Flipping in 3 Markets in 3 Years – No Business Like Home Business -Gustavo Garza Sharing Knowledge

Flipping in 3 Markets in 3 Years – No Business Like Home Business -Gustavo Garza Sharing Knowledge

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Gustavo Garza flew all the way to Chicago for this amazing interview and I couldn’t even get his name straight! LOL! He has only been investing in real estate for 3 years and is flipping in 3 different markets all across the United States! Check this dude out!

What is No business Like Home Business? In this series, I interview fix and flip top producers in real estate from all across the country. We talk about rehabbing houses, flipping houses, investing, wholesaling real estate, real estate marketing ideas, rental properties, and more! I pull out as much information and as many golden nuggets as possible from my guests sharing knowledge to help you turn a small home business into the next big business!

#flippinghouses #flippinghomes #homebusiness
hey what’s going on everybody this is
Joshua Inglis and I’m really excited
I’ve got Gustavo Garva here he came all
the way from Houston to be with me today
and he’s in beautiful Chicago and he
brought some of that just quickest heat
Garza the how did I say it I I don’t
know what it wasn’t wasn’t close to
Garza huh well I think you got to get
stuff and I was like Garva and I was
like oh hey what’s going on everybody
this is Josh Inglis and I’m really
excited I’m on my way to O’Hare Airport
to pick up Gustavo Garza he’s flying in
from Houston Texas to do an interview
and Gustavo is crushing it he’s only
been in real estate for three years and
yet he’s flipping in three different
markets all across the United States and
he even has a financing company he
should be pretty easy to spot at the
airport because he’s over six feet tall
and he’s from Texas
good
hey what’s going on everybody I’m here
with Gustavo Garza he came all the way
from Houston
I’m really excited thanks so much for
coming out to Chicago and bringing some
of that heat with you well thank you
Josh for having me I mean this is a
beautiful view I can’t wait to have you
know explore the city and whatever you
have planned for today but it’s an
absolute pleasure coming up here to
Chicago
absolutely so me and Gustavo are gonna
be shooting some different videos today
just exploring and having some fun and
also really want to do this interview so
I really appreciate you making that trip
not a problem whatsoever so let’s jump
right into it today I want to talk about
real estate and how you guys started so
tell me a little bit about your
background so I am a marine engineer by
degree and I’ve done engineering work
I’ve done industrial distribution sales
management just did not find my place
and and the last job I was at my wife
and I decided that we wanted to buy a
mobile home park because we figured that
would be a great way to have some
passive income and we got really close
to buying one and then we got to the end
of it and going we don’t know what the
hell we’re doing like we had no clue on
how to like operate a mobile home park
if we were buying a ride or anything and
so we stepped back a little bit and
decided to kind of educate ourselves and
once we kind of went through and found a
program that we wanted to get educated
through we joined and man did that just
kind of like open our eyes to the world
or real estate really what the true
potential is and then it finally made
sense why so many people become
millionaires in real estate and that was
really kind of the thing that started it
all and this was back in August of 2015
awesome yeah so I mentioned it on the
preview but Gustavo himself he’s in
three markets now which is just
tremendous so the last three years
because we’re doing this interview now
in September so that’s phenomenal yeah
it’s been kind of crazy and I probably
would say that the reason we’re in three
markets is because of alcohol and
boredom okay and I mean to be actually
honest with you so I started out in
Houston that’s where I live and I was
wholesaling properties and I flipped a
property in there just wasn’t having a
lot of success in doing it and when I
first started I started lending money to
they’re flippers and build some
different relationships and with that it
actually took me to Des Moines Iowa
where I’ve met my now partner Ryan
Arguello and how we started that company
was I ended up flying up there and took
a look at the market and was really
impressed with it
drank a balla half a tequila at Ryan’s
kitchen table and we started our company
boot shot investments and since then I
think we’re gonna do about 50 properties
within a little over a year and a half
it’s awesome so that’s how I got into
Iowa and then Florida was because my
partner Ryan doesn’t like the cold and
likes Florida so we’re like hell why
don’t we just go down to Florida and try
this out and that’s how we got into
Florida more because we were kind of got
bored and he wanted to escape the cold
where was Ryan and Ryan’s in Des Moines
Iowa
oh okay so separate from well that was
on the same team but you decided hey
we’re gonna set up another another shop
down in Florida yeah so we partnered
with some people local in the Tampa st.
Pete’s market and we have two flips that
are finishing up down there but it’s
been an adventure and the thing is you
learn so much and it’s really true if
you don’t try you’ll never know and no
matter how many books you read or you
know how many classes you go through
like nothing really beats actually going
and doing it yourself and and learning
with that actual experience yeah
absolutely
so you initially started I want to go
back to the beginning again you actually
wanted to buy a mobile home park and you
were actually almost so were you like
just a couple weeks away from closing on
that yeah we were like four weeks away
from closing on the mobile home park
okay and and essentially just were stood
back with my wife and I was like do we
even know what we’re doing like like we
the process went from hey let’s buy a
rental home to well maybe let’s buy like
a duplex or a triplex so therefore if a
tenant leaves we’re not completely left
with no income all the way to a mobile
home park and then when we got to that
point we were like okay well like like
how are we even knowing if we’re like
doing the right thing is how are we know
where if we’re buying it right if we’re
gonna make money like I’ve never owned a
piece of real estate that generated
revenue so at that point it was just
like let’s let’s stop right here let’s
let’s figure figure this out before we
move forward
did you read a book or something that
got you interested in the mobile home
park or no actually uh it was just like
a looking at how we could generate or
have a lot of tenants to generate income
okay and at a low entry point so you
know instead of buying like an apartment
complex that you know a lot more
expensive you got a big building to
mobile home parks where a lot more
reasonable price allow us to get in
there not take on too much debt but
still be able to generate revenue
awesome okay so you went from that then
let’s go – all right you join this real
estate education company you flip the
property you hold sales and properties
and then let’s jump into setting up this
relationship in Des Moines well just to
kind of take it back a little bit
further when we joined and just didn’t
realize it’s kind of like the I call the
new car syndrome you don’t realize how
many people are driving a car until you
actually go buy one and then you’re like
man a lot of people will drive in the
same car I am you didn’t realize how
many reals people were trying to be or
our real estate investors in the city of
Houston until I actually put myself in
that mindset that I was actually a real
estate investor and so when we were
analyzing the market everything I
actually turned to my wife I go why
don’t we start a home staging company
and she thought I was crazy and I was
like you have no experience in this and
you’re color blind how the heck are you
going to stage a home and I go I’m not
going to you are and I’m just gonna go
sell the contracts and within the first
year we did gross sales of about 70
thousand dollars just within the real
estate community that we had joined and
within other real investors in Houston
and that helped build a lot of
relationships up to get the deals that
we and ended up buying and flipping and
and finding the buyers to do the whole
sales and and that really kind of
solidified our place and people knowing
who we were that’s awesome I love that
story I mean that that was a great way
to to get into some of these different
networks that you got involved with you
know and that’s why I recommend a lot of
times a lot of people get the real
estate license I know you’re licensed as
well when did you get licensed
I got licensed about a year ago okay so
my wife got licensed before me I always
make her do the hard stuff like hey
you’re eight months pregnant
let’s move houses hey you’re about to
have a kid I want you to study and get
your real
State Exam so she got her license like I
think a month before our second child
was born and so she has been like an
amazing support and helping us grow this
business and do a lot of the stuff that
has needed to be needed to be done and
without like her help in that it would
have it would be have been very
difficult but yeah it’s the the network
that we established out of it helped us
raise private capital because people
knew us we have built the relationships
will they help fund our first deals so
some of the people that we saved houses
were on their flips funded our first
deal and our first deal came from
another wholesaler had met that I had
saved some of their houses and we got
our first deal from that so everything
was coming from the network that we had
built from the staging and so I was
pretty incredible so with the staging
company and I don’t jump too far into
this but did you guys own the furniture
or did you rent it yeah so the beauty
about this was is that we that we rented
the furniture from Aaron’s Rena Center
okay for Aaron’s our rena center once we
got the bedroom the bathroom sorry the
bedroom the living room and the and the
dining room for three months for $700
delivered and picked up for three months
and so with that we we actually charged
$1,500 from and we stayed in a low price
point it’s like hey we don’t do anything
fancy we’re not doing anything that’s
high in we’re just gonna do that like
medium price point home in Houston and
like the 250,000 we’ll just be able to
stage it really easy and provide people
a low-cost solution and that’s how we
thrived yeah I mean if you think about
it $1500 for staging I mean it’s at
least in Chicago it’s pretty much
unheard of so you being able to do that
you kind of undercut the market and then
it got your foot in the door so it was a
way for you to provide value to those
people because you were probably the
cheapest one of the cheaper options for
them and yet getting your foot in the
door with a lot of these investors yeah
and so the way we pitched it was we
offered it for three months because I
say hey you get your house on the market
it’s gonna take two three weeks to sell
if it’s 30 days to close you’re in there
for almost two months and if for some
reason that contract falls through
you’ve got another month to be able to
get
back on the market show people get
another contract before you have to pull
full of stuff out because a lot of
stages would only do two months and two
months is a very short period of time
because usually the furniture is out and
if something happens with the contract
you know they’re left with an empty
house that they have to show yeah that’s
great so all right so we started a
staging company and that’s how you got
your initial deal so tell me about the
first deal you actually flipped how did
you raise the money how did you do the
construction on that so the first deal
we got we raised the capital from people
that we had staged a home for okay and
so they funded the deal it actually came
to me from a wholesaler that said hey
man you want you ready to do your first
flip and I was like yeah he goes alright
here’s your first deal that was that was
how I picked up my first deal nice yeah
zero marketing dollars on that one nice
and so we got into this neighborhood is
a heavy rental neighborhood so it’s
going to go for a landlord so we’re not
looking to do too many repairs but as we
were cleaning up the landscaping because
there was just so much brush and it was
the grass was overgrown I kept on
getting calls from the HOA said hey
there’s there’s mattresses there’s
shopping carts there’s all this trash in
here I’m like what are you talking about
it’s like yeah if you don’t get it
cleaned up we’re gonna find you I’m like
what it like what’s going on here so I
Drive over there and sure enough there
was a shopping cart and there was trash
in the yard and stuff like that the H
way saw and what happened was is that
the neighbors to this house were taking
all their junk and they saw that we got
a dumpster we were cleaning things up so
they were throwing all their crap into
our yard and I was consistently getting
called with HOA for the violations I was
like man kind of freaked me out a little
bit because of the fact that I mean if I
make this thing nice and try to get this
higher price point and then people find
like these neighbors next door is this
just gonna is this gonna hurt my ability
to sell it and so at that point I kind
of shifted a little bit because my
initial plan was that I was actually
going to rehab the entire house and
throw it up on the market and sell it to
a landlord and make Exmouth I ended up
just doing a quick a little like prehab
cleaned up the landscaping ripped
everything out clean did just like
pretty much just made it work who ever
wanted to come in could finish it out
and ended up selling it as quickly as I
could because I was
just paranoid at the neighbor about the
neighbor and the HOA and if things
progressed and they were built they were
starting to build some new houses down
the street that that could have all just
kind of accumulated – not leading to a
good sales price yeah I’m glad you bring
that up I mean one thing you got to
consider if you’re flipping houses
you never flip the house before you can
fix everything in a house but you can’t
fix the location so if you back up to a
railroad tracks you’re on a busy street
you can’t fix that and you can’t fix
your neighbors no you can’t so when
you’re evaluating deals those are
definitely two things you definitely
need to look at what are the neighbors
houses look like and in some instances
have you ever I don’t know if you’ve
encountered this yet but if you’ve you
ever offered maybe the neighbor isn’t as
I guess this neighbor was intentionally
doing some things maybe it’s just a
neighbor who’s down on their luck if you
ever offered to maybe like fix up the
neighbors houses or like just the front
so this house next door to us was a
rental house okay and and the people
next door they did not give sure you
know they they just didn’t care about
anything and I mean they were they were
like parking cars in the in the front
yard turn the grass up you know just
like dogs chained is just like and the
thing is is that when I originally went
looked didn’t see him okay and that’s
what they might have been like on
vacation or had gone somewhere so when I
had initially found the house and had
done my initial research didn’t look to
be a problem and then two weeks into it
it just got bad yeah yeah I mean I
highly recommend even you’re doing your
first flip or you’re still flipping
houses now you’re doing flips talk to
the neighbors you’ll learn a lot and
also introduce yourself but that’s a
great story of haic ago the opposite I
usually say that so that way you make
some build some rapport but you also
want to know who you’re inheriting as
neighbors before you buy a house so
that’s a great story
and so what that I guess so what was
your challenge besides the neighbor with
that deal were there any other
challenges you encountered no not really
I had a contractor that went in cleaned
up the house real well we got it in and
out of that house as far as cleaning it
up in five days took pictures through
on the market I got three offers within
a few days and ended up having it sold
within about 20 days wow that’s great
so went really quick like I said it was
a big rental neighborhood the price
point was right the rents were good and
so somebody was able to take this add
this to their portfolio and I think my
total profit at the end of the deal was
like 17,000 on a house that would have a
RV for about 160 that’s great
yeah because you’re worried that was in
and out yeah so we’ve like 45 days in
and out yeah
$17,000 profit that’s great so let’s
talk a little bit about your first
wholesale deal so how did you find those
what was your marketing to find those oh
man so wholesaling was hilarious like
when I first started doing this because
I remember sitting out my first bandit
signs and feeling like literally like a
thief in the night like I was doing
something completely illegal and I was
gonna get caught so like I dressed in
like the all-black and like I would like
headlights off coming around a corner
like run out there stick a sign in and
everything but I put out a bunch of
bandit signs in the North Houston area
which if whoever’s familiar with it with
Spring woodlands Conroe of that area
right there and did Direct Mail did
bandit signs did door hangers and
literally the only thing that where I
was actually getting good decent leaves
from where the bandit signs and it
wasn’t from anything else and the band
signs the leads were for properties that
were two three hours away from where we
were actually at people had moved to
Houston had a property that was out in
the boondocks they’ve got a job in town
and so they were just trying to sell it
and so my first wholesale deal actually
took place
in a town that was two and a half hours
away from where I lived and I bought the
house for $6,000 and I that I bought
this little two-bedroom one-bath house
completely in shambles for six thousand
turned around and wholesaled it for
$9,000 he made $3,000 on this property
that if you walked up to it you you
probably would have felt like if you
would have blown on it it would have
fallen down and that was my first whole
sale you know that still you did your
first deal
that’s awesome so how far away was that
two and a half hours to an hour
I think it covered maybe the gas and and
the negotiations and the marketing cost
but I think it wasn’t more much more
than that yeah I was definitely the
experience of learning that so that’s
awesome so all right so you did a couple
deals there and then and how did you get
introduced again to your partners in in
Iowa how did that how did that all I
know you said you were I think you said
you were lending to them yeah so when I
shortened the version of how I get
started it’s like hey I joined a real
estate program I paid tens of thousands
of dollars then got on Facebook and lent
money to people I’ve never met before
yeah you explain that to most people and
they’ll look at you like what are you an
idiot like but it’s it has gone very
well haven’t lost money on a single
lending transaction and I started
lending out in the second position which
they tell you never ever lend out in the
second position well it the way I saw it
was is that people that needed money in
the second position I had a lot of
leverage to get what I wanted out of it
so I could get a high interest high
points and what I could also do is be a
part of the transaction the deal let me
take a look at your numbers let me meet
your contractors how why did you do this
why did you do that so I got to tag
along and almost get first-hand
experience with a lot of the people I
leant with because I got to see how they
approached real estate how they picked
up deals you know what they paid for
services and who was good and who wasn’t
so that when it was time for me to start
rehabbing I already knew the contractors
I wanted to use because I’ve already I
already saw their work
I was already able to you know know how
much to pay for it which that is one of
the biggest aspects of real estate at
least on the investing sign is you got
to know your cost yeah because if you
don’t you’re gonna get beat every time
and then you’re not gonna get anything
yeah I love the fact that not only were
you earning money but you’re learning at
the same time and then you’re you know
if you’re looking at doing a second lien
position get in the trenches I mean
that’s great because they were firsthand
learning so that that’s you know you did
it the smart way you didn’t just say
here’s my money let me know when the
projects done so that’s that’s fantastic
so I did a little bit of both to be
honest because I didn’t have a lot of
money so I was lending out like I’m max
fifteen thousand dollars in the guy like
hey I just need
finish this project I need the money for
two months and now you could charge a
lot of interest I think the first year I
did that I made about 29 percent return
on my money for hay which was not bad
plus all the experience but the first
two people I lent you were not even
actually in Houston was one to my
partner now partner in Iowa and to a
lady in Florida and then I started
lending in Houston and what I realized
was my partner in my now partner in Iowa
was turning the money over a lot quicker
than everybody else was in Houston I was
like man this guy knows what he’s doing
he’s just turned this money over like
first project second project third
project and actually he was the one that
called me up and said hey Gustavo I want
to come down to Houston meet you I
appreciate your support and everything I
want to meet you all right you know so
he came down we met went out you know
talked real estate kind of understand
where we were what we were trying to
accomplish and and then he’s like you
know what I think we could do great
things together you should come up to
Iowa and let me show you what we can do
in Iowa and at that point I was like
Iowa is like cornfields trailer parks
tornadoes like I didn’t really think
much for Iowa or the Midwest at that
point you know Chicago or Illinois
getting lumped in with the Midwest yeah
I knew I knew Chicago was big but
everything like outside of that all I
had remembered was driving through
cornfields and so I went up to Des
Moines and I was just blown away I mean
I just literally was I was looking at
the market things were staying on the
market very long stuff was selling and
then the inventory like houses you could
pick up for cheap there were so many of
them and there was not a lot of
competition as far as investors and
other people so we sat down we hit my
Ryan had just gotten back from Cancun or
from Mexico and he had bought this boot
and Bhalla
and some bottles of tequila so he’s like
hey man you one tried to kill I was like
yeah sure
and he go and I go well are you gonna
drink it the American Way or the Mexican
way he goes what’s the difference well
Americans shoot it in Mexican sipping
it’s like all right well let’s do it the
Mexican way so we ended up sitting at
his table chips salsa and two bottles of
tequila and a ball half later we’re
sitting there you know pouring our guts
out to each other and be like you know
what we should start a company together
it’s like yeah that sounds like a great
idea well what should we call it so
we’re staring at this boot that’s
sitting on this table that he got from
Mexico so what about boot shot
investments like dude I love it
eight days later the company was born
and we started doing business together
so man that’s an incredible story
because you literally not even being in
Iowa you literally set up a marketplace
in Iowa so what is your involvement look
like for that business and what you guys
are doing so I will absolutely claim
that I don’t know the market as well as
my partner does and he is an absolute
beast
in that market I have never met somebody
where I have literally called him say
hey we have X amount of money I need you
to pick up like two three deals on
Monday by Friday he’s got two or three
deals in order for us to put that money
– he can pick up properties like I’ve
never seen before
and so the way our partnership is set up
is I do a lot of the brand management
social media and I raise capital for the
projects he is very involved with his
kids sports and stuff like that so he
didn’t want travel so I got a lot of
real estate conferences and everything
to go you know put our name out there
and raise capital but he handles the
acquisitions the rehabbing and the
selling on that side and we essentially
just split the profits on the deal so
now let’s talk about opening up Tampa
Thank You Man yeah in Florida so he had
an he is that somebody in the company
that was in Iowa with him who went to to
Tampa no Tampa’s purely remote we don’t
we partnered up with other people in
there so Ryan stayed in is still in Iowa
and I’m still here in Houston and we
found some people that brought us some
good deals from wholesalers and so we
decided to jump on it and we’ve
partnered with some people down there
that helped put some skin in the game on
some of the projects and so we’re
getting those rehabbed one is in Tampa
which will be coming up on the market
here within a month and it’s about a
four hundred four hundred thousand ARV
and the other one is a 1.3 million AR
being the historical st. Petersburg and
I remember this conversation because it
just kind of blew me away we were down
there
I had in Tampa we did some video at the
house that that we bought and everything
and I had just flown back and my partner
had stayed down there for a while
he called me up he’s like hey man we got
a great lead on this house in st.
Petersburg
hey man it’s like purchase price six
hundred two hundred thousand dollar
rehab ARV 1.3 I’m gonna check it out
he’s like all right man well you know
hey let’s let’s make sure let’s go
through the numbers because this is a
high price point and let’s make sure we
know we’re doing with this and then I
think like an hour later I got a call
from my partner go ahead hey man I just
signed the contract we’re buying this
house we’re flipping it and I was like
all right this I guess we’re doing this
and that’s that’s how we essentially got
our second project in Florida so the
thing is is sometimes like when the
numbers work and and you have a lot in
your favor you can I mean you just have
to you just have to go for it sometimes
and so that’s what we’ve decided to take
a chance on I we have learned so much
from these two flips in Florida I mean
more than I could ever care like
everything what we’ve done prior I have
learned more doing these two flips in
Florida than anything else and it has
been such an eye-opening experience and
it really builds in a massive amount of
respect for the people who are really
doing multiple houses in different
markets I mean these guys you have to
have such a team and accountability in
place and all these different markets to
manage that or if you’re doing it
remotely and so just hats off for the
people that are just crushing it doing
that remote because man after these two
is we’re gonna kind of reevaluate like
do we want to continue do we want to
just take on one project at a time and
and really kind of figure out who we
want to do that business with or do we
even want to continue or was just too
much headache and just not worth it for
the scale that we’re at let’s let’s talk
through you know you’re definitely new
and some awesome things are you’re in
three different markets what are some of
the challenges with juggling Houston
Tampa and Ohio because that and all the
other businesses you’re doing too so I
think that I think the biggest thing is
that for me my mind just doesn’t shut
off so I’m like always thinking about it
messaging and everything like that and
so sometimes just like a delay in
communication thing is I believe
anything is possible if the
communication is there when you don’t
have communicate
and that’s when things really start to
crumble because then Trust gets lost why
aren’t they responding like what’s
happening you know why can’t I get an
answer do you know what’s going on
am i every time I can’t get a hold of
somebody or if I don’t have an update or
if I don’t believe things are going on
am I gonna buy a plane ticket fly down
there spend a few days there and then
come back I’m gonna add that cost to
that business so a lot of trust and
communication has to take place and
that’s probably the hardest aspect of it
is finding people that are kind of at
that same level of intensity that you
are because if not then it hurts or you
just have to understand it and I think
that’s one of the biggest things for me
like I run at like 110 miles an hour
when I’m trying to manage all this stuff
and I got understand like you can still
get the job done you don’t have to run
110 but the way my mind works it’s just
like I’ve if I don’t if I don’t take
care of it at that moment I’ll probably
forget about it or it’ll just get put to
the back of list and I try to take care
of everything as quickly as possible and
not everybody’s that way and so it’s
been a very big personal development
experience for myself because of how to
calm myself down quite a bit and really
kind of put the systems in place and
have trust in that in order to know that
hey things are gonna be okay just calm
down and then sometimes I really have to
just like take some deep breaths and
just calm myself down because I’ll get
worked up because I’m very passionate
about it yeah so let’s talk a little bit
about some of your other businesses too
because before we did this interview you
mentioned you’re in some different
financing so tell me a little bit about
that so one thing that we realized in
flipping 40 houses is that that’s
probably not something we want to
continuously do on a regular basis
there’s just so much involved with it
and and I want to kind of stay as lean
and nimble as possible and one of the
ways I see this is kind of moving a
little bit more into the finance realm
of things so I met some people that had
some RV parks and they didn’t have any
debt in it they had paid cash for
everything and they were showing me the
possibility can do with these and and
they’re just trying to build up money or
find an investor to come and invest so
they could grow these out and they said
yeah that man is what the hard part is
is that we have
all these open slots that are for rent
but most people want to rent an RV from
us and not just a slot and you know and
there’s no way to finance like these old
RVs and we don’t want to go buy new ones
because that’s just not for just
clientele that we’re going after so I
said well I’ll finding us the RVs for
you but you know I got to make it worth
my while and so in doing so I kind of
have just started this business and
building up this financing for these
very low price point RVs selling them or
finance them to RV parks and the returns
that I’m going to be getting on these
are 40 40 % plus Wow so what kind of
recourse do you have if somebody doesn’t
pay on the RV so that’s one of the
things that we’re working through right
now but it’s going to be a lien on the
receivables of the RV so if they collect
rent if we have to if we have to put an
injunction on them from the courts then
whatever that rent is collected then we
get paid our amount versus after they
pay everything else and we also get a
personal guarantee from the owners of
the park and a lien on the park itself
so those are the three things that we
have that protect us in this space but
it brings a lot of value to the park
owners because what we’re doing is we’re
providing an RV a used RV where we can
finance it at $200 a month for their
payment they’re going out and renting it
for six to seven hundred dollars a month
Wow so they’re making let’s say $400 in
in cash flow so if you think about this
if I finance ten RVs to them and ask for
a thousand dollars down they have their
ten thousand dollars out of pocket they
put these RVs on and if they can rent
them out which they have a waiting list
for them and they’ve been able to rent
the three that I’ve done so far they’ve
been able to rent them within two weeks
and they generate four hundred dollars a
month if they do ten of them that’s four
thousand dollars a month in cash flow
off of ten thousand dollars out of their
pocket so in a year there are forty
eight thousand dollars in in cash flow
that they’ve generated off of a ten
thousand dollar deposit or essentially
down payment into the RVs now if you
take that on the commercial side of
thing and base based off the fact that
they get evaluated by cash flow and
let’s say this for easy math purposes
this RV park gets rated at a ten cap
that 48-thousand becomes 480,000 and
equity in their park off of spending
$10,000 that’s incredible so when you
talk about hey would you spend $10,000
to make a hundred thousand to make two
hundred thousand this is kind of where
that saying comes from because they’re
spending ten thousand dollars to buy ten
RVs to increase their cash flow by four
thousand to increase the equity of their
park by close to half a million dollars
that’s incredible
so how would people get involved with
with that particular strategy that
you’re doing so essentially it’s just
finding park owners in like the B or C
grade of either mobile home because you
can do this in mobile homes also or RVs
and say hey I’ll finance these if you go
find an RV that you want to purchase
I’ll finance it put a structure in place
that the cash flow makes sense for the
owner and now you’re creating a note for
yourself that’s going to pay you know
great dividends as far as your initial
investment so I’m so to kind of give you
an idea I’ve bought three so far my
total investment is just under eleven
thousand dollars for three and I will be
generating six hundred and fifty dollars
in cash flow for the next four to five
years off of eleven thousand dollars and
you’re dealing directly with the owners
of the parks yes so we’re not actually
selling these to individuals we’re
selling them to the park that helps a
lot of ways because of the fact that
you’re you don’t have to worry about a
lot of the consumer protection laws
because you’re selling to a business it
makes the transaction a little bit
simpler and that’s where we’re trying to
really streamline the process right now
is giving the paperwork before we roll
this out and go on a national level
that’s fantastic so what advice do you
have to somebody who’s just starting out
and they don’t know and they want to get
in started investing in real estate what
would you tell them I would say don’t
limit yourself to real estate
the idea of real estate is great it’s by
something that you can build equity in
or that creates cash flow to help you
reach your goals because a lot of people
who I real estate end up say what do you
want they want passive income right they
want to be able to have something that
generate income for themselves so that
they don’t have to work and they can
retire and have this steady income right
I don’t think I’ve talked to any real
estate investor that doesn’t say that’s
their ultimate goal and so what I
usually tell people is you can find cash
flow and almost anything you just have
to open yourself to it you can find cash
flow in laundromats you can find cash
flows in vending machines you can you
know my daughter I’m working with her to
start a little gumball business for her
so she can start you know building a
little business for herself there’s so
many ways as they say in real estate to
make money and if your goal is to create
passive income don’t limit yourself to
single-family residences or apartment
complex there are so many ways people
make money renting out parking spaces
you know I’ve seen there was an article
in Hong Kong that a couple flipped a
parking space they bought it for four
hundred and thirty three thousand
dollars and in ten days flipped it for
seven hundred and thirty thousand
dollars Wow I was blown away that
they’re flipping parking spaces you can
pretty much when you when you look at it
as I buy something I fix it up and I
sell it you can do that with them what
you can buy that do that with cars you
can do that with furniture you can do
that with real estate you can do that
with so many things and if that’s the
case why limit yourself we’re in this to
be to build a business and to to reach
our goals and if your goals passive
income open yourself up awesome
well Gustavo thank you so much for this
interview it was awesome what’s the best
way for people to get in touch with you
best way is uh you can go to a go on
Facebook and look me up Gustavo Garza
I’ve got our company pages boot shot
investments or clear path properties or
actually just look up my name and I have
a business page there you could always
email me at Gustavo Garza at clear path
properties calm all right Gustavo thank
you so much IRA appreciate it and thank
you guys so much for watching we’ll see
you soon
yeah all right cool Gustavo Garza sorry
about that and you know if you could
throw a little light Danish accent Ravel
got a Sox table I got goose about bowled
Garza STOVL Gustavo Garth you mean
Gustavo Garza got it
yeah we’re good get it got a good we’re
still recording all right we’re getting
all these are the blooper talking oh
yeah thanks so much for watching I hope
you enjoyed the interview make sure to
keep your eye out for our next video
which is a skit called the basic real
turf it’s really funny and I know you’ll
enjoy it
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