Spending $27 Million Dollars in Real Estate | The Beginning.

hey everyone meet Kevin here it is

bright and early in Southern Florida and

we are going to explore real estate and

that's because we are hunting for my

real estate startup that has now raised

over 27 million dollars in the literally

just 21 days it's absolutely insane and

folks we are looking for places to

deploy that money so if you're an agent

slide in the DMS over on Instagram or

chat with me on Discord at metcaven.com

chat but for now let's explore South

Florida now to be clear we're just

starting to hunt now because we're not

actually going to start doing the buying

probably until the FED u-turns probably

somewhere around mid to end of 2023

that's

the real estate market will be lower

shout out to Ryan by the way he's gonna

help us out

hey Ryan hey thanks man for helping me

introduce yourself my

proud Florida first property we looked

at was listed for about 520 000 in

Weston Hills that area is known as being

one of the safest in South Florida and

you get a lot of potential for long-term

rentals there long-term rent on this

kind of property here could be about

thirty five hundred dollars per month

which with a property tax rate at about

one percent is actually not that bad

we've got property tax rates of about

one percent in California and for 520

000 property you'd be getting a fraction

of that rent probably about a thousand

to eight hundred dollars less than you'd

be getting here in Weston but the

property wasn't enough of a fixed

dropper for me so I said Ryan I need a

wedge so that's exactly where he took me

to a wedge that's not too far from

sunrise's Corporate Center and the

reason I mentioned sunrise's Corporate

Center is because one of my favorite

companies that I believe Will Survive

the earnings recession American Express

has their headquarters in Sunrise now

take a look at this headquarters in

Sunrise close to both Weston and these

other areas realize this is a corporate

campus designed to please employees and

keep them productive a concept American

Express calls blue work we've created a

very collaborative open workspace our

multiple game rooms in each Tower the

company even put in a backup daycare

center for its employees complete with a

playground a Sandbox a splash pad and

even a basketball court facility has a

state-of-the-art cafeteria with soup and

salad bars and cook to order healthy

Specialties from the grill oh Michael

this caramel macchia is awesome to top

it all off they have a Starbucks inside

with a full-time Barista to keep

employees fueled and moving Amex into

the future

and that's how I ended up at this moldy

Fixer-Upper which is awesome because I

love multi fixer-uppers this place

probably is going to end up selling for

about 420 000 and what's remarkable is

even though there's mildew there are

roof leaks it's gross and it's nasty and

it stinks and the alarm's going off and

everything's wrong with it you can

actually see an active listing of

exactly the same floor plan for just

over 650 000 now that's gotta close and

we're still moving in potentially a

market that's trending down but that's

okay we're not looking to buy right now

we're just looking for the neighborhoods

this would ordinarily be something I'd

be very excited about and the reason for

that is simple if you can buy a property

for 420 000 and put eighty thousand

dollars into it maybe a new roof clean

up the inside a little bit paint

flooring everything else and now you're

in an area that's worth a hundred fifty

thousand dollars more than your total

all-in cost that is it's worth 650 and

you're paying 500 000 all in with your

then you're building your net worth or

you're building your company's Equity

that's the point and remember the whole

point of real estate is to make more

money with spending less money here's a

townhouse that I looked at that looks

like it has this beautiful white

brickwork on the inside but when I went

there I realized they were up to

something else and it's brilliant oh wow

that's just a wallpaper so then we went

to dania and Hollywood which is near

this new Hard Rock Casino guitar that

opened up in 2019 that literally cost

like fourteen hundred dollars a night to

stay at it's insane I'm at an airport

hotel for 175 bucks a night using Reward

Points because I gotta save money that

is extravagant but I love real estate

around it we're in Dania Beach and uh

really interesting you have a solar

powered street light right there even

though power is right there maybe that's

because when you have hurricanes these

uh these power lines tend to get blown

over her I'm not super convinced that

this is Dania Beach I'm not super

convinced on on an area like this you

know generally when in my opinion you

get you know people parking in the grass

uh you know you have a little bit less

um of like a homogeneous feeling you

know there's certainly no HOA that's

regulating people think HOAs are bad but

I mean nhoa prevents some of these

things that that hurt desirability in an

area uh so you know you're also pretty

close to the airport so you hear I mean

some people think it's desirable but you

hear the planes coming in and out all

the time oh yeah gosh literally taking

off right there the soft pumped in the

trees but anyway

yeah

this is probably my least favorite so

far let's take a look now what's

remarkable is that a 545 000 property

like this could rent for probably

somewhere around thirty five hundred

dollars even where it is here I mean

you've got condos renting for 28.50 or

town homes renting for this but it's not

exactly my favorite most spicy spot and

so when I looked at the Airbnb map I saw

that there was a segment of Dania Beach

that I'd even juicier returns instead of

maybe renting a place for 350 per night

as an Airbnb you could potentially get

as much as 600 per night even at 60

occupancy for a bunch that'd be ten

thousand eight hundred dollars per month

which is roughly three times with the

normalized rent could be such a good

trick right here these Outlets this is

uh this is like an old Ivory outlet that

they covered up with just this plate

right here uh and uh it makes it look

like it's a white Outlet because I love

it but this newer area was more more

expensive for the actual properties and

it had to do with its proximity not only

to newer development but also to the

marina so we better see some good Yachts

at that Marina all right so we want to

see newer Yachts the more newer Yachts

we can see even better that's really

good so this is quite exciting because

if you did a vacation rental here and

somebody could come over here and just

rent one of these Yachts or whatever or

you know rent even a smaller boat a

little Sports boat or a pontoon boat or

something like that I mean that that's

value for like an Airbnb just because

you have amenities nearby but not just

that we want rentability of boats and so

of course I called the local boat rental

places to get the details and you could

be outside on the ocean within 20

minutes all this while being relatively

close to new construction shopping and

next up we go to 4 Lauderdale where we

take a look at something that at first I

thought had no chance of making money

but I was blown away by this one okay so

we're coming up on a house that sold

what is three units and then he turned

it into five

[Music]

it was a four it turned it into five and

then he just airbnb'd all the units out

yes and how far are we from the beach um

10 to 15 minutes so it's this house

right here

and

um this orange and white one here

that one and then how much did you say

the financials were showing he was 12 to

16 000 a month twelve to sixteen

thousand dollars per month yes it's on a

Main Street wow yeah no kidding so you'd

think you'd get less but no 12 to 16 000

worth and he bought it for like 400

something he bought it for 450 I think

um as he bought it as a fixer offer I

spent a lot of money into it sure and he

sold it for 1.29 he sold it for 1.2 yeah

it makes sense I mean you're making that

kind of money geez but even if you paid

1.2 for it and you were making 12 Grand

a month even if you're making 10 grand a

month that's amazing yup wow okay all

right I forgot though airbnbs come with

extra labor costs a good long-term

rental really takes like maybe two or

three interactions with a tenant per

year whereas an Airbnb could take

interactions with tenants daily very

different labor costs and you got

Furniture costs to consider as well so

it's not always as much cash flow as it

seems you have have to operate a

business properly with scale and with

systems otherwise just like any business

you could fail but it wasn't just Fort

Lauderdale it was also Hollywood all

thanks to their proximity to the beach

so then we looked at what was advertised

as a Triplex I think it's more like a

duplex but the point is it's in an area

that if I first rolled up on I'd

probably be like yeah no I'm not even

going to get out of my car here don't

really have those great feelings at

least to what I initially had but I was

really impressed when I actually started

not only looking at the property but

then also the rental comps now this it

doesn't mean that on my first visit to

an area oh that's it we're going all

into an area right every area deserves

uh poverty analysis a population

analysis here core jobs analysis an

analysis of market trends over time like

you can't just go into an area and start

buying that's how you make mistakes you

have to get exposed to areas then watch

listings in an area for like six months

to a year and really watch how things

change and what you're going to notice

is the best areas will see their

listings sell first all the time so in

case you're wondering when you see

sometimes these high cash flow numbers

and it's like hmm why is that sitting on

the market because it looks like a good

deal but maybe you have to collect the

rent with a gun to get that good deal

right now I'm not saying that's true of

this area this is my first day in this

area and even though I grew up in South

Florida I've never gone to Dania Beach

or Hollywood to look at real estate

before so I have to be very very careful

and study very hard so even though

things like this can look attractive

usually there's a lot more once you peel

back the hood so I don't want anybody to

watch this video and think oh that's it

Kevin's going all in over here but if

you look at this comp you'd see some

problems or whatever this is day one of

what's going to be a multi-year process

of education and exploring everything

that we know about real estate to make

sure we're making the best decisions

possible and that's exactly what you

should be doing as a home buyer as well

now is the time for you to be thinking

about okay how am I going to prepare to

buy a home if I'm living in an area uh

which areas are the best would I do a

Craigslist transaction here at nine

o'clock at night what's the income like

what are the jobs like have I driven by

that American Express building me

personally no like what if it's a dump

what if they say they take hybrid work

and Engineers but like you go there on a

Monday and there's literally nobody ever

there well if nobody's ever there then

maybe they're actually 90 remote and

nobody actually needs housing around

there and they've just got an empty

office building that they built right

these are all things that you need to

study you've got to become an expert in

every single Market that you invest in

before you actually invest in it these

are the things we talk about in the real

estate investing course linked down

below if you want to know everything

that I actually do to understand that

I'm getting a good deal and you just

want to have that knowledge like join

the courses link down below that's the

best thing that you could do you get a

download of my brain and even if you're

like I'm kind of thinking about

investing a house hack but you know is

Kevin going to make sure that he's

protecting our investment there it is

it's literally in the flight path

well look at my real estate videos go

through the courses that I have on real

estate and then ask yourself do you

think I'm knowledgeable or not I don't

love that we've got all these candles

around here to me that's just a sign of

like okay come on if you're covering up

the water smell like this is so obvious

oh cockroach dead right anyway this so

if I just want to be clear if there's

any excitement at any part of any of

this video this video is not to make

decisions this is literally like a first

first first first look all right there

are many more to follow oh okay like I'm

getting blown away by the Numbers here I

just did the numbers and I'm like that's

insane there's no way and and you're

like no it's not insane that is what it

is it's crazy so if if let's just say

you got 420 in total at 69 occupancy

times 30 days that's over 8 600 a month

that it just seems so wild I mean even

if I got half of that like 4 300 on a

play you buy for like 700 Grand that's

great you get twice that you're just

rolling in muddy it's insane I mean

obviously the labor costs involved in in

dealing with airbnbs and short-term

rentals right there's work involved but

uh wow that I'm blown away because when

I first got on that street and I'm like

I don't really want to be here you know

if your gut flows are there cash flow

there is insane wow all right you're

being too complimentary here what what

were you saying because like I'm I'm

here trying to compliment you man like

you know so much about this area here in

South Florida it's amazing okay all I

can say is that you are a hundred

percent right about acquiring a new

skills and knowing the area for instance

like everything that you wanted to know

I told you and I learned it almost from

you almost everything from you so swipe

up swipe all before before the coupon

code what is it October whatever we

gotta set a new date yes and of course

as I ended my day with Ryan and I walked

into a podcast in Miami with pomp stay

tuned for that episode soon

and so you thought the day was over nope

we gotta look at another fixer this time

An approved short sale and now we're out

with Mike Mike introduce yourself

hey Mike the real estate guy down here

in Miami I brought Kevin to see this

property here in Pembroke Falls uh

exclusively for a house act one of the

first Westfield that hopefully we can

get into it's a five bedroom house just

under 3 000 square feet two-car garage

the lot is massive you got an excellent

yard on both sides and the back door was

left open so this was an amazing

approved a short sale and the comps were

all between 900 to 1.2 million dollars

for similarly sized properties it's got

blue tarp on the roof but there's no

evidence that there's actually a water

leak and the blue tarps basically

already blown off the roof so it

basically just looks like a home that's

severely damaged but and obviously

always subject to inspection right you

do your inspection but but boy oh boy

stuff like this where people make a

property look bad

because there's a short sale nobody

cares and it's actually not that bad

it's like 30 years old or less than that

uh I think closer actually 20 years old

on this property it's like ah this is

where you can get deals poorly property

a poorly marketed listings this is why

short sales were always so desirable

because nobody actually cared what the

darn thing sold for so they didn't even

bother trying to clean it up with some

basic things that could make a

difference of hundreds of thousands of

dollars that's a wedge this is this is

like this is easy man peace do you need

anything this is easy this is the best

kind of wedge deal there is you have to

literally do nothing

I mean well we might have to mow the

grass but this is not bad at all get the

sandbags off my tiles see the sandbags

cracking the tile are going to cause

more damage

then this roof is causing right now I

mean some of the rents these properties

are getting are great I mean here's one

that's a couple hundred

s order of 6

6 not at 6 000 and then a couple

slightly larger different conditions at

5900 and 5400 obviously there's some

work to do in terms of combing through

all the calms right uh not buying right

now anyway but boy oh boy I just

this is this is amazing I mean Florida

wake up to wedge deals now we're gonna

go look at a property that's just a

little bit dated but it's worth looking

at some of these deals because even if

something's not a complete Fixer-Upper

doesn't mean it can't be a wedge deal in

fact the best wedge deal is one that

you're getting substantially under

market value but that you have to do

very very little work too for example if

people think it needs a lot of work but

then it actually doesn't like this one

with the broken roof if you get a roofer

and they certify it and they say

something to the effect of hey you know

there's just this little uh you know 50

square foot area you got a patch over

here replace the felt on you don't have

to replace the whole roof there you go

of course a roofer is going to try to

sell you a whole new roof but you got to

ask the right questions and then you can

figure out where the wedges are oh is it

is Market slowing down how is your

guys's market doing it's beginning to

slow down now look what a lot of people

are trying to price their

in the same way that uh the market was

about six months ago yeah they're

looking at the comps going I want that

exactly and

client's saying hey it's not the same

Market as it was six months ago

um so obviously the rule of 10x as the

interest rates have gone up you should

be pricing it lower and kind incentivize

the Box should be like oh everything

else is closing here and they're

listening it this much that's a good

deal my listings are at least or getting

offers within a week where most people

you're pricing it right though yeah

pricing it right the rule of 10x you

guys you listen that guy meet Kevin on

YouTube a few times well here was a

pretty basic oh kind of a wedge deal

where really you just have to negotiate

the price down the inside is just

cosmetically dated but it's not that big

of a deal the price has to be right

otherwise it's not a wedge deal right

not every single property that's dated

is actually a good deal you can donate

this stuff restore and take a tax

deduction yeah

so you have to be careful you just have

to make sure you do your numbers you can

go visit properties all day long until

you're blue in the face but they also

have to make sense not just in person

but behind the spreadsheet even though I

hate spreadsheets okay you could do

napkin math but you know what I mean

those by the way are accordion shutters

really kind of valuable in the second

story for uh on that hurricane season

Mike what do you say to people who are

like oh uh there's no deal out there

there's too much competition the deals

are still out there you just got to talk

to the right people

and seriously give me a call sometime

well I can easily show you something

this is so weird but this feels like

home it's like the same layout as the

home I grew up in this is so weird and

we even had a little Lake

same thing same thing crazy all right

this is the last stop of the day what do

we got here what's your name and what

are we about to look at so this is Mike

rev and we're gonna be showing a single

family home it's going to be the first

Airbnb for house hacks oh yeah it smells

like 1957. you smell it oh yeah if you

smell the moisture look the reality is

it's probably going to be nine months to

a year before we actually start buying

we've got so much learning to do and if

you want to join this journey I am going

to Vlog the entire Journey so if you

want to learn even if you're not able to

participate with house hack yet or

you're thinking about participating with

housing when we do the non-accredited

round likely in January or February stay

tuned buckle up watch for these videos

they're gonna be really exciting

enjoying those courses on building your

wealth especially with real estate via

the link down below let's make money

together thanks for watching bye