Speaker 1 (00:00):
On this episode of the Exactly How podcasts and YouTube show, we uncover exactly how to run a successful real estate business in a partnership. See you guys soon.
Speaker 2 (00:11):
You’re listening to the Exactly How podcast, where you’ll hear the underground, closely guarded wealth building secrets of successful people around the globe. Discover exactly how to improve your mental, physical, and financial health. Feel better, make more money live, give, and prosper in today’s exciting, fast paced world, build with opportunity for those who know exactly how
Shaun (00:40):
Welcome to the Exactly How podcasts and YouTube show brought to you by Connected Investors. And during this episode, you’ll discover exactly how to operate a successful real estate business with the partnership. Now, for those of you who are new, my name is Shaun Young, today’s host and proud member of the connected investor community. Now, before I introduce you to our next incredible guest speakers, we have two of them today. I want to make a request that if at any point during the show, you like what you’re hearing, please give us a thumbs up, subscribe to the show so that you don’t miss an episode and make sure to take a look into the description of this episode, as we’ve packed it with thousands of dollars in free resources. Now, today we have the privilege to learn from two gentlemen who run a successful rental business, wholesale business, as well as have a successful partnership.
Speaker 1 (01:30):
So I’d like to introduce you guys to the one, the only Dave Payerchin and RJ Pepino. David, thank you guys for being on today. Thanks for having us. Thanks Shaun. Glad to be here. Absolutely. Now gentlemen, before we get started, no, I’ll let you both have the opportunity, Dave, you know, before you began your career in real estate investing, can you tell us a little bit about what you had going on? Sure. So I was, uh, you know, just an average kid from Cleveland and as soon as I finished high school, I packed up my bags and hightailed out to sunny, Phoenix, Arizona. All I brought with me was, you know, bag of clothes, a tool belt, and a drill. I was going to do construction work out there. And then I found a little sales job, uh, that I was going to do in the evenings while I was living out in Arizona.
Speaker 1 (02:21):
And my sales job soon, uh, basically took over the construction. I was making more money doing sales than construction. So I got involved into telemarketing. I used to be a telemarketer for MCI WorldCom when they were still around and I kind of parlayed the sales thing into real estate, started going to Rhea meetings. Um, all the way back in 2005 is when I started out in Arizona and I started my career in real estate just by driving around neighborhoods, finding junkers old fashioned, right, driving for dollars and, uh, started a wholesaling business, um, in Oh five. And then if some of your listeners remember back in Oh seven Oh eight, the entire real estate market imploded because of all the bad loans they were writing. So I learned very quickly, uh, what being a speculator is a speculator, just hopes, things keep going up in value. And that’s what I was. And after that, I kind of had to lick my wounds, find my way back to Ohio. And then I started buying rental properties because I no longer wanted to be a speculator and keeping, keep hoping things go up in value. Hope is not a business model we wanted to consistent cashflow. So in 2012, 2013, I moved back, uh, from the West coast back to Ohio and started buying rental properties with RJ. And that’s a great segue into RJ. RJ, tell us a little bit about what you had going on.
Speaker 3 (03:48):
Yeah. I had some similar, uh, upbringings, I guess, with Dave, but uh, in, in terms of, uh, working for MCI as a interesting time, I learned, um, sales, uh, in that job. But you know, back before I did that, I was, um, um, playing tennis. So I was really good at tennis and um, high school and then in college and, um, I’m from Ohio. So I went to a college up North, uh, Youngstown state university. And, um, I went to that, um, college to play tennis and to actually become a doctor, be honest. And it was a interesting time for me because, um, I, it, with all that freedom and I’m able to kind of be on my own. I ended up, um, having a little bit too much fun my freshman year and, um, really had to rethink like, what do I really want to do that defining moment?
Speaker 3 (04:45):
Um, and I knew I wanted, I had the opportunity to get an education. And so I kind of grew up pretty quickly there. Um, and after my career, as a tennis player, I was looking for something, um, something else and I wanted to make money, you know, and, um, I landed a sales job and that’s my, my first sales job. And I don’t know how I got, because I had no, I knew nothing in sales, but I knew one skill and that skill was to model other people to become successful. And I think that Tony Robbins talks about that and, and the number of books that he’s written about modeling successful people. And I knew if I could do that in sales, I could succeed. So, um, I’m in there in the Bay, you know, in, in those times when the whole call center you’re in certain bays, right.
Speaker 3 (05:34):
If anybody has been in your listeners have been, um, on the phone, I was in the Bay and I’m like asking my manager at that time, who’s the best salesperson in our Bay. I was a part of a, of a team. And so I would in the middle of the calls, um, I would take breaks and go and shadow this one guy who was just all the every day, day in and day out would get five sales. And at that point that, that was no, he’s making well over a hundred thousand dollars, just, just having five sales a day. And so, um, I got really good at telemarketing. Um, but unfortunately MCI went away, you know, and they went bankrupt and filed BK or whatever. There’s a bunch of scandal going on and I’m in the middle of a work one day. We just see, uh, highlighted above the screen, like we’re for closing down the shop.
Speaker 3 (06:26):
So, um, I was looking for something else. Um, I knew I was going to begin in the sales, so I got another job in sales. And at that point 18 and T, um, was singular singular, uh, that was selling phones. So I actually sold the first time and, um, the first model that was out there. So I did that for a while and I’m real successful in that as well, and got promoted to become a manager store assistant manager and the store manager. And I was looking to have just a, you know, no, it was more incumbent and also more freedom. I was just like working so many hours, you know, and, and retail hours, um, 68 hours a week. And, um, I was looking for a way to get out of that grind and I thought it was to climb that corporate ladder. Um, my brother turned me on into a book that most of your listeners probably have listened to or read.
Speaker 3 (07:20):
And it’s a rich dad, poor dad. And that book right there changed my whole mindset. My awareness level taught me about the four quadrants, how to be a business owner. And more importantly, it got me turned on to real estate. And so that led me down the path of trying to get into real estate. And I got into, um, you know, uh, rehab that didn’t go too well. That was my very first, uh, uh, experience with real estate and got into wholesaling after that. And that led me into, you know, finding the fact that, Hey, you know, for me to get that lifestyle, I have to get monthly cashflow from rentals. Uh, and then I met Dave and about 2010, I believe, and started to, um, just, uh, um, you know, start to kind of, we started that relationship. He was in a previous, uh, uh, in a previous world, he was with another company, a sales company, and we just kept in touch.
Speaker 3 (08:17):
And finally, in 2012, we made that decision to say, Hey, look, then we can partner up and buy these homes. Um, in Columbus, Ohio, here are the numbers, you know, you can get, you can be all in, on the house for 25 K at that point, and it can rent for 700 bucks. So we’re like, yeah, let’s, let’s partner up rentals. And, um, you know, let’s, let’s, uh, hit some home runs. So that, that was the, uh, kind of in a nutshell, that’s how Dave and I formed through. Uh, now we have over a hundred rentals and, um, you know, we have a team that’s virtual and, um, that’s kind of our story and that condensed form.
Speaker 4 (09:00):
That is awesome. RJ, that, I mean, that sounds like you guys are definitely doing very well now, before we dive into exactly how to be successful in real estate with a partner, um, you know, what, what would you guys say that you’re contributing your success to and why do you think that that has played such a big role in you guys being able to be successful as a team?
Speaker 1 (09:20):
Great question. Um, I think one thing that comes up for me is right behind you. Um, I see the word persistence, and that’s like one of those cliche words that says, Oh, never give up and, and hang in there, but truly, uh, to be able to hang in there, um, and fully commit to, uh, our craft, which happens to be real estate, right. But to fully commit and be able to hang in there during the very uncomfortable times and the uncomfortable times, don’t always come in the form of hard work, you know, cause we’re all built to work hard. Um, it comes in the form of, you know, big swings, big money swings, RJ, and I’ve experienced major swings, you know, and it gets nerve wracking at times. We’ve also taken on huge risk together, uh, in the form of loans and private loans. And we wrote our name on the dotted line, you know, as the owner of the company.
Speaker 1 (10:09):
And, uh, we had this conversation with our team today. So, uh, just really, you know, being willing to take those risks, a lot of people are not willing to take those kinds of risks. And now we actually, along with you, Shaun, and we can help people take calculated risks. Uh, RJ and I very much in the early days where, you know, fire first aim, second kind of guys, and we raised a whole bunch of expensive money. We were giving up half of our deal, um, in other partnerships. So that’s kind of what we’re going to be talking about today. Um, but really just, I would say what comes up for me, persistence and the ability to hang in there during the uncomfortable times, which are inevitable to any business. What about you RJ?
Speaker 3 (10:50):
Yeah, I would say that also, you know, it’s, um, it’s sticking to, um, basically one thing long enough to master and not getting so, uh, derailed and, um, unfocused and there’s so much, um, opportunities that come our way now with the success that we’ve had. Um, and then even in the success that we were having along the way, there was stuff that always pop up, you know, and, um, it was being focused on task at hand and just being like, all right, we’re going to do this and be masters at this. And before we go off and do something else that just, you know, is not even in the same, uh, core business that we’re in. And so nowadays we have what we call is like, you know, um, more or less like some core values that, um, and you know, that we kind of stand by and if it’s, there’s an opportunity that comes through the pipeline and a lot of them do every day, you know, um, if it doesn’t fit kind of what our mission or core value is, we’re just going to no and be firm with that. Because if we know that it’s just going to derail us into something that’s just unproductive and, um, we’re not going to get anywhere. So we’ve gotten really good at that too. Shaun,
Speaker 4 (12:04):
It makes a lot of sense. Guys makes a lot of sense now for our listeners out there. What makes the Exactly How financial freedom, podcasts and YouTube show unique is that each and every show comes with a detailed action plan. We pull the steps out of this show, create a blueprint on how to implement exactly on what we’re covering today. All you guys have to do is visit connected investors.com/free to get the key takeaways and the resources from this podcast. Plus you get to see our free training right now, text the word exactly to (910) 600-0630. To see for yourself, this is exactly how I make my money. You can find properties in any town for pennies on the dollar with this software that I use each and every day. Guys now as nearly a million people know Connected Investors is a social network of real estate investors and a marketplace of investment properties. In the description of this video, I’ve included a link to this episodes, forum discussion. So head on over there and take a look guys. So Dave, you know, how can folks out here reach you guys before we dive into your partnership? How can folks out there reach you guys if they’re wanting to get ahold of you?
Speaker 1 (13:14):
Absolutely. So we have a community of our own and we call it the cream. If you can see behind myself and RJ and the cream stands for cash flow real estate and money, because that’s what we’re all about. Making money, building wealth, building portfolios and creating financial freedom. So our website is www.arisewiththecream.com. Uh, my Instagram handle is at the real Dave P and RJ. Where can people find you on Instagram? Yeah,
Speaker 3 (13:46):
I’m on at RJ pepino just had they see it on the screen here. It says my name. Um, we’ve got a ton of videos there, a lot of, uh, content that we’ve, um, we’re putting out there. I’m not charging anything for it. It’s just lessons and, um, you know, solid tips on building a rental portfolio, um, managing money, how to raise private money. Um, I, I have, uh, a series of single family rental tips, and these are just all lessons that we’ve learned from owning five rentals, 10 rentals, 50 rentals, uh, and now, uh, up to 130 rentals. So, um, if your listeners want to go there, um, certainly give us a like comment, ask questions and, um, we’ll answer all of, all of those comments. So
Speaker 4 (14:35):
Absolutely. And guys, yeah, make sure you comment and hit that like button, you know, um, these, uh, these YouTubes and the different search engines, they like those types of algorithms to make sure you hit that like button for us and, and, you know, keeping abreast of what’s going on out there. That’s how you stay attuned. So that’s great news. Great, great stuff, guys. Thanks for giving us information, how we can get ahold of you now, Dave, what would you say are the three most important things to make a successful partnership operate?
Speaker 1 (15:02):
Well, that’s a great question. Three most successful things for a successful partnership. I would say number one, honesty and integrity, because if you’re going to be a thief, it doesn’t matter how good the business partnership is or how good the business plan is. If you’re going to steal the business is going to fail. The partnership is not going to work out, not to stay at the obvious, but it’s good to get a reminder for everybody. Um, number two, I would say, you know, to actually have upfront agreements and have an exit plan or clause, if one person wanted to be bought out, they didn’t, they decided they didn’t want to do real estate or whatever type of business that you’re starting with a partner, um, kind of have upfront agreements and have some kind of exit strategy if a life circumstances change. And number three is, you know, avoid partnerships where one partner is bringing all the money.
Speaker 1 (15:55):
The other partner is going to be the full-time operator. That’s more of a lender borrower type of relationship, not so much a, you know, a business partnership where basically in the real estate space, I’ve seen that fail Shaun, because the guy that brings all the money, um, you know, sure they’re going to put up the money and, uh, the guy who was doing the operations, I’m sorry, they’re always going to be working harder than the guy who put up the money. And then the guy who puts up the money, he’s never really going to know how hard it is to, you know, find deals and do all that. So the operator in that situation is going to be much better off to be the operator, be the boots on the ground. And then instead of having a money partner and giving away half of their business, just find a private lender, who’s willing to lend against a deal on a deal per deal basis, rather than just bringing on a money partner who gets 50% of everything, regardless of how hard the operator’s working no matter
Speaker 4 (16:50):
Or what. Great, great, great, great advice, Dave. Great advice. Are they do RJ, did you want to add anything to that?
Speaker 3 (16:57):
Yeah. What I wanted to add is just kind of piggybacking on what Dave talked about being open and honest is that you also need to have that with your communication. Um, and you communicate, uh, more frequently, especially now that we’re all, um, virtual and we don’t really see each other as much. Um, so, you know, we touch base pretty much daily and have communication that sometimes it’s tough. Sometimes it’s talking about the unlockables and, and communicating in a way that’s respectful. That’s worked for us. Um, also the next thing is core values. We have very similar core values. And when, when you’re forming a partnership, um, you know, you, you want to have like some sort of interview process, right? You really want to know who you’re getting into business with and right off the bat, um, you know, when Dave and I met, we had very similar kind of upbringings middle-class family, uh, worked really hard to work ethic was.
Speaker 3 (17:50):
Um, and so, you know, that, that was one core value that we still have today is that we’re relentless, you know, we’re persistent like, uh, what you have in behind you. Um, so it’s, uh, it’s something that has helped us go through the tough times and earlier in this, uh, uh, on this, uh, and this zoom, we’re talking about the swings and business, you know, we’ve gone through some really low times, but we were able to figure it out and push through and, and that’s led to, you know, many more upswings. Right. Um, so I think those, I just want to add those two key things that that’s how our business has thrived, um, through these years.
Speaker 4 (18:29):
That’s great. I think you and Dave both mentioned a lot of great points. You know, two points, two points I want to emphasize is that, you know, you know, Dave really, you know, emphasize the fact that, you know, it doesn’t really work if you’ve got, um, like a finance seer, so to speak, you’ve got someone that just says, Hey, I’ve got a bunch of money and that you go get it done. Because like Dave said, I mean, you’re going to run into that situation where the guy who’s getting it done is going to feel like he’s doing it all at, at some point. And, and he’s going to probably figure out how to get, you know, break away from this partnership anyway. So like, like Dave said, you got to kind of got to make it more of a mutual, beneficial, um, relationship, um, bring qualities to the table that maybe the other person doesn’t have, you know, things of that nature. You know, I think that that definitely is going to be key. And like RJ said, you know, what, what are your core values? Have you guys even discussed, you know, core values, you know, is that something that’s important to you at all? You know, stuff like that. We’ll, we’ll, um, into partnership very quickly, because like you say, if, uh, if you’re not, if you don’t have integrity and one person does, it’s going to have, it’s going to be hard to operate together.
Speaker 3 (19:35):
Yeah. So that those are all, those are all the points. Um, that, I mean, we can expand on some other things, but those are the main key things that keep this, uh, partnership, um, you know, silence, the hardest sweat, what, what’s the hardest ship to sail Dave
Speaker 1 (19:50):
Ship to sail is a partnership. Shaun. So you’ve got to set it up right from the base.
Speaker 4 (19:54):
I liked that. I liked that. I liked it. The hardest ship to sail is a partnership. So set it up right from the beginning. So it can sail properly, man. I like that one. Now guys out there as a reminder, if at any point in the show, you like what you’re hearing, make sure you give us a thumbs up, subscribe to this show so that you don’t miss an episode because it’s your engagement that keeps us doing this for the community for free. So, so Dave, let me ask you this, you know, and RJ, you know, what do you guys think your life would be like if you never started investing in real estate?
Speaker 1 (20:26):
I would, uh, pretty much probably be, um, somebody who drinks a ton of coffee and, you know, hammers the phone and make sales calls all day. I’ll wait a second. I still am that. Um, but basically, no, I mean, I certainly wouldn’t, um, probably not have the confidence that I, and, uh, we were talking about our goals today and some of the goals that we set early on, they felt like such a far distant reach for me at that time. For instance, one of the goals was having a portfolio worth $20 million or more. I thought that was so far out of reach, you know, and then another one was like, to own a hundred properties are more like, how is this ever going to happen? Right. And, uh, you know, real estate. And my partnership with RJ, RJ has really pushed the, pushed me, you know, to be a higher and better version of myself. And, um, I think without real estate, I just wouldn’t have that confidence. I probably would not believe that I’m capable of some of the stuff that we’ve done and then moving forward capable of, of what’s to come. So really the sky’s the limit at this point. And it, you know, it really comes from, you know, doing real estate business, hitting goals and, uh, just to expanding that belief system. Got it. Got it. What about you RJ?
Speaker 3 (21:42):
Yeah, I think, uh, I don’t know what I’d be, man. I was going, I was on this path to become a doctor, you know, like every Asian family that comes here to America strives to be this doctor, but who knows. Um, and, and this journey of being an entrepreneur entrepreneur, um, I’ve learned how to communicate a lot more, um, more open and, and better, and, and just, you know, these are the skills that, um, I’d never would have had just in school, you know, and in high school. And I was never that social at all. And so a lot of the, um, you know, my growing up per se happened in college and after that hiring mentors and we still have mentors today. And so, um, I just, I don’t know where I would be. It’s certainly not where I am now. And, um, I just imagined myself.
Speaker 3 (22:33):
There was a turning point that I remember I was sitting in 18 T and I was, uh, I was interviewing, um, jobs to, in sales to be a, uh, a pharmaceutical rep. And I was down to the last interview and it was either that interview to get the job or an, I had already started, um, wholesaling or to stick with wholesaling, you know, and it was, I, I went to the right with the wholesaling and that’s, uh, if I would have said, no, I don’t know where I’d have been probably sales somewhere. You know, I don’t know, but I definitely chose the right path is what I’m trying to say,
Speaker 4 (23:10):
Man, this has been awesome this episode. I definitely appreciate you guys. You know, Sharon, you know, all your insight into great partnerships, you know, it lets me know that I need a great partnership. You know, sometimes like you hear these things, Oh, you don’t need a partner to do it all yourself, you know, but you can’t go anywhere by yourself or what did they say? You go, go fast alone, but go far together. So, um, you know, I like that. I like how you guys have definitely, uh, weather, the storm together. Your ship is, uh, you know, you filled in the holes and you’ve got it going where it’s got to go. And that’s what it’s all about now. Now guys, uh, that brings us to the next part of show that we call the rapid
Speaker 1 (23:46):
Fire session. And this is where I asked you guys a question and you give me the first answer that comes to mind. You guys ready, man? I’m, I’m a little nervous, but I guess I’m ready. You didn’t know about this on this. It was sprung this on, on a scale from one to 10. How strict were your parents? RJ? Uh, three.
Speaker 3 (24:14):
Oh yeah. Mine was 10 for sure. There was an 11. I choose 11
Speaker 1 (24:19):
Get up early, stay up late.
Speaker 3 (24:22):
I’m an early, I’m an early riser, but I also stay up late. So yeah,
Speaker 1 (24:26):
As I get older, I wake up earlier. I’ve always been a stay up late guy, but now I can’t. I mean, we’ve got a six year old in the other room and dogs and families. So I don’t really have a choice anymore, but I’m very much a stay up late guy. Well, how many hours of sleep do you get? Each night? I, RJ is probably gone down. I just got a brand new baby at home, but he, uh, I get seven, eight hours of sleep at night.
Speaker 3 (24:52):
Yeah. I’m averaging three to four on a good night right now. But before that it was, uh, six to seven.
Speaker 1 (24:58):
Okay. Favorite or last book read almost alchemy by Dan Kennedy. The last book.
Speaker 3 (25:10):
Um, so mine was how to, I got a F I, it was an audio book. Uh, but I’ll, I’ll give you a favorite book. Um, I really like, uh, I see myself, um, in my personal development, really jumped leaps and bounds, I guess, with a high-performance habits.
Speaker 1 (25:28):
It’s a really good book by Brendan Bouchard.
Speaker 3 (25:31):
Oh yeah. My Brendan Bouchard. Yeah, they’ve read it too.
Speaker 1 (25:34):
That’s good. Something that everyone should do. Less of a gossip.
Speaker 3 (25:47):
That’s good. That’s a good one. Um, mine, um, staring on computer screens,
Speaker 1 (25:55):
Something that everyone should do more of trying to go ahead, Dave, go ahead.
Speaker 3 (26:03):
Pick up the phone and call a loved one.
Speaker 1 (26:06):
Say I love you. Okay. Bitcoin bang, go. Bust boss bust. Well, people live on Mars in your lifetime, not live, but they’ll probably be, uh, my, my take is not live on Mars, but we’ll certainly, uh, set foot there in the next five years.
Speaker 3 (26:30):
Thank you. Um, yeah, there’s going to be a, disclosure’s coming real soon that we’ve already been there.
Speaker 1 (26:36):
Right? Well guys, thank you guys so much for being guests on our show. I mean, I’ve really enjoyed your to get your guys’ presence and
Speaker 4 (26:44):
All the information that you’ve shared with us and audience out there. You’ve made it to the end of the show and most people never finish what they start. So you’re special. So if you got any value out of today’s show, share this with a friend on your Facebook page, like this video, subscribe to our channel and send us topics that you want to learn more about. And like I said earlier, nearly a million people use the connected investor social network as a marketplace and a platform to connect. So in the description of this video is included a link to this episodes form discussion. All you have to do is tap that link, ask me and other pros questions and see what other investors are saying about this very episode. So until the next episode, guys, I’ll catch you on the inside of connecting investors. See you on the inside.
Speaker 5 (27:30):
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