Markets and property types
Wholesaling, Subject-To, and Section 8 Are Clauses, Not Businesses
Why easy-to-sell real estate strategies can be hard to scale, with a closer look at wholesaling, subject-to deals, and low-cost rentals.
This is a public service announcement. There's a scam running in the real estate space, and a lot of people fall victim to it: the misuse of certain clauses and certain narrow strategies, dressed up as businesses, in order to sell courses.
A few models were never designed to scale. As a result almost nobody really makes money on them. But they are very easy to pitch, which is exactly why you see them everywhere.
I'm not picking on any individual: plenty of people sell these products. But there are two main avenues where you see people online selling you real estate content that won't get you where you want to go: wholesalers, and people doing low-value subject-to or Section 8 houses in the middle of nowhere.
Here's why neither is a real business model, and what the psychology behind the pitch actually is.
Where I'm coming from
I've bought hundreds upon hundreds of rentals. I've done hospitality. I have retail. I have over 600 multifamily units. My property management company manages over a thousand doors in Texas and we're expanding rapidly. I've been in this space my entire career.
I also run Multifamily Strategy, which has had hundreds upon hundreds of students: so I'm genuinely in the information business too.
One thing worth pointing out: this channel is free. I don't need you to buy anything. I love sharing information, and I think information should be free in the AI era. If you're trying to sell information right now, you're pretty much hosed: it's all already out there. I sell direct coaching, for people who want my direct time and my team's experience. That's the only thing I sell.
That combination is what makes me qualified to talk about this. The structuring of content and education, and the practical operation of real estate as my primary means of making money, are both things I have a lot of experience with.
Wholesaling: a sales job dressed as an investing strategy
Wholesaling is a way to sell a contract to someone else and make a small spread. The problem isn't that it exists. The problem is that it was never designed to be turned into a business.
There are legitimate uses. If I have a deal under contract and something comes up where I need to drop out, but I've negotiated an amazing deal, I don't want to just walk away from all that work: I can be compensated for it. The intent there is that you were actually trying to buy the deal and something made you exit.
Here's the other common correct use. I put together a deal using my relationships and my broker. I go through the bank financing, I'm a signer on the loan, and I'm going to be the principal operator. I build a team of investors to knock it out. It's normal in that case to take a small assignment fee to go from my name to the team's name: a team that's going to make a lot of money off the back of the years I put into building the relationship, structuring the deal, getting it under contract, lining up the debt, and assembling the group.
What people do instead is say: wait, I can skip the real estate part entirely. I can get in the middle of transactions without a broker's license, negotiate a deal, and sell it to someone else.
Here's the core problem. You build wealth through long-term holding of assets: appreciation is what makes you very wealthy, and cash flow is how you get there, which is why you never buy a deal that doesn't cash flow. Wholesaling skips the wealth-building piece entirely and earns you an income instead. What you've created for yourself is a sales and marketing job in real estate where you provide functionally low to no value.
Many of these courses (and I've watched through their content) teach you to find on-market listings, put them under contract, negotiate, and pass them to someone else. You're not even finding the deal. It's the sleaziest of the real estate sectors.
There are helpful wholesalers and I've worked with them. But I'd tell any wholesaler the same thing: the business model is mostly useless. It should never be a business. It's a sales and marketing job, and there are a million other products that provide far more value that you could sell instead.
You miss out on all the benefits of real estate: the tax savings, the actual property pieces. Ownership is where the money is. That's precisely why people are buying these deals from you. Meanwhile you're packaging deals that didn't need to be packaged, taking a fee, and irritating sellers left and right. When my students buy from a wholesaler, I regularly hear: there were problems all through the transaction and they didn't disclose a bunch of things. It's people who aren't operators trying to sell a deal without the practical experience of what makes that deal make money.
Why the pitch works so well
Think about what you're afraid of when you get into real estate for the first time. Where's the money going to come from? What if something major breaks operationally? I'm putting my name on this debt: that's a really big decision. And it is.
So if I wanted to sell you something at the highest volume possible, what product would I pick? The one with the lowest responsibility.
You're not buying the real estate. You don't need to worry about the down payment. You don't need to worry about the debt. You also don't get any of the benefits of real estate, but we'll set that off to the side. Make money doing this and one day you'll make so much that you'll just buy real estate without all these problems.
That's the easiest sell in the world, because it bypasses every fear instead of helping you work through any of them.
I've never worked with someone who is purely a wholesaler and has a huge portfolio. I have met several wholesalers who started buying real estate, and they immediately stopped wholesaling, because they realized they'd been going about it wrong.
Subject-to: financial freedom built on a callable loan
The second category is taking a clause and marketing it as a strategy.
Subject-to means buying a deal subject to the existing debt. First problem: it's almost only available in single family. Try it on a commercial deal and your loan gets called. Banks ask for reporting, and they will find out.
Related reading: The Real Problem With Subject-To Deals (It Isn't Due-on-Sale)
On a single family house, when subject-to is available, there's usually a huge pain point for the seller. It's a low-equity deal, so you're usually buying at or above market price. You get in with low to no money down.
And what happens to the risk in the pitch? It gets waved away. There's a rumor about "subject-to insurance": a few companies attempted that business model for a short period and are no longer in operation. It's not really a thing, and you'd have to qualify for it anyway.
Generally speaking, if you do subject-to, you're building financial freedom on a callable loan. But it's not marketed that way. It's marketed as: don't worry about it, totally figure-out-able, look, low to no money down, I solved your money fear.
What you actually end up with: low-equity houses that almost never cash flow, all of the problems of being a landlord, very few of the benefits, very difficult to scale, and a bank that can call you at any point and ask why you're not the person they lent to, and call the note due.
Yes, there are ways to try to run this business model, and people will suggest propping it up this way or that way. Everyone I know who's bought a lot of subject-to property has sold all of it and gotten out. A lot of them barely sold a large portfolio for any profit. Their conclusion was: this model sucks, we're out.
You want the cheat code? Just don't start with it.
Where the clause actually belongs
Here's a correct use from my own portfolio.
I bought Robin Hood Village Resort in Washington State, seller financed, for $4.5 million. Of our 18 cabins, one used to be a single family house, it sits on its own parcel, and it happened to have $75,000 of debt on it. We took that one subject to the existing debt.
There's a contract clause stating that in the event the note gets called, the seller has to pay off the loan and seller finance that amount to us.
That's an appropriate use. There was a little bit of debt, no clean way to deal with it, the seller didn't want to pay it off, we could keep servicing it, and we had a plan if it got called.
Am I building a business around subject-to? Absolutely not. A situation came up where a clause in real estate applied. Notice I'm not selling you a course on how to buy subject-to real estate with no money out of pocket, because it isn't a model. It's a clause in a contract that can be used for the right purpose. And even then, I could have structured that deal without it.
Section 8 and the problem with buying cheap
The third one is the cheap-house pitch: buy inexpensive houses where Section 8 rent makes the deal work, and stack them indefinitely.
It's easy to sell because it soothes the fear of "how am I ever going to buy a multi-million dollar deal?" Those deals aren't that hard to do if you follow the structure: deal first, then line up the debt and the equity. And almost nobody starts with family money or an inherited portfolio. For 99% of us, you have to start with the first deal. I'd rather get you through that. How do you get over the fear? How do you structure the deal correctly? How do you build the business you actually wanted?
The Section 8 model says buy cheap assets in rough areas and stack a ton of them. And typically the areas these courses recommend are the ones where the tenant base is roughest.
Related reading: The Section 8 Stack: How a $91 Rent Bump Made $1.7 Million
Section 8 tenants can be great, by the way. I have a ton of them. My business is just not powered by buying crappy houses in the middle of nowhere. There's no portfolio I'd recommend in any asset class that's based on buying garbage. It's the equivalent of saying let's buy the worst companies because they're so cheap. A bad building is a bad building, and maintenance costs will usually eat you alive.
These courses teach you how to buy cheap houses, which turns out not to solve anything: you could have bought those cheap houses at any point anyway.
Is there ever a place for it? Sometimes. I have friends in Memphis, Tennessee who only do Section 8 houses. They're contractors, they know how to do the renovation, and they love what they do. They're essentially home flippers who found a model that lets them hold their portfolio. That's a specific use case with real skill behind it, not a course.
Key takeaways
- Wholesaling is a sales and marketing job, not a wealth-building business. It skips ownership, which is where the appreciation, cash flow, and tax benefits live.
- Assignment fees are legitimate when you actually did the work (sourcing, structuring, lining up debt, building the team) or when you're exiting a deal you genuinely tried to buy.
- Subject-to builds on a callable loan, usually on low-equity houses that don't cash flow. It's a contract clause, not a business model.
- Used correctly, that clause handles an odd $75,000 note inside a $4.5 million purchase: with a written plan for what happens if it's called.
- Buying garbage isn't a strategy in any asset class. Maintenance costs eat cheap buildings alive.
- Ask two questions about any strategy being sold to you: how easy is this to sell, and am I buying something cheap?
Do the thing you actually want to do
Early in my career I got coffee with a man named Zach Lazo, hoping to work for his real estate firm. He told me, "You've already figured out how to buy real estate. Why would you be a broker if you've already figured out the thing that every broker wants to do?" He decided not to hire me specifically because he thought I needed to figure out how to make my living doing the thing I obviously wanted to do.
That turned out to be the best career advice I ever got, from someone I met on what was effectively a coffee job interview. It's the same advice I'm giving you.
Identify your end goal, not "the path in real estate." Don't add steps for yourself. If you want to go into multifamily, self-storage, or hospitality (God help you, it's a hard business) focus all of your attention on that thing.
I say that as someone who went to college, worked a first, second, third, and fourth job, worked for Lands.com, then the CoStar Group, Apartments.com, LoopNet, the whole nine yards. Became a real estate agent. Bought a couple of duplexes to become a multifamily investor. Then I met a 19-year-old who had more rentals than I did, who never went to college and didn't have a job.
Case in point: do the thing you want to do. Engineer the business you actually want to build. Don't fall prey to cheap ideas, lame courses, or easy sales. My recommendation: skip subject-to, skip cheap houses and single family in general, and absolutely do not become a wholesaler.
The full video goes through each of these models in detail, including more on how the sales psychology works. If you want the honest version of low-money-down buying, I wrote "The Book on Creative Real Estate," which has real examples of exactly how each of these clauses was applied correctly. Our free course on getting started in multifamily is at multifamilystrategy.com, and the free community comes with a deal calculator. If you want direct time with me and my team, there's a short strategy video on mentorship in the description.
There are so many better and easier ways to make money in real estate.
Read the episode transcript
0:00 This is a public service announcement. I 0:02 am going to show you a scam that is 0:04 happening in the real estate space and 0:06 many many many people fall victim to it. 0:08 It is the misuse of certain clauses or 0:11 certain real estate strategies 0:12 pretending that they're a business in 0:14 order to sell courses. There are a few 0:17 models that absolutely were not designed 0:19 to scale or not supposed to scale and as 0:21 a result almost no one really makes 0:23 money on them but they're very easy to 0:25 pitch. So, if you've ever fallen victim 0:27 to this or know people who have fallen 0:28 victim to these strategies, I'm going to 0:30 share why it's not a real business model 0:32 and certainly not something that you 0:34 want to do for financial freedom. 0:36 There's two mainstream strategies. I'm 0:37 not picking on any individual here. 0:39 There's a ton of people who sell these 0:40 products. This is just a general there 0:42 are two avenues of which you seem to see 0:45 scam artists online selling you real 0:47 estate content and that is wholesalers 0:50 and that is people who are doing the low 0:52 value subject to or section 8 houses in 0:55 the middle of nowhere. These are the 0:56 most common scams. I'll share why 0:58 because there's psychology behind this 1:00 on why they can make so much money 1:02 selling this product. It is the easiest 1:03 to sell and also the least effective. So 1:06 let's break down both really quickly. Uh 1:08 welcome to the channel. I'm Christian 1:09 Osgood. I've bought hundreds upon 1:10 hundreds of rentals. I've done 1:12 hospitality. I have retail. I have over 1:14 600 multif family units. I've been doing 1:16 this for a long time. My property 1:18 management company manages over a 1:19 thousand doors in Texas and we're 1:21 expanding rapidly. I have been in this 1:23 space for my entire career. I know a 1:26 thing about a thing for what works. I 1:28 also run the group Multif Family 1:29 Strategy which has had hundreds upon 1:31 hundreds of students. So, I'm actually 1:32 in the information space. One thing I 1:35 want to point out, this channel is free. 1:37 I do not need you to buy anything for 1:39 me. In fact, I love sharing information. 1:40 I think information should be free in 1:42 the I AI era. If you're trying to sell 1:44 information, I think you're pretty much 1:46 hosed. It's all already out there. I 1:47 sell direct coaching if someone wants my 1:49 direct time and my direct experience 1:51 with me and my team. That is the only 1:53 thing that I do. However, I do think 1:54 this puts me in a position of being 1:55 uniquely qualified to talk about all 1:57 aspects of this because the actual 2:00 structuring of content and education and 2:02 the practical operation of real estate 2:04 and making money in real estate as my 2:05 primary means are both things that I 2:07 have a ton of experience in. So, I hope 2:09 you find this very valuable. First of 2:10 all, let's dive into wholesaling. 2:12 Wholesaling is a way that you can sell a 2:13 contract to someone else uh and make a 2:16 little spread. The problem is it's not 2:18 designed at all to be made into a 2:20 business. Now, if I have a deal under 2:22 contract and there's a reason where it's 2:23 like, hey, I need to drop out, but I 2:25 have negotiated an amazing deal. I don't 2:27 want to just walk from all the hard work 2:28 I've done. I can be compensated for that 2:30 little bit of hard work. The intent, 2:32 though, is that you were trying to buy 2:33 the deal, and there's some reason that 2:34 you walk from it. Another correct use of 2:36 the wholesaling which is just simply 2:38 selling a contract a a purchase and sale 2:41 agreement to another buyer for a fee. If 2:43 I have done all the work putting 2:45 together a deal and this is a very 2:46 common use of this structure my 2:48 relationship my broker I build a team of 2:51 investors to knock out this deal and so 2:53 I put together the team. I've gone 2:54 through the bank financing. I'm assigner 2:56 on the loan and I'm going to be the 2:57 principal operator of this deal. It is 3:00 usual for me to do a small assignment 3:02 fee from my name and or assigned to the 3:04 team of people who are going to make a 3:06 bunch of money off of the back of the 3:07 hard work and years I put into building 3:09 the relationship, structuring the deal, 3:11 getting it under contract, lining up the 3:12 debt, building the team, and all that 3:14 comes after all of that. These are all 3:15 common uses. Now, what people see is, 3:17 "Oh, wait a second. I can skip the real 3:19 estate spot and I can just start getting 3:22 in the middle of transactions without a 3:24 broker's license. I can negotiate a deal 3:26 and just sell that deal to someone 3:27 else." Here are the key problems. You 3:30 build your wealth through long-term 3:32 holding of assets. Appreciation will 3:33 make you very wealthy. Now, you get 3:35 there by cash flow. So, never buy a deal 3:37 that doesn't cash flow, but you're 3:38 skipping the wealth building thing, and 3:40 you're earning an income. So, what have 3:41 you done? You've created for yourself a 3:43 sales and marketing job in real estate 3:46 where you provide functionally low to no 3:48 value. Many, many, many of these 3:50 courses, I've watched through their 3:52 content. The strategy is you're going to 3:54 find these onmarket listings and you're 3:56 going to put them under contract. you're 3:57 going to negotiate the deal and you're 3:58 going to pass it to someone else. So, 3:59 you're not even finding the deal. It is 4:02 the sleaziest of the real estate 4:05 sectors. Now, there's some helpful 4:06 wholesalers and I've worked with them 4:08 before, but honestly, and I I'll tell 4:10 any wholesaler the same thing. I think 4:12 the business model is mostly useless. 4:15 Should never be a business. And it's a 4:16 sales and marketing job. And there's a 4:17 million other products that provide way 4:19 more value that you could sell. So, why 4:21 would you do it? I don't know. you miss 4:22 out on all the benefits of real estate, 4:25 all of the tax savings, all of the 4:27 actual property pieces. Ownership is 4:29 where the money's in. That's why people 4:31 are buying these deals from you. But you 4:33 are packaging deals that did not need to 4:35 be packaged. Most of the time, you're 4:37 getting a fee and you're pissing off 4:39 sellers left and right. And oftent times 4:42 when I hear from my students who buy 4:44 from a wholesaler, they're like, "Oh my 4:46 gosh, there were all of these problems 4:48 through the whole transaction and they 4:49 didn't disclose a bunch of things." It's 4:51 a bunch of people who are not operators 4:53 trying to sell a deal without the actual 4:55 practical experience of what actually is 4:57 going to make that deal make money. Why 4:59 do they sell these courses? Wholesalers, 5:01 it's so easy to pitch. Hey, you don't 5:04 have to own the real estate. I know it's 5:06 hard. I like all of your fears. What are 5:08 the fears that you have when you're 5:09 getting into real estate for the first 5:11 time? Where's the money going to come 5:12 from? What if there's a major operating 5:14 thing? Like, man, I'm putting my name on 5:16 this debt. This is a really big 5:17 decision. And it is. So, if I wanted to 5:20 sell you something for the most volume 5:22 possible, I just wanted to make a whole 5:23 bunch of money off you as an individual. 5:26 What is the real estate related product 5:27 that I would try to sell? The one that 5:29 takes low responsibility. Oh, you know, 5:32 you're not buying the real estate. I 5:34 bypass. You don't need to worry about 5:36 the down payment. You don't need to 5:37 worry about the debt. You also don't 5:39 need to worry about any of the benefits 5:40 of real estate, but we're going to put 5:41 that off to the side. Make money doing 5:43 this and one day you can make so much 5:45 money that you'll just buy the real 5:47 estate without all these problems. I 5:49 have never worked with someone who is 5:50 just a wholesaler who has a huge 5:52 portfolio and I've met several 5:55 wholesalers who started buying real 5:56 estate and what did they do next? They 5:58 immediately stopped wholesaling because 5:59 they realized I've been going about this 6:01 wrong. It is a sales tactic where it is 6:03 easier to market a course to you because 6:05 it bypasses most of your fears. If 6:07 you're interested in real estate but 6:10 feeling a little riskadverse or a little 6:11 nervous instead of helping you through 6:13 the things that you're nervous on, I can 6:15 just sell you, oh, but what if you could 6:16 make money without all the things? We'll 6:18 just bypass the whole thing. It's the 6:19 easiest sell in the world. People get 6:22 sold on this all the time. If this is 6:23 you, good news. You found the right 6:25 channel. We talk about how to buy real 6:27 estate. Loading no money down all the 6:28 time. In fact, literally wrote the book 6:30 on creative real estate. I used a lot of 6:33 creativity and none of my own money to 6:34 build a multiund unit portfolio. Uh you 6:36 could do the same thing and I have 6:37 actual examples in this book of exactly 6:40 how we applied each of these clauses 6:42 correctly. But that's the big one. The 6:44 other one is using these clauses and 6:46 marketing them as a strategy. This is 6:48 the same vein of what is the most 6:50 palatable version of real estate that is 6:53 the easiest to sell to people. And so 6:55 I'm talking section 8 courses where it's 6:57 buy crappy houses in the middle of 6:59 nowhere where section 8 rent makes the 7:02 deal work and try to scale it 7:03 indefinitely. And I'm talking about the 7:06 uh subject to or other clausebased like 7:09 hey we're going to try to skirt the 7:10 banks and do this. So let's dive into 7:12 subject two. I'm going to buy a deal 7:14 subject to the existing debt. First of 7:16 all, almost only available in single 7:18 family. Your loan's going to get cold if 7:20 you try this on a commercial deal. Like 7:22 like there you're absolutely not going 7:24 to get away with it. Uh banks actually 7:26 ask for reporting and they'll like they 7:28 will find this out. On a single family 7:30 house, when subject to is available, 7:32 there's usually a huge pain point for 7:33 the seller. So it's a low equity deal. 7:36 So you're usually buying these at or 7:38 above market price. You're getting in 7:41 low to no money down. But what are you 7:42 doing as a salesperson trying to get 7:44 someone to buy this course? Yeah, 7:46 there's a lot of risk. Yeah, no one. 7:48 There's this rumor that like, oh, 7:50 subject to insurance. Uh people will 7:52 there's a few companies that are no 7:54 longer in operation who attempted that 7:55 business model for a short period of 7:57 time. It's not really a thing and you 7:59 have to qualify for it. It generally 8:01 speaking, if you do subject two, you are 8:03 building financial freedom on a callable 8:05 loan. However, it's not marketed that 8:07 way. It's like, oh, don't worry about 8:08 it. is totally figure outable. But look 8:10 at this. Low to no money down. I solved 8:12 your money fear. Now you have these low 8:14 equity houses that almost never cash 8:17 flow. All of the problems of being a 8:18 landlord, very few of the benefits, very 8:21 difficult to scale. And at any point, 8:23 the bank can call you and say, um, who 8:25 are you and why are you not the person 8:26 that I lend it lent to? Call the note 8:28 due. Disaster. Yes, there are ways to 8:31 try to run this business model, but it's 8:32 a crappy business model. All of the 8:34 holes in it. People are like, well, what 8:36 if you try this and you try this? 8:38 There's different ways to try to prop it 8:39 up to make it look like a business that 8:41 could be a good idea. Everyone I know 8:43 who's bought a lot of subject two 8:44 property has sold all of it and got out 8:46 of it. And a lot of times they barely 8:48 sold a large portfolio for any profit. 8:50 They're basically like, "This model 8:51 sucks. We're out." You want the cheat 8:53 code. Just don't start with it. Uh where 8:55 does it where is it supposed to be used? 8:56 Robin Hoodville Resort. I actually 8:58 bought a a resort in Washington State. I 9:00 bought it seller financed. Of our 18 9:04 cabins, one of them used to be a single 9:06 family house and it's on its own pars 9:07 and it happened to have $75,000 of debt. 9:10 We put that subject to the existing 9:12 debt. It's a $4.5 million purchase. 9:14 There's a contract that says in the 9:15 event that this note gets called, seller 9:17 needs to pay off the loan and seller 9:19 finance that amount to us. That's an 9:21 appropriate use of that clause. It's 9:22 like, hey, there's a little bit of debt 9:24 here. We don't have a clean way to deal 9:25 with it. They don't want to pay it off. 9:28 We can keep servicing this and we have a 9:29 plan for if it gets cold. Am I building 9:31 a business around doing subject two? 9:34 Absolutely not. There was a thing that 9:36 came up where I'm like, "Hey, there is a 9:37 clause in real estate where this could 9:38 be applied." Notice I'm not selling you 9:40 a course on how to buy subject to real 9:43 estate no money out of pocket because 9:45 it's not a model. It's a clause in a 9:48 contract that can be used for the right 9:51 purpose. And even then, I could have 9:53 structured the deal without it. Don't 9:55 buy into that. The other big one that I 9:56 mentioned earlier, section 8. This is 9:58 another easy one to sell. uh because I 9:59 come in, hey, you can buy these really 10:00 cheap houses. I'm helping ass your fear 10:04 of like, oh man, how am I going to buy 10:05 these multi-million dollar deals? 10:07 They're not that hard to do. And if you 10:08 follow the structure of deal first, then 10:10 line up the debt and the equity. Uh 10:12 everyone who owns real estate for the 10:13 most part, very, very, very, very, very 10:15 few people started with family money or 10:18 inherited a portfolio. We all build it 10:20 from scratch for the most part. 99% of 10:22 us, you have to start with the first 10:24 deal. I would rather get you through 10:26 that. I think that's a real value of 10:28 like how do you get over that fear? How 10:30 do you structure the deal correctly? How 10:32 do you actually build the business that 10:33 you wanted to build? The section 8 model 10:35 says, hey, buy cheap assets and try to 10:37 stack a ton of these. Uh buy them in 10:39 rough areas. Typically, they're the 10:41 areas where the section 8 tenants are 10:42 actually the roughest is where I noticed 10:44 they recommend buying. Section 8 tenants 10:46 could be great, by the way. I have a ton 10:47 of them. My business is not powered by 10:49 buying crappy houses in the middle of 10:50 nowhere. And there is no portfolio that 10:52 I recommend that you'd build in any 10:54 asset class that is based on buying 10:56 garbage. It's like, oh, let's buy the 10:58 worst companies because they're just 11:00 they're so cheap. A bad building is a 11:01 bad building. Your maintenance cost will 11:03 usually eat you alive on these. You'll 11:05 usually these courses uh learn how to 11:08 buy cheap houses, which turns out they 11:09 weren't really solving anything from you 11:11 for you because you could have bought 11:12 these cheap houses at any point anyway. 11:14 They're low value and unless you're 11:17 planning on scaling a massive portfolio 11:18 and you happen to live in a market where 11:20 you're like, there's a huge need and I'm 11:21 going to try to help people on section 8 11:23 without you have a very specific use 11:25 case for where you would ever actually 11:27 need to use that. Now, I've actually 11:28 seen some course creators and content 11:29 creators uh who are in like example I 11:32 have some friends in Memphis, Tennessee. 11:33 They only do section 8 houses. They're 11:35 contractors. They know how to do the 11:36 rena. They love what they do. They're 11:38 basically home flippers who found a 11:39 model to be able to hold their 11:41 portfolio. So, is there a place for some 11:43 of these sometimes? But in general, ask 11:45 yourself, how easy is this to sell? And 11:47 am I buying something that is cheap? If 11:49 you're going to want to learn a 11:50 business, learn a business that is worth 11:51 learning. Do something that is scalable 11:53 and aligns with your original goal. If 11:55 it's something that feels more 11:57 difficult, like as an example, buying 11:59 multif family. It's like, man, doing a 12:01 $2 million transaction, I want to get 12:03 there, but that's really intimidating. 12:05 That's probably the thing that you would 12:07 need coaching or mentorship on. I got 12:09 this advice from someone named Zach Lazo 12:11 early in my career. I was wanted to work 12:13 for his uh real estate firm. So went out 12:15 to coffee with him and he's like, 12:16 "You've already figured out how to buy 12:18 real estate. Why would you be a broker 12:19 if you've already figured out the thing 12:21 that every broker wants to do and so he 12:23 made the decision not to hire me 12:24 specifically because he's like, I think 12:26 you need to figure out how to make your 12:27 living doing the thing that you 12:29 obviously want to do." That ended up 12:31 being the best career advice I ever got 12:33 from someone who I just met on a 12:35 effectively on a coffee job interview. 12:37 That's the same advice I'm giving you. 12:38 Identify what it is you actually want to 12:40 do. What is your end goal? not what is 12:42 the what is the path in real estate. 12:43 Don't add steps for yourself. Uh do the 12:45 thing you want to do. If you want to go 12:47 into multif family, if you want to go 12:48 into self- storage, if you want to go 12:49 into hospitality, God help you. It's a 12:51 hard business, but if that's what you 12:53 want to do, focus all of your attention 12:54 on doing that thing. Don't waste time on 12:56 the other things. This is coming from 12:57 someone who went to college, did a 12:59 first, second, third, fourth job, worked 13:00 for lands.com, then the Co-Star Group, 13:02 Apartments.com, Loopnet, the whole nine 13:04 yards. Uh became a real estate agent and 13:06 bought a couple of duplexes to become a 13:08 multif family investor. Then I met a 13:10 19-year-old who had more rentals than 13:11 me, who never went to college and didn't 13:13 have a job. Case in point, do the thing 13:14 that you want to do. Learn the things 13:16 that you want to do. Engineer the 13:17 business that you actually want to 13:18 build. Do not fall prey to cheap ideas 13:22 or lame courses or easy sales. Do the 13:25 thing that you want to do. My 13:26 recommendation, skip subject two, uh, 13:29 skip cheap houses or single family in 13:31 general. And, uh, absolutely do not 13:33 become a wholesaler. There are so many 13:35 better ways and easier ways to make 13:37 money in real estate. Hope this helped. 13:38 Appreciate y'all. See you on the next 13:40 episode.
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