much was the deal so we bought it for 62,000 like everything it's a house or It's a house you can buy a house for 62,000 oh not here in California for sure you'll get a shed for 62,000 yeah we bought it for 62,000 this great thing about wholesaling you get to find you know owners and sellers that are distressed and motivated right i was actually worth over a h 100red grand but I was able to get it for 62,000 i was able to solve his problem by me buying the property when we got there we spent about $25,000 in renovation mhm and we sold the property for $150,000 okay how much you made we made another $50,000 there got it and how long did it take i was there for a whole week granted my first outofstate flip we were we were working 16-hour days you know I thought working coming from a restaurant was difficult you know working 16 hours in a restaurant here it was like hard labor right um but it gave me the confidence to like hey if I can do hard labor and then plan accordingly and not have to put in the work I can make the same amount of money when you do a flip what kind of hard work you what you do what you So in the beginning I was helping out doing the demolition oh so you did demolition yeah ripping out the carpet going to Home Depot you know a lot of the grunt work you kind of are a general contractor yourself more more like just a subcontractor not yet i wasn't there yet but you know I wanted to learn the business you know I wasn't really the handyman kind of guy right but here I have to learn so I got dirty my hands got you know bloody you know cuts here and there but at the end of the day we got the job done we were there for a whole week 16 hour days and after all expenses you know we made about $50,000 so I continued to do that you know every single month you know I would pick one up either locally or um out of state and then little by little I kind of got out of like the out ofstate flipping right because you know when you have a family of you know I got two beautiful kids and a wife you know you want to be able to be with them i didn't come into real estate to not be with my family family correct i was looking for the time and financial freedom you know after you build it and then you know it's like me going back to a restaurant if I continue to do these out of state flipping essentially you can have it done by other people which we kind of mastered a little bit you know finding boots in the ground you know to help you manage the project um but I think knowing the fact that Southern California has a lot of opportunity I stayed here in California so then you started only doing it here right locally it was Arizona it was uh Las Vegas in Southern California but of course it requires more capital to do the more capital means we had to raise capital and pay our investors you know after we sell the property when you did a deal in California you did with your own money or with other people's money i started to realize you can't scale your business by using your own money so I would use other people's money which is other people's you know savings and investment that they're trying to do and when you use other people's money like how much of the money you have to give them back of the returns like few years ago we would you know the standard is you know 10 to 12% right cuz people weren't really they don't know much about anything higher than 5% return is you know people are happy so we were paying about 10 to 12% of you know return their money annualized so you know once we get the so household we pay them back right away and now they keep coming back for you know other projects got it so basically you pay them on the percentage wise not the profit sharing not the profit sharing of of of the property when we sell it yes correct okay and whenever you raise capital what how much you raise like 50 150,000 or like what yeah so you know lots of learning when you raise capital right sometimes you raise capital $10,000 one person right and then you come to realize you know now you have 10 people for 100,000 that you got to report every single month and then one person needs the money right away and we're not done with the project yet so it kind of gets chaotic in a little bit we kind of raise the bar little by little you know 25,000 50,000 you know sometimes one one uh investor would cover the whole deal it just really depends on So what was your minimum amount you raised and what was the highest amount you raised the obviously the minimum amount was $10,000 got it the highest money I've raised uh one person in like less than a week i believe it's $200,000 if someone is getting to the real estate they can actually start with raising 10,000 from individuals correct correct yeah then eventually you kind of go up to the top i I like to at least show people I've done it i've had success i've used my own money right skin in the game it's always How do you raise capital like where do you raise capital friends and family friends and family friends and family you know not a lot of people have the resources like we do right opportunities unless you're in a stock market and you've been doing this for a long time um so obviously so like let's say if I'm your friend how you would raise capital for me hey man I got a great opportunity for you man like you know I know you've been asking me on you know what about real estate you know how you know how you're doing um hey if I can give you a return of your money in like less than 6 months like uh and you know we back it up with the real estate so it's very secure would you be interested cuz you know what it's all about the energy you're giving people right because if you if you give them the the bad energy it's like they won't go for it right we are raising capital right now we are definitely uh we're opening up two facilities uh one will be a drug rehab center a treatment center in Maretta and the other one is our inlewood which is going to be an adult residential facility for the mentally disabled adults we are really laser focused on residential facilities just because that's in dying need right now in California um and you know one you know it's in need by the California and second you have a purpose you know running a corporation you're helping a business you know helping the the uh um the community right solve a problem you know the housing problem we have here in California yeah so those are our main focus right now just real estate and healthcare which is the residential facility site hey guys this is Jason Santos you can reach me on Instagram at jasonsoccal investor or you can email me at Jasonfairpric foryouhouse.com i'll talk to you soon what different type of real estates out there apartment complexes office industrial commercial correct can you kind of give me like a breakdown as much as you can then tell me what do you really focus on so they are so let's start with the uh investing side right so in investing side you could be an investor which is a silent partner you can be an investor and in and you you know someone like me would raise capital you know I find investors like you the ones to make money you know safe money right which is return um but there's really nothing safe you know in any investing so I never really promise anything that hey 100% guaranteed so that would be the investing side working with other investors that's doing active income in real estate which is flipping okay and then there's another side of the real estate where you can wholesale real estate wholesale real estate is uh when you find a seller that is motivated you lock it up under contract for a really good deal for for example 500,000 and you find a fix and flipper to buy that property from you you're only assigning that contract to them for 550,000 basically you're just flipping the flipping papers paper correct you're really flipping paper so 500,000 I buy it from a seller on a contract and then you find an end buyer which is a fix and flipper and then sell it for $550,000 and that $50,000 spread would be going to you when you close escrow when they buy the property got it so that's wholesale real estate okay and if you want to be a real estate agent you can buy and sell real estate on the market you know when you wholesale it's off market most of the time that would be the active income side right um and then you have the passive income but don't let the passive fool you because it's never really passive you still require you to work here and there right so you can own a single family or a duplex or forplex and get it rented out right you either manage that property like we do or you have a property manager to to uh um uh manage it for you or when you get there you know you want to be able to upgrade and go to you know managing you know buying a property that's a multif family yeah which is like 10 unit 20 unit at that time you need that's what the Grant Cardone does every day right that's exactly what Grant Cardone does you know I think majority of people start from single family and then they come to realize it's a lot more headache or not headache but it's difficult more difficult a lot more work to manage multiple properties yeah versus managing a 20 unit in one building right it's a lot easier so we are not there yet we're still in a single family side um smaller multif family which is up to four units um but you know that's where the multif family is and then there's the commercial side of the business which is for you know office buildings and and warehouses you know or creative spaces um you know where you do your podcast and you know have you know different agents to shopping malls right whatever yeah so that's the side commercial that's the side of the real estate um and then you know the residential side which is the facility that we're opening up yeah you know there's gonna be a lot of opportunity here in California with the baby boomers you know retiring i believe it's still a big percentage over 50% of the homes are being owned by Yeah the baby boomers it is right this is our parents your parents right that's their age i think uh the statistics wise when we did the statistics was our 95% of our customers are baby boomers who owns a single family home because like the millennials are just getting there genzies they don't even own a house let's talk about aging population and wealth redistribution a lot of the wealth transfer is happening right now uh just because the baby boomers are ready to retire you know with their business and a lot of them are you know getting older so they need to go to a facility right so real estate will be more available for them to sell to a lot of real estate entrepreneurs and I think it's about the $7 trillion of wealth is going to be transferring and half of them is real estate and half of them is business yeah and being the right place at the right time I truly believe the real estate If you want to own real estate now right now is a really good time because a lot of them there's going to be a lot of transfer of ownership you know from our older uh uh generation to the baby boomer side and then they them owning an operation of their own business there i've been seeing a lot of you know businesses for sale yeah because they have no succession plan yeah and and co showed that and during the co they just shut it down because they kids they don't want to take over the business they want to do Tik Tok it's a big percentage that I think like 70 80% of their kids don't want to take over their business and someone has to keep that business going yeah continue the generation correct yeah so think about the wave of homes that's going to be coming in hoping the interest rate get better right so when is a good time cuz I've been hearing this for the past 10 20 years real estate market is going down you know after the uh uh the bubble in ' 05 06 right we're not getting back that 3% again oh my god i you know don't want to get too political but I I think uh the the the new administration is really working on that working on dropping that you know I think because he is a businessman the the 10-year bond went down to about 4% so and you know we're I think we're about to hit a small recession and then that will be and that will be able to you know jumpstart the lowering of of the interest rate but you know what my government is my business in my house and in my you know in my corporation so I stay in my lane so I'm hoping that this new administration I know he will cuz he's a businessman um will be able to help he said he's doing it actually oh man i've seen a lot of investors or real estate entrepreneurs you know lose a lot of money and and I'm one of them too if you don't lose money in real estate that means you haven't done any deals the toughest people really make it to the top and I I definitely advise if you've been in real estate uh not long enough you know keep going what do you think is going to happen to commercial real estate like those high-rise offices like in downtown right here it's so empty i know a lot of federal buildings are shutting down right there's lots of opportunity there for developers or people want to convert that so really the the state really needs to work with you know the developers on how we can convert these uh you know buildings definitely I'm super excited for that because hey we have housing crisis here in California we need to convert these buildings i am not in the development side which we are getting into um but definitely I want to hear more positive transformation because us doing the fix and flip business we're transforming the older homes into a nicer home right and hoping that the block will increase its value and hoping that uh you know people want to buy turnkey properties and they they don't want to deal with the work when you're raising capital so basically you're I believe you're doing syndications right like uh I believe we met at fund launch we did we did yeah what do you think about uh real estate funds uh and raising capital for the fund and investing that way so I I really think the funds would really only work on the multifamily where there's really income generating from tenants right yeah the fix and flip side raising capital or on that one it can get risky right especially in this kind of time but I think it really works out for you know big portfolios in in the multif family side um or even just you know doing a fix and flip on a commercial building you know that you know I got a buddy that's really focused on fix and flip on the commercial side and he's doing very well and his profits were like at 500 to a million every project yeah because in the funds you have to give 80% of your profit to LPS correct you're really making money on that 2% and managing fund managing the fund or maybe finding a deal right finding a deal correct yeah yeah yeah because only have 20% left but uh the way you described is basically are paying only 10 12% actually is a better way than going actually the fun direction correct yeah so it just really depends what direction you want to go into um but our laser focus this year is really just opening up as not as many facilities but get our our our fac residential facilities uh up and running and I believe it's another way of in the real estate is like what Airbnb management definitely the Airbnb had slowed down a bit um I feel I felt like during the pandemic we were oversaturated with it but yeah definitely I'm super excited for what is next on the short-term rental mid-term rental right because that's the really a big key factor of how to become successful on when you own rental properties what does your portfolio looks like now we are liquidating a lot of our out ofstate properties and we're only keeping Southern California or California properties just because the appreciation in California is faster than out of state we start buying in 2022 and I've seen the out ofstate growth and then the California is just surpassing them you know in like half the time right i believe out of state at least for my experience and other you know uh coaches out there uh in real estate I feel like out ofstate properties uh you know are are going 12 to 15 years it doubles its value in California it's 7 to 8 years or at least LA it doubles its value in 78 years and think about the the price on out ofstate properties you can buy a house for 100 grand right and it takes 10 to 15 years for it to double its value right and then here you buy a million dollar house which is probably the average here in I got to say 88 $800 to a million dollars the average here and it doubles its value in 78 years yeah i bought a house in 2014 okay so 10 years yeah it was 1.25 okay and I put a 250,000 down payment okay so you're balance at 1 million 3% yeah i think the house worth 2.5 so it's double the value in 10 years 250,000 gave me additional what 1.25 so something like that yeah right now you got 1.5 million or more in equity but if I would invest that 250,000 in business now at least in 10 years I would make it worth 25 million or even higher but you're doing it right because that requires work for you to build while your house Yeah it's it's you said you did zero work in the past 10 years correct it's all about putting your eggs in different basket definitely own a property in California you got to live in there um and then what you should have done is that 1.2 million you should have taken money out of there yeah and invested on another property either you know buy a a small forplex tell me more about what you're doing on the uh on the home services side I have bootstrapped the company as you know like uh is no fundraising uh I have grown first the service business and marketing legend and platform itself so we are still growing it and we kind of moved to the uh M&A mergers acquisitions yeah and we are going through a lot of deals like whatever fits to our criteria and if they don't fit it uh we are basically doing uh we have 2020 private equity partners we are doing a deal sourcing for them for the finer fees so basically we have a I have five people in my M&A team doing the continuous deal sourcing in home services trying to find like new new businesses trying to find not new businesses but acquiring new acquiring a new businesses like someone is wants to like exit and sell their HVAC plumbing electric or any service companies like home cleaning pool cleaning pest control whatever right anything in home services we want to acquire or we want to actually forward it to our private equity partners as a deal sourcing and they're paying 9 to2 multiplier because the market is really hot in private equity now what you're doing is brilliant because we don't know this but bigger corporations has been doing this for decades yes right we don't see it because their acquisitions are on a bigger scale right but when you're acquiring a million-doll uh company they could literally multiply your value because like in the real estate 1 + 1 is two correct but in business 1 + 1 becomes like 10 yes it's it's math completely works different way and of course you have some risk high risk high reward but if you know what you're doing if I think you gotta be built for being an entrepreneur yeah yeah if you if you have a good operator right like you can actually combine and buy those businesses merge them together and I think real wealth is generated on business correct and on acquisitions on M&A because on arbitrage yeah but sustainability is in real estate like when you diversify and you keep the money and going on as you expect yes that's you have to use a real estate to diversify and keep I think the home service still anti crisis proof it's a recession proof yes already showed that right like home owner you you Yeah either the the landlord got to get it fixed or the owner of the house got to get it fixed if you live there i believe like people use their 33% of their earnings in the house it can be like a mortgage or rent you like utilities or home depot purchases purchases one third hour whatever we generate we kind of spend in the house and that's the American dream right owning a house and making sure your house will increase its value so you could use it to retire you know and be safe or give it to your kids right i told I told my kids they're not going to own Maybe my daughter will own it my son is here by the way so I take my I got an 8 eight-year-old son and and I keep telling him "You are not going to own any of our properties you're going to have to own your own." Yeah or earn it right teaching your kids about business or about real estate are you doing anything about it don't get me started on this one because I got a long conversation we could be in here i think this new generation now is going to be so difficult for us to really teach a lesson because when we grew up we've learned lessons the hard way yeah um but because we did not get that from our you know the good things from our parents which there was that's a good side of it we're giving our kids too much right and then we're being so lenient with our kids i'm still kind of hard on my son because I want him to be strong and be able to learn uh faster so I teach him about money i teach him about responsibility he goes to a lot of my events you know when I when I had a an event you know I spoke in front of like three 400 people I bring him to the stage you know make sure he gets the feel of it just giving him the confidence and I'm super excited because little by little he's learning one about money yeah and then and I keep telling him that you know don't let money run you because you know you can make mistakes if you pick money over uh your your habits and your you know your your your character right um so it's very important when you teach your kids about money and business you they you got to teach them character right and what what's your goals and your vision right and doing the right thing it's not about just giving them the real estate or the money it's I think about like educating them and teaching them i think it's more it has more value they can earn themselves that's more sustainable give the teach the fisherman to fish instead of giving it fish i think when when I got started in real estate or just being an entrepreneur you know I was selfish because I wanted to be successful but when I start seeing my kids grow up I want them to see Yeah you know what it is to be an entrepreneur what it is you know what it takes for you to go to school and make sure you get good grades and you know if you finish college that's all I ask from them i really think you know uh the the younger generation now they just want you know social media fast money uh I think that's great i don't think they see the value of hard work and failing and then getting back up you know when it's time to get back up right yeah one thing we have to actually uh grow in our kids and the new generation is the grit not giving up right like uh never give up yeah i mean if you get punched you know it's okay to cry yeah i mean just because I had a bad day and you know I know tomorrow is going to be better and that's what my wife kind of pushes me right i mean I see my kids and like I have to get up right yep what the the thing is what lesson you're learning from that how can I be better tomorrow right i believe these younger generation will figure it out i really think they'll figure out if it ain't hard work they'll figure out how it will make it work for them you know the right way definitely on the real estate what was your best deal i think they're all a a lot of them were good deals right um if if in the fix and flip side if you make money from $25,000 to $200,000 that's a good deal i've seen a lot of negatives in real estate flipping uh in the past couple years other people but you you haven't lost money oh we've lost money you have lost money we've lost money tell me about your worst deal and if you could basically go back and undo one of those deals would be which one and why and what went wrong one of my deals that I picked up in LA uh it was the biggest house in the block forcing I can already forcing the value when the trend is half of that square footage right we lost money in that deal it's in six figures um we've learned a lot uh you know we communicated to our our investors about this and you know we're Can you tell me the details of the deal so basically how big was the deal so we bought the property for I want to learn from your mistakes yeah yeah yeah so we bought the property it's 3,800 ft² house how much you bought it for you bought it for $970 and how much money you put it uh we put $300,000 there and how much improvements you did and uh we did full-on rehab on the house uh 3,800 ft² 7bedroom house it's luxury um and the houses in the area are between 1,500 and 2,000 you're basically raising your entire neighborhood yeah exactly but we are very unique cuz we're the only uh house with 4,000 close to 4,000 ft² home yeah so we were forcing the value to be at $2 million because you know 1,500 square ft² homes are selling for 1.2 to 1.3 million right um so with the square footage you know we wanted to sell it for 2 million uh long story short we end up selling the house for 1.41 million wow nobody would want to buy uh double you know double the square footage uh in that street how much investors lost it's in six figures we've negotiated uh uh a term with our investor so so so investors would lose money or they would break even we made a deal with our investors that we'll be paying you back you know in payment plan got it everybody works hard for their money right um 9 to5 you know some of them are their um their uh life savings sometimes you know um so we we made a deal with them and we told them "Hey we're going to be paying you back in the next one year of your money." It's a law of averages right yeah because you still have to go back to the same investors and raise capital correct right correct so we want to be able to keep keep them as our our investors in the same time we want to continue with our real estate because you know it's a law of average you know you'll make money on some deals you'll make money on you'll lose money on some you know hopefully one or two deals out of 10 you know is you know what you're going to lose money on right i think the fundraising other people's money is a relationship and it's not transactional once you raise capital you want to go back to the same investors and be able to raise more capital correct correct a lot of people think when you get money from one you think you can go back you can you don't got to go back to the same investor you can actually raise capital from other no it's not the best it's best way is actually go back to the same investor because they know more people that wants to invest right and you don't even know sometimes a lot of them have more money what they tell you they have yeah first they want to give out like small pieces they tell you they have test you out correct correct so where you can put money real estate gold stocks Uh Bitcoin crypto crypto or business what else or savings bonds i would definitely put it on real estate side owning a rental property or running owning an apartment building if someone has an extra money spread them out spread them out right i think out is best i would put money on stocks the the high performing stocks i will put money on Bitcoin i truly believe uh the the Bitcoin is going to be our future currency yeah um if not it's going to be side by side with the US dollar and then obviously owning a real estate right the the safe way passive way um and then focus on you know healthcare cuz you know that's what we're focusing on is healthare why healthare is because top paying professionals are in healthcare right that means that regardless of what's going to happen you got to maintain the human body we got to take care of people and that's our lifeblood of the world right taking care of our health so I think real estate and healthcare will always going to be the top uh highest uh you know highest and safest way to invest their money how can you invest in healthcare so healthcare is what we're doing is the residential facility site um you know taking care of the older folks how do you call that it's a care home care home you're taking care of people inside your home it could be the elderly it could be the me mentally disabled adults it could be the foster care kids right it could be anything the drug and alcohol abuse just taking care of people the right way is the next generation of the real estate and the operational part but the healthcare business is a big big business yeah but yeah I'm super excited to open up our first one it's going to be in Marietta we bought an 11 acre property you know over 3,000 square ft home and this is going to be our drug rehab detox center are you raising capital for that so yes we are raising capital on that one uh if you guys uh you guys can follow me on Instagram Jason SoCal Investor we kind of talk more about uh the investment opportunity tell me why you went out of the business and got to the real estate like I believe you owned few restaurants before yeah a couple of restaurants i did not see myself working in a restaurant for the next 10 20 years because you know when you go to a mom and pop shop grandma and mom still working there how big was your restaurant oh we had about 2,000 ft how much was your annual revenue during the pandemic we landed a contract with LA County and we were feeding lowincome seniors and we were delivering food to their house every single day or every other day mhm while other restaurants during a pandemic were closing down and and shutting down we were running an operation while we're were closed we were hire we hired few people we did very well during the pandemic uh so I think we hit about $2 million on our Why you closed now why you couldn't just sell it a lot of restaurants were kind of closing down in the same how the restaurant is business priced we had to sell our restaurant um we waited a year or two before we wanted to sell it got it i should have sold it when we had our peak at that market right yes so once again lesson learned on that one but we end up closing down that restaurant because we were doing you know a lot of projects in in real estate so you know we were you know generating more income so basically your your focus shift my focus shift from owning a restaurant because I already knew in 2022 that the restaurant industry will be very very difficult at that point we went transition from 2022 full-time in real estate and would never look back ever since got it makes sense i love the real estate because we were you know we had our time it's just fun doing real estate cuz every every day is different what do you think what generates money faster successful flip or business or startup i think you should do both right if you're going to start a business the operational you should own the real estate where you're operating oh like McDonald's just like McDonald's just like Amazon right now we are doing a a virtual merger on car body shops we're basically consolidating the car body shops together as a merger and at the same time and they don't own the land but think about it you're doing a great business model let me tell you why if they need help to fix their house they're going to need help fixing their car right especially when they live in a suburb they probably have like two three four cars right um they live in a city they'll probably have only one car but I think it's a really good business model uh tell me more about that you know my uh mergers acquisition in the home services where we are buying either portfolio companies or taken taken companies uh now we are actually one of the things we're doing with one of my partner is virtual merger virtual merger when you don't have to buy the business you're agreeing with the business owner to go to the group to the holding company together to be able to sell it to the private equity company so when they agree to the virtual virtual merger they're agreeing that they're going to be going to the same system yep meaning same CRM same HR same marketing same accounting platform so they're going to be accepting all of those business fundamentals to one business operation system so it's easier to merge them together it's a proven track record for you guys if they use Yes if they if they sell themselves one body shop you can probably get at like 2 and a halfx in the net profits it's really good but when you are going to the group now you're getting it on 12x or maybe even higher because how many body shops we can put together so that's the normal evaluation on business right two to two and a halfx two and a half when you are a single business by yourself by yourself but when you put 10 of them together that multiplier goes up to like six if you can put like 30 50 of them multiplier can go up to like 10 to 12 if you can put hundreds of them together now you're talking about the 70 to 20x now the real private equity companies are interested correct to buying it out but the the artist how can you actually merge them properly without having Yeah without collapsing the business and actually it can continue running and growing together that's kind of a thing i kind of already see what you're what you're talking about when a mom and pop Yeah is set with their ways yes and now they got to adapt to the new way it could collapse if you don't do it properly but it's going to take two years we're going to be educating those business mom and pop business owners how to synergetically work in the same system the similar system what the private equity wants why can we pitch that to a lot of these companies that are ready to retire you know yeah yeah definitely and in the home care nursing facilities like you can have a lot of there are a lot of home carees in the town right like like probably they're doing a million maybe two million actually how can we consolidate those together on the same system because each of them they have to learn or come up with their own HR whatever systems job descriptions accounting they're run privately on each one of them they don't they don't really have that kind of a management system teaching them and bringing one system but if you can consolidate all hiring recruitment in one place all accounting sales in one place one is marketing yeah that sales is actually is responsible to fulfill all of those home carees because now you're all sharing the same resources customers correct and clients correct same resources that you make that system much efficient and all of them can grow much faster so I need to talk to you when we have our multiple facilities up and running you'll be worth a lot more if we decide to sell yes and we'll just keep the real estate yes definitely because all of those real estate actually can go to another holding company yes yeah you can combine separately the operational company in one holding company and the real estate on under another holding company that's what we got everything are set up for our our residential facilities our real estate is owned by a holding company in real estate it depends on really what you want to get out of this if you want to invest passively real estate is good for you but if you want to be able to grow this business by yourself scalability is always great for operational side business can sell in 10x multiplier but a lot of investors still favor uh the real estate uh because business is high risk high reward uh a lot of investors because they're already in the uh stage of stability not losing money they they uh they prefer real estate uh but I think for the investor I think they have to diversify they don't have to put all of the 100% of the money they probably they can put 10 20% of the money uh in the business operational operational business but other 10 20% whatever other whatever the money they can put in real estate like by diversifying you can feel and test but first you have to find out good operator who can actually who can you trust and who going to bring you high multiplier who can actually bring you the back your money instead of starting your own business you can buy a franchise that that because they're giving you proven system correct uh it's it's much easier faster and low risk the the risk kind of goes lower but you have to split and share the you have to pay royalty like 7% or whatever that's fine because it's a proven success right it's already working for you yeah and then you have operators that's you know already winning and and I think that's the best way to do it if you do want to get into that yeah because that's how we came because a lot of people start coming and asking me Sardor uh can I license your business can can I learn from you like I want to open in Canada I want to open in uh Dubai I want to open in Latin America i said like no we're not opening anything i was saying no no no then eventually we came actually maybe I should franchise i should license it now we are actually we are open up for the franchise and licensing we are doing franchise in US and we are doing licensing overseas and what we did is we have a proven system we already have over 100 location nationwide yes nice and it's proven system we are managing hundreds and thousands of contractors it works it's for us it's really easy to deploy and copy our systems in any city right away right so that's why we came up as a franchise model i think that's a great idea uh just because when we were younger our parents' generation right the only franchise you can do is the food industry correct now I feel like going out to eat is a luxury yeah for the middle class and for the majority of the Americans man when I go out to eat you know with my whole family four or five years ago 20 $30 is is normal franchise of the food industry are buying a brand but in franchise of home services it's not about the brand it's about the systems it's about systems about marketing correct because people are not brand loyal in home services because it's kind of a towing it's kind of a tire shop right you only need that when it happens you don't want to remember that brand so that's why franchise of home services is not about the brand it's about the systems it's about marketing how you can do lead generation that's where we come we are actually sharing all of the knowledge we accumulated for last 15 years we are giving it to franchisee and the payback it cost like 40 60 80,000 the beginning like uh bronze silver and gold packages you can do it at 40 $40,000 the payback is 12 months so you're saying that what you're doing is all about the branding as well right we do the branding but it's not just about the branding in home services it's about the system system yeah that reminds them otherwise like you can start your own home service company but what about the systems it's going to take you like 5 years to accumulate those systems or 10 years until you finetune that that we already fine-tune it for 10 15 years how to operate home services and we actually became a platform we are basically now sharing those business systems like funnels uh the scripts accounting systems to recruiting hiring on boarding all of the support the quality assurance we're already we are sharing all of the systems with our franchises and license I truly believe as well that uh the systems are very important because if you don't have a systems on your business on the first two years you're guaranteed to fail and I think it's like what 80 90% of the business startups like fail within one year two years Yeah yeah and there is another statistics 96% of the businesses they don't reach over $1 million only 4% of the businesses go beyond the $1 million and I think it has to do with the old school mentality of you know the cash business and the and and and the credit card right the credit card you cannot hide we don't accept cash at all like we only accept credit cards or checks right because we don't want any like uh gray areas of the business like everything is transparent yeah and you need that revenue every single one of them correct so you can get your value of your business definitely yeah we're not hiding anything we're not like all my team like knows all my numbers so everything is transparent like we are running like almost like a uh stock market company like Correct correct everything is transparent eventually when you get to the IPO you're going to have to open up your books anyway so why not open up now yeah open up now and start recording yeah correct you know for sure hey guys my name is Sardor Omarinov and I'm going to be talking a lot about business how to scale if you need help with uh buying a business scaling a business growing a business exiting a business just reach out to me follow me you can find me on Instagram Sardorum you can DM me i'm going to answer all of your questions you're going to be finding a lot of videos out there a lot of tricks about a business reach out to me

what is the top three advice I could give to someone that wants to start you know getting into real estate right i think the number one would be the growth that you need to be getting ready to become an entrepreneur um you know reading books uh finding a mentor uh that'll be able to help you you know what to do and what not to do personal growth has been very important to any entrepreneur so I truly believe personal growth is one um and then second uh you know you got to be really good with money um if you don't know how to manage money uh then this is you know you won't succeed in real estate and then third finding the deal is very important so um you know if you find if you get good at finding the right deal I think you'll be successful in real estate hands down if I would give a uh three advice uh to a younger starter who's starting a business those would be if you don't have a money to start a business go and work in a smaller company uh and learn the business and become the right hand and and learn all the all of the business pro processes earn the money and talk to your boss uh and to open up a second location and give you the uh the partnership opportunity on that second business or the next location right once you save the money uh if you don't get that opportunity once you save the money then just buy the franchise buy a franchise similar business because in the franchise you are getting all of the business processes it's much faster to grow and the third one would be uh learn how to merge businesses together so you can actually like play the arbitrage game later right like I would actually do it on step by step uh on the first one is Andrew Carnegie he was an business assistant of Wonderbuild he was next to one of the biggest entrepreneurs of that time like when you are next to great entrepreneur you're going to become one you're going to it's guaranteed it's guaranteed right you have to just follow that visionary follow that big good mentor find a mentor and be loyal work over there learn once you learn it then opportunity will come itself yes because like we cannot do all things ourselves and keep for ourselves eventually we're going to have to share we're going to have to step back we're going to be giving out and and and in order for us to get a freedom actually it's not about earning 100% of the business it's about earning a 10 20% of hundreds of businesses right like that's where you're going to have an opportunity of owning the piece of that business and running it together and eventually you're going to become the similar investor stage when you can actually grow those businesses and have mentees helping you and supporting you and growing those business together makes me want to open up a home service business now huh definitely we got to collaborate uh I I think you're doing big things man i'm super excited uh I've seen you grow your business in the past couple years and and now I can I can't wait to see in the next 5 years for you definitely thanks what is AI helping your business we are really uh advanced and we're pushing AI in the company a lot i mandate every single employee in the company to use AI uh I don't think people going to be replaced by AI but the people going to be replaced by the people who use AI so if you're not using AI you're going to be replaced by someone who does so you're talking about AI from sales accounting marketing systems yes yes definitely whatever department you're at definitely you you need to use a an application a website a program that helps your department with AI definitely look it used to be uh last decade was about outsourcing using cheaper labor overseas but it's no longer like using utilizing cheaper labor from Usbakistan or like Philippines or Mexico it's no longer active it's like a utilizing having smarter people who can use AI that's the trend now because we no longer need the developers yes we need developers or architecture who can utilize AI tools and combine and merge them together because AI can code better than the person yeah the juniors developers going to go away accountants bookkeepers they're going to go away because AI can do that job the call center customer support it's going to go away because AI can do that job recruiters everything like every single content writers everything is going to go away if you it's there is a huge shift going on now either you adapting or learning AI or you're going to be behind yes so in our company what we have is we are giving everyone all of the tools you can buy any AI tool you want subscription you can sign up as long as it's your job related correct and you should do that if you're not soon you're going to be replaced by someone who going to do that you made a good point there Because if you're a VA if you have a staff out of the country and if they just know how to utilize AI Yeah they never have to call you and ask for questions definitely look my my Chip PT knows more about me than even my wife probably correct if you ask any question like the CHP will answer they know everything what you're doing when Chip PT came up I fired three virtual assistants of my personal assistant i fire them because I no longer need them because sh GPT can do that much faster the right way then I had to explain my VAS what I want from them yeah yeah and uh same months we let go like 50 content writers we we ask we gave them the servants they were in Philippines we gave we like guys go and learn charge GPT come back so you can write faster content they didn't come back people don't want to yeah people too comfortable they don't want to change like like whoever understands we are teaching them we have a whole company trainings for the AI and CH GPS and I think it's uh the times are changing and we no longer need much of a production level people anymore because production can be uh produced by AI and uh but at home service actually it's hard to replace with AI yeah you need a lot of moving it's a lot of moving parts that's why I think the home service is not going away and uh the the wages or the commission or earnings of the home service trade people is going to be going up you don't think we'll have robots fixing fixing some uh pipes no because like like how they can go under the slab and predictably yeah like they can use those plumbers can use some tools uh to to to uh to to make it faster automate a lot of things but the human still has to come and take care of it they're just going to be earning more they're just going to be earning more by using tools uh because all other tools all other other skills going to be utilized outsource or like AI is going to be taking over but that labor is going to be actually going up on rate that's the worth of investing you know on your own home service business yeah with a franchise right so that's essentially what you know people are looking for if they want to start their own business if I get to start all over again and I only have $10,000 um what would I do with the knowledge that I have now you know with the wholesaling side I've you know I've assigned and made money you know 10 20 30 $57,000 so uh if I get to start all over again and I only got $10,000 I would put that on a marketing strategy that what we do and you know with the wholesaling of real estate uh last month I just closed uh a deal actually two weeks ago i I closed a deal of $57,000 just one deal i got a seller under contract and then sold it to an investor and then I made $57,000 on just one deal so can you do that with 10,000 that 10,000 will obviously you can use some marketing because I buy leads it's already happening to me because I shifted my business model from fix and flip last year to wholesaling this year and I think this year we've we've closed seven wholesale deals close to $150,000 in assignment fees in commissions so I think you know starting all over again with $10,000 I think all I need is $1,000 uh to to get me on my first deal if I didn't have my knowledge and I would spend that I would send that spend that 10,000 to acquire the knowledge get a mentorship or get a like whatever the class and courses to get the same knowledge but if I already have the knowledge and I have 10,000 that's all then of course I would uh test few hundred dollar up to $1,000 to find out the funnel what works i would basically spend a dollar or $10 $100 to find out what is my lead generation what is my customer acquisition cost and I would calculate the job acquisition cost in different verticals and I would find out what is my average ticket and I would calculate my rowass and I would basically calculate arbitrage how much I can make a difference on any vertical by selling leads and I would play the arbitrage game i would point all of my the rest of my,000 or $10,000 and I would multiply 5x or 6x and I would earn my double my money 20 20,000 by hiring the uh the contractor on any field if you had $10,000 and then you can buy a home service business with creative financing with seller finance it's too risky it's upon $10,000 i would not do that okay you're still going to need working capital yes if you buy uh whatever the business home services it's going to be really hard with uh owner financing to do it uh you're going to have to have some closing capital i hear a lot of stories of But you don't hear a lot of stories like when they fail no but I I hear a lot of stories of uh people ready to retire and they're just giving giving away their business to somebody else it it is it is yes you can actually you can take over the baby boomer's business uh for as owner financing 5% whatever you pay it off as in 5 years and then maybe come up with a great term where I don't have to pay you anything upfront yes and then maybe pay you after one year when everything is up and running you know after and then if you want to go that direction of course then I would do the same thing as you are suggesting i would spend that $10,000 on uh lead generation of I would do the email outreach I would do outbound I would do direct mail I would do LinkedIn outreach for the home service businesses uh and then I should actually be ready to move to that state and actually take care of that business because it's going to be really hard to virtually run the business i have a big question can you wholesale a business yeah you can wholesale business okay yeah that's look that's what we are uh doing you're acquiring yes that's what we are doing with our uh A2Z capital advisors we are doing lead sourcing uh and doing a finder finder fee at the moment but since they want they're willing to pay 9 to 12x but here we're going to be discussing we can buy them for 3x yes and resell it for 9 9x that's another way for you to make money right start all over is acquire businesses and and sell paper yeah yeah yeah because when I was giving that advice it would be someone uh who's not sophisticated but if I would actually you know what for $10,000 I would do this basically lead sourcing mhm uh uh for private equity companies and actually even charge five $10,000 retainer as well for for uh bringing in the deals and that's why and they really they're ready to pay that money there's no way for you not to make money on these times yeah but let me tell you if you work for somebody and then you lose your job it will be very difficult to find the same or better position right um but being an entrepreneur there's lots of opportunities across the board whichever side you want to be on the operational business side or even just you know either fix and flip or owning rental properties there's a lot of opportunity even on stock market and in the crypto and I mean opportunity is endless here in America what would you do if you were not in America let's say you lose everything and you've been dropped to like Africa or China would you do what you do there I think success is transferable yeah you can put me anywhere i will f my mindset is already different to find opportunities to make money right and when especially when you have kids every day is an emergency so if you're not making money today or this month you know you look at your kids be like if I if I was in a similar situation what I asked you like it doesn't matter where anywhere yeah but I would still actually be there but I would still serve US market the majority of the consumers are coming from the US it's the biggest economy is US yes [Music] Jason it was a really incredible conversation having you here talking about investment business the trades what is happening right like it was really interesting hopefully everyone liked it always enjoyed our conversation every time we see each other i know we don't see each other often but when we do see each other on events it's like we catch up like that so I'll be happy again if you have your 100th episode hey I'd love to be here i see you all the time on social media um I love seeing your success and I'm you know if you need anything don't hesitate to reach out um and you know to me man I'm congratulations to you thanks for having me here um and uh definitely we'll we'll talk more on the home services side and maybe we can talk more on the real estate side too definitely okay brother thank you appreciate too