When and Why to add Notes to Your Portfolio with Joe Palmer

Joe Palmer from the Consilium Capital Group joins us to teach us when and why we should consider adding mortgage notes to our portfolio. Mortgage Notes are a fantastic way to add steady cash flow to our portfolio, which is important as we approach retirement.

Get in touch:

www.investccg.com

Other Similar Episodes:

Secret Multifamily Systems to Maximize NOI with Anna Myers

Tax Strategies for Real Estate Investors with Ted Lanzaro

Guest Bio:

Since 2009 Joe has raised over $44 million in Capital to purchase, develop, Lease, and sell Real Estate. Since 1999 he has invested millions of his own money in the very same deals he syndicates. Joe is usually one of the largest investors in his own deals and has personally guaranteed every Loan in every deal.

As Managing Partner of Consilium Capital Group (CCG), Joe has delivered high Returns from almost every type of Real Estate there is: Single Family, Multi-Family, Commercial, Raw Land, Rehabs, New Construction, Lot Development, and now high return Mortgage Notes.

With his broad experience, knowledge, track record, and MBA, Joe is now a sought-after consultant, speaker, coach, and mentor in the Real Estate Industry.

Full Transcript

Taylor 0:02
What's going on guys? This is passive wealth strategies for busy professionals. Thank you for tuning in. I'm your host Taylor load. I'm a multifamily investor syndicator. I'm a busy professional who loves what I do, and I love making money on the side building wealth for me and those around me by investing in cash flowing real estate. Today, our guest is Jason graves. Jason is a real estate investor who lives in Southern California and used to invest exclusively in Southern California, but has reposition to Kansas City, Missouri. Today he's going to tell us about his whole process of going from being a busy professional, a frugal busy professional, saving his money investing and staying calm while others were panicking in 2008. Buying condos and then now his recent reposition into a much higher cash flowing market in Kansas City, Missouri. He's going to tell us about taking massive action how you can learn the lessons and take massive action on your own the tools that you need to really take the amount of massive action that he's taken to experience that same level of success. Jason's a really great guy has a lot of great ideas in great practices in growing his business. So lots of fantastic lessons in this one. And without further ado, here we go with Jason grapes. Jason, thank you for joining us today. Thank you. Happy to be here. happy to talk with you again. It's you know, we met a couple months ago and we just reconnected by email and you've done a lot in your relatively short amount of time as a multifamily investor but for the folks out there who don't know give us the intro to Jason graves

Jason Graves 1:46
so said so I've been in San Diego for 30 years so almost x software sales guy should say x I'm still selling software I have a day job was with Adobe Systems when for what were $800 billion company and then I read Rohn was with that company for 18 years selling software. So I started when I was 25 years old, bought my first condo and then bought a second condo and house and kind of went from there and then just got into multifamily about 18 months ago. But we've

Taylor 2:17
done it pretty quick, nice and you've done very well in that time and you have a great story and we were talking about this and this is what I want to talk with you about. Talk about it with you. Today is your experience in investing in Southern California when everybody was panicking and way through 10 and then taking massive action more recently in repositioning into multifamily real estate so can let's let's start back in oh wait everybody's freaking out. What were you doing? And

Jason Graves 2:51
It started back in the fact that I've been doing it for a little while and and I did buy I saw the market crashing everyone there's blood in the streets. It was I couldn't talk my friends into buying condos, you know, at that time, and you know, things that were 350 ice, I was buying it 141 right, another condo at 350 I bought for 148, another condo and a couple of content doing that. But, you know, my good fortune was when it's 2526 I read the Millionaire Next Door. So I had a wife and I have a philosophy of spending, you know, really being frugal. It comes from that and investing all your extra money into real estate. Right? So, because I'd been doing that for about 510 15 years, we had enough cash to take advantage of that opportunity. And then what's interesting, you know, one of the condos I bought for my 10 year old daughter, Paris at the time. You know, it's a two bedroom, two bath, New York San Diego State. And I literally paid 148 for that condo, and I was $500 a month positive. And what's cool is I just took that 500 bucks and applied it to the mortgage for the last eight years. I'm a 38,000 thousand dollar mortgage and it's worth 350 I'm I went in and in the last two weeks Did you know rehab the kitchen painted the cat Pat cabinets did a permit. It's two bedrooms, two baths with laundry and a garage in San Diego State. It's listed for 350 and it will sell the next couple weeks. But the reason I share the story as I know how I got into the multifamily 18 months ago is I took one of those condos I bought for 141. I sold it for 350. I took that gain and rolled it into the seven Plex out in Kansas City, Missouri. Right so I'm taking a little greenhouse treating for red hotel, that 1031 exchange just moves that over and now I have seven people paying down that debt is exactly the same thing I'm doing because I'm positive cash flow positive out the gate, but now it's like $2,000 a month on that seven Plex. I'm using that $2,000 to attack my principal on that building. Now have some few people over the next five, seven years. Paying down that building. Right when I was out in Kansas City, the rinse repeated. I live in Rancho penasquitos sold a condo for exactly the same number 350 took that $300,000 I bought a 14 Plex 4,000,003. The day I closed on that building, it got a praise for $1.7 million. Right? I get $3,000 a month positive cash flow coming in. I did cost segregation. I have a $225,000 tax benefit on that one building. I have seven to 8% seven to 10% appreciation on the million seven. I mean just it's just startling. How much you gotta remember where I started was one condo I bought for $141,000. Right? That's a $2 million asset.

Unknown Speaker 5:53
So all I did that, yeah, the sale

Jason Graves 5:55
is great. It's crazy. Those three. I've traded two condos for 26. It's worth 4.6 million to talk to condos. I traded for 26 stores all in six months. That's worth $4.7 million that's on track to be worth north of 10 million in five years. And they say and you know, they say the first 10 millions artists right? So

Taylor 6:21
I believe it. So in terms of unit count over the last year and a half, you drastically increase the the number of units and the value of your portfolio. So how many units I had did you go from say, maybe two years ago to what do you

Jason Graves 6:37
know we traded two condos for 26. Then we syndicated and bought 27. And then we bought a 30 Plex and with partners last year, right? So we went from just you know, handful of condos and selling two of them. And now we have 83 doors, I wonder and then but you know I'm a solid For sales guy, right, I'm doing this my side hustle, I make good money, you know, at Adobe or DocuSign. Or, you know, like a lot of doctors or lawyers and make, you know, a six, six figure income, living frugally. But again, this has been nights and weekends. This is not my full time job. Right. But the reason I share that with you is I've over that 18 months developed a relationship with local partners, Justin Brennan is who I'm talking about in La Jolla. He's a real estate agent by day guy in La Jolla. He's a developer, right? So he's building you know, 11 Plex, and a 14 Plex in San Diego. And he knows he knows the, the, he knows the, you know, the, the building part of it, right. So by having him on the team and working and flying out to Kansas City and working with a project manager. What's cool is I've got the relationship has gotten up to a level now where my property management and that's the key of remoting remotely owning property in another state. Only Brandon in North northern terrorists invest in, you know, managing that and they developed a relationship. Brandon, the owner of that company is now investing with us. So why I say that is it's taking our relationship to much, much higher level and my broker, you know, carry on. He's now investing with us as well. So we have your broker and your property manager and you know, someone you trust locally, all pulling the same direction and building out the team is really what I'm talking about. Right? That adds a lot of value.

Taylor 8:35
Yeah, so those relationships don't start overnight. They're not formed overnight. As you decided you wanted to get into Kansas City is where you're investing, as you decided how many kind of people did you talk with or evaluate or consider in in your search for partners and kind of what set these folks apart from anyone else you might have looked at or did you You know, hit a Grand Slam with the first partnership, you know.

Jason Graves 9:04
So it's all about, you know, I'm David Lindell train. So it's about where jobs are going. And I hyper focus on one or two key markets. And then I started calling brokers. And I honestly don't remember if I reached out to Carrie or he reached out to me, but we had a short conversation. And we actually connected he's an ex software sales guy, right. So it's interesting, they say it in the books, but we did have some connection outside of real estate, and his temperament and his professionalism and we hit it off. And he in we and he, I told him what I was looking for, and he starts showing me and then I'm, I've literally been in Kansas City one time I've been there 36 hours, and I flew out and kick the tires and looked at four or five buildings made offers on two or three different buildings kind of second one under contract. But so I was doing that and I was also making I was hyper focused on one or two markets making those two broker calls per week, right I was making two investor calls per week I was making two lender calls per week. That's all I was doing. Right? That's an Dave Lindell system. But it's consistently doing that for two, three months, paid off. I locked in on one I locked on a one that developed the relationship. And he was professional. He's responsive, he understood what I was looking for. He I trust, be developed, developed a trust relationship. He loves them. So, He's lived there for 20 years. He knows the market. So he got he got me into a good deal to start and then and then he's the broker. Right? So he's got he's got a team of people that does that.

Taylor 10:38
Okay, so in this organization, it sounds like you're the money guy, you're the one raising the funds to take a building down or, you know, how does this work in terms of responsibilities for so I

Jason Graves 10:52
was able to move really quickly and by those three buildings really quick right within the first six months because I was shooting all my own money, so I didn't have to. I just had to educate myself. Read, read a couple books, listen, read Dave's books went to the training. But I think then you go, then setting up the LLC and then working with Justin and building up my team who had more understanding of the legal ease and being secure. sec. And we got through all of that. Right. And then back to your question is in regards to raising money. I actually started listening to bigger pockets. It's awesome, it's free. It's a great network. There's a lot of information. But what I did is I set up a alert in San Diego, and that anyone in San Diego posts multifamily and alert in Kansas City multifamily. So I started developing an internal network in San Diego for people. And I actually just had a barbecue at my house. So that was pretty smart. So I invest I invited just random people from San Diego but there's like 35 people showed up. So I posted that thing, you know, alcohol and food and everything cost me, you know, four or 500 bucks, but it was awesome just in I'm not selling anything. I'm not selling training, I'm not selling. I'm not trying to get the event to invest with me just to open a home and start talking to people. But what was cool is I have a couple of friends in San Diego, that I'm thinking about one of the guys my poker buddies did buy seven houses back in the day. So he was my first investor. He put 300 grand into my first building. He put 100,000 in my second building, he's on the barbecue flipping burgers. So these 50 people I'm like, that's Omar, go talk to him, right? I'm taking small groups around my house Mike showing my wall sick. That's my seven flex is my 14 flex. This is why this is the path of progress in Kansas City. I'm telling the story in my home. And so that's been good. So there's one of the doctors, one of the people that came up with Dr. Vanessa, she's a doctor here in San Diego. She came and we hit it off. She's now an investment or buildings. Having a medical doctor who knows lots of rich people is helpful. So, it was interesting. We don't, we don't want a lot of partners and we don't have been raising a lot of money. My first deal I think we raised like, six or 700,000 made it right. So when someone puts in 300 that's, you know, mostly there. So,

Taylor 13:18
yeah, that's a big fish investor and six or seven hundreds not a huge race, especially considering where you're headed and the raises I'm sure you'll be doing in the future. Now as far as it sounds like you got a lot of great results out of that barbecue. Was that your plan at the beginning?

Jason Graves 13:37
I just want to be around like minded people, right? I mean, just to get people in San Diego I can start developing relationships. I can help, I can help and point and connect people. And then Justin Brandon, my partner just having an event at the Del Mar racetrack and because it's interesting because he's a developer. He's selling real estate in La Jolla, which is kind of Beverly Hills in San Diego. So he ran out of a really big suit at the racetrack, like two to three weeks ago, we had 125 people at that event. Right. So I had an event in my house that we had that event. We're now you know, so kind of

Taylor 14:14
building from there. Nice. That's great. I mean, it's not we talk about hosting events on the show, a decent amount, and it's not an easy thing to do, to do well, to put together a group of, you know, individuals who are all interested in the same thing and to make the event entertaining or productive for for everyone involved. So, yeah, that's great that those events have worked out for you and a racetrack in a rich area of Southern California is certainly not a bad place to host an event. So that's great.

Jason Graves 14:46
Yeah. till it comes down to for me, because I've been going to David Lindell and I was on stage I told you earlier, you know, they may be invested the week, that week at the alternate partnership which was awesome was like, two years. 2000 people and I got up on stage and told the exact same story for a lot of people. And I had and I personally wrote checks to his top two or three students, right? I wrote 50,000 70,000 checks and I wrote that money into them to make them invest in syndications. Right? But it's who you trust with your money. Like the guys I'm thinking of, I really like them. I wanted to get their ppm private placement memorandum, their operating agreement, see their marketing, and I wrote those checks because I trust they're going to execute on their plan, but really want to get their content so we can we duplicate and be where they're at, because these guys own 234 $7,000 right, I own you know, I own 83. So, but it comes down to the end of the day, is Who are you going to trust with your money? Right. And it's, it was hard and when I was doing condos and houses, I didn't have to trust anybody. I was just buying it with my wife and I and we just to no one and I purposely I became the Millionaire Next Door literally. And I have a really low profile like I drive my 1986 Toyota truck, my first car I ever bought and drove, I drive that in another neighborhood, not exaggerating, and with a big old frickin smile on my face. And you know, I've never had a car payment for 50 years, I'm 50 years old. So for 50 years, right? But I became that being low on the profile being modest in my perience of what I own right and and having to because literally 50% of our income five zero has been poured into real estate that's going in has been awesome, right? And I made way more money in real estate and selling software, right. So

Taylor 16:55
but, but selling software, it pays your bills during you know As you build a real estate portfolio, and you said at the beginning that you're still a job, a software sales guy still has a day job is, as far as you're moving forward. What are your plans? And we talked a bit about that and how real estate is kind of playing into your plans over the next, I don't know, five or 10 years. You mentioned five year plan, things like that having a year

Jason Graves 17:23
trying to catch up. Yeah. So my 18 year old daughter in Paris is in college. I'm 14 year old daughter, Devin, who's a freshman in high school. I'm 50 years old in five years, we'll have 1000 doors, right? We have an absolute mechanism for that. And I'll be 55 and that the 2626 doors at 18% 18%. were predicting really 21% will be north of $10 million at 15%. That makes 1.5 million to 2 million a year. On right. So I 55 I'll read I'll be retired and and not doing software, but that's fine.

Taylor 18:02
Nice nice well that's a great five year plan as far as you know kind of working your way there getting to those thousand doors. What are you expecting in terms of Do you have to pick another market? Are you going to need to spend more time there? one of your partners is going to need to move there. You What does that look like? Because the logistics of running at three doors versus 1000 versus 234 thousand doors are completely so

Jason Graves 18:28
We are right there. So we're looking at Texas we're looking at Boise, Idaho, we're looking at parts of Florida like Orlando, it's all back to job growth right so we're taking back taking a step back and realize we're in a weird time right now. I usually no one has a crystal ball but you know, elections coming up. We've had we're on 10 year and I bought and I bought no 809 10 years ago, we've had 10 years on the market. So things could go sideways for a while. Whichever I mean, no matter where we're at, we're gonna continue to buy but we're conservative or tactical And hyper focusing we like Arizona a lot still Vegas is doing well again Phoenix is doing well. So I'm picking one or two other markets and looking and we're open but we're definitely looking to do everything I just talked about. again in another market and a totally radically different topic we're I'm we're also looking at mobile home parks Next I have three firemen that are interested in partnering with me and what we want to build a kind of an apartment side but they have a million dollars in cash. Right? So I found a nice hard part once you have some people you locally like you and they trust you and they want to part with you and they have that much cash. Now the rest of us in the place because one thing I absolutely disagree with on these seminars and they say you know, a big huge deal like 100 Plex is the same as a little deal. And in my personal opinion, that's absolutely incorrect, like doing a five unit apartment building they bought in Kansas City for 375 dollars and raising 70 grand opposed to doing $100 deal is the not not the same thing with me. So I just get on stage and they say just focus on these huge big deals. And what I really wanted to talk to you about is, you know, for the folks just starting is starting on a five Plex and figuring out the math and going after and finding 70 you know, I bought that five Plex in Kansas City. So I showed you the picture of those, you know, beautiful man the path of progress, but it's 375 right? 20 to 20% getting $70,000 even if you don't have $70,000, you might have 20 right? And you can find one partner that has 25 and go to your uncle this got the other balance and you've basically done a little syndication, but at least you got your 20,000 in with two other people that know you. You just got a five Plex that's the key is getting that first deal done. And you learn so much Much by doing right and then continue to drive down. I go back to my Millionaire Mind, but you don't you figure out how to get rid of your car payment. I know that you know it doesn't make us talk about different things but I think it's so critical to pay down and pay off your car, pay down, pay off your credit card debt simultaneously get those two things away, done. And then it frees up incremental more money to do the next deal. But I think my challenges when you go into these training and the seminars and there's 100 people, I honestly think less than 10 people 10% ever take any action because we get distracted with our job we you know, our parents getting cancer or a loss. There's so much your kids and marriage and there's so much noise in your life for all of us. right but by hyper focusing Yeah, first is really important.

Taylor 21:55
And it's hard to take that daily action that's required. I mean, I listeners, although I dropped the fourth wall in this show all the time, and we're recording this, it's 630 on a Sunday my time 330 on a Sunday, your time. And look, we're we're both working on our real estate portfolios in a certain way, but it's a weekend, man, a lot of people want to be out, you know, hanging out having fun, and it's hard to put in, you've put in literally a decade worth of work plus two decades worth of work, maybe more on your real estate portfolio. Yeah.

Unknown Speaker 22:30
Yeah, right. Right.

Taylor 22:33
So you put in a work way ahead of time and it's snow balled and then once you decided to really turn up the heat, then you had the resources to turn up the heat and really make your portfolio much bigger but a lot of people don't have that long term vision to be patient put in the work, cut your expenses, making investments and and really

Jason Graves 22:53
stick I think where you're going with is does take sacrifice, right? So you're going to have to give up You know, TV, or alcohol or friendships? You know, it comes back to watch if you really want it and what's your why right? Why do you want to become wealthy? Why do you want to become, you know, get out of the rat race you know, you know on personal level I was cut off in college and I was going to school my dad and stepmother financially cut me off and I ended up living in my truck that truck I told you about that 1986 food truck I was living in it going to college, right? Literally homeless. So, you know, showering at school, going to the library and studying, eating and eating foods is actually the hard part. It wasn't that long, but literally, you know, three months, six months, and fast forward a year half two years, years later at 20 and that's like 2223 at 25 my girlfriend and I Shelley we bought our first condo break with a gift and alone I got $10,000 for my grandmother, Eileen, and 5000 was a gift and 5000 was alone. And then for the next 10 months, we paid her back $500 per month for 10 months and she paid her back. Right. But by buying that first condo at 25 we got the tax refund. 18 months later, he bought a second one at 27 a 29. We bought the house I'm singing today then we bought houses in Arizona and Vegas, right? But those, you know, those two, three houses are getting started early and young and just figuring out cracking the code. But, you know, my my, my reason why is not to go back to feel that feeling right of just being you know, without a place to lit right. And then

Taylor 24:46
do you think that's that's what separates you from others is our from the people who get in these programs that don't take the action, and they're in the 98% you're in the 2% that really take the massive action is really knowing I think

Jason Graves 24:58
I think about it. I think it's core belief of why I'm willing to sacrifice friendships or time on social media or whatnot watching TV or even, you know, stop drinking. But you know, it's asking yourself, are you willing to give up some stuff and something, because that frees up time to do what we're talking about. Right? So that's my big why. And then, and then if you take a step back it really, I mean, I mentioned the Millionaire Next Door, there's another one about the Millionaire Mind. There's a book about the like anything about the mental side of what we're talking about, and studying multi millionaires or billionaires or it's a psychological, you know, rich and poor dad. It's a psychological way of thinking about your time and not just trading your time for a paycheck. Right? I've been doing that for 25 years, but I'm right there on the tipping tipping point of having at least have the concept of what I'm really super excited about in the last 18 months is I have 8683 people every day tonight and last two days paying down my debt over the weekend I love long weekends like fortunate like three, four weeks the weekend paying down my debt like they're making me wealthy or right or wealthy, right? But it's not just a number, it doesn't matter if it's, you know, 5 million or 10 million or 25 million it's that feeling of I can't get fired from that. That doesn't stop trains from rolling for five years. Right? So that's so empowering that so that's always been my dream to always have the the talk about passive income mailbox money, but it's truly going back to that, you know, psychological part of just, you know, you better take sacrifice, right, it takes sacrifice and saving the money and, and, and how you spend your time. So

Taylor 27:00
Yeah, I mean if you have the money and you can make decisions with it, whether you're gonna go I don't know by the new cyber truck or you're gonna go buy a couple of rental properties and one of those is a maybe more financially savvy friends

Jason Graves 27:13
have to make, you know their husband or wife work. That's right next to me they may make 250 $300,000 a year they're renting at 2800 hundred 20 $800 a month. driving cars in their car payments are about 12 1300 dollars. They have $23,000 on credit card debt, though, you know, they have their normal spenders and they I've been having this conversation for 10 years begging them when I was back in the day when the market went from 350 on 100 down to 141 by one yeah $141,000 condo you have you know 28,000 bucks. I guarantee you these people. And these are my closest friends and you know Fast Forward nine years. They finally last year they bought their first investment property what's interesting was you know and it's even though it took nine years right and it would've been awesome they would make a million dollars in one day, but it's a key that it's interesting the psychological part that they got the first one they've now got rid of they had three cars three and they sold the one they got down to two but they're on a path is radically different now where they're literally paying cash for their all their stop going to cash you know basis right and then he's already talking about buying the second one he's already talking about investing 50,000 bucks you know, save me enough to invest with me on my next apartment building and these are you know, my closest friends, right? And then I say I want to talk about partnering just for a second. It's okay because it is it when you're buying when you own a condo or house you don't need a partner. So buying a multifamily is all about partnering totally uncomfortable, like I was uncomfortable. So that first step Plex I told you about I went to my best friend Brendan Brannigan. And I told him Look, I don't know why I need a partner, but I'm putting in 325,000 I'm asking you to put in $50,000. And he was my partner, so I didn't know why. I just asked him for it and he did it. And what's interesting about it is you do that forced me to double check the math, right double check underwriting double check that is in the right location doubles not gonna lose my best friends after 30 years $50,000 for any amount of money, right? So it's just a different mindset, right? Because you can't you have to be okay with partnering and investing with a group of people because the numbers get big, but then it goes back to who you're going to crush the money. Right. So it's a two edged sword.

Taylor 29:48
I think it's a very good point about it being even scarier to lose your friends money or just anybody else's money other than your own. I mean, yeah, we all hate you. Using our own money, but losing someone else's money, especially somebody who's been your friend for a long time, is even worse than losing your money. So that's interesting that that drove you at least in some way it drove you to be maybe even more careful with the investment, diligent, great work with the investment in your strategy and numbers and everything. That's great. So right now we're going to take a quick break for our sponsor. All right, Jason, I've got three questions. I asked every guest on the show. Are you ready? Ready? All right. Number one, what is the best investment that you've ever made?

Jason Graves 30:37
I bought a condo in San Diego State. I think I sold it earlier. At the crash just in the right location. It's near a college campus. And it wasn't the biggest but it was probably the best just because my tenant literally paid it often. Seven, eight years.

Taylor 30:59
That's great. That's awesome. And it's how do we, you know, we might not experience that big of a real estate crash correction, whatever, in our lifetimes, we may. But knowing that there is light at the end of the tunnel is very important because the reason you got such a great deal is because you had your head in the right place while other people were

Jason Graves 31:23
panicking. And I think we'll see that again. Right, right. No, you're right. But I mean, it was literally you know, at the right time. You know, no one can catch a falling knife in the stock market, right? You're always you're you don't know where the bottom is. But you averaged in. I was buying a condo every year for three or four years in a row, right? oh eight or nine or 10. Like every year I bought one. Super good. I didn't know if we're going down or we're going up and it kind of did both. So I just skipped off the bottom. Right. So and again, it's not that much. That's not that much of a stretch buying 140 hundred and $50,000 condo For one, I find a second one and pay cash. The third is the fourth.

Taylor 32:06
I think that's very smart, though. And people too often, especially in stocks, or what have you try to time the top of the market and they sell everything off. And then it just keeps going. They tried to wait for the bottom and by the time it's going back up, they just completely missed everything. They'd be better off if they had just kept investing and not trying to predict the future essentially

Jason Graves 32:29
standards investing, right? Same thing that we're talking about.

Taylor 32:33
Yeah, yeah, absolutely. On the other side of that, from the best investment, we have the worst investment what is the worst investment that you have lost

Jason Graves 32:41
money one time in real estate? I bought a 2005 condo in Vegas and my mother was living in that condo. It appreciated dramatically. We didn't know we were in the cycle. Right and Dave lindahl talks about Emerging markets and talks about real estate trends. This was talking about I hadn't read that book, but I, it was emotional and my mom was going to go into foreclosure. And I decided to step in and buy her condo for like 350 $380,000. And I did it. Because it's my mom, right? I mean, you know, in my mind is she's gonna be not on the street, but she's gonna lose this and it was and then I was, so I bought it and then she moved out and I carried a loss $1,000 loss for five years $60,000 in cash plus my down payment 30 plus 90 grand, sold it five years later. 441,000 Wow, 340 learn something. So I still had a software job that went through the short process. So you have to show that you are financially distraught or whatever the you know, show that you have no money. So I went through that whole process. And I did a short sale which was extremely painful. The good news is that $200,000 Delta because I did a short sale didn't the bank just wrote wrote it off because it was in Nevada, I'd have to pay taxes on that. I know some states you have to actually pay taxes on the short on the short loss as well. But that was the only deal I've ever lost money on.

Taylor 34:22
It was a big loss and it's a good a painful lesson but a good lesson to not get emotional in your investments now if you were to put yourself in your shoes at that time once again I'd be knowing what you know now I mean what decision you gotta make she's gonna get foreclosed on you find her a place to live I don't know what the right answer make for

Jason Graves 34:42
me I should have let her go into foreclosure. Absolutely would love to go back and let her fail miserably to the point of losing it all. And being there for her to get you know, help her move into you know, apartment or something right? financially step And being that crutch was absolutely the worst thing not even for me on that 90 grand I lost it was for her not hitting rock bottom coming in as the savior of her son, you know is is crippling in her progress of where she's going through, right. So I would absolutely have let her fail, not fail but lose the house, go to bed new go to foreclosure, right? Have it just short, you know, destroy her credit for seven years. I've been Oh, you're not saying

Taylor 35:33
you're not saying not to be homeless or not what you're saying? Yeah. You know, she can go ahead and get foreclosed on. I don't need to step in and get foreclosed on myself or have you know, go through a short sale myself. Yeah. Yeah, absolutely. Wow. Well, that is a painful lesson. leading to the third question, my favorite one, what is your most important lesson that you've learned in business and investing? take

Jason Graves 35:57
massive action right? Till so be strategic like figure out your plan, figure out what you want to do. And then hyper focus and execute. Right? I mean, it's just, that's it. take massive action.

Taylor 36:15
I appreciate that you mentioned a few things in your life that you've forgotten. I see your Keurig machine sitting behind you submit you must drink a lot of coffee late at night potentially in your office. But you mentioned things that you use you stopped drinking you've maybe had to let some friendships fall by the wayside maybe some hobbies or things like that What comes to mind from maybe from folks that you've seen who are not taking massive action? What do you think that they're they're missing as we've talked before is that mindset is it just comes down to mindset they're not willing to forgo all those other cool things they might like, like going out for a night or something

Jason Graves 36:50
like I'm older now. Right? So I mean, I've got a lot of time, you know, playing with my friends and and drinking and partying and traveling and we've I've had, you know, It's this. I've, you just decide if it's time I've been on this in the last 18 months from my life is radically different, right. So I did make some major sacrifices and freed up some time and just used that incrementally to take this next leap forward. What's interesting now, you know, I just joined a tennis club in Rancho Santa Fe, which is pretty close to my house, but it's all about the reason I did that is I played tennis in college. And it's something I enjoy, and it's also getting me around other people that are like minded that, you know, want to look that are open to investing and like to invest in. So I'm trying to develop relationships with new friends. Right? I do believe in the proximity that you are some of the four or five people you spend most time with, right. So I've tactically I go back to Justin Breton. That guy in La Jolla and the developer I went ask a I proactively knew who he was and said to me In developed relationship, and it's been great, right? So doing that massive action and key people in your life that you like, you are on the same page and you're pulling together and you're building out that team. And it's looking open to people, right? I mean, I went into this, you're working, you have kids, you're traveling, you're doing real estate, you know, I was very close off to meeting new people. And now I'm in a position to be completely open to see who comes into my life, which is kind of cool.

Taylor 38:32
Right? That's great. I'm glad things have really blown up for you, if you will, in the last year and a half, 18 months or you know, by the time this comes out, probably 20 months, something like that. if folks want to learn more about you more about your business, what you're doing in Kansas City, where can they get in touch with so

Jason Graves 38:49
The best thing is just actually call me at 85873659 to four or send me an email to Jay graves. Next At gmail.com so Jay graves n e x t at gmail. com.

Taylor 39:06
Nice we're going to blow up your email with requests to attend your next barbecue. Thanks for joining us today it's great talking with you again, I really appreciate all the action that you've taken and everything that you've shared with us today in in taking massive action and how that can benefit us and growing our real estate portfolio so efficient.

Taylor 39:31
To everyone out there. Thank you for tuning in. I hope you have a great rest of your day and a great week if you're enjoying the show, please leave us a rating and review on iTunes is a very big helper. I should keep saying iTunes, it's an Apple podcast. Please leave us a rating or review on Apple podcasts. I certainly appreciate it. If you know anyone out there, you could use a little bit more passive wealth in their lives. Please share the show with them and bring them into our tribe. Once again. I hope you have a great day. great rest of your week and we'll talk to you on the next episode of passive wealth strategies for busy professionals. Bye

 

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About the Host

Taylor on stage

Hi, I’m Taylor. To date I’ve acquired or partnered on over $250 Million in Commercial Real Estate Investments. I help busy professionals invest in multifamily and self storage real estate through my company NT Capital

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Real Listener Reviews

Extremely useful podcast
Extremely useful podcast
@thehappyrexan
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Short, impactful with excellent guests. If you have a full time W-2 job or business and are looking for ways to get involved in real estate on the side, this is for you.
Simple & effective information!
Simple & effective information!
@jjff0987
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This podcast is worth listening to for investors at all levels. The information is simplified for the high level investors but detailed enough to educate seasoned investors about nuances of the business. I recommend!
Awesome Podcast!!!
Awesome Podcast!!!
@Clarisse Gomez
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The host of Passive Wealth Strategies for Busy Professionals podcast highlights all aspects of real estate investing and more in this can’t miss podcast! The host and expert guests offer insightful advice and information that is helpful to anyone that listens!
Great podcast!
Great podcast!
@Owchy
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Love all the information and insights from Taylor and his guest. Fun and entertaining. Highly recommend.
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