2 Wealth Show S3 Ep22 – Hustling Pays Off
Super E and Justin interview Shawn Holsapple.
Key Takeaways:
Resources and links discussed
Sponsored By: Integrated Health Solutions
We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible.
In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.
To learn more visit us at
ihsindy.com
cryotherapyindy.com
About the Hosts
Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!
Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.
Connect with the Hosts:
2 Wealth Show S3 Ep22 – Hustling Pays Off
Super E and Justin interview Shawn Holsapple.
Key Takeaways:
Resources and links discussed
Sponsored By: Integrated Health Solutions
We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible.
In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.
To learn more visit us at
ihsindy.com
cryotherapyindy.com
About the Hosts
Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!
Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.
Connect with the Hosts:
[inaudible]
Speaker 2:Welcome to the two wealth show, a show that shares how you can create real wealth for you and your family. I'm one of your hosts, Justin Bogart. And my co-host is Elizabeth Sickles, AKA super a I am a real estate note investor specializing in performing residential real estate debt. I find the deals acquire them for my own portfolio, as well as educate investors while walking them through the process of owning a real estate note. My co-host super IE, a real estate investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in between. Our show was sponsored by bright path notes and Elizabeth May aura. You can find out more information by visiting our websites@brightpathnotesdotcomandelizabethmayaura.com.
Speaker 3:Hey Elizabeth, how are you? I'm
Speaker 4:Great. How are you today?
Speaker 3:Pretty good. Welcome to episode number 22 for listener. And, uh, if you didn't notice Elizabeth, I am in a vehicle recording this podcast today.
Speaker 4:And where in the road are you Mr. Bogart?
Speaker 3:I'm actually, uh, in, let's see, I guess this is still considered fishers. I had to drop my truck off that I got a few weeks ago to the dealership cause I had some transmission issues that they're fixing and, um, it kind of was a priority to get it in sooner than later. So I am, uh, I had to find like an open, um, new vehicle to sit in Spock and have some quiet time. So I could record this podcast with you today.
Speaker 4:Excellent. That's what it's all about, right? Flexibility making.
Speaker 3:Yeah. Yeah. At least I have the, you know, the technology to do that. So if see people in the background, or maybe some of my kids in this car to check it out while we're recording, uh, you know, don't worry about the interruptions here.
Speaker 4:And speaking of cars are, we have a really special guest today in sapele and his, um, it's really just a story about hustling and cars are part of his journey.
Speaker 3:Okay. Let's bring on Sean right now. I, Sean. Good morning,
Speaker 4:Sean. Welcome to the show, sir. Thanks for having me.
Speaker 3:Yeah. So, uh, we started off the conversation and I know you heard of the background about me sitting in this vehicle at a, at a new car, lot, a GMC lot to be exact. And so Elizabeth was saying how this is kind of how you started out with this kind of in the car business. So you want to kind of, we kind of led you into this part of the story. Can you kind of take over from there?
Speaker 5:Sure. So during the, uh, some, my journey, uh, up a portion of that was flipping cars. I've always been a car guy. And, um, back in, I think 2008, I had an opportunity get in to an actual car dealership, a new dealership, and, um, got a lot of good training. I've been in sales prior to that, that for about 25 years. And I thought I was a pretty good salesman until I got some, some really good car training and, um, a lot of, a lot of good stuff. Uh, and it was a top-notch dealer. So, you know, the, the typical used car salesman in Greece, the guy that thing, and that wasn't their policy at all. It was very, uh, top-notch very, very structured and got to learn a lot of the process and how to have conversations, words do use, uh, not the help help the, the buyer towards the end, which is a, you know, signing on the dotted line. So yeah, you know, it was, I started off about six months doing that and seeing, seeing what opportunities there was, you know, I was, I was making okay money at the time, but then not seeing what the dealership was making. Of course, you know, the light bulbs go off like, well, so I got my own dealership license and started going to the auctions, you know, picking up cars and selling them same day sometimes. And, um, so in 2009, I D I a side hustle, 129 cars on the side while I was working full time in Armenian. So, um, yeah, that was a good year for sure.
Speaker 3:Wow. Yeah. That hadn't been very busy for you.
Speaker 5:Yes, I think, yes. I have a very, very good and understanding wife. I mean, I was selling cars at 10 30 at night sometimes, you know, and just, it was, it was crazy. It was in the suburbs, uh, the larger city. So, um, people would just come, you know, they call and, um, yeah, she, she helped a lot. And so we sung from the house. I had a, had a location for a while, but I found that I could do better, um, more of a side hustle versus a real car, lot location for some reason. Um, I just really struggled with that side of it, as far as getting the deal done versus seemed like what, you know, people, when you come to their house or your house to buy it, it's, it's more laid back. And, um, so that ended up working better and just doing that without the overhead expenses of having a lot.
Speaker 3:So this, this was your side hustle, so you still had a full-time job and you were doing this, this, uh, flipping cars on a, as your side hustle as well. Wow. Your wife is very understanding.
Speaker 4:So I think, you know, that's a really great thing for our listeners too. Sean is a fact that Michelle has been such an intrical part of your businesses and just, you know, you're married, you lived together and your business together. Um, you know, kind of like as your story has progressed, can you kind of share like how, how that has progressed as well and how, how you guys have made that happen?
Speaker 5:Yeah, that's a, that's an all day conversation itself, but uh, yeah. W what is celebrated at 29 years recently? Twitch Twitch. So it's cleared off when we got married, I was working as a machinist full time in a factory doing second shift, third shift, uh, lots of hours doing that and making decent money. And then, um, ended up opening a car, audio shop out of the blue. We'd just been married, I mean, three, four months, and ended up going full-time into something. I had no idea. I cannot, I knew cars, but I didn't know car audio, I didn't know, wiring that well in our certainly didn't know business, but always had this, this extra, um, grind in me that, that wanted to sell stuff in high school. I saw a bubblegum to pay for my car and my gas cause we was very poor growing up. And so I've always hustled some way. And, uh, so yeah, she, she was there for that and, um, that was, you know, that's a transition and then she's worked on and off over the years, other places, but always end up doing the bookwork. She likes books. She likes organization like spiraling. So she, you know, she's the back office, she's the sticky stuff that keeps it all together for sure. And I'm out front, it's making a huge mess and she comes along and cleans it up for us. So it seems to work out
Speaker 3:Nice. That's a good team. Good partnership.
Speaker 4:That is very good. And so how long did you do the car? Audio business? 12 years.
Speaker 5:Oh, wow. Yeah. And, um, so the car audio, that was always the core, but, uh, 2, 3, 3 years into it that evolved into home audio, which involved with that evolved into custom higher end home electronics, automation, really nice personal cinema stuff. It's a really cool automation, lighting controls, um, high-end homes. And so that was neat. We got to see, you know, see a lot of, a lot of cool homes, a lot of, a lot of great people to meet along that journey. And so, yeah, we've been through all that. And, and part of that was, was new construction. Uh, our company would go in and pre-wire the homes for all the electronics. So I got to see, you know, I can count it up one day, probably over 700 new construction builds. I was onsite part of over the years. So I got to see the construction side of things, which Connie helped plant the foundation for real estate in the coming years.
Speaker 3:That's awesome. So what year was this?
Speaker 5:We started in 92 and soda business and I guess, oh two, we started to the competition, went to work for them for a couple of years, which was tough and that was getting out altogether and then completely switching gears at that point.
Speaker 4:And how did you make the transition from being the owner to an employee?
Speaker 5:Uh, well, it wasn't by choice. The short story is we just spent a huge amount on a, on a remodel, on a commercial space we had, and within three months the landlord comes to us and says, oh yeah, by the way, the building is sold pillows, we're tearing it down. You can move and help you move. And I'm like, well, what about all this money? I mean, I just six figures on a remodel and he's like, not my problem. Wow. Literally wiped us out. And so the only thing was a salvage was that we sold the home side of the business to a company that was also doing the same business and got about a third of what we owed. And we took the next 10 years paying all, all that back is still filing bankruptcy. So I've been to the bottom a couple of times in our careers and that's, that's how I ended up there that wasn't by choice, but, um, went to work for him and it was okay for awhile, but it's just, um, they w you know, their, their path was wasn't the same as mine. And, uh, so we ended up parting ways after a couple of years.
Speaker 3:Sorry, I was going to say, uh, the location of all this, cause you, you currently live in Indianapolis, is that correct?
Speaker 5:South side. Yes. This was Bedford, Indiana, very small town, south of Bloomington. And so a small market. And of course, hindsight, I should have moved to a larger market that would've been a lot better. Anyway, of course I wouldn't change anything because all that got me here and that's, that's, what's all about, so all the ups and downs and the, and the trials and, you know, being at the bottom and scraping by, and the long hours has gotten me here. So that's, that's, what's all about.
Speaker 3:So, so currently, um, fast and kind of like your business today. So you've got your journey from, you know, being kind of in the side hustle and the kind of car business, and different aspects of it. And then you eventually got to the, you said the home audio, like the high custom home audio stuff. Did that kind of get you into real estate from there?
Speaker 5:No, not really. I still didn't. I had friends and family that were doing real estate. Um, I, one cousin that, of course now we're, we're really close, but back then I used to see him and I knew that he had rentals and my thought was that poor guy. Why would you do that? And even get it at all? Um, I even looked at some rentals at one point talk to a bank and, you know, it it's sorta made sense, but I just, I just get my head around it. I was all about sales and inventory and employees and, and all that and customers. And, um, so now, um, you know, it, it took the second reading of rich dad, poor dad, which was in 2008 to really kicked me in the Shan, like, okay, I got to do something I've worked 30 years now. And I have basically nothing to show for it. I mean, we weren't poor, but I didn't have any, um, equity or net worth to speak of. And I thought, okay, worst case. I see my parents who worked 50 plus years, very hard and don't have hardly anything. So now that's my path if I don't change. So when changed and went to a seminar, took my wife along, which she wasn't very eager to go. And then after the second day, they're just like, okay, I see what you're talking about. And that's, that was the spark to, to kind of get into the real estate side of things.
Speaker 3:And that was like 2009, 2008 or an
Speaker 5:Eight, but it's 2010 before I actually bought my first property. So it was two years of, you know, hunkering down and making offers, hoping they wouldn't accept it. It just scared to death. And I'm following one got accepted one day. I'm like, oh, whoops. Now why I don't know what to do, but, uh, but yeah, it got us here. And, um, that's, that was kinda how that started. And then they were still working for their people on and off over the next couple of years. And I want it full time. Uh, late 2011 into, through real estate. Got my broker license starved for six months. Did absolutely horrible. And then finally in 2012 started, started the wholesale and seeing that opportunity and that clicked. And then, um, that's kind of how that all got started.
Speaker 3:That's kind of the sweet time to get into this was right around that time. That eight to 12.
Speaker 5:Yeah. Yeah.
Speaker 4:So you started off wholesaling then, right? Or did you start off as you know, like you said you had that your broker's license, so did you start off as a realtor first?
Speaker 5:No, I, I worked for a company that has a turnkey, there was an acquisitions rehab property management for a small hedge fund. And so I was involved in that, so that they really got a lot of experience quickly from, from looking at the, you know, the lower end. You know, these were, we were selling the homes 22,000, uh, turnkey. That means we'd spent 10 or 12,000 on them rehabbing them. So we were buying them three, four, 5,000, our homes back then from the city. And I just came off of working for a company in the indie doing high-end home electronics as a consultant. So I'm used to going into two or three, four, you know, four or$5 million homes. And then I'm in a$2,000 board up, you know, a very rough cinder township downtown Indy home with squatters. I'm like, holy cow, what, you know, I can't do this after, after three days that I came on, like, I just can't do this. And I finally got through it and got to learn. And so I was the acquisitions guy. So they would send me out to 10 to 20 homes a week doing estimates. And so we started doing that in a, you kind of get a feel of what can be done, how it can be done, what it's going to cost, and then seeing what's available during that process, I was, I was an office helping make offers. And that's when the broker there said I should get my own license switch so I can make offers myself, I through him to help speed up the process. And so I've got my license and then that office fell apart. Uh, things just didn't work out there. They actually went out of business. And so I was kind of left on the street, thought I'd go in and find REO brokers. And then I would, I'll go work with them, try to get some pocket listings, you know, and try to get ahead of stuff. So that's when I found, uh, Chris Bryce indie property source on the west side, Carol Williams, and, uh, started working with him a little bit. And that's, that's kinda when the wholesale started. Uh, I was told originally, which will incorrectly that I had to have my license to wholesale. And also that I wasn't allowed to use, uh, assignments, which we all know is the way to do so I got used to doing over early using OPM other people's money. So I'd have to buy and close on the asset and then sell it either, either through a double close or to sell it later. And so that's my version of wholesale. I don't hardly ever do contracts for assignment. It's always, I always buy a close on it and then decide what to do with it. And the meantime, which is a little bit on it, on how I, a true traditional wholesaler would operate.
Speaker 3:Right. Yeah. I've heard that. I've heard the same things about having to have, having to have a license to do these real estate transactions that we do the wholesaling and, and stuff. And I obviously I know that not to be true today, but at first you're just like, oh yeah, I probably should have that. Right. Because you're, you, you logically, you're like, I probably should have a license because that's kind of what you see as realtors have licenses to be able to do that. So yeah, it was what you were going to say something, I'm sorry.
Speaker 4:Well, no, I just, I love it, Shawn, that, you know, like you're hustling, like no matter what you're hustling, it was cars. You were a machinist at first, which was one of my careers back in the day I sold, I sold the brains to those machineries and, you know, so, and this full force of real estate and, you know, just building your wealth so that now you and your family can enjoy life a little bit and sit back and enjoy all of those late nights and super early mornings.
Speaker 5:Right. And it's, you know, now I've learned, um, lifestyle design versus just run, run, run, and put out fires all day long. I try to plan and try to plan the next several years and you know, what to do and what not to worry about and what to worry about. And so that's really changed as I've gotten older. Um, then at the end of the day, the passive income is where it's at. Of course, that's why we start all this is to get to the passage point and, and tween flipping some cars along the way and the wholesale, um, that, that was the, the big, lots of work to get to the point where, uh, I could keep some of those wholesale opportunities turning them into longer term rentals, uh, partner up with some local local banks and get those cash flowing. And so, um, you know, that the first couple of years was this, I was selling everything. I wasn't keeping anything. So I was still doing active work. You know, income was act, I was still trading hours for dollars. And, uh, it was good, but I still had to work. I still had to get up every day and do it. And then when I finally realized, I went to a little to a local meetup and the speaker was like, why are you selling all your deals? When some of these are smoking deals that you shouldn't, you shouldn't be setting on cashflow and that kind of hit a nerve. And so during that time, I I'd also heard the term, um, uh, freedom number. And so I was at the time was living in a small house in Greenwood and, uh, w you know, the expenses were pretty low. So our freedom number at the time was 4,000. I thought if I could get 4,000 passively, that sounds pretty decent. And for us at the time, the$200 per month net after a hundred percent financing from a local bank was kind of what we shooting for. So some quick math,$200 a pop in the 4,000 is a 20 homes. And I thought, well, at the time, I think money had two or three rentals and they were struggling. And so we really, really started focusing on the freedom number. And within, within 18 months we had our 20 homes, we had the freedom number, and then I was able to kind of step back and relax for a second. And then they're like, well, that was somewhat easy. Let's see how far we can take this. And so, so we of a game at that point up until about 2017 and when the market kind of shifted, but, uh, but yeah, we had had a good run and it got some passive income sets, but that's, that's where we're at now is just kind of sitting back and waiting for the next run
Speaker 3:Right on. So what do you, think's gonna happen kind of projecting into the future now, based on what you see and what you've done, and your history and your education kind of in real estate investing, what, what do you see the market doing as far as like real estate investing goes in the next couple of years?
Speaker 5:Yeah. My crystal ball is broke right now. I have no idea with the way things are. Um, you know, if it wasn't for the last two years, historically, I think we would be, uh, would be overdue for a correction. If you look at a, at the 17 year cycle or a seven-year cycle, whichever one you want to look at, I think we're we're there, but with the way things are, I have no idea. I still think we're we're at Q1 Q2 next year. Looks like there has to be some kind of correction. I don't know if it's going to be here the Midwest or not, but I think there's opportunities there. So we're just kind of setting in wedding. Um, I think by Q2, if it hasn't really changed and we're just going to have to have to realize that these current prices and this current market is this how it's going to be. So we're gonna have to have to make that work and, and get back into it.
Speaker 3:You have the, uh, I'm sure you still have the desire and you still do a wholesaling or flipping houses, um, today. Right?
Speaker 5:Um, to a point flips have always been a struggle for me, for some reason. It's is, um, you know, we did probably 30 over the last five or six years, and very few of those are very fun. And then it's just gotten worse. The current one that we're finishing up on it was, it was a full, full rebuild, pretty much ground up. Um, you know, it was a higher end project and had had a lot of hiccups over the in we're. We're just about to be in now where we're supposed to close next month, fingers crossed and get out from under that. But, um, underway, we want to do more flips like that for awhile. Uh, for us, you know, the, the wholesale or, or, uh, the, the pre what the hotel hotel is called, where you you're wholesaling it, but you're also retailing. So you go in a house that's full of junk. You can, you can clean it out, do a prehab almost, and get it up to the next level for, for, for a landlord to buy that and take it on from there. So you can go in and we, we have success with that, but try and do a full rehab and selling it retail. It was always a struggle for us for some reason.
Speaker 3:Yeah. I've had those similar, similar challenges with flipping, and that's why I don't do that because it's, I'm not the expert at it. I like the passive stuff too. So your business is called, um, who's your solutions, correct? I said, I'm gonna throw up your website here on the, uh, on the screen for those of you that are watching on the video cast of this version of the podcast. And, uh, so it's, who's your-solutions.com is the name of the website. And that's how they can, somebody can reach out to you if they're looking for any naturalists or surrounding area properties or what, what, where's your boundaries.
Speaker 5:But that side is more geared towards the, the seller, you know, it's a place to sign up and, but there is there's contact information there if someone was to reaching otherwise. Um, and if they want to be on the buyers list, they can just, they can send me an email through that and we can put them on the buyers list right now. I'm not doing a whole lot of wholesale, of course, um, you know, kind of picking and choosing at the moment, kind of waiting. Like I said earlier to see what happens and to building up the war chest to get ready.
Speaker 3:Do you have a sweet spot of the wholesale properties and like the Indianapolis area with like a dollar wise and where you try to go after, like, is it the$50,000 homes or$150,000 homes, or,
Speaker 5:Yeah, when we was doing the bulk of it, but it was always, you know, the purchase price was under 60, for sure. A lot of it was under 20 sometimes, which, you know, that's been a few years, but yeah, that's, that was coming that's 700 to a thousand dollar rental. You know, the inner city Metro in the area was, was a sweet spot for sure. Um, I found my personal stuff to be better outside of the city and the counties, the rural areas. And that, that works really well for us for rentals, but for wholesale, for sure, in the Metro and, and under, under 60 probably now it's gonna be under a hundred, the purchase price.
Speaker 3:Okay. So, so your main thing is you're getting these properties through your different ways that you advertise to sellers and get these under contract and you buy them with other people's money, and then you're able to clean it out a little bit, like you said, whole tale, and then you're able to sell them to somebody that pretty much wants to flip it or wants to make it a rental. Is that yes. Sweet Elizabeth. Let's let's get some fun questions in here. What do you got for Shawn?
Speaker 4:All right, Sean. So what is the biggest piece of advice you can give to somebody? No matter what stage of life they're in.
Speaker 5:Wow. Uh, for me, it's all about money and that sounds bad when you say that, but it's, it's understanding it, not necessarily constantly getting it, but just understanding how money works. And there's so many people that don't have a clue, you know, unfortunately, and, um, how, you know, how things operate. And so this learning some basic money skills and accounting skills, uh, is huge, I think, and then also some sales skills. Cause, uh, I think life is, is a big sales Fest. You're constantly selling yourself to, to hear what you're talking to, to try to either get some business or, or important networking or something. So you have to have the communication skills there as well. And, uh, I started off very shy, uh, had a really bad stutter, uh, in high school was horrible. So, uh, you know, trying to break out of that for me was, was a challenge. And now sometimes I can't shut up. So
Speaker 3:That's awesome. Those are great advice. And looking back on for myself, that's exactly what I struggled with too, was those things and you're right. Those, those core things, haven't, uh, communication skills, sales skills. And then, uh, obviously running numbers like Elizabeth always says, know your numbers and know the financials about the business. And those are the things that you need to be successful. And, um, obviously you're very successful and a lot of people look up to you here in our, in our indie area with our local, uh, uh, REIA clubs and stuff. So we appreciate all the stuff that you do for our local clubs as well.
Speaker 5:Thanks.
Speaker 4:Yeah, absolutely. And what about Sean? What is either a book or maybe, and, or, cause I know you're a big podcast listener too, as well that you would recommend for our viewers and listeners
Speaker 5:Had to say, rich dad, poor dad. Cause you know, that's, that's the cliche, almost everyone. You mentioned that. But uh, I think for me, I picked it up in late, probably 98, 99 and right in the middle of two locations of business, a child on the way and you know, life happened, I ran it, I should do something, but then it got busy. And then after 10 years in 2008, I made sure earlier I picked up again and it really hit me hard that I've got to do something. So that was a starting point then of course there's all kinds of other good ones for business. The E-Myth by Michael Gerber is great. Um, the, uh, uh, the four hour work week, Tim Ferris, that's at a melt your brain then of course, a 10 X grant Cardone. If you do that book, get on audio and cause he's, he's the, he's the narrator narrator at himself and he's, he's all jacked up and he'll get you Everything.
Speaker 4:Uh, a fun note about the four hour workweek is I listened to that in 2011. Um, I just, actually one of my friends said, Hey, you should relisten to it to rebuy it. So I, yesterday I went to buy on Amazon. The price has increased 80% and the last 32 days. Wow, isn't that crazy? So it just kind of goes with people wanting to be more entrepreneurial and just looking at other ways to make money.
Speaker 5:And w just assignment on that particular topic. Um, that one really drove home. The idea of a VA, a virtual assistant I've been using one on and off a little bit, but then when it reading that that was right in at the height of our wholesale business. So I actually had a couple of full-time VAs that really helped out a lot. And also I did the, uh, uh, the private chef, believe it or not, I thought that was for some high high-level executive. And you put an ad on Craigslist. You can probably find someone. I mean, we, we had a lady come in once a week and she charges 75 bucks. She was there all day. She cooked all our meals for the week and also cleaned the house, did laundry, the dishes, everything for 75 bucks. And she was so that was
Speaker 3:Wow. I'm about to try that. That's awesome. Sean, Sean, wholes apple, everybody listening to our podcasts and watching on the video cast is Sean holds apple he's in the Indianapolis area. Uh, who's your-solutions.com is his website. That's how you can reach out to them if you're looking for properties or if you need to sell one of your properties, I'm sure. Show him, take a look at it and give you an offer for it. So, Sean, we really appreciate you spending the morning slash afternoon with us here, recording this podcast. And we're glad that we got you on.
Speaker 5:Great. Thanks for having me.
Speaker 4:Thank you.
Speaker 3:All right, buddy. I'm Justin Bogart with bright path gnosis episode 22 of the two wealth show podcast
Speaker 4:And I'm Elizabeth Elizabeth Mayer.
Speaker 3:I guys, till next time,
Speaker 1:Bye
Speaker 2:To wealth show is produced by just a Bogart and super easy sponsored by Bryghtpath notes and Elizabeth Maehara. Thanks for listening and watching for our show.