Raising Capital in 2024 with Steve Lloyd | Real Estate Notes Show

Episode: Raising Capital in 2024 with Steve Lloyd Full Dave's Goals and Plans: - Currently raising capital for real estate note deals - Debated with wife for months on investor payout structure (straight pref vs pref plus) - Settled on straight preferred return structure based on investor avatar analysis - Consulted with Kimberly Banks Faucet about investor targeting approach Nathan's Goals and Plans: - Initially feared no one would trust him with their money as a non-credentialed operator - Emphasizes importance of trust, respect, and transparency before capital is raised - Excited about bridging note creators and note buyers at DME Nashville conference in May - Recently connected with note creators unaware of outlets to sell their notes Key Recommendations: - Define your investor avatar first, then structure deals around that profile - Use realistic numbers and avoid overpromising returns - don't promise returns you cannot deliver - Build trust through track record and doing exactly what you say you will do - Understand that capital raising is a cash business - cannot borrow from banks for notes - Maintain transparency with investors regardless of dollar amount being raised Topics Discussed: - Capital raising strategies for real estate note investing - Investor return structures (preferred returns, pref plus equity) - Managing investor expectations and realistic projections - Building trust and credibility with investors - Note creation, buying, selling in 2024 market - DME Nashville conference - bridging note creators and buyers Guest Insights: - Steve Lloyd started with pizza shop at age 20, became Teamster truck driver, transitioned to full-time real estate at 36 - Life-changing realization: 9 properties = 18 people working daily to pay his debt; now has 6,000-7,000 people paying his obligations - Adapted from single-family homes to non-performing notes by identifying market gap - bought re-performing notes instead of competing on non-performing - Added one-year payment guarantee clause on re-performing notes to prevent reversion to default - Philosophy: adapt or die - constantly evolve business model based on market conditions and personal preferences Episode: Raising Capital in 2024 with Steve Lloyd Full Guest: Steve Lloyd Summary: Dave Puts and Nathan Turner discuss capital raising strategies for real estate note investing in 2024 with guest Steve Lloyd, emphasizing the importance of realistic projections, investor trust, and understanding your target investor profile.

Main Topics: Raising capital for real estate note investing in 2024, Capital structure and investor return rates (7-8-10%), Building trust and credibility with investors, Realistic financial projections and avoiding over-promising, Identifying and understanding your investor avatar, Note investing as a cash business independent of traditional banking Key Takeaways: Note investing requires cash capital and cannot rely on traditional bank financing | Operators must make realistic projections and never over-promise returns to investors | Success depends on trust, respect, and consistent delivery on promises | Understanding your target investor avatar is critical to structuring the right deal | Self-imposed obstacles often hinder capital raising more than external factors | Track record and doing what you say you will do is paramount to raising capital Keywords: capital raising, note investing, real estate notes, investor returns, trust and credibility, cash business, investor avatar hey everyone I'm Dave puts from jkp Holdings alongside me as always Mr Nathan Turner how are you hello doing well doing well cool man well I'm glad we connected for a few minutes today um before we bring our special guests on which I think a lot of people are excited about we kind of want to just catch up with a few people uh we're a real estate note investing show this has to do with creating buying and raising Capital right and I think for us we've done a lot of stuff with real estate um from being landlords to being creative financing people to uh buying notes creating notes selling notes um B on stage and whatnot but I think for me some of our hurdles we get through are are caused by ourselves yeah right we're talking off air with our guest before we get them in here what's your thoughts about that and how you been my apologies we're rushing through it no not at all not at all no it's been good it's been good we're uh kids are off this week from school so everyone's home and so that's extra fun oh what's what's it a holiday up there or just I February break I don't know they get a week off in February another week off in April and so oh my chill that's pretty nice no it's been good yeah yeah you know we're talking about raising Capital today and I'm in the middle now and the truth is especially in notes especially when you're talking about notes it's a cash business yes like you're not going to get it from a bank and so you've got to know how to do this outside of a bank yes cash is King you have to have cash to do this it's not you can't borrow money from a bank to do this so yeah so it's an important topic so I'm glad we're we've got our guest here today and we can talk about that and I'm excited to learn some stuff because I'm raising Capital myself right now yeah yeah and I think for us uh we often you know because it's it's a great concept they've got it's great idea and they may even have experience but if they're over promising you as the operator you have to make money otherwise it's not worth it for anybody so it it's Paramount Paramount that you go into it with realistic real numbers you know exactly what you can and cannot do that's a big big deal any we'll get into all that kind of stuff yeah yeah I totally agree with you you know when we first got started in the real estate space I didn't think anyone would actually give me their money yeah why would anyone I'm not a stock broker I'm not a XYZ person I I think that we find it very hard to believe anyone would trust us to do what we do and now looking back at it I can understand that fear yeah right I can understand that concern the fears and worries with all that but I think for me making sure that people trust respect and know what's going on before it happens right if you're raising a dollar or billions of dollars it's still that trust and respect that you have to have yeah absolutely and and so much that comes with the track record and just doing what you say you're going to do and that man that's such an important piece of it and just yeah absolutely right so before we tune into our special guest which I'm really excited for and I know a lot of people are um we want to make sure that people know that the uh DME tickets for Nashville are for sale that's a conference for no creation creators as well as note buyers it'll be down Nashville the N May uh awesome experience it won't be just note buyers it won't be just note creators we're merging the we're bridging together and marrying the two and making things happen um yeah super excited I was just talking to some guys that are creating notes just over the last couple of days inspiring and I have never for I've never forgotten that moment I have 18 people that I don't know they're going to get up and write me checks to pay for my properties but then pay down my debt and today I think I have about I I couldn't even probably six to 7even thousand people um that get up and go to work for me and pay down my debt yeah so if that doesn't get you going to own real estate I I don't know what else can get you going but that was very an in influential night for me what types of things have you got involved with have you done only single families have you what other areas have you only done landlording what have you done in the no I I I think in this business you have to learn to adapt I call it adapt or die so you know I think going back you know 10 or 11 years you know when I when I was into you know the single families then the world of the note business came on um came about and you know um I used to be a part of PPR where Dave was and you know decided to go out on my own and um own Stone Bay Holdings now with my uh my part Carrie fakes um so you know I went into the non-performing note world but we went into it a different way you know everybody was buying non-performing notes and I didn't want to do the work so there was a lot of work in doing that so I had this idea and believe me no college education I just always think back I just always try to think what's rational what's easy for me what works for me and the things that I don't want to do so when you guys were all buying these non-performing notes everybody wanted to sell their gold yeah and the gold was to you know to buy these notes get them to perform but I was thinking get stuck in our worlds right and we we need to really keep networking with each other realize that we're all here to help each other out um but we also seem to forget about the little things of what the people we're talking to may feel like either if they're experienced investors or not experienced investors or if they're young or if they're older that their mindset is totally different from what we may be in we we may be in an active buying mode where others may not feel that way and I think that on the flip side we get struggled with like do we really raise money at 7% 8% 10% how do we manage that how do we manage that expectation yeah and being real with people and then what we ultimately want is really living our best life through real estate investing absolutely and it's it I can't tell you how how long we debated my wife and I on how much we were going to pay our investors and are we going to do just a a straight pref or are we going to do a pref plus something uh and we kind of went around and around for a few months really uh just batting it back and forth and trying to decide what was the right number or what was the right structure and in the end you know it really goes back to it was actually conversation with Kimberly Kimberly Banks faucet back in the day and she said uh she she said you know go from a different perspective and find out who's your investor yes what's your investor Avatar who are you looking for and go from it from that perspective and that changed everything for us and and uh that's where we settled on where we are today with just a straight pref and and part of it also is you know we've done this for a few years now and really look at the numbers what can you actually do don't overpromise oh my goodness you can get yourself into so much trouble I've seen it happen some other people and it's it's really sad is someone who's legit who wants to do it wants to get things done and doesn't let others control him which is awesome Steve how did you get involved in real estate man give a little quick story about your background which is always cool so background going back um to my early 20s I I started working at a actually before that started working at a pizza shop when I was 10 at 20 um I ended up buying the piz shop um did that worked my butt off I was actually a union truck driver um and I did all that until uh 36 years old and uh I'm sure you guys all name know Dave anhorn um we were really close he was trying to get me to buy properties for years he was a real estate agent back then uh what you know 20 years ago and um you know well he finally took to took me to a meeting down in uh Wilmington Delaware and uh completely came out of that meeting within three months I sold my pizza shop I was having a house built I was a Teamster when the house was completed uh I quit that job and uh went full-time into real estate with no income coming in um I did save a fair amount of money that gave me a little bit of cushion but those cushions went up and down for years to come and Dave forgot to tell me I was going to need a big bottle of Advil um but look the journey for me was just to consistent Journey um of getting into getting into the single family um houses in the beginning and you know one thing that just kind of blew my mind after I uh owned about nine properties um I was sitting there one night and I'll never ever forget it and I was sitting there and I'm like husband and wife are run to me had about nine properties so that's 18 people that are going to get up for me the next morning and go to work and pay for my debt wow and man that just stuck with me so hard and was so and uh you know again what we've seen over this last year year and a half where there's so many of these note creators that don't know that there's an outlet and so we're going no no no absolutely 100% we want to buy your notes let's figure out how to make them the most valuable that we can for you uh and and the best kind of notes that we can buy so we're excited to bring all that together and have everybody come together um I'm also putting in the chat for everyone there that uh Dan deppon had nicely introduced me uh on a uh call uh that we'll be he'll be having shortly uh it's a live note investing kind of course uh we'll be talking so the the link should be in the chat hopefully everyone got it if you have any questions feel free to reach out and take a look at it cool so Steve yes it is awesome to see you my man um it's always a pleasure speaking to you I think that uh I can say enough you are one of the most respected guys in the space that even from the first time you meet you it's been awesome so thank you very much coming on our show and spending some time with us of your wealth of knowledge and experience y well thanks for having me on here usually I get uh when people first meet me they don't like me because I am definitely tough I am to the point I avoid all the that comes out of people's mouth um I can read people well I can tell you how much real estate they own what they're doing and if they're doing good or not um and I usually lay into them pretty hard but I can't tell you how many times um you know after I talked to people five or six times they've told me man you were really tough in the beginning I didn't really didn't like you too much uh but now we kind of starting to love you so um I kind of like being tough because it it is what it is man there's just no around owning companies and business and trying to succeed yeah absolutely and I think for me um understanding what that looks like right why is everyone selling their rep performing notes because now they're paying right and I just started buying them from everybody and I bought millions of dollars of reperform me notes and then I actually put a clause in there that they had a guarant that payment for at least a year wow um because when you used to get those notes reperform me you know four or five months if the note work the workout wasn't done correctly then they could go back into default and I wanted to have help from the person that was communicating with that person but you know that was just a creating a win-win situation and a bad time um for a lot of people's lives back 13 14 years ago and then I you know got into the performers I was at Temple University we were actually doing a lot of student housing then and that um not sure if you guys know Brian Adams there was a couple other guys that started approaching me because I started to slow down in the business um and you know I was Raising Capital had a private placement memorandum if any we're going to talk about a little bit of raising Capital here I think everybody should have a Securities attorney if you're going to get in the raising Capital you absolutely have to know the rules of the game and that starts with a with an amazing Securities attorney because they know the laws they know what you can do and what you can say and what you can't say so that was a um a key part but you know what really you know because be you know if I went back years ago I was Raising Capital but now I'm actually I do a lot of lending myself um for people that are doing deals um but that transformed into a couple guys started calling me um about apartment buildings because they were raising capital I was Raising capital I got to the point where I didn't have any places to I kind of had to stop for a little bit because I didn't have enough places to deploy it um but the apartment buildings you know when Brian Adams came looking for the consistent return they're really looking to get rich quick and make a big return on their Capital me do you think that's a right mentality for a 30 or 40 year old Looking Back Now no I think uh you know I always tell everybody when I when I Mentor uh people in their 20s and 30s look for a consistent return over a long period of time because they don't understand compound interest when you lose money man there's a long way back from that loss but if you take consistent returns and I look for investors that want Fair exchange my life is about Fair exchange I want my investors to wholeheartedly want us to succeed for a long period of time and I look for the investor that wants that it's it's a fair exchange from us to them on wanting us both to succeed and and and have that Journey for a long period of time and that's about about consistent returns and compounding and educating them so it's really I actually look I think anybody if they you know you do something enough times you have enough conversations you can raise Capital if you want to but then there's a lot to go in that Securities attorney how long you're going to keep their money how you're going to pay them back it's really easy to take people's money but I don't take people's money but I have to have the ettic strategy when I'm going to pay them how I'm going to pay them back you know a lot of these people out there I see they they take the money but they really don't have the exit strategy of when they're going to pay the person back and that day will come so you know for us you know what I'm doing it you know we take them for a term it could be a three four year term but then I'm calling them actually a year before and go hey you know I do other things before but at that end I'll call them nine months to a year before and ask them you know when do you think you're going to wonder your back your term is up in uh nine months to a year do you think you're going to want your money back or do you think you're going to want to extend now when I get to that to me and said hey look you know we got this building down in Georgia um we need to raise $10 million that we actually split the deal um another partner came in we raised the capital Brian Adams ran the deal and um I actually didn't have to do anything after I did my part and uh that apartment building actually changed my life so you know today I actually do a lot of private lending I still own a lot of rep performing notes we buy mobile home parks and apartment buildings um so that's what I'm that's the core of what we're doing today so you know don't always think you have to do deal with the same thing all the time for years and years you you have to learn I learn how to learn how to adapt my business I always had to see what like the next thing that was coming and you know one of the things we did in the apartment buildings where we were buying the irregular apartment buildings um that you see um but we actually to you know regular household tenants um we actually two years ago we switched to student housing so today I own one on the University of South Carolina the one on the University of South Florida and uh Texas State University so we made that uh transformation to go to the um to the student housing part because you know when things start getting hot people see apartment buildings got really fueled about three four years ago we had to adapt because we were going in the apartment buildings three four years ago where there was only 20 25 people bidding on and then there all these apartment building gurus come out there start doing all these seminars everyone flocks to them they think it's easier it's all hard man whatever you're into it's all hard nothing's easy um so we had to get out of the space because that that that space was being run up um in price and you know there was 50 60 100 people building bid bidding on one apartment building um but now look it's turned again because of the um higher interest rates you know now most of those people are falling off and a lot of people are going to default because they went into the um U the higher interest rates variable loans which we don't get into right so you raised money at a young age right I think your ambition to do that is not in everybody do you disagree with that you think everyone can raise funds raise Capital well it's it's what you it's what you know what is your plan what are you going to do with the money you know I heard you guys talking a little bit earlier you know off air um you know everything is disclosure in when you're raising Capital when I sit with people when you talk about rates of returns I think it's you know the people that get into it in the beginning they think by they're going to lure people people in by giving a higher rate return you know I just you know I think that's a a demon um because that can cause a lot of problems you have to know when you're raising Capital what rate of return with the assets that you're buying works for your model that model might be for you 6% 8% 10% look I know a lot of people in the note business were raising Capital at a higher rate because there was more there was more juice me bones right but into that those notes came way down and if you were paying 12 133% probably getting your ass kicked so when when people come to me and and they approach about giving me money and investing with me I actually basically I interview them today I go you know what are you looking for what's your time Horizon are you using your IRA or you using your self-directed IRA because if they go into these high rate of returns the fantasy I just go look I'm just not for you but and then it goes into age categories right I don't even when when I'm in the middle of raising Capital if I am at that you know if I'm in a period where I'm raising I don't really talk to 30 40 year olds because they're looking to make the hire the kill they're not six month point they got to give me an answer like because I have to plan for that I can't wait a month before their terms up and then tell me they're going to need their money back or they want to reinvest because I got to make sure I have things for them to reinvest in gotcha and it takes time to turn things around like you can't whether it's a property whether it's a note you know I need my money next week well yeah so this is kind of funny actually me and Kerrie found this we found my flip chart and when I started out it was really you know you can tell somebody verbally about anything but they really don't get it until they see it right true so and I used to I used to go around and sit with people but I would literally have like a 10 page little book right and I would just flip it and I would take them through okay this is kind of when I was at Temple this property is going to cost me 225 the rehab is going to be 125 if I take your money and pay you a rate of return I'm going to end up here and we'll be at 75% loan the value right because then when I'm done my rehab talk about rehab and properties and uh when I'm done the rehab I'm going to be at um Allin for it was 330 it was actually when I was doing duplexes at Temple it was all in it I didn't want to be over 3375 because I created Equity I never have bought Equity so when I would do that refi with the Commercial Bank I knew my property would have to appra for 450 Grand it's crazy I how I remember this so if I was buying that duplex and doing that rehab or Bill I knew I couldn't it I could go over but I knew my goal was to be at 3375 because if you do the math I would need an appraisal at 450 then I could go to a Commercial Bank after I had my tenants and the co-signers of the parents I know that 75% of 450 is 3375 so let's go back a minute then i' be end a deal with no out money out of accom me but I'm not a builder and that process can be painful and I called a couple Builder friends and they say like Steve you are not a builder you got to go hire a builder you got to go through that process you're not going to sleep at night sell the property and let someone else do what they're good at and that's why I think me and Carrie have done a tremendous job in building our company is we don't try to do everything we created a company where we put people in place um uh we have strategic partners that we do a lot of business with and we share in the assets sometimes we do part Equity deals sometimes I just lend them money to do the deal um so I don't try to do things that I'm not good at I do the things that I'm really good at what would you say I know a lot of people always ask like you know raising Capital seems like a nice fun thing to do and a lot of people get stuck finding the person right it seems to me is that you know you're not looking right but where would you say when you first got started were you going to find someone to get capital from Were You live events talking Aras or was there something different that you just took a different angle because you're not the typical cup of tea out there that does things that everyone else does yeah look you start out with friends family people you know if those people won't lend you money you're screwed so the first person that lent me money was uh my best friend he let me $35,000 and then it led to his neighbor um and then it just led to people that had confidence in me um to take their money and do the right thing with it you know um that's how it started out with me and you've never ever seen me in an event raising capital in front of people that I don't know I just think it's more of a challenge R is more of referral based um I never go to people that I strategic Partners Fund their deal so I have three apartment building guys that go out and look for apartment buildings they've been Masters At This they've been all three of them been doing for over 20 years so remember I said do everything that you're good at and stay focused I don't want to go look and evaluate apartment buildings because that's a a hell of a job to get involved in but I am good at raising Capital so I had this idea when I started doing this going back about six years ago um my three strategic Partners in the apartment building World they go find the deals and then they bring them back to me and we decide which ones we're going to buy and which ones I'm going to fund and how much they're going to fund and I'm going to fund and then I have like six or seven people um that I fund all their rehab um um deals okay so you know look everyone goes I'm hearing this right now there's not deals out there there's nothing to buy it's it's always all it's all in your mind that you stop putting an effort in looking for deals because you hear it from somebody else sure right and that gets in your mindset that nothing's going on you know look I have strategic Partners up in Pennsylvania I have a strategic partner in uh Chicago um a strategic partner in Jersey and they're they're struggling to find Deals they are but you know down here in Florida there actually there's actually still plenty of deals to find so it's just always pressing ahead and not getting the mindset that's nothing OFA I I love when people say you know that there's nothing to buy it's just you're not working hard enough it's called too so if you're I'm a big Tony Robbins guy you know when things slow down and uncertainties going on that's when you should be looking at your inside office your employees who you're dealing with what you're working with your structures things that you need to will be good for just running my company in itself right yeah and and you said earlier too like and then those are the kind of people that are looking for that long-term consistent return versus the I'm gonna make a million dollars on this yeah on this project or something you know one thing I told you what I want to talk about when we before the interview started was the entrepreneur not paying attention to their Roth 401k within their business and I don't want to hear that you make too much money it's it's not $6,500 you know me and Carrie get a tremendous amount because we have employees so you have to educate yourself on a how to do that but man most entrepreneurs they dump all their money into their business which is the most taxable part of their life um when they sell that property when they flip that property um um even when you hold that property past a year it's still 20% I think it's about 22% in tax you got to pay long-term short-term capital gains but one thing that I've done really well with is my four uh 401K 41k 41k in my within my not solo within my company um Carrie has she's part of it there's like five or six of is part of it but you know when we play this out when we're you know let's just go with a little scenario if you play it out to 65 or 70 years old and let's just say you have $500,000 in there and a raw 401K when you're 70 years old and you can make 10% on that that's $50,000 a year taxfree that you can take without touching the principle and I want everyone to go into a compound interest calculator I was talking to a 43 year old the other day like man I only got like $140,000 in there say you only got 70 so my pocket yeah that's awesome let's go back your first fund you created right without getting tuned the weeds were you nervous were you excited were you forced into it where you're just stuck what happened there that first fun I think I met you probably 2013 we at a conference in Jersey I think you're raising like five or eight million that was your one of your first I believe and you no actually actually when I went I hired a Securities attorney his name is Craig sapetti um he's out of New Jersey yep and we just had long conversations over about a two or three month period of uh how the struct would be writing the private placement all your disclosures risk factors um educating them about who what I've done where have I've come from how much business I've done how many flips I've done um we were actually doing it to buy notes um no because I I think when you do the beginning process which can't be like all right let's just go raise money I think that would have been fearful but I felt pretty good about you know once we started taking money it's pretty incredible we were um it started with me raising capital and then we were helping another company out we were investing in their private and they were actually already paying us a rate of return When I gave them money so we were instantly profit profitable in the first month so it all comes down you know fear will limit everything you know we talked about fear earlier it's more I'm fearful of not succeeding if I don't do the things I'm doing I'm not fearful of doing the things that I'm doing I'm fearful of not creating success for me and my investors but no we had a really if you have a really good solid plan of who you're raising capital from you have your private placement you have your securities attorney you have the plan of what you're going to do with their money don't know or I just meet to try to raise Capital it's it's starts out with people that you know um I think by giving them the plan the structure of what you're doing I think that's key um getting you know I said taking their money then the most important back educating them how they're going to get their money back but no it it was it I just believe it's too much work to go to people that you don't know I think it's you know um I would bring in an investor that I knew 3 months later I would call them am I doing everything I'm supposed to do I was really big in network marketing so I learned this when if I've had Harry that lent me so much money after three months six months I'd go back to Harry and I go har I could really appreciate it put me in front of three people that might want to invest um with me like you have yeah because they're your best marketing people are your current investors so once you get a couple and they go look they're not they're busy people you're I say three people to them kind of work like network marketing I I went to Harry and go put me front of three people or ask three people they might want to invest and you give their you give them your experience that you have with me um and he bring me back one person he wouldn't bring me three so just a reminder for everyone this is recorded yes there'll be our podcast as well as on our YouTube channels they're available um we had a couple quick questions uh one came from a different Source where um do you ever go to an event I know you I don't think you're a big golfer but if you were going to a sporting event do you ever bring up the fact of your what your job is what you do deal flow CU I remember when we first met you said what's my job I I raise Capital that's my job yeah well I think I think a big mistake is we we get diarrhea MTH mouth of telling people how awesome we are in real estate we talk about our real estate properties you talk about what your needs are so I might bring up my business but I talk I think it makes it easier right so it's almost like doing a mock raise or a mock raise into a mock investment in knowing um all of the things that could go wrong we all when people come to me for money all they do is tell me this is what's gonna go right and then we're gonna kick ass amazing I'm like all right well tell me what tell me what's going to be not amazing if this works out if interest rates go up yeah um if your project gets delayed I want to know all these things you know it's just about to be logical what you're investing in because a lot of people come to me for Capital to do groundup construction and I I just really don't want to do it anymore because the process I can't tell you out of 10 people that I've helped do that it's always extended out a year the project never gets done on top have you ever gotten raw land that's a big one right now I've seen a lot of have you ever yeah we're hearing a lot about that these days raw I have it I have to admit that I think I'm a badass but I'm not a badass in I'm going through that process right now yeah I'm going through that process right now where I have a property on cesta key which I should actually knock it down and rebuild it um this is a good point so I have this amazing property on cesta key and it's from 1950 and it does about $400,000 a year in Revenue it kicks ass awesome but the play here really is and I'm going to sell it um soon I've made that decision but the real play is to knock it down and rebuild luxury Penthouse condos on the property because I got a 12,000 foot lock but I'm not a builder so I'm not GNA do it you know I want to do it I think I'm Mr badass I've I've accomplished everything so far that I wanted to I got more goals I got more accom about what my needs are so I I used to tell people don't even when the downturn I was like man you brought up being a real estate investor people were just laughing at you that you got your ass kicked 14 years ago yeah so I mean when I would go out and talk to people I didn't even bring up that I was doing real estate I would bring up that I rais capital and um I would bring up self-directed IAS I mean that was really cool when I walked into a restaurant or a bar setting and I go hey what do you do for a living right this classic setup hey what do you do for a living hey I'm a plumber oh what do you do for a living and I would I wouldn't say I did Real Estate I said I rate capital for a living um and I teach people how to use self-directed IAS boom that second part of that was amazing because people still don't understand self-directed IRAs but then I got them asking me questions yeah instead of me asking them for anything and I'd be like you never heard of self directed IRAs and I would kind of like mess with them that make them feel like a tiny bit of a fool not crush them um but I can get away with that with my personality and there they would just want to learn more and I would say Hey you know let's talk and I'll start teaching your self-directed IAS you just don't have to be in equities um there's a a great opportunity to Mo move to self-direction self-directive IRAs and um you can basically invest in a bunch of different things not only real estate but companies and different types of assets so that was a big a big game Cher for me so Jordan on Facebook asked where do you Source the deals you buy where you get your sources all right so I am really different unfortunately um since I have a private placement memorandum and I do raise capital I actually call them strategic Partners so I I help my part these people start to hit 60 65 they actually don't want to be stock market Equity anymore they want that more consistent safer return being secured to an asset or assets and a fund yeah totally agree and there's just so much money out there in in IRA and so little return for um the equity markets usually not saying you can't make money in the equity markets but uh I think you can have that consistent return over a long period of time for your potential person that's going to give you money and you're still finding people that that don't know that they can self-direct is that common oh well just take go outside of the real estate world I mean look you you go Dave earlier you said you don't you never were at the real estate meetings well the real estate meetings all those people want to make a lot of money and they're looking for money yeah I never go da the last time you see me at a real estate meeting 10 years ago never never I go to meetings where it's not real estate based because I need to educate these people and it's kind of like you got the blue ocean and the red ocean right the red ocean is the real estate meetings where you got a bunch of sharks there you know everyone's trying looking for the same thing while the blue ocean is going to a meeting where it has nothing to do about real estate like a dental meeting right Nathan yeah exactly exactly dental office me meeting you know a doctor's office meeting attorney situation that they're just not familiar with at all just you know there's with social media there's so many different groups out there just to get into get it get into different groups I go to a men's group um here in Florida so a men's group there's a CEO's group um that I haven't gone yet but I'm going to go next month I'm going to go to that group these guys own all kinds of different companies I'm gonna go tell them what I do right so it's not always the real estate meetings that you need involved in and look the CEO group CE CEO group change because you know I feel like we're in a little type of winner right now we are um I am still doing a couple deals but I'm planning for what I see coming in the apartment building world coming up um at the end of this year and the beginning of next year it's awesome look if you want to raise Capital look you absolutely have to master self-directed IRAs so let I was about to go there shift there I know I'm Gonna Get You On Fire with it so tell us what why self-directed IAS what options are there and what are your thoughts if you're back to being 30 or 4 or 50 what would you be doing with your money and why do you love self directed so much I know why but go ahead 50% of the capital I raise is from self-directed IRAs and when you raise the money from a thir say a 40 or so let's say a 50-year-old with their Ira money they're not going to probably use that money until they're 70 years old if they're successful they're going to use the regular money they're going to keep growing that Ira money so when I take I self-directed Ira money from someone you know even if they're 60 they're might not ever take that money and it'll be inherited what'll be given given away to their family so I know that I'm going to have that money for a long time because they can't go and buy an owner occupied they can't buy a lot of things with their their Ira um no with their regular they can buy a lot of things with their regular money but the IRA would be limited on certain things of living your life if they want to go on vacations and things like that they're going to use up their regular money and they might need that back for you know they might need the regular money back when their kids start to go to college so there's a lot longer time span having someone's self-directed Ira money and and educate them that they just don't have to be inequities because from what I see when you only got 90 but he had 140 and I said okay when do you plan on using it which you probably never will let's play it out to 70 at a 9% return and you're G to only add it I think we were adding like 10 or 15 grand it came out to 1.4 million do only adding 10 grand a year and if I then I educate them at 1.4 million at 10% that's $140,000 a year taxfree yeah you can lend money with that the bulk of the money that I lend to other individuals is through my cama self-directed IRA and I charge points I get security you know the question before the show was you know part of security you know I only when I lend money and if you take somebody's money you got to look at what the way commercial Banks do it like I'm telling you I just lent money to my best friend on a deal it went went through the attorney's office Title Company whichever State you're in um it was a first lean position I do seconds because I don't care it's all about loan of value and Equity after repair value but he had he had a it was a first mortgage um got named the insurance policy gets recorded at the courthouse and then I actually made the wife sign and she's not even in the business and the reason I did that was because if they own a house together and they're both on the deed and I make them sign personal guarantees if I only make him sign the personal guarantee then I can't go after their personal asset up and above the property that I lent on so if you don't want your wife to sign and I'm not lending you money right and you need to learn both sides of it because I think you know I just turned 56 and I'm actually not my apartment buildings because they're my big tax deductions in a year but in my private placement memorandum I'm allowed to lend money for rehabs and Bridge loans got to put the disclosure in there but I have options within my private placement memorandum with a lot of people don't do you need to start off though like if you're just getting started out do you need to have it in one asset class and then later you can expand once you've got a track record or do you think it matters no I don't I don't I don't think I I think I think when I talk to people that um invest with me they like just the options you know what if I was just apartment buildings and Hell went into a hand basket right it just went bad well we're all freaking screwed right but we do look man we kick ass and that's partly because we have options within our fund to follow what's going on and what we should do we can always lend money right and no one call me for money I'm not going to give it to you so I'm very specific Steve to and I'm telling you um you know it takes about a year to get involved with me it just takes that long I got to do serious backgrounds on you and follow you and see what you're doing but anyway yeah um no I don't I think you can start out all what you're what's the number one thing in real estate that you're going to do if it's only one thing okay but it if it's you know you want to lend money maybe the lending money just got to learn how to do it because it brings in the revenue it gives us a consistent cash flow um I lend a million bucks three points 30 I only send out you know 970 Grand so I'm already ahead of the game I do have problems with that even if I have it structured right so I'm not sending out a million I'm only sending out you know minus my points and whatever else I have in there attorney fees or whatever so somebody comes to me for a million bucks I'm sending out 970 not a million has it but my smaller stuff you know my smaller stuff is two three million four million but I'm actually selling all my CS key stuff um and taking that Capital um I might do a 1031 exchange but probably not I want have access to that cash and then I'm going to be lending that money out and I'm going to be lending that money out at three points 12% and you either want the money or you don't is that typically what you're doing a lot now with your money you're lending it out or is majority of your money going to apartment complexes where's most of the money going or well remember you know adapt or die right so there in the apartment building world there's really nothing that we like that we see that we want to buy interest rates have gone up too much yep um and people they're starting to get in trouble but these people with the variable rates two years ago it'll intensify at the end of this year so I'm doing a lot of ly a lot for rehabs um yeah mostly rehabs but I do bridge loans too guy was selling an apartment building buying an apartment building so I let him a fair amount of money um because he had to he had a purchase before he sold his property so um um let him the money do the purchase and then after um he sells and he'll pay me back um so a lot of bridge loan lending I just lend a guy you know a large amount of money he was actually finished a rehab the other hard money lender wanted to be paid back because it went past a year but I lend him at 50% loan of value so that'll probably last five or six months so a lot of lending for me going on right now I don't want to do a lot of work and how much work is there to lend people money not a whole lot paperwork attorney send a wire get paid at the end of the month yeah absolutely and that's what kind of has you know you know it's you know as I get to 56 and I start approaching 30 start approaching freaking 60 um I will just be one big lender because I want to travel the world yeah I want freedom so been a deal that you wanted to fund and just couldn't or for whatever reason didn't yeah I mean the main reason is having too much with one person right there has to be limitations so you know I love my strategic Partners but I only go so far with them so there might be a cap of I only give them three or four million I'm not going to go out I don't think it's good for my investors that I give go out and give you know one guy 15 or 20 million um this the risk factors go up they got too many deals going on you know I really look even the people that I do business with that I've been doing business with a long time how many deals do they have going on what can they really happen you know uh one of the things that we just started doing is I make them get insurance policies now life insurance life insurance so if they have more um than 2.5 million with us they have to get a life insurance policy in case they kick the bucket and we get paid back to cover um the ass of my investors so we just actually started doing that and a couple of them we like I'm not doing that I'm like I'm not giving you any more money it's always it always it always turns when you say we're not giving you any more money we're not doing that it always turns and they call me back the next day and they we'll do whatever you want right in in your years of doing this if you look back to your younger self what would you told your younger self to either stop doing or do what would you be your advice to your 30-year-old Steve man I can tell you when I got into the business when I was 36 years old I've been in this business for 20 years now um you know I I remember when I the first two years I own the title company I own the construction company I was in charge of the flipping you know we we wanted to own everything and I think I talked about that earlier I don't want to own everything I want to own what I'm good at let the title people make their money let the construction people make their money it's the biggest mistake and I see it going on to guys that are in the business two or three years and they them I will show them tax returns I will say you know ask for tax returns you have to go look at their history what kind of deals have done ask around about them right you find out a lot but I see so many people make the mistake they just meet someone someone's a good talker and they invest with them and then they're screwed two or three years later look ask for tax returns ask to go on their back account ask them you know get information on how their company Works meet the people in their company and if you're gut has any queasiness at all don't give it to him make sure they have the a Securities attorney talk to their accountant talk to their Securities account do your due diligence because there's just too many not so great people out there wow it's funny when I when I have somebody I'll go hey you want to go on our bank account they're like what are you talking about like yeah you want to go in our bank account I'm going to show you money going in and going out you want to see our tax return you know the tax return is a funny thing because you got a lot of depreciation in there um and you're you know a lot of stuff we're getting a pref on and you got to educate educate them on say hey there's a prep going on here but we're going to sell three of these apartment buildings and this how this is how much Equity have and this is the money because you know two years we made crazy amount of money last year we still did well but we didn't make the crazy money last year right this year we'll have a good year but we didn't sell anything last year so and it's a good way to create that culture with your investor every year we have a holiday party um it's in November we didn't have it last year um we had it the year before I had 200 people there um this year we have our holiday party out of 12 years we've been business I think we've done 10 of them we had a we missed two years of Co I think um nine or 10 we've had but that's a great thing where all our investors get all to be in carrye from a really good um investor um to a whole another level with Tony Robbins now she's worked her way up she did Platinum last year and I can tell you the education it's Tony is not about Rah this guy's is amazing wow go to date with Destiny I took 10 people um a year and a half ago and I can tell you it took all of them to another level because that's the belief system that you need that you can accomplish whatever you want in your life I highly recommend you get involved it's well worth it I think it's 10 grand to go to date with Destiny it's brutal but it's worth it man is that the one step on fire and all stuff n that's the beginning one this is you know date with Destiny's intense man it's going to mess your mind up you're going to cry you're going to yell you're going to laugh you're going to meet amazing people there um but it will definitely you know it's about failing and succeeding and and having a vision and you know every morning I wake up it's 10 minutes 10 minutes of gratitude you know because we all have it good I don't care how good you're doing you still have it better than somebody else and then I do um every single morning I look out where am I going to be in five years because you know now the next six months to uh Year is already pretty much taken care of right y but when you look out five years and really where you want to be um it's pretty it's pretty amazing you have to plan for four or five years out and I think if you plan for it you look at it every month of your plan it'll come a couple years earlier so before Nathan before Nathan gets to his last question um I wanted to uh just make sure that people you know respect and understand where Steve's at um Steve you the no world kind of changes with me right yes so wanted to say you've done a lot of memorandums whatnot what are some of the key things you've changed that without getting too detailed that the first one or second one or third one didn't have that you now put in there are you more broad with what you can invest in are you doing things differently than you did a couple years ago with the old men memorandums that you would say never do that again and You' you know do something different now no I still have the same Securities attorney it's about that adapting you know we started out in the note world then we added lending then we added apartment buildings and mobile home parks I think one thing you a key Point here is I see so many people creating private placement memorandums with their Securities attorney that are focused on one asset it's either non-performing notes rep performing notes just apartment buildings if you look at mine how I adapted over time yeah mine started out in the note world but today it's all about full disclosure and risk factors right and today I can lend money I can buy mobile home parks I can buy apartment buildings um it's all about disclosures within your private the risk factors in your private placement memor so I think and there's some pretty smart guys I'm not gonna piss them off by calling them out but a bunch of high Lev guys I've helped over the past two years going you know what the hell are you just one asset when I know you do a couple different assets sure put it in there you can you just got a disclos in what your risk factors are if things go wrong and that's that's key right there to answer your question it's broadened out of the private placement because last year I bought three apartment buildings two or three apartment buildings this year I haven't bought any I haven't bought any want to own everything they want to own their own construction company they start doing business for someone else you know it it you're deluding yourself do what you're good at become an expert at the one thing or two things that you're good at and you will create massive wealth and since I say massive wealth what I did learn from when I got into the business man I wanted to make money and be wealthy you know in my first four or five years and I can tell you this what you're building in your 30s and your 40s the gold is in your 50s I know there's some guys out there that have done really well it's all a perception of what's a lot of money right but I think to can what you're building in your 30s and 40s it's the time for you to get your ass kicked right I got my butt kicked in my late 30 40s and I'm telling you it was painful um but it was weird when I got to like 50 all those mortgages being paid down um I was able to say sell a couple properties and make some good money I think a problem that I had is I wanted to hold everything I think it's a good when you know sales cures all wounds that you have right and I wasn't willing to sell anything in my middle 40s but I think you should sell off some stuff you know the guy that I do business with in Chicago goes man my M my money's really tight how many properties do you have 60 for but Uncle Steve the goal is what I'm six I'm like sell for put $200,000 in your pocket and guess what you're not worrying about any money you must have the cushions and the security blankets to succeed and the foundation and the culture you create around you is everything I have my five or six people the Dream Baby yeah ahead Nathan I'll let you end it off yeah so we always like to check in and see with our guests um you've been doing this a little while you you've changed things over time and it's all about adapter die so then what do you see coming down the pipe what's what's the next 12 24 months look like for economy notes what's the best outset class what are your thoughts uh good luck well thanks for the toughest question in the world you know what time you know what I I I listen to don't listen to other people all the chatter because I own Nvidia and it's going insane right now and 10 people told me to sell it 300 points ago so look I I actually you're gonna get mad at me and the viewers are gonna go this guy's an idiot man what I buy is what I buy and I don't I I I don't look at I'm going to double tongue myself so but I buy assets and numbers don't lie so I really don't try to figure out what the economy because if you listen to all these people we were going in a recession right yeah we were supposed to get out of the stock market six months ago right that that would have cost me 300 Grand I think I'm up 300 Grand or some crazy so just have your vision of being consistent a deal is a deal the numbers either work or they don't so the apartment building numbers haven't worked so we just haven't bought but for me it's about lending out Capital preparing for when the apartment buildings come available and now we're kind of in a phase where I think I own 12 apartment buildings over 40 million one one it's just it's just crazy man I own one that's 140 million with 980 units it's c car hard to believe that I'm a part of this stuff um but now it's gotten into I one room it's like what Warren Buffett does at the annual meeting right and people go I'm not having that meeting cuz I don't want all my investors you know all my current investors to meet other people and find other things um to invest in why not I don't want one person to have all their money with me I want to help them succeed about making a good return on their money over time with not just me or a couple other people that I might know so when I bring those it's creating a culture and all the investors come in the one room and they can talk and we have dinner they can ask me question they can ask other investor questions and maybe they'll find other places to invest in because nobody wants to have all their eggs in one basket wow so it comes to that insecurity fear thing don't help look why am I successful why is carry successful we help as many people as we possibly can read the goger it's one of the first books Dave Van Horn gave me to get that philosophy is help as many people as you possibly can and I just think success follows you so I'm 44 Nathan you're 46 46 be 47 this so we have a few years the 50s hit and I tell a lot of I tell my children I tell a lot of kids who are younger than me like mess up in your teens and 20s and 30s like just try things play with things get to a point where you figure out what you good at what you're not good at and see what you learn because a lot of things we do we learn by doing and failing and succeeding and I encourage him to try things and whatnot and I well if you don't think you're going to get your ass kicked don't even get into the business because you are ass kick but I want you to think about this guys yeah how many years you've been in the business 13 for me and Nathan's been 15 okay we're gonna go with 14 you been in this bit you're just getting started 14 think about this so you're how old know one of the things I I appreciate you're a very humble person you definitely look like you're sitting in a weird kitchen um one of his prize possessions I guess his lifelong dream uh was to own a boat and uh it's awesome to see no no you're wrong I know I know I am SAR never owned a boat I H Co I I had owned properties on cesta key and I flew down here to check on them um I got here about uh five or six days before we went in the lockdown and I I literally had a plane ticket to leave this is we'll talk about fear right literally had a plane ticket to leave in 10 days the seventh day we went in the covid lockdown I knew one person in Sarasota because I I wasn't managing prop properties I was just taking them over in the ownership from another two other people sure and I go and lock down I stayed here for like 30 days and I decided that I was never going to go home I decided to make my life in Sarasota and I didn't know anybody right I didn't even know Florida that well and uh literally six months later when the cases came down I flew home got up my house gave it all to Goodwill and drove back in my car and didn't bring anything else except what I could fit in my car and I started a whole new life and then six months later I was looking for my Dreamhouse on the inner Coastal and I was single at the time and uh I didn't want to buy this big house and living it I was going to be like depressed and I saw an ad for the Fort Lauderdale Boat Show and I never owned a boat I never owned a rowboat um never been in the water world except going to the beach and uh you know North while with all the crazy bars there Jersey got my friend talked to a couple people they told me I was a complete idiot and I literally went down uh I saw the ad for the Fort La Boat Show drove with my friend I went and I bought a boat and I've been living on it for three years having a boat another boat built and it completely changed my life completely changed my life that's awesome congrats CH Chase upon your assets because they will grow into something amazing when somebody comes to me with a deal and they go we got to do this this this and this I'm like holy I'm out that part is I'm out it's not that hard it's about being consistent with structure having the right people in your circle and building a culture yeah that's what it's about yeah well Steve it's been an awesome time with you we're going to disconnect live from the the public and have some after hours with you for a few minutes but uh thank you very much for coming on sharing your knowledge experience and being real which I know you always are uh but thank you for coming on the show for today well I wish you guys great success if you ever need anything um I I I really try to help as many people as I possibly can cool thank you very much man there's probably more like 10 that we are tight-knit we help each other we help each other through the struggles there's someone to talk to you know it's just so important to you know when you are struggling tell two or three of your friends that are in the business let them give you ideas to get out of your struggles I'm not ashamed to when I was having problems year before to go and talk to other people and look I've had very successful people come to me and you know what are you GNA do you got to turn this around this is what you got to let go on properties I'm getting all fired up here you know not letting a property go it sucks yeah know property a 23 unit um a 23 unit in Philadelphia man I could not make this thing work I was losing money every month four no I'm Steve Lloyd I am gonna make this work I am gonna turn this around and I am gonna make money man Perry's like will you get over your freaking IST egotistical and sell the property and I took $100,000 loss and it was the best thing I ever did don't try to hold on I call it the stripper pole with butter on it you know you get on that pole you got butter on it you just try to get up the top and you're just not going to make it let go good analogy so what happens if you are somebody in your 50s or 60 who has cash would like to get into the side of giving money to a PPM or someone like yourself or someone else right what would would you what would you advise them to do to find that PPM that person what would you tell them to do with their Capital how would they make that connection or what would you tell them to go look for I don't know well they better do their research you know you got to dig in um you know if you have capital and you're looking to deploy it I mean things that I do for my investors they can go on our bank account because I can show them money going in and money going out okay I show you're 60 how old are you 60 50 40 what 44 46 44 years old so you basically got in the business when you were 30 yep now how many years from 44 to 70 do you have to go 16 right yeah yep you got so much time and that's what I'm talking about these 14 and 15 years you youve build up and learn how to create this success and you have an amazing Foundation to really just kick ass for the next 16 17 years 26 2 six years right yeah you're absolutely right I'm sorry 20 I'm off you're getting to my age 26 more years yeah that's amazing what you can do and that's why I talk about just having a consistent return on your money over a long period of time yeah because if you got a couple hundred, now do the compound interest calculator out for 25 years it's an insanity amount of money crazy amount of money yeah very cool very cool yeah it's I'm really impressed but man you know you're someone I I've really respected over the many many years um if you look for Steve's information it's it's in the chat uh please feel free to use a link you'll get information uh I can't promise he'll respond immediately he has a lot going on um but you know guys Steve's big thing is just do it just understand get educated learn research and do it and as ask questions yeah Dave Dave let me just interrupt for a second yes go ahead I I can tell you this just two minutes on this if you've never experienced Tony Robbins you should I'm I'm telling you not gonna say the guy changed my life but the guy at it going to his date with Destiny and some of his other events Carry's a platinum when I tell you it is taking hope the vision is to buy two next year and sell two the next year buy two sell two so you know I want to keep rotating these apartment buildings but I also want to bring cash in so we're not Equity rich and cash poor if I can get anything through your mind don't go cash poor it's too much stress do you think that real estate values are going to change much you think interest rates where's your crystal ball on those kind of things you know I think it's all going to be consistent around where everything it is um I if I could answer that question I'm sorry to disappoint you no none of us know you know I think we're in a time um one thing I don't like what happened over the past couple years is we had this massive doubling in real estate and we really didn't see that other side of it come down hard that's the only thing that kind of I see it stabilizing yes I see it coming down a little bit but I never saw in the stock market or in the real estate of this doubling of everything and really not having a severe pullback there's always got to be a ying and yang right yeah um so I really didn't see a selloff in the apartment building I think inventory depends where you are in the uh Country Florida inventory is building up like crazy um but I hear in the Northeast that there's not a whole lot of in inventory but just make sound good deals that's what we do you know if most people that meet with me they go you haven't bought an apartment building in over 14 months no I haven't you can't force things to work yeah Dave you said something earlier that was really important keep it simple yeah I truly as much success as we have I really keep it simple and trust your gut and and build travel the world yeah I want freedom so the no world kind of changes with me right yes so wanted to say you've done a lot of memorandums whatnot what are some of the key things you've changed that without getting too detailed that the first one or second one or third one didn't have that you now put in there are you more broad with what you can invest in are you doing things differently than you did a couple years ago with the old men memorandums that you would say never do that again and You' you know do something different now no I still have the same Securities attorney it's about that adapting you know we started out in the note world then we added lending then we added apartment buildings and mobile home parks I think one thing you a key Point here is I see so many people creating private placement memorandums with their Securities attorney that are focused on one asset it's either non-performing notes rep performing notes just apartment buildings if you look at mine how I adapted over time yeah mine started out in the note world but today it's all about full disclosure and risk factors right and today I can lend money I can buy mobile home parks I can buy apartment buildings um it's all about disclosures within your private the risk factors in your private placement memor so I think and there's some pretty smart guys I'm not gonna piss them off by calling them out but a bunch of high Lev guys I've helped over the past two years going you know what the hell are you just one asset when I know you do a couple different assets sure put it in there you can you just got a disclos in what your risk factors are if things go wrong and that's that's key right there to answer your question it's broadened out of the private placement because last year I bought three apartment buildings two or three apartment buildings this year I haven't bought any I haven't bought any in a year but in my private placement memorandum I'm allowed to lend money for rehabs and Bridge loans got to put the disclosure in there but I have options within my private placement memorandum with a lot of people don't do you need to start off though like if you're just getting started out do you need to have it in one asset class and then later you can expand once you've got a track record or do you think it matters no I don't I don't I don't think I I think I think when I talk to people that um invest with me they like just the options you know what if I was just apartment buildings and Hell went into a hand basket right it just went bad well we're all freaking screwed right but we do look man we kick ass and that's partly because we have options within our fund to follow what's going on and what we should do we can always lend money right and no one call me for money I'm not going to give it to you so I'm very specific Steve to and I'm telling you um you know it takes about a year to get involved with me it just takes that long I got to do serious backgrounds on you and follow you and see what you're doing but anyway yeah um no I don't I think you can start out all what you're what's the number one thing in real estate that you're going to do if it's only one thing okay but it if it's you know you want to lend money maybe the lending money just got to learn how to do it because it brings in the revenue it gives us a consistent cash flow um I lend a million bucks three points 30 I only send out you know 970 Grand so I'm already ahead of the game I do have problems with that even if I have it structured right so I'm not sending out a million I'm only sending out you know minus my points and whatever else I have in there attorney fees or whatever so somebody comes to me for a million bucks I'm sending out 970 not a million has it been a deal that you wanted to fund and just couldn't or for whatever reason didn't yeah I mean the main reason is having too much with one person right there has to be limitations so you know I love my strategic Partners but I only go so far with them so there might be a cap of I only give them three or four million I'm not going to go out I don't think it's good for my investors that I give go out and give you know one guy 15 or 20 million um this the risk factors go up they got too many deals going on you know I really look even the people that I do business with that I've been doing business with a long time how many deals do they have going on what can they really happen you know uh one of the things that we just started doing is I make them get insurance policies now life insurance life insurance so if they have more um than 2.5 million with us they have to get a life insurance policy in case they kick the bucket and we get paid back to cover um the ass of my investors so we just actually started doing that and a couple of them we like I'm not doing that I'm like I'm not giving you any more money it's always it always it always turns when you say we're not giving you any more money we're not doing that it always turns and they call me back the next day and they we'll do whatever you want right in in your years of doing this if you look back to your younger self what would you told your younger self to either stop doing or do what would you be your advice to your 30-year-old Steve man I can tell you when I got into the business when I was 36 years old I've been in this business for 20 years now um you know I I remember when I the first two years I own the title company I own the construction company I was in charge of the flipping you know we we wanted to own everything and I think I talked about that earlier I don't want to own everything I want to own what I'm good at let the title people make their money let the construction people make their money it's the biggest mistake and I see it going on to guys that are in the business two or three years and they want to own everything they want to own their own construction company they start doing business for someone else you know it it you're deluding yourself do what you're good at become an expert at the one thing or two things that you're good at and you will create massive wealth and since I say massive wealth what I did learn from when I got into the business man I wanted to make money and be wealthy you know in my first four or five years and I can tell you this what you're building in your 30s and your 40s the gold is in your 50s I know there's some guys out there that have done really well it's all a perception of what's a lot of money right but I think to can what you're building in your 30s and 40s it's the time for you to get your ass kicked right I got my butt kicked in my late 30 40s and I'm telling you it was painful um but it was weird when I got to like 50 all those mortgages being paid down um I was able to say sell a couple properties and make some good money I think a problem that I had is I wanted to hold everything I think it's a good when you know sales cures all wounds that you have right and I wasn't willing to sell anything in my middle 40s but I think you should sell off some stuff you know the guy that I do business with in Chicago goes man my M my money's really tight how many properties do you have 60 for but Uncle Steve the goal is what I'm six I'm like sell for put $200,000 in your pocket and guess what you're not worrying about any money you must have the cushions and the security blankets to succeed and the foundation and the culture you create around you is everything I have my five or six people man there's probably more like 10 that we are tight-knit we help each other we help each other through the struggles there's someone to talk to you know it's just so important to you know when you are struggling tell two or three of your friends that are in the business let them give you ideas to get out of your struggles I'm not ashamed to when I was having problems year before to go and talk to other people and look I've had very successful people come to me and you know what are you GNA do you got to turn this around this is what you got to let go on properties I'm getting all fired up here you know not letting a property go it sucks yeah know property a 23 unit um a 23 unit in Philadelphia man I could not make this thing work I was losing money every month four no I'm Steve Lloyd I am gonna make this work I am gonna turn this around and I am gonna make money man Perry's like will you get over your freaking IST egotistical and sell the property and I took $100,000 loss and it was the best thing I ever did don't try to hold on I call it the stripper pole with butter on it you know you get on that pole you got butter on it you just try to get up the top and you're just not going to make it let go good analogy so what happens if you are somebody in your 50s or 60 who has cash would like to get into the side of giving money to a PPM or someone like yourself or someone else right what would would you what would you advise them to do to find that PPM that person what would you tell them to do with their Capital how would they make that connection or what would you tell them to go look for I don't know well they better do their research you know you got to dig in um you know if you have capital and you're looking to deploy it I mean things that I do for my investors they can go on our bank account because I can show them money going in and money going out okay I show them I will show them tax returns I will say you know ask for tax returns you have to go look at their history what kind of deals have done ask around about them right you find out a lot but I see so many people make the mistake they just meet someone someone's a good talker and they invest with them and then they're screwed two or three years later look ask for tax returns ask to go on their back account ask them you know get information on how their company Works meet the people in their company and if you're gut has any queasiness at all don't give it to him make sure they have the a Securities attorney talk to their accountant talk to their Securities account do your due diligence because there's just too many not so great people out there wow it's funny when I when I have somebody I'll go hey you want to go on our bank account they're like what are you talking about like yeah you want to go in our bank account I'm going to show you money going in and going out you want to see our tax return you know the tax return is a funny thing because you got a lot of depreciation in there um and you're you know a lot of stuff we're getting a pref on and you got to educate educate them on say hey there's a prep going on here but we're going to sell three of these apartment buildings and this how this is how much Equity have and this is the money because you know two years we made crazy amount of money last year we still did well but we didn't make the crazy money last year right this year we'll have a good year but we didn't sell anything last year so and it's a good way to create that culture with your investor every year we have a holiday party um it's in November we didn't have it last year um we had it the year before I had 200 people there um this year we have our holiday party out of 12 years we've been business I think we've done 10 of them we had a we missed two years of Co I think um nine or 10 we've had but that's a great thing where all our investors get all to be in one room it's like what Warren Buffett does at the annual meeting right and people go I'm not having that meeting cuz I don't want all my investors you know all my current investors to meet other people and find other things um to invest in why not I don't want one person to have all their money with me I want to help them succeed about making a good return on their money over time with not just me or a couple other people that I might know so when I bring those it's creating a culture and all the investors come in the one room and they can talk and we have dinner they can ask me question they can ask other investor questions and maybe they'll find other places to invest in because nobody wants to have all their eggs in one basket wow so it comes to that insecurity fear thing don't help look why am I successful why is carry successful we help as many people as we possibly can read the goger it's one of the first books Dave Van Horn gave me to get that philosophy is help as many people as you possibly can and I just think success follows you so I'm 44 Nathan you're 46 46 be 47 this so we have a few years the 50s hit and I tell a lot of I tell my children I tell a lot of kids who are younger than me like mess up in your teens and 20s and 30s like just try things play with things get to a point where you figure out what you good at what you're not good at and see what you learn because a lot of things we do we learn by doing and failing and succeeding and I encourage him to try things and whatnot and I well if you don't think you're going to get your ass kicked don't even get into the business because you are ass kick but I want you to think about this guys yeah how many years you've been in the business 13 for me and Nathan's been 15 okay we're gonna go with 14 you been in this bit you're just getting started 14 think about this so you're how old you're 60 how old are you 60 50 40 what 44 46 44 years old so you basically got in the business when you were 30 yep now how many years from 44 to 70 do you have to go 16 right yeah yep you got so much time and that's what I'm talking about these 14 and 15 years you youve build up and learn how to create this success and you have an amazing Foundation to really just kick ass for the next 16 17 years 26 2 six years right yeah you're absolutely right I'm sorry 20 I'm off you're getting to my age 26 more years yeah that's amazing what you can do and that's why I talk about just having a consistent return on your money over a long period of time yeah because if you got a couple hundred, now do the compound interest calculator out for 25 years it's an insanity amount of money crazy amount of money yeah very cool very cool yeah it's I'm really impressed but man you know you're someone I I've really respected over the many many years um if you look for Steve's information it's it's in the chat uh please feel free to use a link you'll get information uh I can't promise he'll respond immediately he has a lot going on um but you know guys Steve's big thing is just do it just understand get educated learn research and do it and as ask questions yeah Dave Dave let me just interrupt for a second yes go ahead I I can tell you this just two minutes on this if you've never experienced Tony Robbins you should I'm I'm telling you not gonna say the guy changed my life but the guy at it going to his date with Destiny and some of his other events Carry's a platinum when I tell you it is taking carrye from a really good um investor um to a whole another level with Tony Robbins now she's worked her way up she did Platinum last year and I can tell you the education it's Tony is not about Rah this guy's is amazing wow go to date with Destiny I took 10 people um a year and a half ago and I can tell you it took all of them to another level because that's the belief system that you need that you can accomplish whatever you want in your life I highly recommend you get involved it's well worth it I think it's 10 grand to go to date with Destiny it's brutal but it's worth it man is that the one step on fire and all stuff n that's the beginning one this is you know date with Destiny's intense man it's going to mess your mind up you're going to cry you're going to yell you're going to laugh you're going to meet amazing people there um but it will definitely you know it's about failing and succeeding and and having a vision and you know every morning I wake up it's 10 minutes 10 minutes of gratitude you know because we all have it good I don't care how good you're doing you still have it better than somebody else and then I do um every single morning I look out where am I going to be in five years because you know now the next six months to uh Year is already pretty much taken care of right y but when you look out five years and really where you want to be um it's pretty it's pretty amazing you have to plan for four or five years out and I think if you plan for it you look at it every month of your plan it'll come a couple years earlier so before Nathan before Nathan gets to his last question um I wanted to uh just make sure that people you know respect and understand where Steve's at um Steve you know one of the things I I appreciate you're a very humble person you definitely look like you're sitting in a weird kitchen um one of his prize possessions I guess his lifelong dream uh was to own a boat and uh it's awesome to see no no you're wrong I know I know I am SAR never owned a boat I H Co I I had owned properties on cesta key and I flew down here to check on them um I got here about uh five or six days before we went in the lockdown and I I literally had a plane ticket to leave this is we'll talk about fear right literally had a plane ticket to leave in 10 days the seventh day we went in the covid lockdown I knew one person in Sarasota because I I wasn't managing prop properties I was just taking them over in the ownership from another two other people sure and I go and lock down I stayed here for like 30 days and I decided that I was never going to go home I decided to make my life in Sarasota and I didn't know anybody right I didn't even know Florida that well and uh literally six months later when the cases came down I flew home got up my house gave it all to Goodwill and drove back in my car and didn't bring anything else except what I could fit in my car and I started a whole new life and then six months later I was looking for my Dreamhouse on the inner Coastal and I was single at the time and uh I didn't want to buy this big house and living it I was going to be like depressed and I saw an ad for the Fort Lauderdale Boat Show and I never owned a boat I never owned a rowboat um never been in the water world except going to the beach and uh you know North while with all the crazy bars there Jersey got my friend talked to a couple people they told me I was a complete idiot and I literally went down uh I saw the ad for the Fort La Boat Show drove with my friend I went and I bought a boat and I've been living on it for three years having a boat another boat built and it completely changed my life completely changed my life that's awesome congrats CH Chase the Dream Baby yeah ahead Nathan I'll let you end it off yeah so we always like to check in and see with our guests um you've been doing this a little while you you've changed things over time and it's all about adapter die so then what do you see coming down the pipe what's what's the next 12 24 months look like for economy notes what's the best outset class what are your thoughts uh good luck well thanks for the toughest question in the world you know what time you know what I I I listen to don't listen to other people all the chatter because I own Nvidia and it's going insane right now and 10 people told me to sell it 300 points ago so look I I actually you're gonna get mad at me and the viewers are gonna go this guy's an idiot man what I buy is what I buy and I don't I I I don't look at I'm going to double tongue myself so but I buy assets and numbers don't lie so I really don't try to figure out what the economy because if you listen to all these people we were going in a recession right yeah we were supposed to get out of the stock market six months ago right that that would have cost me 300 Grand I think I'm up 300 Grand or some crazy so just have your vision of being consistent a deal is a deal the numbers either work or they don't so the apartment building numbers haven't worked so we just haven't bought but for me it's about lending out Capital preparing for when the apartment buildings come available and now we're kind of in a phase where I think I own 12 apartment buildings over 40 million one one it's just it's just crazy man I own one that's 140 million with 980 units it's c car hard to believe that I'm a part of this stuff um but now it's gotten into I hope the vision is to buy two next year and sell two the next year buy two sell two so you know I want to keep rotating these apartment buildings but I also want to bring cash in so we're not Equity rich and cash poor if I can get anything through your mind don't go cash poor it's too much stress do you think that real estate values are going to change much you think interest rates where's your crystal ball on those kind of things you know I think it's all going to be consistent around where everything it is um I if I could answer that question I'm sorry to disappoint you no none of us know you know I think we're in a time um one thing I don't like what happened over the past couple years is we had this massive doubling in real estate and we really didn't see that other side of it come down hard that's the only thing that kind of I see it stabilizing yes I see it coming down a little bit but I never saw in the stock market or in the real estate of this doubling of everything and really not having a severe pullback there's always got to be a ying and yang right yeah um so I really didn't see a selloff in the apartment building I think inventory depends where you are in the uh Country Florida inventory is building up like crazy um but I hear in the Northeast that there's not a whole lot of in inventory but just make sound good deals that's what we do you know if most people that meet with me they go you haven't bought an apartment building in over 14 months no I haven't you can't force things to work yeah Dave you said something earlier that was really important keep it simple yeah I truly as much success as we have I really keep it simple and trust your gut and and build upon your assets because they will grow into something amazing when somebody comes to me with a deal and they go we got to do this this this and this I'm like holy I'm out that part is I'm out it's not that hard it's about being consistent with structure having the right people in your circle and building a culture yeah that's what it's about yeah well Steve it's been an awesome time with you we're going to disconnect live from the the public and have some after hours with you for a few minutes but uh thank you very much for coming on sharing your knowledge experience and being real which I know you always are uh but thank you for coming on the show for today well I wish you guys great success if you ever need anything um I I I really try to help as many people as I possibly can cool thank you very much.