Posted on: May 31, 2021

Partnerships can sometimes be a slippery slope. But when you find the “right” partner, it’s easy to achieve explosive success in your business quickly. 

Having the right person to offer constructive criticism and feedback as well as validating (or shooting down) new ideas, can be extremely valuable.

However, these things happen ONLY if you choose the right person to partner with! How? Discover the secrets to building an effective partnership on this compelling episode of the Wholesaling Inc. Podcast!

Today’s guest is Pete de Best, Co-Founder of Tarek Buys Houses, LLC and the President of US Lending Network, Inc. Along with his business partner, Tarek El Moussa, star of the HGTV hit series “Flip or Flop”, they founded Tarek Buys Houses, LLC, a real estate house flipping (and wholesaling) company based out of Anaheim, CA.

Pete talks about his relationship with Tarek El Moussa, how they met, what their partnership looks like, and the many mistakes they made when first starting out in the business. 

Join Pete as he reveals all the “do’s and don’t’s” of an effective partnership and why so many partnerships fail. Discover the secrets to building an effective partnership that actually works and learns how to fast-track your success in the real estate wholesaling business.

the locations to buy properties ideally and some helpful advice on working with a partner or a team. You don’t want to miss this episode!

Key Takeaways

  • How surrounding yourself with people who are better and smarter can go a (very) long way
  • How the name of your company can actually illicit “trust” with your prospects 
  • How he got started in flipping houses 
  • He breaks down his partnership with Tarek El Moussa and why they work so well together
  • He gives tips on how and who you should choose as your business partner
  • How he learns new things and why having a competitive nature can be a great thing for a partnership
  • How he analyzes data for forecasting and predicting market crashes and inflation
  • What types of properties he’s currently buying and the locations he’s buying in

 

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

Subscribe to Wholesaling Inc

Episode Transcription

Lauren Hardy:
You are listening to the Wholesaling Inc. podcast. This is your host, Lauren Hardy. And today I have Pete Debest on and Pete is a co-founder of Tarek Buys Houses. And I’ve gotten to know your team pretty well lately. So, I had to have you on the podcast as well. Pete, welcome to the show.

Pete DeBest:
Hey Lauren, I’m glad to be here. Thanks for having me.

Lauren Hardy:
Yeah, I’m glad to have you. I’ve been working with your team, did an episode with Tarek and went really, really well. And I did an episode with Forrest and Forrest is your sales director.

Pete DeBest:
He is. He’s the director of sales and marketing. So, he’s basic … We never had that before. I think it’s such an important role, because when you don’t have certain people, you end up doing it yourself. And if you’re not that good at it, you want to find people that are better. I read that somewhere, put smart people around you and have them do things that you can’t do. So, that’s what we did. We finally talked and I finally said, “Hey, we need to get somebody and we need to build these channels out, because we want to grow. And the only way you grow, you have to set up a plan to do that.” And we said, okay, we need people. If we can’t do it ourselves, we’ll hire somebody or we’ll get a consultant or whatnot, but we wanted to have it in-house and then grow that way, because we don’t want to just get a little bit bigger.
We want to get a lot bigger. We see the value. We see there’s still a lot of potential in this market and really any market that, that’s the key. But yeah, so Forrest was a great addition to our team. We brought him in probably about, time flies, but probably eight months ago, I want to say. Yeah, you had them on here before. So, you know he’s high energy. I love his attitude. You say, “Hey, let’s do this.” And he says, “Done.” He just gets it done. So, he jumps right on things, which is a really good type of person to have, especially in that position.

Lauren Hardy:
But yeah, if anyone who’s listening to this hasn’t heard the episode with Forrest. After that episode, a lot of the listeners that are currently wholesaling homes all over the US actually submitted deals to Forrest and your company. And you guys, I believe, bought some just from that episode.

Pete DeBest:
We love deals. I mean, we love opportunities. We’ve been doing this for, I’ve been buying houses since 1999. So, I’ve been doing this for a bit. Tarek and I teamed up in 2010. The first company we had was actually called Next Level Property Investments. So, we still have that company, but we have Tarek Buys Houses is more of a branded name. Because I think that a lot of times when you’re dealing with people, trust factor is the main thing. That’s why people go BBB, better business bureau. They want to have all these trust signals. And so when you have a brand like what we have with Tarek’s brand or Flip or Flop and Flipping 101, trust is a huge thing. There’s even a book by Stephen Covey Jr. I think it’s called The Speed of Trust. But I think people want to deal with people they can trust.
And so the faster you can get to that trust factor, the better, the quicker you can make a deal happen. And quite frankly, we have to be trustworthy, because we have such a big brand. We’d be stupid to ruin that brand over one deal. That’s what we always tell people. That’s what our team tells people. Why would we want to ruin a multimillion dollar brand over like a few thousand dollars? It just doesn’t make sense. So, to us, that’s why the trust factor really, really works. And that’s one of the main reasons that we started the, we didn’t change the name, but we started a separate company specifically with that name in the name Tarek Buys Houses, because it’s such a unique name and it’s a very well-known name. But anyway, that’s a little bit of backstory on that.

Lauren Hardy:
Well, and you talk about, you mentioned or it’s just something that stuck with me. You surround yourself by smart people. And it sounds like that might’ve been what Tarek did with you. So, I asked Tarek at the end of our interview, at one point, I said, “What is your recommendation for me? As a young entrepreneur, what would you recommend the one thing I do to help me.” And he said, “Get a strong number two, meaning somebody next to you, that’s very strong, very smart.” And it sounds like you were Tarek’s number two.

Pete DeBest:
Well, he’s my number two. What are you talking about?

Lauren Hardy:
Okay, one or the other.

Pete DeBest:
We’re one plus one equals three. I mean, the thing is, like they always say, if you read anything anywhere, especially when you get in. So, when Tarek wanted to get into flipping, he didn’t have capital. He had the vision, but he didn’t have the money. And I had the money. So, I own a mortgage company and I’ve been doing mortgage since 1996. And so through the crash, I was going in and buying property. I bought a lot of properties from like 2000 to 2004 or five. I stopped buying in California in ’03 because the prices didn’t make sense. Anybody that buys rental properties and I was buying rental, I said, what can I pay for it? What do I have to pay for it versus what is the rent?
It didn’t make sense. Why would I want to pay $600,000 for a property that rents for like 2,500 bucks? It doesn’t make any sense. So, I started buying in Texas. Start buying in North Carolina. States where it made sense. And actually not every market was correlated. So, Texas was in a really, really bad market in ’05, meaning it was depressed. There was foreclosures. There was so much opportunity. You could pick up properties, duplexes, fourplexes for like a 100,000. This was unheard of, because you were paying like six, seven, 800,000 for the same thing in California. But the yield was so bad. The cap rates were horrible. So, through the crash, my point is that I kept conservative in California, stopped buying. If anything, I would probably then selling in California around this, because you want to buy low and sell high.
But going into 2010, I had a decent amount of cash. So, and Tarek didn’t have. He came to me and he said, “Listen, I want to start flipping, but I need you to back me. Let’s see what we can do here.” And so I had known Tarek for like, basically since 2004. And one thing I knew about him, he always had really, because I did his home loans, he had really good credit. And that was important for me. Because I didn’t want to team up with somebody that had like really bad credit, because that would show that they don’t have good management of debt and financial responsibility. And that’s super, super important, because you’ve heard this story like going into any partnership. I never wanted to do that, because they always say a partnership is the hardest ship to sail.

Lauren Hardy:
That’s [inaudible 00:06:20].

Pete DeBest:
It’s like, I’m sure you’ve heard that, but it’s hard, because you have two people, two personalities. If you have to deal with two alpha personalities, you’re going to have a lot of this. For some reason, if we ever do get in arguments, this is the one good thing. That’s why, if you do choose a partner, you want to choose the right one. You have to be able to resolve conflict quickly. And we do and be reasonable in every situation. You have to be reasonable and logical. And sometimes when you get angry, then logic and reason goes away. Somehow that thing with both of us, because we both have hot tempers, but we both can get reasonable pretty quickly. So, that’s a good thing. So, anyway, going into 2010, I had a decent amount of money that I just had put to the side, because you always have to have that. It’s a reserve. And so he didn’t have any. I said, “Listen, I’ll do all the sweat equity. I’ll go out there and I’ll look for the properties. I’ll go to the auctions.” Because remember when auctions were thing back then?

Lauren Hardy:
Yeah, yeah.

Pete DeBest:
They’re not so much a thing. They still are to some degree, but not in our markets. He needed cash. And so the first property we went to an auction and actually the first one, he actually was able to bring some, but I brought a little bit more, because I felt like you always want to bring extra, because the adrenaline, those things, that’s what they have to push up the prices. So, we brought a little bit extra. And thankfully we did, because if I didn’t bring that extra 10,000, we wouldn’t have got this first property that we bought.
And who knows, the rest of the history might be totally different, because that first property is the one that they filmed. Actually he didn’t even film it. A friend of ours, a mutual friend filmed the process, because he thought it would be interesting. And that footage along with the footage from the next house we did is what he used to present or pitch Flip or Flop way back then, which is kind of funny. So, all these things had to like fall into place for it to work. So, I don’t know. I’m trying to give a perspective without saying too much, but the question you might say was, well, how much did you start with? Because everybody has a certain amount of money they start with I think, and you have to have certain plans. Like I would always tell people, okay, if you don’t have a lot of money to start, you should probably wholesale.
Because you don’t need necessarily cash, because you’re just assigning contracts. So, whenever … And people do ask me a lot, how do I get into this? Or you find somebody. I always say, “Listen, if you have a good deal, money will find you.” If you find a deal that’s worth a million dollars that you can get it for 500,000. You’ll find a way to make that deal happen. That’s a ridiculous scenario. But I’m just saying, they’re not going to be that good. But if you find something that has any kind of meat on it, and if you have through all these networks, through your network or whatnot, or through people who are investors are flippers like ourselves, there’s always a way to move that deal. Tarek though in his position, he knew that I had some cash and I knew that he had like super energy, because he had been doing this with another group.
They were kind of like spinning his wheels. He was going to options, finding them all these properties, like look at all these deals I’m finding. These people and they’re not pulling the trigger. They’re too conservative. So, he said, “Let’s start buying some of these properties.” And I said, “That’s cool. Let’s do it.” So, it started, it was just him. And then he brought on a friend, because he was doing a lot of the calling and what not. And then he brought in another friend. So, that’s kind of how it started. He started with people that he knew that he could trust with a little asterisk, I’ll explain that down the road. What happened several years later. But he kind of surrounded by people that he knew and that’s how he built his team. Because he knew right along that he didn’t want to just do everything himself.
I think that’s one thing people do they don’t necessarily, or they might not do when they get into this business. They don’t think about how they want to structure it, because you actually have to have a pretty solid plan or an idea of how to do it. Because let’s say you had a separate job that you were doing. And you’re doing that to nine to five or whatnot. By doing something that’s involved like wholesaling and flipping, whatever. How much time do you have available to do it? And depending on what time you’re in, because it can take a long time to get going in certain markets. I think back in the day in 2010, 11, 12 is easier, because you’re just writing offers. But these days you have to be more strategic, because I think the pie is smaller to some degree because there’s so much more competition.
And so, in the market is obviously, I think when the market is hotter like it is, I mean, let’s face it. The prices have gone up a lot in almost every market. I can’t think of market’s where it’s gone down lately. You have more competition and they’re fighting over less deals. You have to have a better plan, I think. And you have to have better marketing and a better strategy. And you can’t do the things in the past that don’t necessarily work today. A lot of stuff that worked in the past doesn’t work today, like going out and working with agents and writing 50 offers a week. I mean, I guess you always have to make offers. If you don’t make offers, you’re not going to get a deal, but that used to work better than it does now. And going after short sales and foreclosures used to work better than it does now. Now almost all our deals are off market.

Lauren Hardy:
You touch on so many things. I mean, something I’m very curious about is business partnerships. I get that question asked all the time, like how do you know if I should go into business with someone? So, you mentioned that Tarek had really good credit. You came in with the money. And I imagine you came in with some business expertise maybe, given you experience.

Pete DeBest:
Sure, sure. Yeah. When choosing a partner, you want to look at what compliments you and somebody who you can trust. Because a lot of partnerships, I mean, you’ve seen the horror stories where one partner steals all this money or one partner gets into drugs or one partner does this. And so it’s super scary. And so that’s why I said I would definitely deal with somebody that you know. And in my case, because I had done home loans for him, I’ve seen this credit many, many times. I knew that again, he has never missed a payment in his life on anything either. I also knew that before the market crashed, he sold all his real estate, which I thought was pretty intuitive, because the first house he bought, I think when we did a loan for it, I think he paid like 750 or eight somewhere in that range.
And so maybe effectively it was eight, but he did it with no commission being that he was an agent. So, it might’ve been an 800 effective price, but he got it for like seven something. Turned around down the road before the crash, he sold for a million to somebody that was like 23. And then subsequently, I remember looking at that property like three or four months later, it was already into foreclosure, because that was right around the time. So, he got out of it right at the right time. And I don’t know if it ever foreclosed, because it’s during that, if you remember, a lot of people were able to like stall that process. So, anyway, I think they got bought, it was actually like a real estate coach or something. So, maybe he was able to keep it from going to foreclosure.

Lauren Hardy:
You raise a good point about Tarek’s decision-making skills. So, when you’re looking for a partner, you want to make sure you watch their decisions. And I got to tell you, that is actually a really good one, because there are some people right now that are like aggressive on real estate.

Pete DeBest:
Because you want actually somebody that’s, you want a driver. And if you’re not a driver, you want to work with a partner that’s a driver, otherwise you don’t go anywhere. So, I’m a driver to a certain degree, but Tarek’s like a driver on steroids. He’s willing to try … We find everything. Anything and everything. Because we always say, well, what’s the worst that can happen. If it cost $10,000 or $50,000, a $100,000, we always looked at it as well, you divide it by two and divide it by two, like two of us. And then of course our big partner, the IRS. So, we always figure that it’s really only going to cost us a quarter.
So, we’ve done billboards, we’ve done post-it notes. Literally like where we hired a company to like post it notes on people’s doors and say, “Hey, we missed you and give us a call. We’re interested in your property.” We thought that my work. Didn’t work so well, but it was a good way to spend. You spend like five or 10 grand and you learn. So, we always learn. We learned sometimes expensive ways, but some things we do that we don’t think will work, will work. So, that’s the thing. You have to do a bunch of different things. You can’t always, like I said, rest on one and you just have to try it. And so that’s a good thing. You got to constantly try new things.

Lauren Hardy:
It sounds like Tarek is kind of the ideas person. Are you the one that’s more of the implementer?

Pete DeBest:
Sometimes. I actually, most of what I do is just move money around. I move money from here to there and back again. So, no, we both have ideas. Sometimes though he has just far-fetched things like pitching TV shows. That’s why I always say like, sometimes he drives me nuts, like literally, but then I’m like, wow if you don’t know that you can’t do something, then you can do anything. Or the better way, the Henry Ford is, if you think you can, or if you think you can’t, you’re right. So, he usually just thinks like, he doesn’t look at barriers. It’s funny, when I always say, “Hey man, four people are already doing it.” And then he goes, “I don’t care about competition.” Which is, I’m like, Hmm, that is competition.
You just do something better or you just take something that somebody else is doing and tweak it a little bit and make it your own or make it better. Because if every company says, “Hey, Jeff Bezos would have never done Amazon if he would have said, well there’s Walmart, there’s target. They’re going online. Why would I want to do this silly online thing?” So, you’ve got to actually constantly just understand that there is no competition. And there’s just, you have to just figure out where you want to and how to do it.

Lauren Hardy:
It sounds like you’re an incredible critical thinker and you’re very good at analyzing investments. So, on a daily basis, where do you get your economic data? What books, what publications, what is in your daily habits? What are you reading to get this information that is helping you make these critical decisions about what markets to move in and out of?

Pete DeBest:
Oh sure. I mean, like there’s basics right? And I don’t even, I’m laughing at it, because I don’t even know in Oklahoma that we did this, but the no-brainer ones are look where home Depot and Target or new stores or new development is going, because they spent a ton of money. You look where builders are building, because they subscribe to these consultants that they pay millions. Like what is it? John Burns, I think, I mean, that guy is a very high paid … Burns, I think is the name.

Lauren Hardy:
It is Burns. Do you read, I think he comes out with reports?

Pete DeBest:
I’m part of a group that meets quarterly and they provide all this data. And so it’s pretty cool. It’s a real estate research council. So, every quarter we get tons of data from every source. And the one thing that I actually, I always laugh because every time I say, listen, I always know when it’s raining, because I go outside and I get wet. And so a lot of times the data is like, it tells you where you’re at, but not where you’re going to be. So, it’s really bad at forecasting. And I’ve looked at, these reports are like huge. And they cost, the data, in these reports is a lot. Just imagine, that’s a lot of money. So, actually we’re not even able to share this information. It’s for our eyes only, because you have to pay to be in the group.
And there’s some big people that are in this group they go. But the one that’s the most interesting. And the one that I think predicts the crashes from what I’ve seen, this is a little spoiler here, but our little, not a spoiler, I don’t know what we called it, and it kind of holds true if you think about it. And I kind of tipped on this before, when you look at a disparity between the rents and the value and you see that widening too much, then you know there’s going to be a correction. And it kind of goes, like I said before, never buy something you can’t rent your way out of. But you have to adjust it for inflation. So, if you go back in time and you look at what happened in ’05, there was a big gap from the value of the price somebody would pay versus what they’d rent it for it.
It was huge. Like I said, your 750 house in California was renting for 2,500. That’s huge. So, now that same house though, ironically is probably, that literally same house, it’s probably 950, because I sold the house actually two, three years ago for 750, it’s 950. And this is one I use for comparison. And it probably rents for like 45. So, one would say it’s getting closer, but the rent, think about how much the rent has gone up versus the price has gone up. So, 750 didn’t go to 15, it went to 950. The rent though went from 25 to about 45. So, it’s gone up, I think, more than the value has gone up. And you’ll see in Northern California where you had like some of the bigger discrepancies of value versus rent, that’s where if I see any correction, I would think that there could be something in Northern California because the prices are so high.
Plus you have situations where the reason there was such high demand was that the property tax rates, people couldn’t sell and buy their next door neighbor, because they bought their house for 400,000. Now it’s worth 4 million and their property tax would go up like infinite amount. I mean, you’re talking, it would go from like eight, after the 2% increases from like, they’re probably paying 8,000 a year and they’d be paying like 50,000 a year. They just couldn’t do it. And I think there’s some, now they’re able to do that where they can sell. Plus people don’t need to live in that area. They can live and work through Zoom.
So, they can live outside of the area, maybe go in one or two days a week. So, that to me would be one market they could have some softening to some degree, but we’ll see, there’s a lot of money up there. So, I don’t know. But when I look at what could cause it, it would be when the rents get out of line. So, if the prices move too fast relative to rent, then you would see a market that could correct. Does that make sense?

Lauren Hardy:
Yeah, no, that’s [crosstalk 00:18:50].

Pete DeBest:
That is the one indicator, that’s number one indicator. Okay, number two is absorption. So, you look at how many houses aren’t for sale. I look at this all the time versus how many houses that are listed. And so if you look at markets that there’s like, so you look at what’s pending. So, if you find there’s three houses that are active and 15 houses pending, that’s obviously, and then there’s like 60 close, that’s a great market. So, I remember back in ’05, you look at Newport beach, there’s like 350 actives and there’s two pending.
I mean, that just tells you that, that’s a bad market. You know there’s going to be some issues there. Anytime you see a buildup, that’s just common sense of supply and versus demand. So, any investor, I think, looks at that. I mean, that’s one of the last things that when you’re making a buy decision, if you’re going to hold it, you’re looking at obviously, what are your comps look like right now? You look at what your holding period is, because you know appraisals can only last for six months. So, you’re like, okay, is this going to be a project that’s going to be ordered in six months? How many times has somebody made the mistake where they based their decision on one comp, but it’s like three months old and then that one comp is gone and then they go to sell or they go to retrain that property.
And then that comp is no longer valid. That’s a huge mistake, but kind of all bets are off right now, because the market’s been so solid that I think when you see this price increase, appraisers are actually using a factor that there’s just no supply and they’ll almost give it. Because usually appraisers always want to bracket. They want to take a high and a low and kind of find the value in the middle and that they don’t have to do that right now, because it’s hard to do that when everything is higher than the last sell for the most part. So, it kind of throws things off. But that’s other data. I mean, I’m trying to answer your question.

Lauren Hardy:
Absorption is actually something that is not touched on a lot.

Pete DeBest:
It seems like it would be.

Lauren Hardy:
I flipped homes and I was never something that I can think of any educator had ever said to look into this when you’re picking a market.

Pete DeBest:
Well, yeah. It certainly needs to be part of your decision process. We actually cancel out of a deal when it was a condo in LA, but we were looking at it. It was like six for sale. And there was like nothing that was sold. So, we were like, wait a minute, we’re just going to be number seven. So, to sell, we’re going to have to drop price and that’s bad. So, the final thing that you look at it and it’s in that sub-market … Because you always go like hyper-local and then you start going out. So, you look in the exact neighborhood, you want to be in the exact builder track on the back of the year. That’s your ideal, your best data. And then you start looking at things like functional obsolescence, like what’s wrong with the house? Is it a three bedroom, one bath?
Or is there a three bedrooms upstairs and no bathroom? That’s functionally obsolescent. Obsolescent means like it’s obsolete. Then you look at like economic or geographical obsolescence. Like, is it next door to a cell phone tower? Is it across the street from a church or from an elementary school? Which you might say, okay, well somebody might have kids, but if they don’t have kids, you’re going to have a lot of traffic. So, I don’t necessarily get out and look and drive these properties. But you know, that … We’ve done it, I did back in the day, but not lately. But you know those types of things can make a property less desirable compared to another comp. Again, those are things that would be an adjustment in a negative. So, those are things that we look at. So, again, I’m just trying to answer all the analysis that goes in. And our guys know it.
The beautiful thing is I’m not even involved in a lot of this, because my team over the last 10 years, they know all this, they know it probably the same or probably better, because they only come … I’m involved on those iffy ones that they’re not quite sure on a lot of times. And then maybe sometimes I will get involved with some that they might not want to buy. Then we might want to justify reason to do it. That actually happened recently, there was a deal that we were probably not going to do. And then we ended up doing it and then it turned out to be an assignment for like 56K.
So, that was almost the deal that we might’ve missed. And then it took a second set of eyes and said, well, let’s look at it this way. We actually almost bought it as a short-term rental, because it actually was in the right area to do that. And then ultimately said, well, if we can get this amount of money, then we’ll sign it. If we don’t, then we’ll keep it. We had that kind of decision.

Lauren Hardy:
I do love your advice. You definitely have a wealth of information. So, Tarek Buys Houses. You guys are still buying houses everywhere. Before we end today. Why don’t you tell us where you’re currently buying and how people could, other wholesalers, if they have a contract in the area, they can submit their contract to you guys for review. So, what States are you buying in?

Pete DeBest:
Yes. Okay. Great question. Okay, Oklahoma, for sure. Okay is okay by us. So, I would say any of the Sun Belts. Does that sound like a broken record from probably everybody you’ve had on? I mean, to me, and the dumb reason is, is the weather’s better. And then you’re not going to ironically, although we had a big freeze, we lost like two months on a lot of our rehabs, because of weather, because of this crazy freeze over in Texas and kind of hit Oklahoma. And so crews couldn’t work, but if you buy in the north, you’re like three, four months can’t really do much. You’re construction is at a standstill. It’s probably hard to rent properties in negative 10. I’m assuming. I mean, I don’t know. I’m just saying it might be hard.

Lauren Hardy:
So, Texas, Oklahoma.

Pete DeBest:
Yeah, sorry. Texas, Georgia, Florida, Mississippi. Again, certainly Oklahoma. But like I said, I’d like to have three or 400 houses and specifically Tulsa area. I mean, I like Tulsa, Broken Arrow, [Allosso 00:24:09], probably those main ones. There’s a few other around there. But it’s generally those, just because I feel like we have a decent team in that area, and a team is important to have. I like North Carolina, it’s just, the pickings are slim. I think the words out.

Lauren Hardy:
It is.

Pete DeBest:
I would probably be more of a flipper in Austin, just because the tax rate’s so high in Texas, but there’s huge demand. I think there’s a lot of money going in Austin. Just a lot of businesses are going there, because it’s a very business friendly State, unlike California. So, that would be there, but yeah, we’re buyers. So, I think the thing that’s good, I think that most wholesalers need to recognize is they want to make sure they’re dealing with the end buyer and not a daisy chainer.
That’s like the worst where somebody is going to sell them back their own property. Wait a minute. I just told you this property. Why are you trying to sell it back to me? Why am I getting an email from you? Because that’s happened. Yeah, I think people have to be very, very careful on that, but we’re definitely buying in those. We just have, our buy box might be a little bit tighter than some, because we know what we’re doing. So, I think that we know what to look out for. But I’ve probably bought 70 deals from wholesalers, probably I think. So, it’s a decent amount. Because we never wholesaled until basically 2000, maybe 1990 or 2019. It never was a thing for us. We just felt there was too much value in flipping.
But now with the fact that prices are so much more, that the amount of risk that you have, I think when you have … When we had 50 projects going, think about that, I mean in these markets, that’d be 40, $50 million. And if the market turns, I don’t think it’s going to, but if it did. Just think about if you’re, that’s how I look at it, but maybe I should look at it the other way, if you have 50 million and it goes up 20%, that’s a glass half full half empty kind of thing. I think the more comfortable you are in the market, the more open our buy box is. And I think the better our crew and the efficiencies that we have would make it. But in some cases, like I said, even in California, we’re assigning deals just because it might be a little bit out of our area.
So, meaning it would take us like 40 minutes or an hour to get there for our contractors and they don’t want to … We’d have to go outside. And when you’re trying to find new contractors, it’s a little bit difficult, because in this market, I mean, it’s probably harder to find, it’s not impossible. It’s just the amount of extra work. So, we actually recently just hired a construction manager, because again, you find people in your team that can help out. So, that was two weeks ago. We said we really need to have this person in house. So, that’s kind of how we did it, because for us, like Tarek and I, or maybe our other guys, it’s just, it’s not our highest and best use, but we know it’s valuable. So, these are the kinds of things that we’re doing. I don’t know. I always take your one minute question and turn it into a 30 minute answer. I apologize.

Lauren Hardy:
So, if somebody has a deal, do you have an email address or somewhere that they can submit it?

Pete DeBest:
I’m sure we do it. I’m sure Forrest knows that one.

Lauren Hardy:
Just Forrest email. He told me he gave it to us on the last one.

Pete DeBest:
And whatever that one is, I’m sure. I’m trying to think of it.

Lauren Hardy:
Forrest@TarekBuysHouses.

Pete DeBest:
[crosstalk 00:27:14] prepared. I mean, somebody emails me, I’m Pete@TarekBuysHouses.com. And I get, believe me, I get a lot of emails there from everybody. So, if somebody sends me that, I mean, I definitely have the wherewithal to, if somebody were to email me personally, because I generally am, with time permitting, I like to give and help. Because I feel like if you help people get what they want and you’ll get what you want. That’s something that everybody should know. And I love that expression. I like everybody eats. You go to dinner and if you go with three people, everybody got to eat. So, or four people or whatever. So, anytime we do deals, we make sure every party in that deal is better because of it.
So, if somebody emails me, again, Pete@TarekBuysHouses.com. Just somebody emails me there. I will respond fairly quickly and we have, again, we have a pretty rapidly growing team. So, we’re trying to find the best people. We’re actually, by the way, I don’t know if were hiring. I mean, that’s something that Forrest probably tipped on. We have a location here in Anaheim. I’ve got probably about 10,000 square foot office. We actually own the building. So, we can make it as big as we need. Because we actually have a, it’s a mixed use. It’s kind of a sweet deal that we bought a while back. But yeah, we’re constantly growing our team with the right people, not the wrong, if you’re the wrong person, please don’t.

Lauren Hardy:
So, if you are actually interested in working with their team, you guys can email your resume and whatnot to …

Pete DeBest:
What happens there, yeah. And our website too, has, I think a … On TarekBuysHouses.com. there’s a careers section of it. And that goes directly to Forrest and anything that’s related to this, I would just pass on to the Forrest, because again, he handles it. Some of these things, like I said, I got to do what I do and then I got to let people do what they do. So, I think that answered your question in less than 30 minutes.

Lauren Hardy:
You did. Well, Pete, you were awesome. Thank you so much for coming today. And I really hope that you’re able to do more deals with our audience by this episode. So, Pete, thank you so much for coming.

Pete DeBest:
Yeah, it was a blast.

Lauren Hardy:
Thanks for listening to another episode of the Wholesaling Inc. podcast. If you guys want to learn more about real estate investing and taking your business virtually, go to www.wholesalingInc.com/virtual. Thanks again for listening.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling