Posted on: September 09, 2021
772 WI | Real Estate Deals

 

If you are wary of getting into real estate because you believe that it is a difficult industry with numerous risks, well, it is all in your head.

Our guest today, Javier Hinojo, is living proof of that. Javier is a locksmith who lost his hard-earned money to a Ponzi scheme and went bankrupt. After his friend introduced him to real estate, he put in the work, and he now owns over $50 million in his real estate portfolio.

In this episode, Javier will go over all of the deals he has done—from flips to wholesales. He will then reveal his secret to maintaining momentum and becoming one of the most successful people in the business. He will also go into his mentorship program, Teen Millionaire Challenge, where he helps teens become real estate entrepreneurs.

From 32 Cents in His Banking Account to Over 50 Million Dollars in Real Estate Deals With Javier Hinojo

Episode Transcription

I’m going to be talking to a real estate entrepreneur that has gone from having $0.32 in his account in 2017 to over $50 million in his real estate portfolio. This is going to be exciting. This is going to take so many twists and turns. There’s going to be wholesaling, flipping, buy and hold. The cherry on top is we’re going to talk about how he is inspiring and mentoring kids in their teens on how to be real estate entrepreneurs. It is my pleasure to introduce Javier Hinojo. How are you?

I’m doing well. Thank you so much for having me on the show.

We’re going to go all over the place here. In 2014, you were a locksmith. Walk us through. Tell me about you.

I love what you said, “If you can do it, anybody can do it. If I can do it, anybody can do it.” I’ve read one book my whole life and I’m a high school graduate. There’s a curveball for you. Let’s start with 2014. I own a locksmith company, which I still own and my dad runs for me. I spent maybe a couple of minutes a month on that. I let him take over that because I love my dad and he can make good money. I was at a service company. It had all my life savings in a brokerage account that eventually, the guy embezzled all the money and I lost all my life savings.

You own a locksmith company. You’re making money and you’re putting away your savings into what you think is an investment account, which is a Ponzi scheme. Now your savings are gone and this is in 2014, 2015.

2013-ish. It was tough. All the money I’ve worked for, all the long hours and all the weekends are gone.

How much did you lose?

It was multiple six figures. I told my wife and she was sad but she said, “I believe that you can make it back.” She wasn’t super worried about it. What I did was I took a year off. I didn’t have a lot of money. I took my family to Mexico like a sabbatical, say, “What’s important in life?” I said, “Let me go spend some time with my kids and my wife for a year.” I came back and a friend of mine invited me to a real estate conference.

What was the conference?

It was the Rich Dad Poor Dad three-day seminar. My friend is a chiropractor and he had survived stage 4 cancer. He has spent his life savings, everything, fighting cancer. Neither one of us had any money at that point. He paid the $300 for the preview and then there was upsell of $35,000. I didn’t want to do it. He said, “If you don’t do it, I’m going to do it myself.” I said, “If we’re going to get ripped off, we’ll get ripped off together.”

You got into the Rich Dad Poor Dad training. What does that teach you to do? Is that wholesaling, flipping or buy and hold?

With the package that we got, we had five courses. We took basic real estate. Everybody takes that one. It was a wholesaling, flipping, owner finance. It has a list of options something like that and then you start taking your modules per se.

This is one of the issues a lot of people deal with as you’re getting into this business is there are so many different paths. How do you focus on anything instead of everything? When you got into it, what was the thing that clicked to you? What was that you looked at? You’ve got all these different options. You got creative finance, buy and holds, fixed and flip, wholesale. Which one of those clicked with you the first and put that fire in your belly?

I figured out I would be a good flipper. Flipping a house would be fun. We’re going through our module first, like basic one-on-one and we find a property in MLS. We make a low offer and they accept it. We’re like, “What do we do now? Where are we getting insurance?” Little dumb questions like that. Usually, when you’re brand new, you’re going to think about that stuff, “Where do I get the money?” All this stuff went through our heads. Not even halfway through our training, we had our first contract.

You’re going through the training. You’re taking massive action so you make an offer on a property that’s listed on the MLS. Was that a property that was in rough shape or was it on the market for a long time?

It was in the market for a long time. It had dropped in multiple times and then it had dropped the day before. We’re like, “Let’s go ahead and go even lower.”

How did you buy it, you didn’t have any money?

We ended up doing credit card advance.

It will always be your willing attitude that will help you find deals.

You’re pulling it off. Now you’re at 20% interest probably on this money. You’re like, “We got to do something here.”

We ended up doing the deposit on the credit card and then we had to go find a hard money loan. The first thing we do is start searching online, hard money lenders. Watch out, don’t do that, go with the recommendation, please, to everybody out there. Somebody you trust or you’ve been recommended. People were like, “Send $1,000. Send $500.” They were asking for money upfront. We ended up getting a hard money loan and it was 12% interest, like four points. It was outrageous but we got a decent deal on a property and it turned out to be okay.

There is so much that you can do in real estate investing groups, on Facebook, Meetup groups or whatever that you could post who’s the best hard money or private money lender. People will post and people will like it. People dislike it or whatever else and you’re going to get a good idea in any market. I don’t care if you want to do it virtually or whatever.

You can go to an investment group and be like, “Who’s the best closing attorney or closing title company?” Whatever it is. You’re going to get twenty responses and the fifteen are ABC titles. It’s probably ABC title. It’s not that hard.

I say that all the time on this show, “Reach out, get into these groups, network and find good resources to handle that because our job is finding good deals.” That’s what we do. As a real estate investor, you go to find good deals. If we can focus almost all of our efforts on that, especially in the beginning when lead generation is so critical then we’re going to get to an opportunity faster and it’s exciting. You’ve got this deal, you’re flipping it and it works out. You did the work and you’ve got the contract.

It’s twice as long, costs twice as much but we still made money. I want to make a lot of money so I got to do a lot of these. I’m like, “How am I going to flip ten a year?” I go meet somebody that’s flipping ten a year. I’m like, “If he can do it, I can do it.” I started doing ten and just continued that way.

Here’s the stance for everybody. Eighty deals from 2017 to 2019 were wholesale, 50 deals flipped. 50 flips, 80 deals, it’s 130 deals in those two years. How were you lead generating? What were you doing for lead generation? What was working at the time and what was your process for that?

For the first two years, everything was auctioned or MLS. After 2017, I decided to do some marketing.

This is interesting Javier because most people start out thinking that you can get these deals from an auction or from properties that are listed that you get a sweetheart deal on. That’s how a lot of the training was back then. A lot of it was centered around, “Have people find you these opportunities so you can focus on your fix and flip.” Most fixed and flippers don’t want to go direct to the seller because they’re focused on managing their contractors, picking out cabinets and fixtures. It’s a whole different business. That’s why wholesaling exists.

I have a friend of mine who flips about 150 properties in my market. He does know sales and marketing. Wholesalers bring him deals all day long. He’s like, “I’m going to go wholesale.” I’m like, “Are you already flipping? Stick to what you’re good at. Don’t start the other business.” If you’re going to wholesaling, you got to find somebody like him you can feed everything to.

You have the option. All wholesaling is sourcing real estate opportunities. That’s all it is. The exit strategy is assigning the deal if you want to do a traditional assignment but wholesaling is going and finding these opportunities and then you’re in the driver’s seat to do whatever you want with it. Whether you want to flip it, hold it, assign it and get that quick money but you decided to get into wholesaling some more to build up the bank account.

The bank account because in 2017, on New Year’s day, I had $0.32 in my bank account. I had to ask my kids for their Christmas money in the ATM so I could pay my rent. I almost cried that night and quit. I was beating myself up. For all night long, I couldn’t sleep then I’m like, “Get a hold of yourself. Stop feeling sorry for yourself. Let’s keep chopping wood and keep going.”

You had $0.32 in there because you had your money tied up on your deals. It was costing more and wasn’t quite ready yet. You can’t sell them until it’s done.

I got over-leveraged and I was trying to remodel so many at one time. I ran out of money without finishing one. I try to do them all at the same time. It was tough.

What’d you learn from that?

Make sure that there is plenty of money coming in and wholesale like, “I don’t have to buy them all. Maybe I can even partner with somebody. We can work on a flip together or even grab a couple and go ahead and sell them off for a quick $15,000 to $20,000.” I could have done that.

Keep income coming in. There’s got to be fresh new deposits coming into your bank account especially if you’re investing in other properties.

If I would have wholesaled, even before to some of these properties, I would not have been in that position.

772 WI | Real Estate Deals

Real Estate Deals: You can hustle and work the phones or find deals knocking on doors.

 

You get out of it, I assume you get to the point, you limp along, get it done, get those closed, get the money back in, life is good, now you’re considering wholesaling. You’re going direct to the seller and at the time, you did direct mail.

Let me listen to a podcast, turn my direct mail and I’m like, “Let me give it a try. Let’s see what this is.” I was still flipping. I made some money and I had $15,000 to $20,000. I’m like, “I got $15,000 to $20,000 of cashflow. I’m going to grab $15,000 of it and throw it into marketing. Give me $5,000. I have nothing else.” I didn’t tell this to my wife. I pretty much grabbed like 75% of my money and threw it into the marketing. Several years ago, it was a lot easier for direct mail. They’ve called this number and left a message. I didn’t even answer.

This show was built in 2015 and 2016 off of teaching direct mail. Tom Krol would teach that you send out mailers to have it go to voicemail and then call them back after the voicemail. That’s a wild and effective direct mail list.

They would call and it would qualify them and then they would leave a message. You have to listen to this long voicemail, they’ll leave a message and they’d be like, “I want $30,000 for the house.” I look it up and like, “It’s worth $200,000 rehab.” That’s a great deal and I felt like a great closer because I’m calling these guys and I’m trying to negotiate. They’ve already told me what they wanted. I started running now the easy ones because I’d have an easy one land once a week. Easy every week like constant clockwork. I didn’t even have to work for the hard ones and eventually, we started a little bit tighter or had more time, body and staff. I started hitting the other harder ones to get more deal flow.

You’re building up the momentum and success and doing well. You join or get invited to join Collective Genius, which is a phenomenal mastermind with the top of the top real estate investors from around the country. They are selective. They only let a certain amount of people in each market to make it all comfortable. You get in there and you’re seeing the future that you would have on the path that you’re at. You were doing 50 flips.

I want to do 150 to 200 per year. That was the whole purpose of being there. I stand in this room with pretty impressive investors and these guys doing some crazy stuff. I’m from Raleigh, North Carolina. There are some guys from Charlotte doing 200 a year. They get up and they speak about their business, their systems, the people they have and their staff. I’m like, “I’m so behind.” I tell everybody that I’m 24 years old but I look like 42 because I used to flip houses. I used to live out the wrong way but let me correct myself. There are a lot of people that flip houses the right way. When I saw my team, I said, “I want to scale to unhappiness.” That’s my top. I said, “I’m not going to be happy.”

Unhappy because you’re going to be stressed. Will it take up your time?

I was in the weeds every day. Doing so much, I was working in all my business. I said, “If I measure 200, I’m going to die.” It’s not going to work. I looked over my wife, I said, “We’re quitting.” She looks at me, “What do you mean?” I said, “We’re going to sell all our houses and buy apartment buildings.”

The night before, we had a presenter up there. His name’s Nick. He talked about this book. That was the first book that I ever read. It was like a twenty-minute read. It had a lot of pictures and big thick letters, which I loved. I found out later it was on YouTube. If I knew it was on YouTube, I would have listened to it on YouTube. I would never read it.

What was the book’s name?

It’s called Mikey and the Dragons and it’s by Navy Seal Jocko. He wrote it. It’s a pretty cool book. It talks about his dad passing away. He’s a king and the king would go fight the dragons. The little kids are scared because the whole town wants him to go fight dragons. The sword is big. His dad’s shield is huge and he finds a letter from his dad. He’s all he’s nervous and he says, “Go fight the dragons. Remember, they’re not as big as you think they are. It’s only in your head.”

He’s still scared and goes fight the dragons. When he shows up to the cave, the dragons are big because it’s in your head. Coming back into town, he was telling everybody, “Don’t worry about the dragons. They’re this big but nobody paid attention.” That’s the thing that got me. It’s like now, you can tell somebody exactly what to do but there are only a select few like the ones that read your blog that get it. They know that they can do it and that 90% plus of the people, you can yell from the top of the mountain tops how to do something and they’ll never going to do it as that little kid told them, “The dragons are this small.” Nobody cared.

When I read that for me, the next steps were commercial buildings, $5 million or $10 million properties or plus. That was my dragon. When I read this book, as silly as it sounds, I’m like, “Probably the dragons aren’t as big as everybody makes them out to be.” They weren’t. They’re not that big. They’re pretty small.

You want to challenge yourself by going after these bigger priced higher-value deals.

I said, “I’m going to restart with a new staff to get me where I need to go.” I went back, I let everybody go and so my properties.

What was wrong with your old staff?

They were good. It’s just there is always a place in time for everything. I knew that they couldn’t get me where I needed it to go. I needed a different staff and I was going to do them a disservice by keeping them along.

They were doing fix and flips, wholesale, marketing and all that. You wanted to go, buy and invest in multifamily and raise money to be able to do that. I love this evolution, Javier because this is only a few years. This isn’t like you’ve been doing this 30 years and now you go into these apartments and multifamily. How many units now do you own?

Build a team so they can do the grunt work for you.

Six hundred ninety units, worth $50 million.

Let that all sink in, everybody. You went from being a locksmith, investing in a Ponzi scheme, losing it, going to Mexico for a year, coming back, using credit cards to be able to do his first flip, keep the momentum going. He goes crazy and wild. He does multiple flips at the same time. He has $0.32 in his accounts and gets that money finally back out after making rent from not having a Christmas that year and now you’ve got $50 million worth of real estate. It’s incredible.

The dragons aren’t that big. I’m going to put myself in the position and say, “If I wanted to transition out of my wholesaling business, I need some money set aside to be able to invest into these properties.” Is that something you had? Am I wrong? Do you need to raise the money? Talk to me about it. Break this down.

There are multiple ways you can do this. If you’re already an active wholesaler, you can flip a switch and mark it for multifamily. You can get multifamily off-market as well. That’s challenging but you can still do it. Half of the properties we bought have been direct to the seller.

How’d you get ahold of them?

I’m calling and mailing them. It’s just a different conversation.

Are they usually owned by companies?

Yes, like LLCs or partners. Usually, you’re talking to somebody who’s worth $10 million, $20 million, $30 million. You don’t ask the question, “How would this change your life? How would this make you feel?” You can’t have those conversations with those people because these are sophisticated millionaires. A lot of these have another profession. They bought an apartment building and then I get at it. They didn’t want to sell it because, “I’m a doctor. I’m a brain surgeon. It’s my pet project for my daughter.” Every once in a while, you do get a mom-and-pop owner. You got to know who you’re speaking to.

If it’s in an LLC or some corporation, how do you get in contact with the decision-maker? Are you going into corporate records, finding the managing member, finding their mailing address or sometimes it’s their attorney and you have to go through their attorney? All that and then you just, “I’d love to buy this property. Will you tell your client?” If it’s an attorney or whoever.

It could be the insurance guy, the broker or whoever you connect to the LLC. Hopefully, you can eventually find a number and a name. You could skip trace it and call them directly. If not, whoever you can get ahold of. If you have enough of those, it’s a numbers game. If you’ve got good credit and you got money, there’s no excuse, guys. If you have bad credit and no money but you can at least find a deal, you can hustle and work the phones and find a deal. You should knock on doors whatever you have to do. You can make it work that way.

That person is more valuable, the person that’s reaching out and the person that has that fire in their belly.

You find that project and you go partner with somebody like me or whoever you connect with and be like, “We’ll sign the loan. We’ll raise money and then we do the project together. You get an acquisition fee and you get a piece of the deal. If you want to learn how we do the process, come on, let’s see how we make the sausage.” You can say, “That’s awesome. That’s a lot of work. Let me go find deals.” We partner that way and eventually, that person could do it on their own. It’s not that hard. You can either source a deal. If you have the net worth, you can sign for a loan. If you have good contacts and you get to raise the money, you can raise money. There are a lot of different ways to be part of a team.

How did you do your first multifamily?

My first one is in September of 2019. I told my wife, “Let’s quit.” She asked me, “How much time do you need?” I said, “Two years.” I didn’t even know what to say. I told her, “We’ll buy our first one by the end of 2019.” I don’t even know why I said that. I know it’s going to go and do whatever it took.

The wind is at your back. You’re going to be pushing towards something. You put your head to it, you’re going. Where’d you get that confidence?

I have no idea. Probably, from my mom and my dad. My dad’s always been an entrepreneur having ideas and my mom has some crazy work ethic. I got a good combination of both.

Do you feel that that is trickling to your kids?

My daughter has it and my son keeps getting in trouble in school for selling candy. He went to a dollar store and bought a bag of candy. For $1, it has ten candies in it. He sells these candies for $1. He gets in trouble because he is selling candy at school. He said, “The next day, he gave you candy and then in the afternoon, you gave me $1.” It’s not a one-for-one. He still got in trouble for that. My younger kids are for sure. My older kids don’t have that drive yet but maybe at some point. I can present it and hopefully they want to take the opportunity.

772 WI | Real Estate Deals

Real Estate Deals: Make sure there’s plenty of money coming in and you don’t have to buy every property.

 

The first deal?

How did I get to that? I said I’m going to buy my first deal by the end of 2019. Number one, I had to believe, the mindset. Number two, I had a network and I could talk to people. If I wanted to learn how to ballet dance, I’d go hang out with dancers and if I want to know how to bartend, I go hang out with a bunch of bartenders. Number three is to take some action. I did those three things. I connected with somebody who was buying the first project. I said, “What can I do? What value can I bring so I can be part of this deal and learn how the sausage is made?” He said, “We need $1.2 million. Can you go help us fund to deal? Maybe do some due diligence, a little bit of rehab, oversight.” I say, “Let me do that.” At that point, I was flipping 50 properties a year. I usually had $3 million to $5 million of private investor money they lent me money.

There are going to be people that have never heard of a real estate show before. As you build up your resume of flips, you can then go to people that have money and say, “I can give you a great return on your money if you’re paying for the down payment and the repair costs. I’ll find and run the deal.” Do you split the deal? Are you paying them an interest?

You can do whatever you want. Sometimes you got to pay your dues and give up a lot of your profit but that’s okay in the beginning. People say, “How do you start? How did you get all your lenders?” I told everybody that I was buying real estate. Everybody and their mother, I told them from day one. I always say this, “If I tell everybody that I have a third nipple, I’d be the guy with the third nipple.” Javier with the third nipple. Javier, the guy who’s flipping houses.

The most underutilized part of our business is getting loud. I don’t care if it’s posting on your stories that you’re driving for dollars, you’re walking through a house that’s completely destroyed, you’re going to a meetup group or you’re meeting with somebody that’s an investor. Let people know that you’re excited about being in real estate. Don’t be a secret agent because you were a hairstylist but now you’re doing real estate or you were a teacher and now you’re in real estate. You’re in the military, driving trucks or doing all these things that people label you but now you’re doing real estate. Go with courage and have courage.

Tell them you’re buying real estate. That’s what I did. I had a good base of private lenders for my flips. I said, “I’m going to go raise $1.2 million. It’s a piece of cake. I got punched in the face. I raised zero money for those guys because, first of all, it was the wrong avatar and investor. They wanted 3 to 6 months, 3 to 9 months, 6 to 9 months, fast turns. I live in Raleigh, North Carolina. The apartment was in Charleston, South Carolina, three and a half hours away. It’s not local. They can’t feel and touch it.

I raised $200,000 from two investors that never given me money in the past. I knew them but they had never put money in any of my flips. I had to pivot fast. I over-promised and under-delivered on my first project but I was able to close. I want a small piece of it but I learned how the process was made. I closed before the end of 2019.

What was the purchase price of this?

It was about $4 million.

Did you get a loan on it?

It was a loan on it, a 75% loan on that.

You take it over for the loan that was already on it?

It was owned by a lady who lives in Vietnam. Her sister and her brother-in-law were running it. They’re living right next door.

Was it seller financing? You got conventional from what, local bank?

We’ve got a bridge loan, which it’s a short-term loan like a 1 to 3-year loan at 75% loan to value. They give us 75% of $4 million. You had to come in with 25%. It was Lima One. They give us 100% of the rehab.

You take this into the bank. Do you need to have experience or a track record? What do you have to give the bank to get a loan for over $3 million? They’re looking at the property, the asset but they’re also looking at you to be able to manage it. What do you have to show them?

A couple of different things. The banks didn’t want to know who’s to stand in the loan, what’s the net worth and what’s your liquidity. Somebody on the team has to have the experience. It doesn’t have to be the same person. One person can have the net worth some person can have the liquidity and some person can have the experience. They want to know who’s going to manage this. We got a big local management company. You don’t have to do everything yourself if you don’t have the net worth, the liquidity or the experience. You partner along with somebody else who does. That’s what I did. Now I have the experience, the net worth and the liquidity so now I can sign for the loans.

In the beginning, I pay my dues. What can I do? I’ll shovel crap. I’ll do whatever it takes. I was flipping 50 houses a year. I was doing all right but I’ll do whatever it takes. You need me to sit here and chill or whatever, I’ll do it. I want to learn how to do this. What can I do to help?. That was my attitude and it’s always been my attitude.

You have to believe in yourself starting from day one.

Did you find this deal?

No, I did not find this. My good friends found it, I came along and helped them close on it.

Did you find the person that has the network?

Those were part of the group. I raised some money, helped with some due diligence and some construction on the very first one. For the six other properties, I pretty much found every single property.

How do you find them?

A call and message.

You cold call and talk to people that own multimillion-dollar investments.

The funny part for people who are doing single-family, you call somebody who has a single-family and they say, “Why are you calling me? I get this call all the time. Don’t call me back.” They hang up on you or sometimes you hear the same thing, “I get this call 100 times. You sound like a nice guy. Let’s talk.” You do a deal. It’s the same thing with calling these apartment buildings. People were calling them all the time, these big commercial brokers having been calling this owner for twenty years, trying to get a listing.

This is something that people don’t understand about commercial properties AKA big multiunit properties, the commercial brokers cold call all day, every day since the beginning of time. They know every seller, owner, everything. They’re always in it, working it, doing it but it comes down to timing. They’re used to these calls. In our experience, they’d love this conversation because they want to know how much somebody is willing to offer on their properties and it takes a couple of them. You don’t have to do a tremendous amount. You have seven and it’s $50 million.

It’s less than two years. It’s like anything else. You got to be consistent and you got to follow up. It’s not that one first phone call but that 7th, 8th, 12th phone call and nurture them. You got a broken leg, write it down like, “Mary, how’s the leg doing?” Even when you call them back, they know they told you to call them back in six months. You call them back in two months and talk to them about the broken leg, anything but the property. That’s it. They’ll bring up the property.

This is the time of the show where we get nitty-gritty and break down a wholesale deal. This is Wholesaling Inc. We’re getting into high-level stuff. We have the absolute best audience on this show and on the Brent Daniels YouTube channel. Let’s break down a deal. Let’s talk about how you found a great opportunity and you wholesaled it and you did well.

We’re going to talk about wholesaling and apartment building because you can do it. It’s a little bit challenging but the biggest thing you got to look for is your buyer. Make sure they’ve closed in the past, can perform, got money. It’s super important because it takes 60 to 90 days to close an apartment building. If you don’t do it right, you run out of contract time and your sellers are pissed.

We got this eleven-unit apartment building close to Kansas City. It’s grossing $4,800 a month and we got it for $160,000. That’s a pretty good deal. It was a decent area. It wasn’t like some little rundown, 500-people population. It was a nice small town but a nice part of town. As it sits, it’s probably worth $500,000. Once you fix it up and you make it nicer, it’s probably worth closer to $750,000 to $800,000. We ended up wholesaling it. I have a good friend who owns property there and I wholesale it to them for $290,000.

First of all, how’d you find this deal?

We called them.

This isn’t a hard business. If you talk to enough people, you’re going to get opportunities. You cold-called them. How much did they want for it?

We negotiated it, I don’t recall exactly what they want it for but we agreed on $160,000.

You wholesale that to your friend for how much?

772 WI | Real Estate Deals

Real Estate Deals: Sometimes you have to pay your dues and give up much of your profit, and that’s okay.

 

For $290,000. It’s because he’s my friend and I didn’t even send it out to my list. If I would’ve sent it to my list, I could’ve probably made another $50,000 easy.

You made $130,000 on one phone call.

The coolest part about this, Brent is eventually when you get started, you’re doing all the grunt work. You’re doing the phone calls, follow-up, pulling the list and all that. The only time I ever knew about that was when we got it under contract and when my disposition said, “It’s already assigned.” That’s all I did. I’ve done all the work in the past so now you build a team and they can do all that for you.

We have a deal that we closed, it was $192,000. It’s funny because our market’s going to skyrocket appreciation. We closed on this thing. The comps were $305,000. We’re like, “This is a great deal. We got it for $192,000 that needs $15,000. This is going to be great.” Model match in the neighborhood. Same exact house fixed up, $350,000. It’s insane. I’ve never been there and walked it. It’s incredible because I did a lot of that. I chopped the wood and carried the water. I was doing all that for years to buildup something that’s sustainable in this building.

I always say, “Don’t quit.” The price is too great to quit. What you could accomplish in the people’s lives, you can change if you happen to quit now. It’s too high.

This is something that I’m telling you, I was in Hawaii. I didn’t touch my phone at all except at night when my wife was getting ready. I was scrolling and I saw The Teen Millionaire Challenge. I was like, “This was always something that I thought about.” I always thought about how incredible it would be to go and speak or be a substitute teacher at high school and teach them once a month about something or go in about real estate, financial literacy, this type of thing. You guys took it to a whole different level. Tim and Robert Allen put together this Teen Millionaire Challenge. Tell everybody what it is.

Tim, I and Robert Allen, the author of the One Minute Millionaire. They said, “Let’s get some teams together so they can buy some apartment buildings.” He says, “Who do we know that would be a good fit.” They thought about me, which is I’m super honored and humbled that they decided to pick me. We put it together in 30 days because the summertime kids are on vacation. They were in my office, we trained them up for three days and then we worked in the office for seven days.

They’re nineteen kids, three teams. Once they’re done, they’re going to go back. They’re from all over the country, Portland, Florida and they’re going to have their own weekly meetings. They’re going to report to us once a week as well and they’re going to go find a commercial property. We taught them how to find, underwrite and make offers. A team made an offer for $9 million and that’s a pretty good deal. Hopefully, they get that done. One of the teams has a $9 million offer. It’s a bunch of teens finding a deal, underwriting it and making an offer. I have my staff that they’re overseeing everything.

What’s the youngest teen?

16 to 19. It’s super cool because some of these kids come from low means. Some of these kids come from wealthy, in fact, their parents. The very first day, all we talked to them about was what’s a mindset like. Get rid of your stinking thinking and belief. All it is is just belief from day one and you see some of these kids that didn’t have the best environment growing up. They’re making these posts in the way they’re speaking. I’m like, “This is awesome. It’s amazing.”

There is light in their eyes. I was looking at it and I was blown away. I was like, “I got to do something like this.” I hope you branch this out and do this more because it’s exciting. Catching somebody at that impressionable age and putting some fundamental business real estate entrepreneur, the fundamentals in them right away. The belief, the network and the action, those three things. You put that in somebody’s brain, you’re going to change everything for them.

Some of these kids, hopefully all of them, they’re going to change the rest of their lives. For me, people ask me, “What is success?” For me, the ultimate success is your 9-year-old and my 10-year-old, ten years from now, doing a deal together without pops. We don’t even know. They close on something like, “What happened? You’re closing a deal without me.” I would be like, “I’m ready. Take me. I’m done.” For me, that’s awesome and seeing these kids change in the way they’re talking is going to be amazing. It’s going to be super cool.

Don’t quit. The price is too great to quit.

I’m very excited for them because once they find a deal, they’re going to own part of the apartment building because they find the deal. I’m going to teach them how to raise money. If they have money, they’re going to be able to own a bigger part of the apartment deal. At some point, probably fairly soon, they can do their own deals without anybody. Without me, without anybody to raise, they can do everything on their own.

They’ll have the tracker and the equity.

One day I’m going to need their help to help me close one of my deals.

What a great idea. I’m excited to see it. It’s a year to get it going and get excited about it. I’m on board. If you guys want to expand that or do something with it, even if you don’t, I’m going to do something. Let me know, I’d love to jump on. Javier, thank you. What a great conversation. It went all over the place, every part of real estate and to see you here. Give people some perspective. Do you live off of the cashflow from these properties?

I’m 100% in real estate.

You’re not living off of flipping or wholesale. Could you live the rest of your life off of this?

Yes, for sure. Your mortgage gets paid down and it appreciates. This is not like a $100,000 mortgage. You’re paying off these $20 million, $30 million, $40 million mortgages, there are big chunks every month. Every month, your net worth jumps without doing anything because you’re paying down so much

Thank you for being on here. How do people get ahold of you?

I’m on Instagram @JavierHinojo.Jr or Facebook. You can find me on JavierHinojo.com, my website. You can search me, google my name, you’ll find me.

Network with him. He is here, he is there, he’s here to share and to squat up. If you have the money that you want to put somewhere and buy some buildings, Javier, I’m sure he’s going to have plenty of opportunities.

Talk to us about some case studies for sure.

That is it, guys, for the show. If you are looking to join the most proactive group in real estate investing, it is the TTP Coaching Program. It is the TTP family. Go to WholesalingInc.com/TTP. This is where you get started on your journey to owning all these properties and to having that financial freedom. It is the spark. If you are able to source real estate opportunities, you are going to create financial freedom. It’s guaranteed. You have enough quality conversations with distressed property owners. You will win. I love you. As always, I encourage you to go out there and talk to people. Until next time, see you.

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About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program… Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!
Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…
A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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