Episode Transcript
[00:00:01] Speaker A: Hey, everyone, it's Adrian Pinozo here with the more to life real estate investing podcast, where we try and help you get more to life by investing in real estate.
This is our first live episode right here in our studio at our new headquarters, Exp Hamilton. And I'm joined by a good friend of mine, Cody ye, who is an amazing investor. He's got a lot going on, and we're going to hear all about that as we get into it. But welcome to Exp Hamilton.
[00:00:41] Speaker B: Yeah, thanks for having me. This place, they just had a tour of Isabelle, and it's amazing how you turn this sort of warehouse construction like architectural firm. You took it over, renovated. I heard you just had a party for 150 people.
[00:00:57] Speaker A: Yeah, huge grand opening launch and whatnot. Yeah.
[00:01:01] Speaker B: And I think this is so smart. You have all the exp team in here, your property management in here, and then rent out a few other office, all synergy, law firm, accounting, all, everything, all in. And then I think even down the road, when you sell the property, it's going to be a turnkey for someone like you.
[00:01:19] Speaker A: Absolutely appreciate that. So Cody is big into the stock market.
[00:01:27] Speaker B: That's what I've been known for. No one knows that I'm a real estate investor, but I just leveraging, writing on the brand of things.
[00:01:33] Speaker A: Right. So I wanted to have him back. This is actually his second time back on the show, and I wanted to have you back because there's a common myth, I shouldn't say myth, but you're either a real estate investor or you're a stock options trader and whatnot. And there's the myth out there that you really can't be successful or know both really well, I'm one of those guys, right? So obviously we have a very large portfolio of rental properties, and I know nothing, nor do I own a stock option at all.
And in all my real estate investments, I've always shied away because, you know, I've been intimidated, scared, lack of knowledge, and just all those things combined, I guess. So I wanted to bring you back, and I wanted to have this kind of fireside chat for everybody out there who has no knowledge or contemplated.
Do I diversify myself and do both? Here's the expert. Made a ton of money. Very successful in both, I guess, baskets, if you will.
So why don't you take it from the top? Tell us about.
Use me as an example. Ask me anything you want, but I'll be the guinea pig as to having all my eggs in one basket and not venturing into the stock market and the whole, I guess, myth around, you can only do one or the other or not be good at both. Let's take it from the top.
[00:03:22] Speaker B: Yeah. So thanks for putting the student hat on and kind of elevate my status there. I'm also a real estate investor, so I understand a lot of us since growing up, my mom or my grandparents told me that the only money that they kept throughout generation is through real estate. They used to buy land, buy mountains. And sometimes the things they pass on, certain people took over and then sold it all. It didn't do the right thing. But they were telling me that most of the money I kept was through real.
You know, that's where the generational wealth is. Now, if you take a step back and say, why do people still invest in stocks, right? And you look at the successful people like Warren Buffett or his great partner, Charlie Munger, who just passed away at the age of 99, they never talk about they own hundreds of units of apartment building. They also own that, right? So even Kevin O'Leary, right, the shark tank, he said that for his asset management, portfolio management, he doesn't put 20% of any type of his asset in just one stream. So he has 20% real estate, 20% stocks, 20% in businesses and all that. And in the long run, if you look at the long run for Canada and us, as long as the country is having more immigrant, the job is growing, we're attract the right people, everyone's making more money. I think it's very safe to keep betting on real estate in these countries.
But it's not to say that we don't diversify, because what we have seen is for the past two years, when everything like Canadian never really gone through what we call a real estate recession. Even nine, eight when US market crashed, Canadian only have a small dip or stagnation for a little bit and kept going up, right? So Canadians never experienced that. And now we have seen the rate gone up. And there's a saying where Warren Buffett said, when tide goes up, all boats flow. But when the tide goes away, we know who's swimming naked, right? And now a lot of people who are over leveraged or want to grow too fast is starting to be exposed. And that's the worst time. I feel really bad for those people because they didn't intend to do it like that. But when they grow too fast, a lot of time they were forced to sell the asset at the worst time possible. They know hold it long term, they're fine, but because they over leverage, and that's in stock market. A lot of people treat that as the same thing, is that if I can make money fast, because I can one click away, buy and sell. That's why a lot of people have that kind of mentality. And when they go into stocks, they're like, you know what, I want the highest growth in the shortest amount of time. Instead, most of the real estate people just kind of more like buy and hold and all that, right? So I don't think one is better than the other, but I think having both is the most important thing. Because of the concept I introduced, fast, medium, and slow money. And we can talk more about that. But just answering that, I don't think one is better than the other. I think stock option has its own place of, for example, replacing my income.
We can use stock option to buy stocks we want to own at a cheaper price, or we can just go and buy a dividend, stocks that pay us cash flow, or leave it to our kids, generational wealth, put in SMP 500 and just keep going up 8% to 10% on average every year for the last 90 years. So there's fast, medium, and slow money and stock option investing, just like in real estate. There's fast money is flipping wholesaling, right? Realtor business, medium money could be a burr. It take a few months to a few years where buy and whole is where you buy a turnkey property and you hold it for generations. So there's fast media and slow money in real estate. There's fast media and slow money and stock option. But for me, or for my student, when they come to me, I want to establish where they are.
And you got to know what you want. Is it the cash flow to replace a full time income? Or is it the bird to create more added value? So you have a buffer, or is it just to buy a whole. I have no time. I just want to buy a whole. Leave it with someone like yourself in real estate. Invest with you guys who are going to know your goal and coming in. And for most of my students, 87% of a real estate investor, they really just want diversification. They just don't want everything in real estate, which is good, right? I have a lot of money in real estate, and I realized I have too heavy of it in real estate. So I start pulling more money away to my trading account over seven figure. And I have money with the insurance and all that stuff. So they all serve different bucket of purposes, and not just all in real estate. I love real estate, but sometimes passing on real estate to the next generation, not to mention whether it's a good thing to pass on that to your kids. But just passing on costs a lot of money, a lot of headaches, too, to pass on the whole structure.
Sometimes cash could be easier, insurance could be tax free, things like that. Right? So I think about from years down the road, and each of them serve different purpose.
[00:08:43] Speaker A: So you keep mentioning students. Students, let's talk about, obviously you have some type of program or whatnot that you refer to your students as. Can we touch upon that? How long you been doing that? How does that look? What programs do you offer? Obviously being an expert in the industry, so to speak.
[00:09:04] Speaker B: So I didn't start out want to become a coach. So I started investing in stocks in 2011 when I was in second year of university, and then 2015 to 2017, back from 2011 to 2015, I was investing in very boring stock. What most people do, banks, like, TD banks, royal banks, getting paid dividend three to 4%, like those boring stuff. And I'm like, well, I'm trying to make more money as an engineer working at a car company. My money is growing a bit too slow, and I'm trying to save up my first down payment. At that time, I didn't know anything about creative financing. I bought my first property in 2016, and that's through working 400 to 800 hours of overtime every year. Wow, so that's when people were like, yeah, Cody, you're just overnight success. I'm like, well, six years I rent a room for $600 up in Alliston, an hour and a half drive away.
A lot of time work the weekend, so I don't really enjoy any of the lifestyle, right. So I put up my first property, and then real estate was the tie goes up. So I sold it for half a million dollars in profit. 2019, I put in the buy. Go buy another one half go into their trading account and keep growing from there. Why do I share that story? Is because real estate and stock, for me, work really hand in hand together. And I didn't come out to want to be a coach. I started from boring stocks, day trading for two years. I had a coach, and I realized that most people, once they get to a certain stage, especially high income earners like myself or other people, they want more time back. And what I have seen in the industry is a lot of people say that, but what they're trying to do is they build another business, find another job. If you go full time real estate, you can't qualify for loans now. You got to take JV partners. Right. And now you got to find what's your fast money, what's paying for the bill while you have these burr strategies.
[00:11:09] Speaker A: And all that, right?
[00:11:10] Speaker B: So I basically listen to the people that want the service. At first I was doing one on one, and then I got swamped. So I created a course. People just go, I have four webinars once per week for a month. And I found out a lot of people are not getting the results because they don't have the handholding. And whereas now, after the whole Mastermind, I have five coaches. My head coach is my brother, also engineer. Right. And then we have four other coaches. To be our coach, you need to make north of 20% per year and for one to four years, and they have to go through different market cycle, be a coach mentality and all that. So now I'm just like, how do I build a business so I can pull myself out and focus on the business? So I always look at from that standpoint. And now we can serve more people, have a more structural. We have group, we have one on one calls with our.
[00:12:06] Speaker A: That's amazing.
[00:12:07] Speaker B: So do we know we're going to get here? I have the vision, but just keep listening to people. How do we make it better and make sure the business is working.
[00:12:15] Speaker A: That's amazing. Karina, pass me the remote or.
[00:12:21] Speaker B: Do.
[00:12:21] Speaker A: The skip ad thing. Or you can hold onto it. We can edit this little part.
[00:12:27] Speaker B: Okay.
[00:12:29] Speaker A: All right. So you mentioned you have yourself.
[00:12:33] Speaker B: I walked in front of the camera. Nice. Okay.
[00:12:36] Speaker A: So you mentioned you have four coaches underneath you that are now, these are coaches that are assigned to certain students, and you work directly with that coach, so on and so forth. And obviously that coach has credentials behind them, success behind them, and helps the students. So the last time I spoke to you, you were not doing that. So you've obviously grown since then.
[00:13:02] Speaker B: Yes, we've grown a lot. Last time when you interviewed me, I think I was in Belize.
[00:13:08] Speaker A: Yes, you were.
[00:13:08] Speaker B: At that time, I think it was two years ago. That's when my brother just started working for me.
And then we're growing the team really fast.
Yeah, that's why. Two years ago now.
[00:13:20] Speaker A: So I'm assuming then you're getting paired up with a coach and it's all virtual online stuff. The coaches Zoom calls or whatever it is that they're working together.
We don't need to talk specifics on pricing right now. People can contact you after the show and get all that information. But how long is the program?
[00:13:45] Speaker B: Does it certain program for most people so we have students from age 24 to age 77.
So if we use as the people in their 70s, because they tend to be a bit slower on tech, I used to say no to all of them until I took one and found that we can actually have success with them because I don't want students coming in and don't build success. We don't want that. So if we use that as an example, for example, my student, n, she's from Toronto.
She has two properties. Two of them are negative cash flow. So if I sold, I have 1 million. Cody, I'm 74 years old. My kids are not as smart as you. I want to help them buy property by the same time. I don't want to be a burden for them. So is your program fit for me? At first, I say no because she was struggling to get on zoom. I'm like, hey, Anne, we use our phone to trade. So if you can't get on zoom, we have a problem. Anne is like, no, you wait for me. I wait there for 20 minutes. She got on, be like, cody, I'm telling you, man, give me three months.
Give me three months. If I'm not a good, we end it here. I'm like, okay, fine, I trust you. So it took her three weeks to get to where start trading. Right? So we have step one to step 25.
[00:15:06] Speaker A: Yeah.
[00:15:06] Speaker B: Everyone following all that. So we can help people in their seventy s, then that give our team a lot of confidence. Give her a lot of confidence. We just had our boot camp that we have student come where people on the fans come. We have over like 150 people through online, in person, not just in Bowenville. We ran that event and Anne was keep telling me, like, cody, love you, love you. Kind of like my grandparents kind of thing.
[00:15:28] Speaker A: Oh, wow.
[00:15:29] Speaker B: And that gave us a lot of confidence. And truthfully know, it's not about how long we want to give people the fastest results within reasonable time. So we want them to understand it. And when they're kind of scared and kind of like, our coach will book, call them one on one in one to two weeks, and we make our first five trades. Again, non stock advice. We only trade SP 500, but we're looking at the screen. If I were you, this is maybe the trade I was going to make. Not stock advice. I will make the same trade.
[00:16:01] Speaker A: Yeah.
[00:16:01] Speaker B: And then they learn it. If the trades goes out well, which most of the time it does. Great. But if it doesn't, you have a handhold, just like real estate, right? The coach bought the property with you together, have skin in the game.
[00:16:12] Speaker A: Right.
[00:16:13] Speaker B: And then now, if it goes well, great, we take credit. But if it doesn't, we're in the trenches with you. And that's how all our coaches has gone through that with us multiple times. And the trenches coming out and the trenches coming out. And that's why I only handpick those people that went through multiple times of trenches and have the right mindset. Some of them are a lot more hold your composure, not panic sell and all that stuff. So that's really what we try to translate to people. We get people the results fast. Second week, start trading, and then by week five to six, they're on their own.
[00:16:46] Speaker A: Wow.
[00:16:47] Speaker B: So after that, just riding through the market with us. Right. And then we have a quick start. Twelve weeks program. We have seven months, we have full year, but really depending on everyone's situation.
Good.
[00:17:01] Speaker A: That's really neat. Let me ask you. Let's switch it now for the next few minutes. Let's switch it to real estate.
[00:17:08] Speaker B: Yes.
[00:17:10] Speaker A: I like to label you as an expert in the stock options stuff that you're doing. You're obviously grown a team now, professional outfit, as opposed to some guy giving you advice in his basement and he doesn't know anybody or anything. So that's awesome.
You're still buying real estate. Just before we went live here on this episode, you started telling me some of your high net worth clients are potentially going to invest with you as well and or take their money that they've made with you already and reinvest it into real estate. And you're still buying real estate. What are you looking at buying these days?
[00:17:48] Speaker B: Yeah, so I personally own duplexes and triplexes, and my mortgage broker have kept me on the task for multifamily, like a 1020 or 30 unit that you're buying because he saw my portfolio. I have 1.6 million sitting in cash in my trading account. So he's like, Cody, I don't know, but you're the most liquid guy I have seen among my clients. And he knows that I leave, like each property. I don't care. I just leave thirty k in there, just whatever reason.
[00:18:20] Speaker A: Yeah.
[00:18:22] Speaker B: Now, I never force it, but I do see opportunity that has been present the last year when the rate started going up. And I think this is a very tipping point where the rate, or at least the rumors that the rate will hold still will start going down. So it's at a very good balanced market right now. Everyone's guessing each other. And I think for me, I don't like to guess. I don't like to hope. So for me to buy another property in Toronto or around Toronto duplex won't work. Triplex barely work. As for a unit, we're up. So I want to buy more property or looking at buying more property down in the states, because selfishly, I think Canada has been really cold and my wife or my fiance finally quit her full time job. So truthfully, a lot of people say, cody, if you have financial freedom, why are you still in Canada? I'm like, yeah, it's because my wife, I can't force her to quit. But now that she quit, we're going to spend a lot of time around the world. And after this shoot the next day, I'm flying down to Dallas, Texas. That's the place. I think a lot of people think it's very higher risk because of gun issue and all that. But I heard many great things. We can still fire property with 1% rule, like 1 hour around the city like Dallas and all that. So I want to see it for myself. I want to buy it for myself. Whether it turn into Airbnb or just long term rental as a backup, I want to see that for myself when I have success, work out all the kinks of financing the texting structure just out of our us structure and all that, then I can potentially, and turn around say, hey, you guys know me. I already make money in real estate. And you guys come to my program because most of you get a real estate investor. Hey, now we've come back to full circle. All my proceeds are going to go back into real estate again. So if you guys are interested, we can chat more and already have built trust. I help them make money there. I put my own money there in the real estate and I show them right. But I'm always there on boots on the ground and doing money first.
[00:20:30] Speaker A: Yeah, kind of like we did. I love that kind of the concept.
You're a one stop shop for making money.
[00:20:39] Speaker B: I never thought about that.
[00:20:42] Speaker A: You're a one stop shop for making money, whether it's the stock market and then take that into the real estate market and circulate it. I love that. That's genius. And I find, too, with what we've developed here in Hamilton being one stop shop as well with respect to acquisition, construction, property management, the financing component and piece and all that stuff. People like going to Costco, so to speak, to that one grocery store for the most part, where you have everything under one roof, you're making people money and you're investing reinvesting their money back in real estate, touching both verticals from stocks to amazing.
So we're aligned in that regard with the always. I keep going back to this Costco effect. The Costco effect.
You're somewhat doing that in a sense, but even more. And ultimate respect. And I'm sure your clients have ultimate respect. You put your money in it first.
[00:21:49] Speaker B: I always put my money in it. There's a saying, I'm sure you heard the same. I don't tell, I show.
I show the receipt on a social media because there's a lot of funny stuff on social media. But I post my life account and all my students seen it, but people on the other side don't see it. So I post my life account, this is what's been going on. And my student all see it and verify that they see every single tray. So not that it's very busy, I only make one to four trays per month, 30 minutes per week. But really I show the receipt and I think that build a lot of trust because you put where your money is. If it gone through some trenches, people see it as well. You actually build more trust because of that and they'll see who you really are when you're in the trenches.
[00:22:35] Speaker A: Absolutely.
[00:22:35] Speaker B: And what do you do to get out of it? Everyone can learn even more. Your coaches learn, everyone learn. And I think that's just the best way to go. And when you treat it like everyone is looking at your money, the decision you make, it's easier for you to pull yourself out of that.
Instead, if you're just investing your money, you're like, no one's looking at my money. So maybe I could pull a fast one. I could do something more risky. But everyone's looking at your trades, looking at where your money is flowing. You're very honest with yourself, too. I want everyone to see that. If not, okay, that's not a good decision. Let's just pull it back. So that's a lot of decision I'm making now. Every decision I make, everyone will see it. And my kids or my grandkids going to be proud of it. If my students going to be proud of it. If not, okay, I'm not making that decision. And that helped me save me from a lot of mistakes, too. Just thinking that everyone's looking at everything I do.
I'm not smarter. I'm not smarter than anyone, okay?
I walk what I talk and I preach what I do, what I preach. And that saved me from a lot of things, too.
[00:23:43] Speaker A: Amazing. How old are you.
[00:23:45] Speaker B: I'm 33.
[00:23:46] Speaker A: Good for you. And this all started how long ago.
How old were you? And you bought your first real estate?
[00:23:54] Speaker B: 2016. This is a funny story, though. Real estate is great in a way.
I bought my first property with my mom because I didn't have enough money. My mom just like, yeah, get whatever you have put in. That's 2016. I still remember that property we bought in Dufferin and Eglington area in Toronto with LRT. Ltr. LRT.
[00:24:16] Speaker A: LRT, yeah.
[00:24:18] Speaker B: We bought it for $526,000.01 and a half story bungalow. We just had dinner with my mom, and she told me that the developer came in, say, we will buy for 4 million.
[00:24:34] Speaker A: And you bought it at 526?
[00:24:36] Speaker B: Yes. It went from 1.21.8. But my mind, like, the asian parents are like, I'm not going to be the last one selling.
And that parcel is so important because right in the middle, right? So I know they can't let this one go. They won't work.
[00:24:52] Speaker A: They need it.
[00:24:52] Speaker B: They need it. So I'm like, mom, just be safe, okay?
Don't be the last one to sell. Okay? If you're the last one, sell it right away. I don't want any of your safety get into trouble. But they're like, yeah, I'm the second last one. So right now, they're offering 4 million. And she's chatting with me over, like, a few days ago, like, Cody, what should I do with the money if I sell it? So real estate is great, and real estate is what built a lot of people wealth. And now they're just like. My mom was like, I got to go buy two more property. I'm like, mom, can you manage two more property? Because you want to do everything yourself. You want a property manager. And she kept calling me. I'm like, I'm not going to do that for you. So it's a different lifestyle thing. But I just want to share that.
[00:25:31] Speaker A: I thought it was amazing.
[00:25:32] Speaker B: It was fun.
[00:25:33] Speaker A: That's amazing. 526,000. And what year was the purchase?
[00:25:37] Speaker B: 2016.
[00:25:38] Speaker A: 2016. So eight years later, we go from 526. I could have believed $4 million.
[00:25:46] Speaker B: And I think they're still going up, because think about at first in 2018, I want to assemble that parcel. So I look at the deeds, and I found the company that sold this property to my mom. They had a changeover of ownership, and the owners regretting doing that. They have three property. They need, like, six to eight. They had three property, and then they were fighting kind of like divorce the partnership. So they sold one of that and my mom catch it. And then that was zoned for a residential apartment. Go up to eight to ten story. So I was like, you know what? I didn't go and assemble it. And I look at the DM, someone has four, three to four. Okay, that's going to be tough. I'm fighting against them. So I'm just like, you know what, mom, just hold on to it. I'm not going to touch this one. I can't fight with them. They have more than me.
But now it just went to 1.21.8 and four mil. I'm like, mom, are you seriously? She said, yeah, they call me and they put it in paper. I'm like, holy cow. And you're not letting go. She's like, well, Jesus Christ. So I don't think that's everyday story.
[00:26:53] Speaker A: But that give me, but I love.
[00:26:55] Speaker B: Those stories that give me revisit when I'm going down to states, right. Instead of just buying a single family home, I'm thinking, I'm not worried about how many doors I have. People brag about how many doors I'm thinking about if something cash flow. What is the upside on that? Is there a zoning law changing coming or is already zoned right. Correctly and someone will buy from me to develop or I can buy the nearby property. I don't mind paying a bit more as long as it's cash flowing. Or I could be creative to make a cash flow. I will buy that rather than house that cash flow 5000 through Airbnb. I'd rather cash flow a little bit but have a lot more upside. I don't have to do much because what I realized at the end of the day, only real estate is great because of leverage.
And if there's a lot of upside, that's where at this stage I don't need any more cash flow. I have different ways of making cash for Airbnb. We have coaching business, we have our own real estate portfolio. Barely cash flowing at this point.
But I'm looking for the growth and I don't need the money for five to ten years. But I want to have the potential of five to ten years down the road, two x, three x, if not four x because of the economy, because of the keep printing money or because of the zoning potential that people start realizing that and I have that piece of real estate. So I didn't do anything for ten years and all of a sudden four x the money.
[00:28:27] Speaker A: Yeah.
[00:28:28] Speaker B: Always looking at those property now instead of just single line of does it cash flow. What is it? Does it have a potential? Right.
[00:28:37] Speaker A: You're more looking like this as opposed to having very short sighted vision. You're more kind of big vision.
[00:28:45] Speaker B: Yeah, I don't need the money. I can park there for ten years if that's the case. That's the case. Where can I park that money? The most efficient, with the least amount of time and still carrying yourself. And if an interest rate, instead of going down, go up for two more percent, I'm still okay. That's the way I look at things. I know I'm okay.
[00:29:02] Speaker A: Right.
[00:29:03] Speaker B: And in the US, you can lock in for much longer.
[00:29:05] Speaker A: You can even assume mortgages in the US. Yeah, no brainer.
[00:29:10] Speaker B: I love it. Yeah, every case is case by case, but I love the game.
[00:29:16] Speaker A: Yeah, absolutely.
Well, listen, we're actually close to 40 minutes. Crazy how time flies over at 30. Felt like 40. So I'm going to, well, edit this part, but I'm going to do two last questions. One's going to be, any advice to people getting in the game? And then I'm going to do the last one is going to be.
I'm not going to tell you, it'll be a surprise.
[00:29:43] Speaker B: Sure. Make sure I add value to you too.
[00:29:46] Speaker A: 100%.
[00:29:46] Speaker B: I want the conversation to be a little.
[00:29:48] Speaker A: I love this conversation. I love this conversation. It's more like a fire start, back and forth. Supposed to question, answer, question, answer. So this has been a really good dialogue.
So we're getting towards the end of our podcast here. It's been great. I love the conversation. I love the flow of back and forth. It just feels really natural and genuine, and I know people will resonate with that. And for those of you who can actually watch this too, after we go live with it. So people getting started in the game. All right, let's give two scenarios, or maybe just the one. But people are getting started in the game.
Whether they're taking money from a HELOC or they have, let's call it 400 grand, they have access to 400 wherever it's coming from.
In your professional opinion, and it's just your opinion, where should they take that money first? Real estate or stocks?
What do you think?
Both are great, I think. But if you've done both at a pretty high level, what do you think?
[00:31:08] Speaker B: I think you're coming from the standpoint where people have four hundred k in HELOC, they're paying prime plus 0.5. So at this point we're recording February 2024. That is 7.2% plus 0.5. So that's 7.7% of borrower money. That's where you're coming. It's not cash.
[00:31:26] Speaker A: Right.
[00:31:27] Speaker B: So, of course, first question is, can we find a property or can we find investing opportunity where we're going to make more than 7.7%?
I think that's our first question. And how much more can we make to adjust that risk that we're taking? Because 7.7% is kind of like a leverage money.
[00:31:48] Speaker A: Yeah.
[00:31:48] Speaker B: If you make less than that, that means you took the borrower money and you make less. Now you're dumping more money. So the good rule of thumb is that the more potential money, you can make double of that. 14. 1820 somewhat percent. That would be a better opportunity. If we do miss that target, we're still, let's say, double of the 7.7%. To me, that will be a lower risk. So I think that will be the first thing that we look at. Even for investing, there is not enough of a spread. I just want not do it now. That's first thing. And second is, what is their goal? I know. It's so cliche. Yeah. Cody, what's my goal? When I say, what's your goal? Is that, do they need this money to replace their income, which, in my opinion, is replacing their fast money, or do they need this money to keep growing? They don't need it, but it's good to see the money keep growing. I think that's the second scenario, or the third one is, Cody, I just don't want to see the money sitting there, equity sitting there, not doing anything. So I want to pass more to my kids. Okay. That's a different scenario. Because, one, they need the money immediately. They need it. Pull it money. Second one is kind of like, yeah, I don't really need to see it. The third one is like, yeah, I don't need to see it for five years. And I think if they know which bucket they're in, then they can decide. If they do want to invest with you, then you have a portfolio that fits that. If they want to invest in stock or stock option, then I know. Okay. That's our set and done strategy, where you want to replace your income. If you just want to park the money somewhere, we could just teach you our criteria of buying indexes. You get some dividend and build long term wealth you can pass on to your kids. And is it worth it? Right. So I think that's the first step and the second step.
[00:33:43] Speaker A: Got it. Great advice, buddy. I didn't think of it that way.
[00:33:46] Speaker B: What way do you think about that?
[00:33:48] Speaker A: Well, we really actively get our returns from successful burrs, right? So it's essentially we're pulling out. Typically, even in today's market, with our larger acquisitions, we're typically pulling out 90% of all the capital we put in.
[00:34:10] Speaker B: That's very good.
[00:34:11] Speaker A: And we really rely heavily on our underwriting, I guess, capabilities and forecasts. We're very reserve on that note. So, yeah, on average, 85% to 90% of capital we're pulling out. So when I look at it that way, obviously it's an amazing investment at the end of the day. And I think by the time all of our projects, we still have a few on the go, but by the time they all come to fruition, with a little bit of luck, like you said, no one has a crystal ball, but rates come down even more. And obviously cash flow will be a lot more prevalent.
Nailing the burr, essentially, now that the market's kind of stabilized a bit, is a little bit easier than, let's say, a year ago when everything was in transition and whatnot. But we're still able to do that. So we're still providing great returns on capital.
Seguing into my last question, and it goes with the podcast, and that's why I save it for last.
When Cody sees more to life, is there more to life still for Cody? And if so, what do you see? What's your more to life?
[00:35:32] Speaker B: So we were just having this conversation with Isabel and more to life. To me, I did not realize who I really am until I start pushing myself to the limit.
What I mean by that is when I start becoming an entrepreneur. First year I was working 16 hours per day. I was by myself. I make the most amount of money ever. Like crazy, stupid amount of money in the first year and I start hiring team, and I give away a lot more. And you want to grow, you want to build the brand, you spend so much money. But more to life to me is that learning who I am. And I realized that I enjoy the financial freedom journey by not doing nothing. I'm building more team than ever. I have a payout team. I have a podcast team, I have organic team, I have a coaching program, I have real estate, I have Airbnb. But it's not me doing it, but it's making sure I put in people in the right place. And I only hire and retain the people that can take high performance coach. So the moment I realize they just want average, first of all, I won't even hire them. Second, if they just want average. We're not going to be partnering for very long. And some people might like, oh, Cody, that's very scary. This could sound very scary. But what I found is that when people can take that kind of growth and see the vision and sometimes they love and hate me. Trust me, they love and they hate me because I push them so hard but give them love and I pay them more and I structure the bonus accordingly. So they love and hate me, but they learn so much and I'm learning the same way. A lot of my employees are like 40, 50, not even 60 years old. So I'm like their kids talking to them. How do I maneuver all that and more to life to me is okay. Now that I quote unquote made it. I'm continuing to grow bigger, but I take care of myself as a high performing athlete and I make sure the people who are around me, whether it's my employees or my coaches, they're growing with me and they get to the goal that they want to get to, whether it's more money, more freedom, or just personal growth. Some of my students in their 70s, they're just like Cody. I have my charity. I want to be able to pay for it. So everyone has different goal, but make sure they grow in their own way. And when I'm doing the right thing, when I'm pushing people out of their comfort zone, they're growing. Then everything grow in the right way. So that's the way I look at things. For me now, yes, financial freedom is great. I'm going to us for two months. I'm going to Morocco for ten days in March, cruise for two weeks in April. And then really, I can fly anywhere if I want to, but I try to tie business with it too. First, I can write it off. Second is there's so many place on my list of to go that I've never seen. And I want to go when I have the freedom and the health and not having kids yet. We're going to have kids soon, but I want to grow and have fun at the same time but not work so hard. And a lot of my body breaks and then I can't really enjoy. So I have to have the cake and eat it too and everyone around me to do that as well.
[00:39:00] Speaker A: Amazing.
[00:39:00] Speaker B: That's my vision. And so far it's not a sunshine rainbow.
[00:39:05] Speaker A: We have to have always ups and.
[00:39:06] Speaker B: Downs, but we're going the right direction.
[00:39:09] Speaker A: Amazing. Well, thank you so much for being on the more to Life podcast. Amazing. Again, our first filmed live interview with our guest here at our new headquarters. And what a great episode to have this as a grand opening kind of episode. We're going to call this the grand opening episode.
[00:39:27] Speaker B: The grand opening. I'm happy to be on a grand.
[00:39:30] Speaker A: Opening, grand opening episode of Exp. Hamilton. Thanks again for coming. Have a safe trip in Texas and whatnot. And for the next three months as you travel the world. Good for you. I'm proud of you. And 33 years old, financial freedom and success.
[00:39:46] Speaker B: Yeah, cheers to that. And I want to give it to Adrian. A shout out is that if you guys are listening to this episode, Adrian is going to have a lot more guests like me sharing different expertise. So make sure you guys like this episode. Subscribe. If you guys don't mind, give him a five star review so that people know that this is a good podcast and share with a few friends. And, yeah, show this.
[00:40:11] Speaker A: How do people get a hold of your program, your coaches, you? How do they find you?
[00:40:16] Speaker B: Don't worry about that. I think I'm all over Internet if you type in Google, Cody. Yay. Which is C-O-D-Y last name Y-E-H-C-O-D-Y last name Y-E-H-I have YouTube channel with 20,000 subscriber. We have a podcast called Wallbusters. I had you on. I'm going to have you back on again.
[00:40:37] Speaker A: Awesome.
[00:40:37] Speaker B: And, yeah, I can't hide. I have Instagram, Facebook.
[00:40:40] Speaker A: He's very searchable.
[00:40:42] Speaker B: Yeah.
[00:40:42] Speaker A: On that note, cheers to everybody and take care.
[00:40:47] Speaker B: Yeah, take care. Bye.
