Young Entrepreneur leverages Credit Cards to into real estate - W/ Nathan Delgado ( DK Podcast 58 )

[00:00:00]I bought my first house when I was 21.

[00:00:01]Made my first six figures when I was 19.

[00:00:03]And then now I'm 24 building a funding company and invested into real estate.

[00:00:07]Before I got into car sales, I was working at Duncan. I was making $12 an hour and I got dealership job. And man, that changed my life.

[00:00:13]>> So you got to get around like-minded people to actually see what's possible.

[00:00:18]>> Stop letting the dealerships just ran all these inquiries on your credit report, man.

[00:00:21]>> Please, man.

[00:00:22]>> I'm doing my first full gut by myself right now. Complete rehab. We're putting $150,000 into the deal. I bought it for 200,000.

[00:00:29]>> So that's 350 y'all in. All right, drum roll. How much is the ARV after the repair value?

[00:00:35]>> 500,000.

[00:00:36]>> 500,000.

[00:00:37]>> You got to be providing value. And the more value you can provide to more people, you're going to succeed. If you're just constantly working for somebody else, you can't really grow that much. You got to grow for yourself.

[00:00:47]>> What's the worst thing you've witnessed in your time in real estate?

[00:00:55]All right, welcome back to another episode of the Lee Kings podcast and we got the Lee King 850 here. I got a very very very special guest here today from Chicago has another very successful entrepreneur, younger than all y'all other funders, but more successful actually doing flips. I'mma let him introduce himself the right way. What they call you, bro.

[00:01:19]>> How's it going? My name is Nathan Elgato. I'm an entrepreneur, business owner, and investor in using business funding to invest into real estate.

[00:01:27]>> Came out to meet the elite king so that way we can learn more and teach you guys about the funding game.

[00:01:32]>> So, yeah, man. Like, how did you really get into funding? I think we came up the same way. We actually uh met at what event was that? Solos's event, right?

[00:01:43]>> Yeah.

[00:01:43]>> But we was on Zoom for Evan stuff. I feel like we we we have a lot in common.

[00:01:49]I'm like, "Yeah, we Chicago. Yeah." You know what I'm saying? So, how did you really get into this space in in the first place?

[00:01:55]>> Well, number one, honestly, I mean, I've seen it all on my algorithm, social media, and I was investing into real estate, >> but I wanted to get more capital, right?

[00:02:04]So, I'm like looking into funding, different programs, and I seen people post about, oh, you can't get, you know, business credit card, 0%, no stocks, right? And I'm just trying to get the capital. Like, I wasn't looking into starting a funding business or nothing.

[00:02:16]I just wanted to get capital to invest.

[00:02:18]>> Mhm. And when I started getting these approvals, people started asking me like, "Hey, how you do it?" And they were willing to like pay for it.

[00:02:25]>> So that's when I started about starting my own.

[00:02:27]>> How long ago was that?

[00:02:28]>> That was a year ago.

[00:02:30]>> You got your real estate license too?

[00:02:32]>> Yeah, I got that three years ago.

[00:02:33]>> Got that three years ago.

[00:02:34]>> Yeah.

[00:02:35]>> Okay. Have you been independent ever since or you still got a job now or >> No, this is I'm all in full time. This is [laughter] this all.

[00:02:41]>> You know what I'm saying? So you went and got your real estate license, >> but why though? like what what what sparked the entrepreneur >> Yeah. vibes, you know?

[00:02:50]>> So, to be honest, um five years ago when I was 18, I got into car sales. Then I was doing I was selling a lot of cars, right, which I was making good income, but I wanted to I seen a lot of people investing into real estate, you know, making 30, 40, even $100,000 on one deal.

[00:03:06]>> Mhm.

[00:03:06]>> And I'm like, you know, I see everybody doing it. The reason I got my license, the reason I wanted to get into real estate is just to get around people, the network, the realtors, um the mortgage lenders, people that actually have access to buying the deals.

[00:03:18]>> Yeah.

[00:03:19]>> And so I was like, "Okay, if I get my license, I'll be around people." And when I got that, I was like, "Okay, I don't really want to sell houses. I want to be an investor." Because those are the people that really making money.

[00:03:27]People that sell houses don't really make money. Realtors, unless you're selling a ton of houses, they're not really making money. It's the investors.

[00:03:35]>> But the way to get deals, you need capital. And that's kind of how it all trans transitioned.

[00:03:40]>> You were selling cars around 18.

[00:03:43]>> Yeah. So I started >> When did you have your first job? Like sheesh. Like 18, you're selling car a lot of cars, too.

[00:03:49]>> Yeah. So >> you sound like you was top performer.

[00:03:51]Like >> Yeah, for sure. 100%. I was a number one salesman in my dealership by the time I was 19. Did a little bit of finance, but at the end of the day, like car dealership is great to start when I was 18, but it's not something that I want to do long term, right? I wanted to grow a business. I wanted to, you know, invest and that's something that I know I can't do at a car dealership. It's the easiest way to make six figures in my opinion.

[00:04:15]>> So, like you talking about six figures?

[00:04:16]Wait, wait, wait, wait. Break it down.

[00:04:18]Break it down. You know what I'm saying?

[00:04:19]I know you're successful. We talking about like you're the top sales guy. It makes sense that you would do six. So, how does that work with commissions?

[00:04:26]Just really briefly.

[00:04:28]>> So, in the car dealership, you get paid off gross, right? So, the dealership owns the car for a certain amount of money. whatever you sell the car more than, right? Like I guess the profit. So if you, let's say the dealership owns the car for 20,000, right?

[00:04:41]>> You sell the car for 22,000, there's a $2,000 profit margin on that deal. We get a percent of the profit. My percentage was 20%.

[00:04:50]>> So on every deal, every car I sold, you know, I'll make that. So it start adding up. You know, you can make between $400 on a car, you can make $1,000 on a car.

[00:04:59]And if you do that every single day, >> so the dealership is transparent about their inventory.

[00:05:04]>> They're transparent about what they got the car for. No. And all the salesmen don't know the numbers. No, >> we don't know.

[00:05:10]>> So we don't even know. We don't even know what the dealership owns the car for. Sometimes every dealership is different. We the dealership I work for, we didn't even know we owned the car for until we sold the deal. My manager would let us know what the front end would be.

[00:05:21]It's called front end gross.

[00:05:22]>> So you have an idea cuz they go they got to incentivize you.

[00:05:25]>> Yeah. Yeah. The managers know, right?

[00:05:26]They can see it on their screens. a salespeople. We didn't know until we sold the car and they would write it on our deal sheet >> and I'm like, "Okay, that's how much I made. Cool." But typically, if you're, you know, you're selling add-ons, you're selling packages on the deal, you're going to make money unless the dealership is underwater on the car.

[00:05:42]>> Oh, so dealership. Yeah. Cuz I do want you to give out a gem as far as buying a car. Like, it's a good idea. This this is a good opportunity to mention my car buying experience when they I I bought like a Honda brand new show. It's on the show floor. So I you know what I'm saying? But like I'm walking in there.

[00:06:02]I'm knowing my credit score and I didn't go through a credit union. I'm pretty much trying to trade in my one of my first cars like a Volkswagen. like, "Hey, I'm looking to just swap." I know I might have a little bit of negative equity on the Pat, but like, "All right, cool." So, we're doing the deal. We're doing the numbers. Oh, no. This is my second Honda cuz I bought two. I had two at the same time. Long story short, he's trying to add in the junk fees.

[00:06:31]I saw the car online for the price.

[00:06:33]Let's say it's 28,000. I get to the dealership and it's 30,000 by the time he's bringing it back to me. I'm like, "Okay, what's going on here?" He's like, "Yeah, once we get the cars off the thing, we we put a thing on it that you can't see it since invisible paint protection. This we lock the the the the wheel locks and whatever the >> whatever thing the ceramic coating, bro.

[00:06:55]>> Ceramic coating.

[00:06:56]>> The ceramic coating." He said it's already on there. We can't do nothing about it.

[00:07:02]>> That ain't true. They can definitely take it off, >> bro. Okay. So, cuz it's like in the line items of like it's like a na like you ready to just sign right here but get it done. If you are in a hurry in them dealerships just to get the deal done cuz one they going to drag it out while they're running your credit. They going to drag out they trying to oh you need a water or anything. It's going you're exhausted so you might as well commit at the end. No, no, no, no, no. We're not doing all that. Look, look, fam. So, it's like I walked over to see the sticker.

[00:07:33]I was like, "Bro, I I was looking for that ceramic." I was like, "I don't see this on the sticker price, bro." And I was just stood there for 5 minutes. He's like, "Bro, you ready to do the deal?" Like, I'm like, "Yeah, bro. You're talking about some invisible ceramic this and that, bro.

[00:07:50]Like, I just can't imagine. Like, I don't want it. I don't want to pay an extra 2,000 and saying for something I can't take off." You're like, "All right, let's say this, bro." It's like, "Is that it?" is like, "Bro, if we take that off, we doing the Yes, bro. Like, I was signing it right now. I just want this car. I already cuz I do the math before I get to the deal. Like, I'm estimating a 7 12% for taxes or whatever, sticker, whatever. Maybe >> $400 in like document fees for the plates or whatever, but not an extra two grand." And he took it off. He's like, "All right, bro. Like, cool. I'll see what I can do." All right, cool. Like, let's do the deal. Let's just do it. I stood there. I just walked over by the car, stared there. I was like, "Yeah, I'm looking for that thing you said. I don't see it here." He's like, "Bad experience, bro." Because I seen something like that on the internet. And when I did it in real life, I was like, "Yeah, just don't believe what they're saying cuz I saved $2,000 that."

[00:08:45][laughter] >> Yeah, for sure. What they're also going to do, too, anytime you go buy a car, is they're going to try to push you towards payment. They're going to be like, "Hey, what kind of what's your what's your monthly payment? What's your what's your budget?" Right.

[00:08:57]>> Right. What's your budget? And the reason is the reason they do that is because if they know what your payment is, >> then they can position the deal to maximize the dealership's [clears throat] profit. Why? Because let's say a car is 20,000 and you want to be at 400500 a month. Well, I'll just push it out 72 months. Hey, how much Hey, how how much you how much you got down?

[00:09:16]>> You got $2,000 down.

[00:09:17]>> 23,000.

[00:09:18]>> Oh, hey. You know what? We're going to need $6,000 down and we can do that. And the reason is because if we get more money down now, we're going to be able to sell you at a higher payment and that down payment is going to go to the dealership.

[00:09:30]>> But it doesn't go like some people are like, "Oh, well the deal the salesman made all that down payment." That's not true. But by having a more of a down payment, >> it basically allows the loan of value to be higher on the deal. So we can sell the car for more when you put more money down.

[00:09:47]Does that make sense? So like the more money you put down, the more I can sell the car at. If you don't put that much money down, I can't sell at a higher price. It's not that that down payment is going to go to the dealership's like pocket or the salesman pocket cuz that's not the case. But I can sell the car for more money if you put more money down.

[00:10:04]>> So like let's say if you put, you know, you buy a car at 20,000 and you put $10,000 down, you should be financing$10,000, right?

[00:10:12]>> But now if I just, okay, we got 20,000, you gave me$10,000. Now I can just add on $10,000 worth of fees.

[00:10:19]And now I take a percent of that fees because now you put more money down. Now I can sell you more fees, >> right?

[00:10:25]>> Just look at your numbers, man. It's It's okay to put a lot of money down on a car. That's fine. I've done it. But just look at the total out the door number.

[00:10:33]>> Mhm. What's the most you think you put down on a car before?

[00:10:35]>> Like whatever the total value is, I'll put like 30%.

[00:10:39]30% down.

[00:10:40]>> 30% down.

[00:10:41]>> Yeah. But you don't have to do that.

[00:10:42]That's just That's just me personally, right?

[00:10:44]>> All right. Let me tell you something.

[00:10:45]All right. So, long story short, that was like my little story how to just stand your ground. Be ready to walk away from the deal. Oh, yeah. I bought enough cars to know like just become go to the next dealership if they're not willing to take off these this invisible ceramic paint con, bro. If I get a scratch, bro, are really going to honor that, bro. And then read what you're signing. And then like they're going to do this thing where the the plus sign and the four boxes. You want the payment, they want the interest. I don't know what like >> four square >> the four square method, bro. Look, what is the interest rate?

[00:11:20]A lot of these car sales contracts, they're telling you the interest rate, but you're only looking at the payment.

[00:11:28]Okay? So, your payment's only $350 a month.

[00:11:35]And then the interest, if the interest is in the 20s, bro, relax. Fix your credit first, bro. Because your interest is going to be so high. It's like you think your payment is 350, but the interest that you're paying every month is 275.

[00:11:53]So, you're barely ever ever ever touching the principal and you're barely ever paying down your car after what 24 months. You're wondering why the principal is not going down. Oh, yeah. I know it's 72 months or 75 months or whatever. But like, y'all got to stop with the just sign and drive. Also, pay attention when they're offering these warranties, okay? Offer all these warranties that they might not even honor later. You're buying a high mileage vehicle and you're buying like a a warranty for a couple thousand dollar and this and that. I just want to put a PSA out there. Y'all should just chat GBT if you're getting a good interest rate or something like I don't know. But if your interest rates are over like 14 and a half on a car, you probably should work on your credit first. You're going to save more money in the long run. It's not even about saving more money. It's just be economically responsible if you ever want to pay down that car.

[00:12:55]>> And stop letting the dealerships just ran all these inquiries on your credit report, man.

[00:12:59]>> Please, man.

[00:13:00]>> Come on, man.

[00:13:00]>> Stop letting the in like, bro, my record a guy came to me. It was like 237 inquiries. I got them all removed within 60 days. He was doing the whole Turo thing when it was popular.

[00:13:13]>> Yeah.

[00:13:14]>> But but I got them all deleted. But it was crazy, bro. Like why would you do that? When I'm buying a car, first of all, are going to go to a credit union because they have the lowest interest rates and they're most likely going to give you like a bank draft or approve you first. And then don't let the dealerships know that you're about to finance outside with some outside money.

[00:13:35]You got the check in your pocket the whole time. Get the deal done as far as like get that agreement of what they're willing to sell the car for the best deal they can do cuz they're going to ask you, you know, that's probably one of the ice breakers. You want to finance with us, whatever, you pay in cash, this and that. They probably want to run your credit score before they even give you a test drive, right? Did you ever try and do that?

[00:13:54]>> Yeah, 100%.

[00:13:55]>> Yeah. A lot of things. But that was your experience in the cars and stuff and then you sort of transitioned cuz you you said easily you're able to do six figures at the dealership.

[00:14:03]>> Yeah. Yeah. So I made my first six figures when I was 19. A year into the business.

[00:14:08]>> What was that life like, bro? Cuz like I know your friends ain't your your friends weren't >> Nah. No, nobody was, man. Nobody Nobody even knew for me personally, right? So a little bit backstory, right? So when I was in high school going into college, I actually wanted to go into law enforcement. And that was my, you know, my goal, right? just go to law school, go learn about the law, whatever it is, right? That was my passion, right?

[00:14:27]>> But I realized that like as I >> when I was 18, CO happened.

[00:14:32]>> Jeez.

[00:14:32]>> And yeah, so CO happened when I was 18.

[00:14:34]I was applying to jobs online, got a car dealership, did really good. Third month, hit my first 10K month with I thought that was crazy cuz I come from a family that doesn't really, you know, make money like that. And so I was like, "All right, man. I'm just going to go all in." Stayed at the dealership, made my first six figures, right?

[00:14:50]And I didn't tell nobody. Nobody knew, but I got addicted to buying cars, right? So, every time I seen a nice car coming to the dealership, I bought a Mustang, Infiniti Q50, Dodge Charger, >> I had a Honda Accord. So, making money young was was really good, but I spent a lot of it, right? I didn't make the best choices.

[00:15:11]>> You do you remember the most amount of cars you had simultaneously?

[00:15:16]>> And these are Yeah.

[00:15:18]>> No, it was just always like rotating.

[00:15:19]>> Okay. Rotating.

[00:15:20]>> So, I didn't I didn't buy them like and stack them. I just always rotated. So I would have like a Honda, then get the Charger, Infiniti Q50, Mustang.

[00:15:28]>> Did you ever go to the car meets?

[00:15:30]>> Oh yeah, all the time, man. And the Mustang, I would always definitely go to car meets. [laughter] My my Mustang had like custom exhaust on it. So yeah, just >> definitely go to car meets a ton.

[00:15:40]>> I'm a really big car guy. Love cars, right? So I'm like all about cars.

[00:15:44]That's why I did so well on cars because I'm not a sales. Like I don't consider myself a salesperson. I love building relationships with people, right? So, I want to see people get the car, why they want to buy it, right? See how I can help them.

[00:15:55]>> And then 2 years later, after I saved up some money, I bought my first house when I was 21.

[00:16:00]>> How much money were you able to save up?

[00:16:02]Damn, that's like 21.

[00:16:04]>> Yes. So, I bought my first house when I was 21. Made my first six figures when I was 19. And then now I'm 24, building a funding company, credit repair business, and investing into real estate.

[00:16:15]>> Sheesh. Have you finished any flips? So, I did some deals with other people, but this I'm doing my first full gut by myself right now. Um, complete rehab.

[00:16:25]We're putting $150,000 into the deal. I bought it for 200,000.

[00:16:30]>> 200 >> 150 all in. I mean, >> 150.

[00:16:32]>> Yep. For the rehab.

[00:16:33]>> So, that's 350 all in.

[00:16:35]>> Yep.

[00:16:35]>> All right. Drum roll. How much is the ARV after the repair value?

[00:16:40]>> 500,000.

[00:16:41]>> 500,000. So, y'all do the math. 500 minus 350.

[00:16:47]Is that 150?

[00:16:48]>> That's 150.

[00:16:49]>> That's 150. Wait, wait, wait, wait.

[00:16:52]>> But you got your your your realtor's license, so you're saving >> that 3% they be charging.

[00:16:58]>> Yeah, it's 3% for the buyer, 3% for the seller.

[00:17:01]>> You're saving Well, you know what I'm saying? You're saving 3% cuz you got split with the brokers or whatever.

[00:17:06]>> Yeah.

[00:17:08]>> So, yeah, he got six figures on the way from doing a flip. Now from start to finish because time is also relevant to how fast you can make this 100ishk.

[00:17:19]Right.

[00:17:19]>> Right.

[00:17:21]>> When did you start? How long ago did you start?

[00:17:23]>> 4 months.

[00:17:24]>> 4 months. When's the estimated completion date?

[00:17:27]>> About a month and a half.

[00:17:28]>> A month and a half. So 5 months rehab in that area. What is the average time on the market?

[00:17:35]>> So because the this one is actually going to be a very hot property that I'm going to be selling. And I'm going to be selling it myself and I'm going to sell it quick cuz I'm the agent on it. I'm the listing agent. I'll probably give it two weeks, two, three weeks.

[00:17:46]>> Two within the first 30 days I I for sure I should have an offer on it. If not multiple.

[00:17:52]>> Dope. I'm going to see whatever B-roll I can grab of the renovation. By the way, guys, y'all might as well just follow this guy on Instagram right now. He be showing off your the behind the scenes stuff >> because a lot of people be talking about they do flips here and there >> and they not even walking into the properties. They're just like standing out front saying they own all these properties but you never see them inside of a property. It's ridiculous, right?

[00:18:20]Not even. So anyways, he shows a lot of behind the scenes on What's your Instagram again?

[00:18:25]>> My Instagram is official Nathan Delgado.

[00:18:29]Just like that. Simple, >> bro. you've accomplished a lot. Like I want to say above average for sure, bro. Like what was that like?

[00:18:38]What how does it feel to be above average? Because you like how is it hanging out with friends when you're chasing all the success? Like what is that like?

[00:18:45]>> Man, to be honest, I just got I've always been like this, right? So I've always been somebody that's worked really hard. I've never cared about going out. I don't do do anything, right? All I do is work. So whenever I started like making pretty good money for what I thought it was, you know, making six figures, I didn't really connect with a lot of people. Like I have my close friends that I've been cool with since like the first grade, like my best friend, but he understands like my mindset where I'm at now and a lot of I met a lot of new friends, right? Like a lot of new connections.

[00:19:12]And >> it's actually more inspiring to see that there's actually a lot of people that have the same mindset, but there's that you may not think of until you get into the rooms. There's a lot of young people that are driven, but they're in certain rooms that you may not think that they're in.

[00:19:27]>> You didn't even try college.

[00:19:29]>> Nah, [laughter] I was going to go to college, man, but it just didn't make sense. I mean, I was, it was in co, >> right?

[00:19:36]>> Make my first 10k a month when I'm 18, >> right?

[00:19:39]>> And I'm like, no, I've never made 10 grand. And before that, before I got into car sales, >> guess what I was working at? I was working at Duncan.

[00:19:48]>> Jeez, >> fast food. I was making $12 an hour.

[00:19:52]>> So, I started uh at 15 15 to 17. I was working there for two years making like 12 bucks an hour.

[00:19:58]>> And then I got uh I was just applying to a bunch of jobs in on Indeed before I went to college >> and I got dealership job and man that changed my life. So, I'll be trying to stress this to people. If you can give a word to the people that's working these, we call them dead-end jobs or they prefer to just they think they're playing it safe by having a a wage where they're literally trading their time and doing like robotic activities for money.

[00:20:28]So, your experience, do you encourage everybody to sort of get into some sort of sales role? I say some sort of information role, right? Like you got to be providing value and the more value you can provide to more people, you're going to succeed, right? If you're just constantly like working for somebody else, you can't really grow that much.

[00:20:48]You got to grow for yourself. And that's just my personal opinion, right? Like I rather, you know, work for myself or try to help as many people as I can and get paid for that service than working an hourly job and knowing that if I'm the hardest worker, cuz I always believe I work hard. if I'm the hardest worker that no matter what I do, I'm gonna be stuck at a certain income. Like, I can't make more than this. Like, you just can't. Right. Right.

[00:21:11]>> So, if I'm getting paid $12 an hour, how many more hours and there's only certain amount of hours in the day for me to make a certain amount of money.

[00:21:18]>> But I can, you know, serve you, right? I can help a lot ton of people a lot more and get paid for every person I help, >> right? So >> you find bigger problems to solve at the end of the day and you're providing more value. The funny thing about money is just like it's kind of like a measurement of value.

[00:21:37]>> Mhm.

[00:21:37]>> And people some people have a negative connotation with it where it's like oh like just because you have a lot of money don't mean like you got it the legit way or whatever.

[00:21:49]So, at the end of the day, it's more so there's a few ways to get money, but providing value, a whole lot of value, the the the money is just a reflection about of the value you are providing to people. Now, if you're not doing it legit way, the money would probably be a representation of the perceived value that you've presented, but you didn't deliver on. And maybe, you know, that's that's stealing. You know what I'm saying? [laughter] Technically, like like you've at least been able to give somebody the perception that you could provide them value, but maybe you dropped the ball, whatever. Some people have the gift of gap, we call it. Yeah.

[00:22:33]>> So, you want to you you your life will probably be easier. You can probably sleep better at night if you are providing value, but that money is still a measurement. And the third way is definitely just like stealing it from the people that they have it, which is not good at all. Bad karma and all of that. So you find those bigger problems to solve for people, but don't go go in life thinking you're just going to coast by and eventually something's going to change on its own. Like if you're working a dead end job, just recognize where you are. Like sort of get into sales where you have opportunities to sort of like do you feel like you had that opportunity to sort of create your salary? Like >> Yeah. Yeah. 100%. That's exactly why I did it cuz I knew that man, if I just sold more cars, I'm going to make [clears throat] more money. If I talk to more people, if I message people, if I call people, if I go talk to people in the service department that are getting oil change, that I'm going to be able to sell them and make more money.

[00:23:27]>> Went all the way to the service department >> everywhere, man. Wherever I can get a lead, right? If I can get a person in front of me and I can earn their trust and earn [clears throat] their business, I'm going to make money, right? People buy from you when they like you and they can trust you. If they don't like you and they can't trust you, they're not going to buy. So, I would go to the service department. I'll be like, "Hey, man. How's everything going with the service department? Like, what are you getting? An oil change? You getting?"

[00:23:49]"Oh, man. That's that's pretty cool."

[00:23:51]And then get you a cup of coffee or something like that, man. And >> damn, you would go, "Jo, >> you not thinking like that."

[00:23:57]>> And then I'll be like, "Man, so also like I would look I I'll ask my service writer. I'm like, "Hey, that guy right there, what kind of car you got?" And then he'll tell me and now I know what kind of car you got. So, when I go talk to you, I'm like, "Man, this nice car you got right there, man. You kept a pretty good condition, >> right?

[00:24:12]>> We had a lot of people that were interested in buying a car like yours.

[00:24:14]If I can get you more money than your car is worth, would you be interested in selling it to us?

[00:24:19]>> Who taught you that, bro?

[00:24:21]>> And just and just learning, man. Just >> like like that's like psychology right there. Like it's the words that you even choose. Just like like you're creating a situation where like how can I approach this person? You're taking context clues, right? You're doing your research. You're doing your due diligence. And then you build that rapport and you strike up a hey >> like >> if I could do this would you even entertain this conversation like would it be worth it to you? So step number one guys before you even maybe before you approach somebody you're trying to do deals with somebody because >> he didn't he didn't he's not about oh how can I make money off this person. No he thought of a value proposition.

[00:25:02]>> Yeah.

[00:25:03]>> He thought of hey what could make this person's life better? I'm g spark up a conversation about that and we could figure out some sort of win-win situation.

[00:25:12]>> Money is always about the exchange of value. If you can provide somebody value, you're going to make money. Don't think about money first. Figure out how to provide somebody value and the most amount of value, right? And I always tell people like don't try to provide like there's some people that no matter how much you try to provide them, they're not going to work. So figure out who can you serve fast, right? Like who are the actual buyers? Who are the people that are going to be open-minded to buy it, right? Cuz there's some people like, man, that you can talk to and try to, you know, provide value for and unfortunately there's going to be like super close-minded. You got to know like >> anybody that can sell I can sell everybody that's not true. Like focus who you can sell or like provide value to and then you're going to be able to like scale a lot faster.

[00:25:50]>> What's life like as a realtor, >> man? Life's amazing. cuz you're you're more you're like I'm guessing like 30% realtor, 70% investor because you you're just like >> So, as of right now, I'm 100% like going all in on investing and my funding company. As far as being a realtor, I love to help buyers and sellers, but I have a team right now. So, I have a team of my listing agent and I have my buyer agent. So, we have somebody that wants to buy a home. When we have somebody that wants to sell a home, I have a team that's dedicated to selling their houses and helping them buy a home. So you in charge?

[00:26:23]>> So yeah. So I have a whole team for that. We'll help you find the deal.

[00:26:26]We'll help you sell the deal. We'll help you get the capital for the deal. I have contractors. I have hard money lenders.

[00:26:32]I have everything to put a deal together.

[00:26:34]>> Damn.

[00:26:35]>> So if somebody wants to buy a house, I'll connect them with my hard money lender. He want 10 to 20% down depending on your experience. We'll cover that off of business credit cards, business lines of credit. We'll cover the down payment.

[00:26:46]>> You can do that?

[00:26:47]>> Yeah. So we >> break it down. Break it down. How can you do that? So, man, so I got a liquidation company that I'm partnered up with. So, what we'll do is we'll get you approved for the credit cards on your business. Even if you don't have an LLC, if you have good credit, we can help you create one.

[00:27:01]>> Once we have the LLC, we'll get you business credit cards that are 0%. The reason we want to go after 0% is because we want to make sure that, you know, you're leveraging the money without having to pay interest. So, now we stack the approvals, right? So, now let's say I get you a $50,000 credit card with Chase. I got you 50,000, right?

[00:27:19]>> Yeah. we might need another $20,000. So, we'll go to Wells Fargo, hit that one.

[00:27:22]So, now we got 70,000. Now, if we need more, we just go to different banks.

[00:27:25]We'll stack the approvals and we'll combine it with the harmony lender. The harmony lender is going to approve the deal based off the purchase price. So, what they do is they look at the deal and they'll be like, "Okay, have you flipped houses? You haven't. Okay, if you haven't, we're going to do 20% down." So, if the purchase price is 20% down of a $200,000 property, you'll cover that. So 200 times 20% down, you'll cover the down payment off the credit cards and we'll liquidate them to pay for the add title, >> right? Because I know like 10% of 200,000 >> 20,000 >> 20,000.

[00:27:59]>> So 40 >> So 40,000. Yeah, cuz you just got 0% interest at Chase. That's 50 bands right there. Swipe that off the card and then cuz you got to bring cash to the closing table. Like you don't know title companies that will let you just tap your credit card.

[00:28:14]>> Yeah. Not >> that would be amazing though.

[00:28:16]>> I know. I know. Like there's a plastic that lets you wire it, but me personally, I like to use my liquidation company. You get cash, right? Direct cash into your account from the credit card. And the thing is it's on the business side. So even when you max out that credit card, it's not going to report onto your personal credit. So now max out that credit card, we still can get more approvals because your credit score is never going to tank. And now we use that money with the hard money lender. We buy a deal. And the hard money also covers 100% of the rehab. So, we buy the deal with the hard money and he's going to cover 100% of the rehab.

[00:28:47]All we got to fund is the down payment >> and it's Yeah, it's kind of like a security deposit [clears throat] if you look at it because you're going to get all that back. Man, I remember running numbers like back in the day like the reason I got into funding was cuz I got a deal in the contract and I couldn't get a cash buyer for. I was like, I don't want to be in that position again.

[00:29:06]I need I need to get this money. I need to get this money. And like what I was doing at the time, it wasn't going to be that much. I can do that over and over over again. The time I had that like so I was like found a creative way to get access to capital by leveraging my personal credit. Started a few businesses and started get some business credit cards business and I just got obsessed. Right. So the idea is just like I used to run numbers up till like 3:00 4:00 a.m. in the morning trying to write offers, creative financing, sub two deals and this and that. So, man, even breaking down the deal cuz I I was like, "Yo, all I need is 25K. It's 10% down like to get to do a deal cuz you're all in on your deal at 350." I was thinking, "No, if I can get all in on my deal at quarter million, I'm good. I just need to figure out how to get 25K."

[00:29:54]And and then some my mentor, shout out to him, he was like, "Yeah, you get you got what's your credit score?" It's like, you know, get your credit score above 750, go to Navy, you get 25K.

[00:30:05]Problem solved.

[00:30:06]>> Right.

[00:30:06]>> Right. But then I got obsessed. I was like, "Whoa."

[00:30:09]>> I was like, "Whoa, they just printing out this money like that."

[00:30:13]>> Really? I was like, "Bro, >> I can do this." You know what I'm saying? I can help people get access to capital. Right.

[00:30:18]>> So, with the hard money, you have a go-to guy or you just have a handful of people.

[00:30:23]>> N I got I got a guy.

[00:30:24]>> What do you What is this interest rate set? Pretty I know >> 10%.

[00:30:29]>> Is it 10% interestonly payments until Yeah.

[00:30:33]>> Okay. 10% interest only payments. Okay.

[00:30:36]Uh cuz I'm a nerd about that sort of stuff. Like you got to pay 20% down if you don't have experience, right? If you can't provide, I guess, HUDs and proof of closing and stuff like that with your name on the deal.

[00:30:48]>> You can get to 10%. You can even go to 5% just depending how much how many flips are you doing, but typically 20% is like for new beginners.

[00:30:55]>> New beginners.

[00:30:57]How many deals does your guy want to see before he doesn't categorize you as a beginner?

[00:31:04]>> Five. five deals. Okay? So, you do five deals, then he will allow you to get started with 10% down, >> 10% interestonly payments, right, >> on the outstanding balance, right? So, he's waiting 6 months or 9 months to do your deal for you to refinance and pay him back like >> Oh, like the term. So, typically you get a year.

[00:31:25]>> Um, >> you get 12 months of interestonly payments at 10%.

[00:31:30]>> Yeah.

[00:31:31]>> So, interesting.

[00:31:32]>> Yeah. So, you'll get that. But, um, most people want to finish the flip within 3 to 6 months so you can pay it quicker.

[00:31:38]>> But, the thing is also too, you got to remember too, is you also do have points. And so, the hard money lenders also charge points, right? Between one and three points of the total deal.

[00:31:49]>> And you want to think of points as like percentage.

[00:31:52]>> Yeah. So, yeah. So, like three points would be 3%.

[00:31:55]>> So, if it's a 100 grand, >> 3,000 >> 3,000. But like, so are you doing are you doing like 10 to 20% down payment and then the points is like another >> Yeah.

[00:32:10]>> on top of the at the closing table.

[00:32:12]>> Yeah. It's whatever the purchase price is. So if the purchase price is like 100,000, right? And then you got three points, that's 3,000. So if it's 200,000, you're at 6,000.

[00:32:22]>> $6,000 points.

[00:32:24]>> Yeah.

[00:32:25]>> Right. And then the down payment is still >> Yeah. That's extra.

[00:32:29]>> Okay. So, it' be like 46 due at the closing table technically.

[00:32:33]>> Yeah. Yeah.

[00:32:34]>> 46 due at the closing table based off of that analogy, right?

[00:32:38]>> Okay. Okay. You swipe that off on the credit card. Now, thing you guys should be aware of, they got a lean on the property. They just helped you buy it. You still get to put it in your name as the buyer.

[00:32:51]>> I put you got to be in the LLC.

[00:32:52]>> You have to be in the LLC. So, your LLC gets to put it in their LLC under the LLC, but >> if you default if if 12 months come up >> and they're giving you draws, right?

[00:33:04]They're quarterly checking on your project every quarter.

[00:33:06]>> So, you're going to start off with the draw first, right? So, they're going to they're going to be like, "Hey, we want to see some work." So, what I would recommend is also use the credit cards to get the initial draw done. Same thing again. Get the first draw done, then they'll reimburse you based off the work you done. And then now, now you're good because now they'll reimburse you. you do more work, they'll reverse you again.

[00:33:24]It keeps going like that. So every time you do work, >> okay, so you so you're bringing this so 200,000 is acquisition plus rehab.

[00:33:36]>> Yep.

[00:33:37]>> You bring 40 40,000 to the table cuz you're a newbie, >> right?

[00:33:41]>> Plus your 6% 6,000 cuz three points, right?

[00:33:45]>> Yeah. Well, that's that's on the higher side. You can get lower, but as as >> So 46,000 at the closing table. So you just did 200,000 minus 40,000 160, right? 160. So 10% of 160 is the interestonly payments each month >> honestly. So like if you break it down like numbers numbers I I'm not the >> I'm a nerd number. Hey, but I'll tell you what though. So like [laughter] let's say man, I I ran the numbers multiple times.

[00:34:19]Like I I have I'm just looking at my bottom line number. I'm not looking at how much they're technically charging me. I probably should, right? 100%. I think that's good that you're looking at all the numbers. But let's say you break it down to like 10,000, right? Let's say you did spend $10,000 worth of interest and the points, right? So on my deal, let's say I borrow that money all from a hard money lender. If I make 100 grand, I'm paying a hard money lender 10 grand.

[00:34:42]Am I really worried?

[00:34:43]>> It's that simple, guys. Yo, I'll be nerding out. I be have spreadsheets and I just be wanting to know down to the penny how I'mma make even though you're a realtor. Let's say let's say you close the deal at half a million. You're expected to see 150, but there's capital gains tax and regular tax and then you're saving money because you're a realtor, but like how much do you expect to like maybe net?

[00:35:08]>> So >> withholding cost of all this time on the market, like what do you realistic?

[00:35:12]>> I would say closer to 80. 80.

[00:35:16]>> Okay.

[00:35:17]>> Yeah, I'm still going to make money on this deal, man. I'm still figuring that out as well, but I'll make between 80 to 100.

[00:35:24]>> I'll still be like close to that number.

[00:35:26]>> Okay. Cuz those numbers used to keep me up at night till 3. I was so excited like if I just get this seller to sign for this, you know, 70% of the ARV, I'm I'm golden. You know what I'm saying?

[00:35:39]And those numbers excite me. But you're pretty much 7 to 8 months to make 80,000. It's not bad.

[00:35:47]>> That's on one deal though. Now one deal.

[00:35:49]>> Imagine if you're running multiple deals.

[00:35:51]>> Can you handle that? You have the crew for that.

[00:35:54]>> Yeah. So actually that's what I'm looking to do this year. I'm looking to get multiple deals. And the way I'm already doing is I already built partnerships in real estate and I'm the listing agent on all of them. And because I'm getting more people funded, right? So I'm going to I have my funding partners. So, I'm since I do business funding, I got people, investors that I'm going to help get get the capital and then they're going to repartner up with me once I get them the money.

[00:36:14]>> They'll partner on you to execute their flips or just like JV those.

[00:36:21]>> Yeah, JV. So, let's say we needed, you know, $40,000 for a down, we'll split it between two. So, 2020, right? So, now instead of them coming down with [snorts] a lot of people.

[00:36:30]>> So, now you think about 20,000 to make whatever we make. Let's say if we make 30,000. Let's say we go for smaller deals, >> but we do more volume. If we're making $30,000, let's say this, cuz then because let's do the math real quick.

[00:36:43]So, let's say on average, you're going to make between $30 and $50,000 a deal.

[00:36:46]The deal I bought is a little bit higher, but let's say you're making $40,000 a deal.

[00:36:52]You want to do 10 deals, that's 400,000 off 10 deals. You know, if you want to do 20 deals, you'll make $800,000 at $40,000 each, right? So, if you're making $40,000 on each flip, you can make $400,000 off 10 deals a year.

[00:37:08]>> But now, let's say you split every deal, you can make an extra $200,000 by splitting those deals, too.

[00:37:13]>> For sure. For sure.

[00:37:14]>> Off 10. Which is very doable.

[00:37:17]>> What's the worst thing, not to discourage anybody, what's the worst thing you've witnessed in your time in real estate? Because people be like, "Yo, contractors."

[00:37:28]>> Oh, yeah. contractor put the con they they the con and contractors bro talk about it like >> yeah contractors man just you got to get very specific with them because they'll tell you oh we'll do the job oh we'll do all this and that but not knowing that it didn't include a bunch of stuff right so for example let's see like there's a bunch of examples I got but for the garage right I had this guy gave me a quote for my garage I'm like okay let's do it and then he was like I I thought it included everything he's like no they didn't include the doors they didn't include the the door. That's the main thing, man.

[00:38:01]>> Garage doors. It didn't include uh the roofing. And I'm like, >> how's he going to give you a quote for a garage door? But not that didn't include the door.

[00:38:09]>> Yeah. So, >> that's crazy.

[00:38:11]>> So, I had him Yeah. So, that was something I was like, man, you know that. And then another contractor when I was first getting onto this deal, I [snorts] gave him $20,000 to start. And when I gave him $20,000 to start, he's like, "Okay, we're going to do the work." And he came back to me that he needed more money. And I'm like >> to start?

[00:38:26]>> No. Yeah. Well, I already gave him 20,000, right?

[00:38:28]>> To start, but but >> yeah, but then he asked me again a week later that he needed more money. And I'm like, >> start. [clears throat] >> Well, he already started.

[00:38:34]>> Oh, he started. Oh, so he did start. He at least started.

[00:38:36]>> He started, but he didn't do $20,000 worth of work. And he was already asking for more money. And I'm like, why do you need more? What's where's that $20,000 at? And then he started spinning me like, oh, because of this and that. I'm like, no, where did the $20,000 go? And he wouldn't be direct. Like, he didn't like he didn't know how to answer that.

[00:38:54]So, I'm like, all right, man. I can't do business with you. Just you're going to have to give me my money back, whatever.

[00:38:58]You know, break it down to me. So, he ended up breaking down to me exactly where he spent the money. He ended up owing me $5,000 still, which in my opinion, he owed me 10 just basically based off the numbers. But it was just so much of a headache cuz he's like, "No, because this costs more this and that." And I'm like, "We had a whole deal structure. We had to itemize and everything." It still it was like a so back and forth game. But, um, he ended up working for me to finish the deal.

[00:39:23]like he ended up coming doing like some drywall stuff and stuff like that. So y'all mature did the mature thing and worked it out like man like no argument like y'all y'all >> man that's tough that's tough because honestly like like I've been to enough RIA meetings the you know your local real estate meetings like to know I've >> been to a lot of AA meetings >> you know [laughter] NA meetings >> I I've been to enough to know like hey bro with contractors bro I rather the way I pay my contractor when I did, you know, some rehab work. 5K a week.

[00:40:01]>> Like get it done. We check it off the list like itemize everything that we're paying for. Let me get them a like why not?

[00:40:08]>> Yeah, for sure.

[00:40:09]>> Like why not? Like 5K a week. What's the problem? You got to pay your team. Yeah, sure. I got you. But the whole big lumpsum payment, I I've heard too many stories, >> right? Heard too many stories where it's just like people getting over on people and I I think it's like, man, look, I got you. Yeah, I'm going to send you a theme song, man.

[00:40:28]>> You heard Xbox? [laughter] >> Um, but yeah, we going to wrap this up too, man. I don't know what's the time on here.

[00:40:35]>> I usually like making them like at least an hour or 85 minutes, but >> most definitely they going to see you way more often. Like, you're you're you're getting heavy into the investing, >> bro. She's a good girl. Are you guys [laughter] No, you're good. You're good.

[00:40:50]>> That's the vibes, man. We in this big ass.

[00:40:53]>> Day's not done still, bro. Are we still closing? We should We might as well tell the people where we're at. So, we came to Evans event down in Tampa. We're in this big ass mansion, yo. Right on the golf course or whatever. And honestly, we're all here. It's a mastermind. We're looking to get smarter. Uh looking to find out the things we don't already know. We're exchanging information.

[00:41:13]We're learning what's real from like what's not because we know everybody's in the industry. And I got a lot of insight. I got a lot of insight. Came a few days later. You know what I'm saying?

[00:41:27]>> Yeah, I did.

[00:41:28]>> But overall, that's kind of why we turned the cameras on because it's like, bro, I'm mad I'm not recording this right now. So, this is episode whatever it is. And I want to honestly try and get a podcast in with literally everybody in this house. However, I'm going to make that possible. So, tomorrow's the last day. But yeah, man.

[00:41:47]Like, I was like, "Yo, we got to chop it up because we're in a house full of people. We all sort of do the same thing or people have their specialties. Some people are great at funnels, ads, and this and that. But for most part, the theme is business funding and all day that b like the sales bong is going off like like crazy. Like buddy did 18k today by himself. You know what I mean?

[00:42:11]Like just I'm reading the tech, you know, so sales sales people are closing setters, all of that good stuff. like energy is where you need to be. So, you got to get around like-minded people to actually see what's possible. You're trying to start a business, being in your room the whole time, you're trying to learn from the internet, taking all these courses, you kind of have to, >> you know, people have this get in the room type of thing, but you want to get in the right rooms where it's like people like Evan super extremely transparent with the everything about his business. even before you get to like a VIP session like this. Even in the school community, he's like always showing his numbers. Kind of like me.

[00:42:51]I'm always looking for any any excuse to pull out my phone and show my credit score kind of like. So, he's kind of like that with his business. He's very transparent giving you access to his team and stuff like that. So, shout out to him. Probably recorded session as well. But yeah, man. These type of environments like you know, we're we was texting back and forth like, "You going to Tampa?" I was like, "Yeah." I was waiting for one of my other cards to come in the mail. 0% hit the sign up bonus and all that. But >> you didn't make no excuse.

[00:43:18]>> You was like, you just pulled up like, "Yeah, go ahead." Like, you know.

[00:43:22]>> So, >> but yeah, man. Do you do you do a lot of mentorships or anything like that?

[00:43:26]>> No. No mentors? No.

[00:43:28]>> Nothing right now. Just I'm just trying to work.

[00:43:30]>> Trying to work.

[00:43:32]>> Yeah. That's been the theme this whole time, bro.

[00:43:36]>> No. [laughter] Put it in ads, my guy.

[00:43:39]after that [ __ ] 100%. 100%. Like that that's what I actually chose to do honestly. Like I should have learned ads um years ago. And you know, I got this one of my credit cards. I got $30,000 $35,000 credit card. It is going to be spent on nothing but ads. And I have another one that I was gonna I got another $20,000 $30,000 credit card that I was gonna use for like mentorships and learning and stuff.

[00:44:07]>> But it's like you do you do mentorships?

[00:44:09]>> I do mentorships as well. You know what I mean? Like but like Oh, I meant like I I teach people. I mentor people, but like I had a card that was going to be dedicated towards learning and education and making myself smarter as well. You can't be scared to sort of invest in yourself through the right information.

[00:44:26]But I'm so glad I came here because we're all transparent. Like we're not going to be like name dropping on podcast and stuff like that. But at least in this trusted community where we can just, >> you know what I mean? We're not judging.

[00:44:41]But if you've had an experience with somebody, if you learn you learn the behind the scenes of somebody else's business, we can all at least sort of have like a funders union. You know, yeah, watch out for this guy. You know what I'm saying? Because we got to know what's real out here. And like I like he just said, like I rather dump all my money into the actual ads, even learning the ads. I'm paying people for consultations and just trying to figure out the information I don't already know. Like the last thing I want to do is pay somebody that I have more funding than them and maybe they don't actually know what they're doing funding wise.

[00:45:14]That's been my greatest fear. So, cuz that's happened before and actually like long story for another day, but like what are the most things you're looking to learn from from this sort of environment?

[00:45:26]>> Just just really networking with people, man. Just learning from everybody, seeing what I can learn differently and how people are are going about their systems, their automations, their ads, just basically how they're running their business.

[00:45:39]>> 100%. Definitely. I came here to get the sauce, man. Like the exact blueprint.

[00:45:43]somebody to literally audit my business, tear it apart. I mean, recently I've been focused on my my AI apps and stuff and improving my systems. Now, it's like 10x better. I'm so obsessed with that.

[00:45:54]Y'all going to hear a little bit more about that now. Automating a lot of this stuff. But as far as the stuff that's working, we hit the whiteboard session earlier this earlier today. Looking at the numbers, looking they're they're trying to figure out how they can increase ad spend. Yeah. So am I. So, you know what I mean? But first, I got to fix my pixel. You know what I mean?

[00:46:12]like stuff like that that should have been done so long ago. But we are seeing people in the space that we're seeing people in the space organically like they're on Tik Tok live and every time they go live they just get a few clients. They're putting their number.

[00:46:25]So there's different creative strategies and that I need to be implementing myself even on the organic side. Like I go live on Instagram but I'm definitely going to take Tik Tok a little more serious now. And the same way I build up my Instagram following like non-negotiable. We're posting at least once or twice a day. It's before I go to sleep, it's happening. I could do a better job at that. But now I'm be like, I have to commit and and go live on on TikTok and preach the good word about business funding in 0% >> cuz I can never I can it never gets old, you know? It's changed my life, you know. I know it changed your life. You you've been able to get over six figures in funding yourself like easy, you know?

[00:47:05]So, we're always trying to figure out the stuff we don't know. What else do you want to let the people know before we get out of here for this episode?

[00:47:11]You're gonna you're gonna be a, you know, regular guest and all that, but what you want the people to know?

[00:47:16]>> I mean, just like learn how to leverage capital, get get in the room with people, be open-minded >> and just grow, man. Just just You may think that you know everything, but you don't.

[00:47:27]>> 100%. I know damn sure I know everything, even if I got over a million in funding. So, reminding people where they can follow you, man, like, and how they can really work with you. Yeah, you can follow me on uh Instagram, official Nathan Delgado. You can just reach out to me and help you out, >> right? Whether they need funding or trying to do a >> flip, real estate, credit repair, all that good stuff.

[00:47:48]>> Let's go. Let's go. You know what it is.

[00:47:50]The leaking 850 on all social media platforms. If you're trying to learn, you know, school.com/850, all that good stuff. I might have him as a guest in the community. If you tap in, it'll tell you how to do your first flip leveraging business funding. That's all we got for today, y'all. Like, subscribe, all that good stuff. Peace.