[00:00:00] Speaker A: Hey, everybody, you're kicking it with, kicking it with, kicking it with the home.
Hey, everybody, you're kicking it with the Homeboys and the Homeboys podcast, and we are very, very excited to be with you today. We've been away for quite a while, but we're going to tell you why in this episode. We're going to tell you about how we've been busy, how Scotty's had some health issues, how I built a house, how we almost had our own cable TV show. And we're going to tell you what we're doing in the world of real estate. But it's really awesome to be back with you, and I'm very honored to be sitting here next to my best buddy and business partner in this wild, wild ride, Mr. Scott Adams. What up?
[00:00:49] Speaker B: It's so good to be here. Be back in the studio. I'm excited about talking a little bit about how we've been on the sidelines a little bit, because I also want to tie it into what I'm seeing. And you've been seeing with investors kind of sitting on the sidelines as well. We went through a little bit of a slow period, and things have picked up. Investors seem to be getting back into the game a little bit. But, you know, I think there's some correlation there between us getting busy and what we've seen in the market.
[00:01:16] Speaker A: Well, we don't think it's a time to be sitting on the sidelines. We think it's a time to be an active real estate investor. But.
But, yeah, we've been away for a little while. We had kind of a wild ride where we were contacted about having our own TV show, and we were working through that. It did not work out. We think they're crazy. They should have picked up the homeboys. But right after we did not move forward with our cable TV show, you had some health problems.
[00:01:46] Speaker B: Yeah, had a little scare, I would say, a little bit of. I was diagnosed out of the blue with heart failure. And.
And I. I whipped my butt into shape and got on the right meds and. And I've. I'm. I'm basically considered in recovery, so.
[00:02:04] Speaker A: Well, praise the Lord in that. And, you know, there's no need for anyone to adjust their computer screens or phones because, yes, half of Scotty has left his body, and it has went on to myself. So Scotty has lost. How many pounds have you lost?
[00:02:19] Speaker B: I don't know. Around 40, I think.
[00:02:21] Speaker A: Around 40. I picked up about 30, so 10 more to pick up to balance out.
But it was wild to see you go through that. But what I like most about that story is after you were diagnosed with having this, you didn't take no for an answer, and you dove in and started exercising. You completely changed your diet, which was a little bit of a struggle for me because you and I like to go out to lunch and breakfast and dinner, you know, a lot. But it's been really amazing to watch you change your life, you know, for the better, and how the results were almost immediate. And you completely flipped your diagnosis by having a positive attitude. So I want you to know that it really inspired me.
[00:03:09] Speaker B: Well, I appreciate that having. Having people like you in my life, you know, was. Kept me inspired and pushing forward, and it was pretty scary, you know, to go through. And. And it's like everything in life, all you can do is move forward and do the can with what you've been given and you make the most of it. And you work hard, you look forward, you don't look back.
You don't let yourself get caught in the feel sorry for yourself or what's wrong. You look at what you can do and you make it out. And not to tie it back into real estate, but it's true. It's that same attitude I have always had with real estate. You go out and you do it and you do it and you do the best you can with what you've got, and things tend to work out.
[00:03:51] Speaker A: You and I are both big Rocky fans and, you know, we, we pride ourselves in, you know, the, the quote, you know, the world ain't all sunshine and rainbows. It's a very mean and nasty place, and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is going to hit as hard a life. But about ain't it ain't about how hard you hit. It's about how hard you get hit and keep moving forward, how much you can take and keep moving forward.
That's how winning is done, you know, and, you know, sometimes, you know, it's fun to say that stuff, but then sometimes, you know, I lose sight of it. I'll let. I'll let the world kick me in the butt and, you know, feel sorry for myself for whatever reason.
But, you know, you didn't do that with your health, and that's pretty awesome. So, like I said, you know, I think that that could be inspiring to other people. But yeah, it's great to be back in the studio. And like I said, you know, we kind of had a wild Ride where we came into work one day and a television producer had reached out to our producer, Bryce, and they knew everything about Scotty and I and they interviewed our families and did all of these things. And really the biggest driving force why it didn't work out, and I'm kind of proud of it, is that we weren't segregated to one aspect of real estate because, you know, we, we have a podcast, we are property managers, we're real estate investors, we flip houses, we build multifamily apartments.
We're kind of all over the place, but I'm proud of that. We're diversified.
We have very many different phases of our business.
But yeah, we're not necessarily have tunnel vision and do one thing. And I think that that's important to be, well diversified.
[00:05:37] Speaker B: Yeah, I mean, you know, they kept thinking about, well, we'll pick this aspect. We'll, we'll follow the property management side of your business or we'll follow the flip side of your business.
And the truth is, is our business is built around one simple core, which is to make real estate investing easy for our clients. In order to do that, we've got to, we've got to flip houses to them, we've got to build brand new product for them, we've got to then manage the product for them. So there's a lot of aspects to what we do that really go to a central core of, of our business, which is taking care of cl, helping inspire people to invest in real estate and then making it work in their busy lives. When people don't have the time or the knowledge or the ability to go out and do all of that on their own, we've built companies that do that for the clients. And yeah, it is kind of diversified, but to me, you know, of course it's easy for me to sit here and want to sell ourselves to these producers that, you know, we've got a unified idea behind it all when they just want the drama of one of those sectors. But it was fun to go through that process, to be honest. It was neat to create the videos and to look at the different ideas of what these shows could be. But in the end, I'm just glad to be back in this studio with you.
[00:06:52] Speaker A: I am too. I mean, this is.
My wife was in here just a little bit ago joking with you and Bryce and saying, hey, you got to get him back at the studio because he needs the stress reliever in his life.
It's the truth. And I get to, you know, enjoy, you know, coming to work Every day with, with some great people. But before we get into the kind of what we're doing, let's just touch briefly on the real estate market as a whole. Like, you know, what, what are your thoughts on where we're at in real, in the real estate market and you know, why people are on the sidelines and why people shouldn't be?
[00:07:29] Speaker B: Yeah, well, interest rates are up compared to what they were in the, you know, 20, 20, 2021. And people have a short memory. So it feels like interest rates are really high historically. They're still, you know, they're still very competitive and we're getting, getting investors loans at 6.5% interest and we're still able to get great returns. But I think the interest rate environment has scared people off a little bit. Looks like the Fed's gonna keep interest rates where they are most likely, maybe even raise them a touch in the future. So I think this is the new environment that we're in. Real estate, there's still a shortage across the United States. There's not enough housing.
And we're seeing that this next generation owning less and renting more because of a lot of different factors, but the cost of real estate being one, interest rate environment being another.
And it's just kind of a, I feel like it's a, people are just kind of sitting back and unsure time. Kind of a wishy washy time is the way I would describe it. We've got a lot of investors who are serious investors that have never let off the gas.
But I think in general we saw a slowdown for the last, I don't know, year, year and a half, a little bit with investors coming into the market. And I think most of it is interest rate environment, but I think some of it also is the uncertainties of the world right now. I think it feels for a lot of people a little bit of an uncertain world in world politics and a lot of those other things.
And I, it kind of makes me a little sad that we've got potential clients out there that should be in the game that are sitting on the sidelines because of those uncertainties or because of a fear of, of interest. And they're missing out on those years of a tenant paying down their mortgage for them, those years of appreciation that are still happening in markets like ours, those rent increases that are still happening. And, and it's just, I, I hate to see that there's a lot of folks out there that aren't in the game that should be.
[00:09:34] Speaker A: I think people are losing if you are not thinking about studying, trying to acquire cash flowing assets at all time. And I can give you two examples of, you know, of our portfolio. One, we're sitting in one of the examples. You know, we bought this building at the height of COVID and this building cost, I think we paid $550,000 for this 4400 square foot building in Fishers, Indiana.
You know, and what do you think this building is worth today? 1.2, 1.2 million. You know, and that was at the, you know, everyone's scared to death on, you know, of what to do. Another thing, you know, that we did, you know, we, we bought, we did, we actually didn't buy. We were given some land in southern Indiana. We built a large commercial mixed apartment building with 12 apartments and commercial underneath of it. I think it was about 2 million that we, that we did that for.
[00:10:33] Speaker B: 2.1. I think we spent to build it and finish it.
[00:10:35] Speaker A: How much is it worth today? Four and a half, you know, so, you know, it just goes to show, and I'm not saying that to brag or boast, but this is at a time when, you know, nobody knew what was going on. You know, the news is showing, you know, people, you know, being carried out and of hospitals and dying and like, you know, it was, it was very odd, like it was a very tough time. But you know, two amazing assets that we purchased during that time, you know, have, have really netted us a lot of money as far as net worth goes. But you know, I'm just, I say that because people, you always need to be thinking about buying, you know, appreciating, you know, cash flowing assets, you know, their life is short.
[00:11:18] Speaker B: I think your key word there is cash flowing assets. Because if you're, if you're betting, if you're being speculative and saying, well, I'm going to buy this for the appreciation or I'm going to flip this property and the market goes, hits, hits the crapper and goes down, you could be in trouble, you could get in some serious trouble. In real estate there's some risks when you do that stuff. But when you're looking at cash flowing assets and you're not looking to flip it or you're looking at the long term hold in some ways, who cares what the market does, who cares what the interest rate environment does? You're locked in, you've got cash flow and your mortgage payment stays the same as rents go up over time. It's just a proven method and that's part of the beauty of what we preach for folks is that you can take a lot of the emotion out because it's boring.
Set it and forget it. Real estate that creates long term wealth over a long period of time. And by long period, it's not as long as you think. Clint says it all the time. Look at what 10 years of good decisions does for you. You look back and you see how much that tenant has paid that mortgage off for you. You see how much appreciation you've captured and all of those rent gains and cash flow you've made along the way. It's unbelievable what that does. And so I couldn't agree more with Clint. Even when times are really bumpy or scary or risky, you should be in. And times when it's just kind of eh, which it is right now, you should definitely be.
[00:12:45] Speaker A: Real estate's a lot better for my peace of mind, personally. Take for example, a real estate asset versus the stock market.
For some reason, you know, I don't look at my rental portfolio when the economy goes the other way for this, that or the other and think, oh my gosh, what, what, what, what are my houses worth now? I don't, I don't think about that. But you know me, I'm crazy.
I'm logging into Fidelity twice a day to see what, what's going on with my, you know, retirement and brokerage account. And like, I lose sleep over it. You know, I don't know why that is. Like, I don't think about, you know, it's, it's just, it is better for me personally.
I'm a healthier person in the real estate market than I am, you know, the stock market, you know, and it's just one of those things. I believe every portfolio should have it. We believe in it. We've got a long track record in it. Long track record in it. And you know, it's one of those things that, you know, you have to add and always be looking to add to your portfolio.
[00:13:48] Speaker B: Yeah, I mean, you and I are both in the market with our 401ks and some personal savings outside of real estate.
But, you know, we, we own so much real estate that at our core we're, we're pure real estate investors.
And I couldn't agree more. Looking at my stocks and, and looking at what my retirement account is at freaks me out. It just freaks me out. It feels like it's just out in the wind, like knows what it is.
It's not real. And so, yeah, I like hardcore hard, hard real world assets that have cash.
[00:14:26] Speaker A: I'm sorry, I can't, I can't. I mean, I'm thinking of Matthew McConaughey and the Wolf Wolf of Wall Street Fairy Dust.
[00:14:34] Speaker B: It's true.
[00:14:35] Speaker A: His character in that movie. So awesome. But anyhow. All right, well, let's segue a little bit and let's talk about, you know, what we are currently doing. We got a lot of. We got this. We could make this a four hour podcast if we wanted to. But let's. We'll try to, try to condense everything. We're in a lot of things right now. We have a lot of things going on. When we talk a little bit about that.
[00:14:56] Speaker B: Well, we're still doing our core turnkey properties for clients, so we're out there buying good properties in good areas. And I know that sounds very generic, but it's true. You've got to buy good areas and you've got to buy good properties. You can't chase returns in questionable areas with questionable properties. And so we're still doing our core business with that. We've got a lot of developments going on.
We still have a couple of triplexes and a duplex left out of 135 townhomes up in New Haven, Indiana, which is Fort Wayne. So we've got, let's see, that would be nine, 13 doors left to sell if anybody's looking for those up in Fort Wayne. We've got a few duplexes left in southern Indiana in a. In Clint's hometown, right next to Evansville in Owensboro, Kentucky, which was just announced as a new billion dollar power plant going in right there with a major shortage of housing. So that project is awesome with a few of those duplexes left and then we've got new ones planned. Which of the new ones are you most excited about?
[00:16:05] Speaker A: I'd say probably the new castle project that we have. I mean, just because I've spent so much time there with the prison ministry that I've done, that's where, you know, how many units do we have in Newcastle coming?
[00:16:20] Speaker B: Well, we just bumped it from 62 to, we believe, 90, but we're going through the entitlement.
[00:16:25] Speaker A: I didn't get that memo.
[00:16:26] Speaker B: Yeah, I didn't tell you that.
[00:16:29] Speaker A: No, it's good, it's good. But I don't know. I believe in that. I believe in that area, you know, immensely. And, you know, I also, you know, we have a cool project coming up down in Jasper, Indiana. I'm pretty excited about that. I don't know. I mean, the reality is I love these New projects and you do a lot of the heavy lifting on, on some of those. But like, you know, I still, you know, get out of bed with a passion for single family real estate still. You know, I love the, I love the new developments, but I don't know, it's just they're, they're easy. I believe in it. I look at what it's, what it's doing for my portfolio and the future of my children and I don't know, that's, you know, we've got some really.
You've seen an uptick in people saying, you know, hey, it's still time to be into single family. So I'm excited about that.
[00:17:18] Speaker B: Well, you named all the things that you're excited about, but didn't name the one I'm most excited about which is filler lots, building single family house, brand new single family.
[00:17:28] Speaker A: I'm super stoked. So, yeah, we're, we're looking at, you know, some, some municipalities around Indiana where, you know, the city may own some, you know, infill lots. And we're looking to build, you know, new construction, some really pretty, you know, homes on there, offer them up for rent, offer those homes up to our clients. I'm super stoked about that because it's kind of a mix in between both. Yeah, you know, it's kind of, it's still that single family product, but it is new construction. It's a little less expensive because it's, it's still single family. So it's kind of a mix in between those two things. So that's something I'm kind of heading up, you know, for us as well. And I wasn't thinking about that. So I'm glad you brought that up. But I think that that is a really neat entry for a lot of people for sure.
[00:18:18] Speaker B: I think, I think it's going to be a really cool product. For under $300,000 to be able to buy a single family brand new build, that's cash flowing as a, you know, provides rental properties that are needed in these towns and you know, providing those houses at these prices is also going to do a lot for the traditional market that's out there as well by building houses. You know, the goal is to provide housing in these, in these towns that need it. When these large builders aren't moving into these towns, you don't have the Pulte's and the Toll Brothers going into these smaller markets that work so well for us and our clients. So that's pretty exciting stuff.
[00:18:55] Speaker A: That's a Great point. I think that just to touch on that briefly, there's lots of smaller markets that people overlook and we are really, really huge advocates for, you know, some of these smaller markets, like you'll say, for example, those dup, that community that we're closing out in southern Indiana, you know, that construction project that you talked about, billion dollar construction project, is bringing 2,000 jobs there for the construction, you know, for several years. And you look at, you know, the current housing that's available, like, I mean, they're in dire need. But if you were to Google, you know, some of those areas, then people might say, oh, well, there's, there's, there's, you know, the population's not big enough. No, it's the complete opposite. You know, people don't, you know, they get lost in some of the data and they don't look at the actual what's coming into the area, what is surrounding that area because people are getting pushed out of larger metropolitan areas because it's becoming unaffordable. So they're going to smaller markets and rents are going up in some of these smaller markets.
[00:19:59] Speaker B: And by saying smaller market, I know I'm preaching to the choir when I say this, but there's over a million people that live in Evansville and Owensboro, Kentucky in this region and it is an economic powerhouse. But if you only look at one of the little areas within that area, then yeah, it's easy to say, oh, the stats say this or that. But you have to look at a region, you have to look at the employment sectors, you have to look at the jobs growth there and all of those factors that really make these amazing properties in those areas that we focus on.
And yeah, it sucks that anyone would talk themselves out of buying in an area like that that we know, you know, having so much experience that those are the areas we want to be. That's where it is. You know, you're priced out of the, a lot of these major markets. And we don't want to be in a lot of these major markets.
No, well, people don't understand, you know,
[00:20:54] Speaker A: I mean, we, I get calls all the time asking about the area that we're in, you know, Carmel or Fishers, Indiana. Like, you know, you're not going to get the numbers to work.
You know, I know Carmel's the number one rated place to live in the nation. I think Fishers is the third.
You know, good luck finding numbers that work. It just, it just doesn't happen. But, you know, if you go to some of these smaller areas, you know, we're, we're really big, big believers.
[00:21:21] Speaker B: Well, it's fun to be back in the studio and it's really exciting to talk about some of the new projects that we have coming up. The reasons why we're so excited to still be in the market. Don't be sitting on the sidelines. Yeah, we took a little break because we had to, but if you are like us and you took a little break, get back in, now's the time. There's no better time.
You can always buy now and refinance later if rates come down. But even at 6.5% interest, we've got one project. We bought the interest rate down to 5.5% for clients on our Southern Indiana project.
So if you can't make that work, then I'm scared that you're going to be pricing yourself out of the game for many years to come. If you're just sitting there waiting for interest rates to do this or that, that or the prices of the market to do this or that, you're hurting yourself. Sitting on the sidelines isn't getting you anywhere. Get in. You can always refi later, especially if it's a lower risk cash flowing asset. This isn't about trying to time the market, it's about being in the market. They always say it's all about the time in the market, not timing the market. And it's true. It's about getting in. So get in. We've got a lot of projects if folks wanted to talk to us about them.
Go to homeboyspodcast.com We've got a lot of these tips that you can get a free PDF download. Fill out your information.
It's a really cool 12 page market report that covers all kinds of ideas for our market, all kinds of info that you need if you're going to be investing in any market. There's all kinds of tips in there, but specifically if you want info on the Indianapolis market and the markets that we focus on, there's a ton of good info on there. It's a free download. Just go to homeboyspodcast.com and fill out that little, fill in your name and a few little items and you'll get a free PDF download. If you want to check out the properties that we're talking about and that we invest in, there's no pressure, but go check them
[email protected] and if you want to talk to us about investing or about any of our properties, you can easily sign up through our website. Homeboys podcast.com to have a phone call with us. We're happy to talk through your ideas, where you're wanting to be, what you're interested in, and if there's a fit for any of our properties, we'd love to talk, talk to you about that. But it's not about us trying to push any of our properties on you. We'd love to talk real estate. So feel free to hit us up through that website and we'll get on a phone call with you and talk through what you're looking at, what you're hoping to do, and see how we can help get you along your way.
[00:23:50] Speaker A: I think that's well said. And I think you forgot one thing.
If people need any dietary or exercise advice, you're their new guy.
And I'm super proud of you. It's an honor to be sitting here next to you again. We're gonna keep, we're gonna keep this train rolling. We're getting the good word out on real estate investing. That's our show to wrap it up.
Don't sit on the sidelines. Now is always a good time.
[00:24:18] Speaker B: Happy investing.
