How to Build Wealth in Real Estate with OPM | Justin Brennan

 If you have access to quote unquote capital that capital doesn't need to commit
 They just need to say do go find a great deal and we'll commit that's all you need because finding great deals is 90% of the
 Battle and then it's a matter of just knowing how to run them and put them together
 But if the capital is there that can strike relatively quickly then everybody gets to make money together and if everybody's making money together
 Everybody's happy
 This is right about now with Ryan Allford a Radcast Network production
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 What's up guys welcome right about now?
 I've got a new format here we're working on calling it now in ten. We go as long as we really want we make the rules
 Y'all know how I am and make the rules as we go what I always do is bring you the best the brightest the coolest people the greatest cats on the earth
 I got Justin Brennan. He's real estate CEO the Britain poll capital group and just seems like a cool dude man
 He's in San Diego today while Stagas tomorrow. I don't know where you're at Justin. What's up brother?
 How's it going man? Good day to be alive my friend. This is true man
 I say any day you can wake up and be grateful for what you got and breathe and everything that God gave you
 It's a good day. What the hell got you in real estate? I stay in my lane for the most part
 I have my hands and a lot of things but once you get to understand it
 I'm kind of in the same lanes. They just might have different stripes or something
 I am not in the real estate space. I own some real estate
 What got Justin Brennan in the real estate space I grew up in it a bit my grandmother started it for our family
 And she got into apartments when she when she was here in San Diego for years and God bless her soul until 91 years of age
 She was driving around her little S10 Chevy truck collecting rent from all our tenants in San Diego
 And then she kind of passed a little bit of that along to my dad my dad was that trans
 I'd say that transitional character
 Ed my let talks about in his book one more about that person that took the family from zero to hero completely self-made
 grew up in a really bad environment his dad died when he was three
 He got the crap beat out of him by step dad went to be at norm came back and he just saw some crazy stuff in his life
 But he was that guy that said hey, I'm gonna start building some homes and doing some things and I learned construction and development from him
 And he took a zero to hero basically he started building stuff all in the West Coast in the United States big construction projects
 Multifamily condos townhome single family. You went through four market cycles made it through all of them except the financial crisis of
 2008 and that took him down and he had a massive bankruptcy in 2008
 I imploded everything and I watched that happen. I'd always kind of learned about real estate
 My dad always taught us the value of hard work value of a dollar and he'd take us on his job sites and make us dig ditches
 Simply for the purpose of digging the ditch and learn how to grind it out and earn a little bit of money
 But what I did learn watching a lot of that stuff got me into the multifamily apartment space because I didn't want to go through
 Kind of the mimicking the cycles of real estate markets
 Which he did because he would build and sell build and sell build and sell and you would just ride the roller coaster
 I wanted more consistency, which is what apartments brought I got into more safer asset class and that is apartment rentals
 And that's kind of what started it you buy large apartments multi-family and then manage the rentals my hearing that right
 Yeah, but we start with one condo
 I mean literally in the midst of the financial crisis in 2010
 We bought a hundred thousand dollar condo and then we turned into a duplex and a fourplex
 But then we got to a point where we said we want to grow we were trying to do it all with our own money
 And that's just the biggest mistake ever and I try and tell people this because we don't know any better
 We didn't understand this game of OPM other people's money and how to scale money
 I had to learn it. It was a learned skill set and it wasn't until about 2018 after we had about 20 units that we had built on our own
 And all our capital was stuck in them and we said well, we want to grow much bigger
 But we can because we ran out of our own money
 I started looking at this game called syndication and in OPM using our money with some of other people's money
 OPM and how can we go buy apartments together and bigger ones and scale our money and then from literally those 20 units
 And about three million dollars in assets in 2018 it took us eight years to get that within three years by 2021
 We had over a thousand units and almost two hundred million dollars in assets because we learned that skill set up
 How to scale money same money we just learned how to scale it with other people and that took us off
 I made to throw a soft board here, but when I hear OPM as long as OPM and not OPP I'm good. I'm just saying
 My feeble mind
 Understanding this and I like to be the voice of the audience here making sure when I think of other businesses venture capital taking on money
 Hey, I've got a business idea and I want to take on money
 Is it the same thing but just name something different in real estate in a way because I try and get people the analogy
 Of how this money game works because it wasn't until a few years ago that I learned this big problem that people have where
 They either have a job. They're working for someone or they're self-employed
 Which simply means if you're a solo per newer, it's not that you have a job anymore now you simply own a job
 Because you're a solo per newer
 Yeah, the whole name of the game. This is a Robert Kiyosaki thing
 The whole name of the game is to jump from that into either a business owner or into an investor role
 The whole cash flow quadrants that Ritz dad poured at Robert Kiyosaki talked about
 But it's just understanding the game of money and how it's not about what you make
 It's about what you keep and so I'd say the biggest problem I found just when talking with people whether it's high income earners
 People earning 50 60 80 grand a year all the way up to multi-millions of dollars a year is how to avoid taxes
 Hands down that was the biggest problem I kept hearing from people is like oh my gosh
 I'm making all this money, but holy cow now. I got to pay all these taxes
 Well, there's got to be a way around this. There's a reason why the IRS puts in place things that people can avoid taxes through legal loopholes
 And multi-family apartments is the biggest and best way to do it through what's called bonus depreciation
 And you can literally wipe out your taxes for the rest of your life
 And it's the craziest thing that people don't understand
 That sounds like better than that jelly of the month club bonus that
 And it honestly goes back to the founding of capitalism when you go look at the definition of capitalism
 The main part of it is movement of money
 And so then I looked into that and I tried to understand like why is the IRS giving these massive tax breaks
 To people who move more money when you look at it
 If you move more money you get more tax breaks
 It's that simple and the only people that move enough money are business owners or investors
 Which is why business owners and investors get the most amount of tax breaks
 And if you're a W2 employee you don't because you don't move enough money
 And the reason why the IRS wants that money moved is because when you move that money you create jobs opportunities
 You take risk and when you do that you create capitalism movement of money
 And that's the whole science behind it
 And if they know if you're moving more money you're creating more opportunity
 Which means capitalism grows and moves and they generate more tax revenue
 That's why they give the people that move the most money the tax breaks up front
 So you do more of that
 Which is why multifamily apartments commercial real estate in general is one of the biggest tax write-offs ever
 And it continues to be
 The other really interesting you're talking about there Justin is you don't learn that in the textbook
 The way you just described capitalism and all that
 Like I'm in my business classes that clumps in which I barely paid attention to
 A test guy and a D pay attention guy
 Uh, teachers that like me
 They don't teach you that
 And that's one of the things I guess is an entrepreneur now learning
 I'll have employees or teammates over time. They'll be like how do you do that deal?
 We didn't make any money on that
 I was like no but I kept three million dollars moving in the business
 Money coming in money going out
 I make money with money that's sitting there in the short term
 Using a little bit of other people's money at time
 That I might not ultimately make profit on the transaction with which brought that money in
 But I'm making it elsewhere because there's money moving and it's a little different than what you're describing
 But it's similar concept which is totally the movement of money through a business
 Is the lifeblood of it. They think with what you're describing on the real estate and taxis side
 Of course because that's the way it's supposed to be
 I've been preaching this for about a year now with the interest rates thing and I understand inflation
 We need more money moving if there's any problem right now
 There's not enough money moving because the interest rates have been high
 It's kept on the sidelines and you know refives and other things that would happen
 That bring money in that it just makes the whole thing work
 And real estate and real interest rates are tied to that
 I get it we can't have 10% inflation forever and ever and ever
 You don't the other end of that which is stagnation of money moving much longer
 100% it's not just in real estate
 But if you just take one real estate transaction
 We take 120 unit apartment building that transactions
 There's over 60 different industries not people industries that make money from one single transaction
 Of an apartment building
 If you think about that's money moving through those different industries which then jobs
 All that stuff happens which means tax revenue
 All that stuff happens as a result of one simple transaction in a commercial real estate building
 So why do you think the IRS then gives all these tax breaks to the person that starts that transaction
 They know that hey you'll start it but we're going to get all the revenue from that flow
 That's why they do it
 It's not because they love us but trust me
 It's not because they're your friend
 They just understand more movement of money
 It creates more revenue that comes into them
 How are we helping people every day Justin
 Now we're using OPM and some of JBM to make more
 I got that part down
 Well it's we do it
 Somebody asked me this the other day and I wrote this down earlier this year because
 I don't know if you've ever heard this term Ryan
 He was Patrick Bet David that came up with it
 He said there's seven mountains that move people and inspire a nation
 And you have to have the business which helps drive revenue
 And brings in money for you and your family and things that you're doing
 But once you're making money you can lose motivation
 And so the bigger purpose I would say in life is
 How are you taking that money or what you're doing in helping others
 Giving back, leaving legacy
 And so for me and my big three dreams to be honest with you
 Is we heavily support the tunnels to towers organization
 They basically pay off mortgages of spouses left behind with their kids
 From first responders or soldiers who die in the line of duty
 And they give them a free and clear house
 Because their spouse died who was the provider
 They don't have it, they're scared to death
 And have a safe roof over their head
 Is probably one of the best things that can happen
 So they give them that
 So a huge proponent
 So I want to pay off 10,000 mortgages
 That's number one
 Number two is the seal future foundation
 My family's big in the military
 My dad was army
 My grandfather is a Navy commander of the submarines before he passed
 Even my business partner now, former Marine
 So we give heavily the seal future foundation
 Which helps transition team guys
 Seal guys from kind of that seal life of being a hero
 And being that camaraderie into this civilian life
 Which they just don't understand
 Imagine being the most elite elite
 And then all of a sudden that's over
 And then you have to go into the civilian life
 Where people are complaining about petty crap
 And you're sitting there like going bruh
 I mean, I was just in Afghanistan
 You can imagine right
 And so they don't know how to do this mentally, financially, physically
 And so it helps them transition
 So they don't kill themselves
 Because there's enormous suicide rate amongst Navy seals
 Unbelievable
 Most people don't know that
 And then the last big one is disadvantaged kids
 I was fortunate enough to grow up with a mom and a dad
 And in a middle class
 But then became upper class environment
 So I was blessed
 But most people don't have that starting point man
 And so if you can go in and give a kid
 Who maybe had a really rough beginning
 A role model
 The leaf system
 That they can go make things happen
 And it's incredible to watch how that zero to hero journey can happen for them
 And so we give a lot to that
 So those are my big three drivers
 My family, my kids and all that
 Any money and all the money that we're making and doing
 And the podcast that we created
 Abundance to give a few years ago
 Behind like Mr. Beast
 The concept Mr. Beast
 It's all position to go help those three main causes
 I love those causes
 I was hoping you would go there's kind of why I went there
 And supporting our troops
 People forget freedom is not free
 Anything that supports the men and women
 That have paid the ultimate sacrifice
 And the fact that they would ever have to even think twice
 About a mortgage or suffering
 Or the mental aspect for those that come back
 Really salute you
 What you're doing on supporting all of those
 I have a father and family
 It was military
 I was not
 But my dad was in the Air Force
 And have a lot of military in the families
 Definitely support you in supporting that
 Brendan, what do you tell people in real estate perspective
 I know you guys are coaching teach people
 Do how to do what you guys do
 Where do you find the biggest opportunities are
 For people out there listening that would want to get into something like this
 A lot of people get stuck
 I've kind of learned
 It's all in the mindset
 They definitely get stuck with that
 I hear people
 If they're in a W2 job
 And maybe they're making decent money
 60, 80, 100 grand a year
 Whatever it is
 And they want to take some of that money
 And put it into real estate
 Maybe they want to start with single family
 Or some rental short term stuff
 And then maybe get in some flips
 Or wholesale and properties
 And those are all great asset classes
 But those also don't give you that long-term generational wealth
 That people I hear all the time
 I want financial freedom
 I want more passive income
 I want generational wealth
 And the only real ways you get even close to that
 Because there's nothing truly passive
 Is through whether it's an apartment building
 Or some other commercial asset
 We own mobile home parks
 Anything that has a rental
 Recurring money thing to it
 Is going to be great
 Great businesses do this
 Where you can actually create a great business
 That you're not having to be hands on every day
 It just depends on which avenue you love most
 For me, real estate is my lane man
 I feel like I came out on my mom's womb
 Learning it from my family
 Because of that, of course I'm in it
 But not everybody starts there
 We have so many people
 Doctors, attorneys
 Just FedEx drivers
 It's unbelievable
 The amount of people that want to take some of the money
 That they've earned and get out of the W2
 They're in a position where like
 Hey, in two, three years man
 I want to transition out of this W2
 Working for the man
 And be able to have enough income
 Doing real estate
 It's been a dream of mine
 How do I make this transition
 I hear that all the time
 That's actually why
 We even created the community we did
 It wasn't sell mentorships and courses
 Anybody can do that
 It was putting gurus out there spitting game
 It was really
 How can we create a community of well-trained investors
 Around the United States
 That are doing deals together
 Collaborating on money
 Finding deals
 Putting them together
 Copartnering on them
 Because of everybody's winning
 And everybody's doing more deals
 And opportunities
 Everybody's getting rich and wealthy
 Well good
 Now you can actually take that money and wealth
 And go give back
 After causes you care about
 Maybe it's your church
 Maybe it's your family
 Maybe it's your kids
 Maybe it's traveling
 Other things you love
 That are film-thropic to you
 Money is a great resource for that
 Without the money it makes it hard
 To go chase other passions you have
 Well, 100%
 Very few things have been spoken
 That are more true
 Some people like to
 Paint money is bad
 Or something
 It enables your ability to do good
 Let's not paint it with too broad of a brush
 Yeah, I ask people
 What does money mean to you
 And they'll throw out freedom or
 Tool or other kind of words
 And in my mind when I think of money
 I think of choices
 If we both have one dollar
 Then we technically have the same choices
 But if I have a million dollars and you have one dollar
 I can do everything you can do
 But then I have a million more choices
 I mean that's how my mind works around the money game
 And so I see money simply as choices
 I can go help more people
 I can do more things
 I can give back
 Obviously spend time with family
 Travel experiences
 All those things that are near and dear to all of us
 Baseball cards
 Baseball cards collectibles
 You know, whatever shoes
 You know, I mean, yeah
 I mean, I love kiteboarding
 You know, I love the water sports guy
 Weightboarding, kiteboarding
 And I'm seeing Diego right
 I don't surf by the way
 But I feel like people
 They're like, why don't you surf
 I'm like, why don't I have a shark problem
 I was young
 So I asked this
 Sort of for myself
 Maybe he doesn't have a ton of capitol
 But he's a go-gitter
 And he gets information
 How do you spot these deals
 What's a good deal to spot for something like this
 I totally get getting in the circles
 Getting around people
 That part
 But is there other things that
 What me as obvious
 Is spotting these kind of deals
 That they might could bring to someone like yourself
 Or other groups
 I think you know what I'm asking
 Yeah, I do
 What people don't fully grasp
 Is that you don't need a lot of capital
 To start this
 How what does that mean
 I said, well, you have to understand
 In real estate, you're bringing one of two
 Resources to the table
 And you choose which one you got
 You either have what I call the check equity
 Which is the cash
 Or you have what's called the sweat equity
 Which is the knowledge, the skill set, the ability to go execute
 Maybe you can find good deals
 Maybe you're a great deal finder
 Maybe you can analyze them
 Make sure they're a good deal
 Maybe you can bring them to the table
 You understand how to structure things
 And put them together
 And because of that sweat equity
 That knowledge and skill set
 You become extremely valuable to people with money
 Just to prove this point
 Our first deal
 I had zero dollars in it
 That $100,000 condo
 We brought in $25,000 down payment
 This was in the financial crisis
 I was getting my ass handed to me
 I was a real estate agent
 Okay
 In the financial crisis
 It was not fun
 But I went through it
 But I didn't have any money
 I just knew we had to buy property
 And I had a knowledge and a skill set
 I could go find deals
 I could analyze them
 I could put them together
 I could go structure them
 And do all that
 I could do the property management
 I knew how to run
 I'd learn this stuff
 The skill set
 A sweat equity
 I was at a conference one time
 And the guy came out
 And he was asking people
 Hey, who here in the audience
 wants to own rental income property
 And everybody's like screaming
 Yeah
 And he's like
 Well who here financially right now can afford it
 It's 2008
 And like 99% of the hands go down
 And he says here's the secret you're missing
 He says you don't need to have a single dime
 Tone rental income property
 He says you just need to have a friend
 Who has the money to own rental income property
 He says if you can go find great deals
 Put them together
 Structure them, manage them, run the show
 You become extremely valuable
 To someone with money
 So like the light bulb went off for me
 And I said who do I know
 That's not getting their ass handed to him right now
 That I could go talk to
 Because I have the ability to go find deals
 And then it was my buddy
 Who's my current business partner
 And I went to him and I said Chris
 I don't know how we're going to do this dude
 But we need to buy property now
 I said you know and I know
 We're like an adult
 We need to go get it
 You buy when there's blood in the street
 Even if it's your blood
 Like the name of the game
 And we did
 And it was our first condo man
 100,000 bucks
 We put $25,000 down
 He was the 25 grand
 He signed on the loan
 I was the one that found it
 Ran it, run it, put it together
 We weren't making a ton of money
 But it worked
 And then from there we took it
 And we bought a duplex
 And then a triplex
 And a fourplex
 All with our own money
 Like I talked about
 But I had very little
 Physical check equity in it
 In the beginning
 Now we do both of that
 Now I have a skill set too
 You see where I'm going with it
 So if you're sitting out there
 Maybe you only have 10, 20, 30 grand
 To invest in real estate
 And that's it
 Well take some of that capital
 Because you can do this
 And then that's sweat equity
 Gotta learn how to do this
 Then become extremely valuable
 Because now your skill sets up here
 You bring a lot to the table from knowledge
 That you may have a little bit of capital
 And then a huge pocket of knowledge
 Now you can go become a very valuable to people with money
 I love it
 And it's good advice
 You can write the check
 It's not easy
 But it's simple
 We partner with people in our community
 Because some people
 They'll come in, they'll learn it
 But then they don't have the confidence yet
 Or maybe don't have a ton of capital yet
 And that's totally fine
 But they can be great deal finders
 Being a great deal finder is 80% of the battle
 Right there
 Is finding a great deal
 If you can bring that to the table
 We partner with people all the time
 We bring them into the co-partnerships
 All the general partnerships
 And we'll co-partner
 And then we become the sponsor basically
 Helping sign on the loan
 Raise the rest of the money
 Put it together
 Manage it
 Run it
 Until they get their further knowledge
 And better knowledge
 And then now they're like
 Dude I can run this on my own
 Sweet
 Go for it
 Think we should do some deals together
 Or stuff Carolina
 Well you know I'm gonna be out there
 In North Carolina here pretty soon
 We're looking in the southeast
 I love that market
 Great market
 If you have access to
 Quote on Quote Capital
 That capital doesn't need to commit
 They just need to say dude
 Go find a great deal and we'll commit
 That's all you need
 Because finding great deals is 90% of the battle
 And then it's a amount of just
 Knowing how to run them and put them together
 But if the capital is there
 They can strike relatively quickly
 Then everybody gets to make money together
 And if everybody's making money together
 Everybody's happy
 100%
 Justin
 Where can everybody learn more
 About what you're doing
 There were to want to get some help
 With some of these things
 And keep up with everything else
 Official Justin Brennan on Instagram
 Or YouTube man
 We're trying to put out a bunch of long form
 Free content
 They want to do apartments
 Get their mindset right
 Then go find Justin Brennan on YouTube
 I would love them
 Check out some more long form stuff
 And see if they like it
 I love it man
 Justin
 I like your style
 We might could do some deals together
 And I do think
 It's a space that I would like to be in more
 I just don't know it
 So we'll use your knowledge
 I might got capital too
 But it's more
 Probably finding some deals
 Got a scale look
 Mine's more rocks though
 I know that I need to turn over
 Yeah people know people that know people
 That's like the rule I've learned
 You've probably heard this saying
 The more hands you shake
 The more money you make
 Here's my caveat
 The only way I'll do that is
 If you let me
 I know you're 65
 I'm six foot
 And you're 200
 Whatever pounds
 But I want to wrestle for that big old thing
 You have in front of you
 I got a feeling I'm not going to win
 But I'm going to sure give a try to it
 You can pick me up
 I might let you wear it for the day
 You can go to the office
 I'll let you put it on
 You can wear it around town
 You know
 I'll get my best effort
 And see what I can pull off
 That thing is rad
 I mean
 Hence the
 Radical is a radical
 Is that the company?
 Yeah
 Radical
 But then the belt's got right about now
 Number one business show on the planet
 That's incredible
 We've been one on Apple for three years
 They can come take it out of my hand
 If they beat us out of the thing
 But we've held that spot
 I'll send them the belt
 You tell me your background
 By the way
 I didn't know all that
 With how you got started
 In the agency field
 And working with Steve Jobs
 And all of them
 I mean the Verizon commercial
 Like you were there
 You were there
 Can you hear me now guy?
 It was a national campaign
 And I worked on it
 That was my very first campaign
 That I worked on
 We spread that word far and wide
 Spend in probably a billion dollars
 Over a 10 year period
 And then
 That spun off into a lot of other things
 I worked on all the major smartphone launches
 And everything
 So it was a
 Yeah, what a great background man
 What a great background
 It was good
 Justin
 It's great meeting you
 Great having you on
 And we'll definitely follow up after this
 Hey guys
 You need to find us
 Ryan is right.com
 We'll have links
 To all of Justin's stuff
 And of course the highlight clips
 How you can learn
 More about what he's doing
 This seems like a cool
 Got to do business with
 So I tell you to reach out
 And think Justin would be a help
 He's helping our troops
 He's helping the people
 That make what we do every day possible
 So don't forget that
 We appreciate you
 For making us number one
 We'll see you next time
 Right about now
 This has been right about now
 With Ryan Alford
 A Radcast Network production
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