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

If you have access to quote unquote capital that capital doesn't need to commit They just need to say do go find a great deal and we'll commit that's all you need because finding great deals is 90% of the Battle and then it's a matter of just knowing how to run them and put them together But if the capital is there that can strike relatively quickly then everybody gets to make money together and if everybody's making money together Everybody's happy This is right about now with Ryan Allford a Radcast Network production We are the number one business show on the planet with over one million downloads a month Taking the BS out of business for over six years and over 400 episodes You ready to start snapping next and cash and checks? Well, it starts right about now What's up guys welcome right about now? I've got a new format here we're working on calling it now in ten. We go as long as we really want we make the rules Y'all know how I am and make the rules as we go what I always do is bring you the best the brightest the coolest people the greatest cats on the earth I got Justin Brennan. He's real estate CEO the Britain poll capital group and just seems like a cool dude man He's in San Diego today while Stagas tomorrow. I don't know where you're at Justin. What's up brother? How's it going man? Good day to be alive my friend. This is true man I say any day you can wake up and be grateful for what you got and breathe and everything that God gave you It's a good day. What the hell got you in real estate? I stay in my lane for the most part I have my hands and a lot of things but once you get to understand it I'm kind of in the same lanes. They just might have different stripes or something I am not in the real estate space. I own some real estate What got Justin Brennan in the real estate space I grew up in it a bit my grandmother started it for our family And she got into apartments when she when she was here in San Diego for years and God bless her soul until 91 years of age She was driving around her little S10 Chevy truck collecting rent from all our tenants in San Diego And then she kind of passed a little bit of that along to my dad my dad was that trans I'd say that transitional character Ed my let talks about in his book one more about that person that took the family from zero to hero completely self-made grew up in a really bad environment his dad died when he was three He got the crap beat out of him by step dad went to be at norm came back and he just saw some crazy stuff in his life But he was that guy that said hey, I'm gonna start building some homes and doing some things and I learned construction and development from him And he took a zero to hero basically he started building stuff all in the West Coast in the United States big construction projects Multifamily condos townhome single family. You went through four market cycles made it through all of them except the financial crisis of 2008 and that took him down and he had a massive bankruptcy in 2008 I imploded everything and I watched that happen. I'd always kind of learned about real estate My dad always taught us the value of hard work value of a dollar and he'd take us on his job sites and make us dig ditches Simply for the purpose of digging the ditch and learn how to grind it out and earn a little bit of money But what I did learn watching a lot of that stuff got me into the multifamily apartment space because I didn't want to go through Kind of the mimicking the cycles of real estate markets Which he did because he would build and sell build and sell build and sell and you would just ride the roller coaster I wanted more consistency, which is what apartments brought I got into more safer asset class and that is apartment rentals And that's kind of what started it you buy large apartments multi-family and then manage the rentals my hearing that right Yeah, but we start with one condo I mean literally in the midst of the financial crisis in 2010 We bought a hundred thousand dollar condo and then we turned into a duplex and a fourplex But then we got to a point where we said we want to grow we were trying to do it all with our own money And that's just the biggest mistake ever and I try and tell people this because we don't know any better We didn't understand this game of OPM other people's money and how to scale money I had to learn it. It was a learned skill set and it wasn't until about 2018 after we had about 20 units that we had built on our own And all our capital was stuck in them and we said well, we want to grow much bigger But we can because we ran out of our own money I started looking at this game called syndication and in OPM using our money with some of other people's money OPM and how can we go buy apartments together and bigger ones and scale our money and then from literally those 20 units And about three million dollars in assets in 2018 it took us eight years to get that within three years by 2021 We had over a thousand units and almost two hundred million dollars in assets because we learned that skill set up How to scale money same money we just learned how to scale it with other people and that took us off I made to throw a soft board here, but when I hear OPM as long as OPM and not OPP I'm good. I'm just saying My feeble mind Understanding this and I like to be the voice of the audience here making sure when I think of other businesses venture capital taking on money Hey, I've got a business idea and I want to take on money Is it the same thing but just name something different in real estate in a way because I try and get people the analogy Of how this money game works because it wasn't until a few years ago that I learned this big problem that people have where They either have a job. They're working for someone or they're self-employed Which simply means if you're a solo per newer, it's not that you have a job anymore now you simply own a job Because you're a solo per newer Yeah, the whole name of the game. This is a Robert Kiyosaki thing The whole name of the game is to jump from that into either a business owner or into an investor role The whole cash flow quadrants that Ritz dad poured at Robert Kiyosaki talked about But it's just understanding the game of money and how it's not about what you make It's about what you keep and so I'd say the biggest problem I found just when talking with people whether it's high income earners People earning 50 60 80 grand a year all the way up to multi-millions of dollars a year is how to avoid taxes Hands down that was the biggest problem I kept hearing from people is like oh my gosh I'm making all this money, but holy cow now. I got to pay all these taxes Well, there's got to be a way around this. There's a reason why the IRS puts in place things that people can avoid taxes through legal loopholes And multi-family apartments is the biggest and best way to do it through what's called bonus depreciation And you can literally wipe out your taxes for the rest of your life And it's the craziest thing that people don't understand That sounds like better than that jelly of the month club bonus that And it honestly goes back to the founding of capitalism when you go look at the definition of capitalism The main part of it is movement of money And so then I looked into that and I tried to understand like why is the IRS giving these massive tax breaks To people who move more money when you look at it If you move more money you get more tax breaks It's that simple and the only people that move enough money are business owners or investors Which is why business owners and investors get the most amount of tax breaks And if you're a W2 employee you don't because you don't move enough money And the reason why the IRS wants that money moved is because when you move that money you create jobs opportunities You take risk and when you do that you create capitalism movement of money And that's the whole science behind it And if they know if you're moving more money you're creating more opportunity Which means capitalism grows and moves and they generate more tax revenue That's why they give the people that move the most money the tax breaks up front So you do more of that Which is why multifamily apartments commercial real estate in general is one of the biggest tax write-offs ever And it continues to be The other really interesting you're talking about there Justin is you don't learn that in the textbook The way you just described capitalism and all that Like I'm in my business classes that clumps in which I barely paid attention to A test guy and a D pay attention guy Uh, teachers that like me They don't teach you that And that's one of the things I guess is an entrepreneur now learning I'll have employees or teammates over time. They'll be like how do you do that deal? We didn't make any money on that I was like no but I kept three million dollars moving in the business Money coming in money going out I make money with money that's sitting there in the short term Using a little bit of other people's money at time That I might not ultimately make profit on the transaction with which brought that money in But I'm making it elsewhere because there's money moving and it's a little different than what you're describing But it's similar concept which is totally the movement of money through a business Is the lifeblood of it. They think with what you're describing on the real estate and taxis side Of course because that's the way it's supposed to be I've been preaching this for about a year now with the interest rates thing and I understand inflation We need more money moving if there's any problem right now There's not enough money moving because the interest rates have been high It's kept on the sidelines and you know refives and other things that would happen That bring money in that it just makes the whole thing work And real estate and real interest rates are tied to that I get it we can't have 10% inflation forever and ever and ever You don't the other end of that which is stagnation of money moving much longer 100% it's not just in real estate But if you just take one real estate transaction We take 120 unit apartment building that transactions There's over 60 different industries not people industries that make money from one single transaction Of an apartment building If you think about that's money moving through those different industries which then jobs All that stuff happens which means tax revenue All that stuff happens as a result of one simple transaction in a commercial real estate building So why do you think the IRS then gives all these tax breaks to the person that starts that transaction They know that hey you'll start it but we're going to get all the revenue from that flow That's why they do it It's not because they love us but trust me It's not because they're your friend They just understand more movement of money It creates more revenue that comes into them How are we helping people every day Justin Now we're using OPM and some of JBM to make more I got that part down Well it's we do it Somebody asked me this the other day and I wrote this down earlier this year because I don't know if you've ever heard this term Ryan He was Patrick Bet David that came up with it He said there's seven mountains that move people and inspire a nation And you have to have the business which helps drive revenue And brings in money for you and your family and things that you're doing But once you're making money you can lose motivation And so the bigger purpose I would say in life is How are you taking that money or what you're doing in helping others Giving back, leaving legacy And so for me and my big three dreams to be honest with you Is we heavily support the tunnels to towers organization They basically pay off mortgages of spouses left behind with their kids From first responders or soldiers who die in the line of duty And they give them a free and clear house Because their spouse died who was the provider They don't have it, they're scared to death And have a safe roof over their head Is probably one of the best things that can happen So they give them that So a huge proponent So I want to pay off 10,000 mortgages That's number one Number two is the seal future foundation My family's big in the military My dad was army My grandfather is a Navy commander of the submarines before he passed Even my business partner now, former Marine So we give heavily the seal future foundation Which helps transition team guys Seal guys from kind of that seal life of being a hero And being that camaraderie into this civilian life Which they just don't understand Imagine being the most elite elite And then all of a sudden that's over And then you have to go into the civilian life Where people are complaining about petty crap And you're sitting there like going bruh I mean, I was just in Afghanistan You can imagine right And so they don't know how to do this mentally, financially, physically And so it helps them transition So they don't kill themselves Because there's enormous suicide rate amongst Navy seals Unbelievable Most people don't know that And then the last big one is disadvantaged kids I was fortunate enough to grow up with a mom and a dad And in a middle class But then became upper class environment So I was blessed But most people don't have that starting point man And so if you can go in and give a kid Who maybe had a really rough beginning A role model The leaf system That they can go make things happen And it's incredible to watch how that zero to hero journey can happen for them And so we give a lot to that So those are my big three drivers My family, my kids and all that Any money and all the money that we're making and doing And the podcast that we created Abundance to give a few years ago Behind like Mr. Beast The concept Mr. Beast It's all position to go help those three main causes I love those causes I was hoping you would go there's kind of why I went there And supporting our troops People forget freedom is not free Anything that supports the men and women That have paid the ultimate sacrifice And the fact that they would ever have to even think twice About a mortgage or suffering Or the mental aspect for those that come back Really salute you What you're doing on supporting all of those I have a father and family It was military I was not But my dad was in the Air Force And have a lot of military in the families Definitely support you in supporting that Brendan, what do you tell people in real estate perspective I know you guys are coaching teach people Do how to do what you guys do Where do you find the biggest opportunities are For people out there listening that would want to get into something like this A lot of people get stuck I've kind of learned It's all in the mindset They definitely get stuck with that I hear people If they're in a W2 job And maybe they're making decent money 60, 80, 100 grand a year Whatever it is And they want to take some of that money And put it into real estate Maybe they want to start with single family Or some rental short term stuff And then maybe get in some flips Or wholesale and properties And those are all great asset classes But those also don't give you that long-term generational wealth That people I hear all the time I want financial freedom I want more passive income I want generational wealth And the only real ways you get even close to that Because there's nothing truly passive Is through whether it's an apartment building Or some other commercial asset We own mobile home parks Anything that has a rental Recurring money thing to it Is going to be great Great businesses do this Where you can actually create a great business That you're not having to be hands on every day It just depends on which avenue you love most For me, real estate is my lane man I feel like I came out on my mom's womb Learning it from my family Because of that, of course I'm in it But not everybody starts there We have so many people Doctors, attorneys Just FedEx drivers It's unbelievable The amount of people that want to take some of the money That they've earned and get out of the W2 They're in a position where like Hey, in two, three years man I want to transition out of this W2 Working for the man And be able to have enough income Doing real estate It's been a dream of mine How do I make this transition I hear that all the time That's actually why We even created the community we did It wasn't sell mentorships and courses Anybody can do that It was putting gurus out there spitting game It was really How can we create a community of well-trained investors Around the United States That are doing deals together Collaborating on money Finding deals Putting them together Copartnering on them Because of everybody's winning And everybody's doing more deals And opportunities Everybody's getting rich and wealthy Well good Now you can actually take that money and wealth And go give back After causes you care about Maybe it's your church Maybe it's your family Maybe it's your kids Maybe it's traveling Other things you love That are film-thropic to you Money is a great resource for that Without the money it makes it hard To go chase other passions you have Well, 100% Very few things have been spoken That are more true Some people like to Paint money is bad Or something It enables your ability to do good Let's not paint it with too broad of a brush Yeah, I ask people What does money mean to you And they'll throw out freedom or Tool or other kind of words And in my mind when I think of money I think of choices If we both have one dollar Then we technically have the same choices But if I have a million dollars and you have one dollar I can do everything you can do But then I have a million more choices I mean that's how my mind works around the money game And so I see money simply as choices I can go help more people I can do more things I can give back Obviously spend time with family Travel experiences All those things that are near and dear to all of us Baseball cards Baseball cards collectibles You know, whatever shoes You know, I mean, yeah I mean, I love kiteboarding You know, I love the water sports guy Weightboarding, kiteboarding And I'm seeing Diego right I don't surf by the way But I feel like people They're like, why don't you surf I'm like, why don't I have a shark problem I was young So I asked this Sort of for myself Maybe he doesn't have a ton of capitol But he's a go-gitter And he gets information How do you spot these deals What's a good deal to spot for something like this I totally get getting in the circles Getting around people That part But is there other things that What me as obvious Is spotting these kind of deals That they might could bring to someone like yourself Or other groups I think you know what I'm asking Yeah, I do What people don't fully grasp Is that you don't need a lot of capital To start this How what does that mean I said, well, you have to understand In real estate, you're bringing one of two Resources to the table And you choose which one you got You either have what I call the check equity Which is the cash Or you have what's called the sweat equity Which is the knowledge, the skill set, the ability to go execute Maybe you can find good deals Maybe you're a great deal finder Maybe you can analyze them Make sure they're a good deal Maybe you can bring them to the table You understand how to structure things And put them together And because of that sweat equity That knowledge and skill set You become extremely valuable to people with money Just to prove this point Our first deal I had zero dollars in it That $100,000 condo We brought in $25,000 down payment This was in the financial crisis I was getting my ass handed to me I was a real estate agent Okay In the financial crisis It was not fun But I went through it But I didn't have any money I just knew we had to buy property And I had a knowledge and a skill set I could go find deals I could analyze them I could put them together I could go structure them And do all that I could do the property management I knew how to run I'd learn this stuff The skill set A sweat equity I was at a conference one time And the guy came out And he was asking people Hey, who here in the audience wants to own rental income property And everybody's like screaming Yeah And he's like Well who here financially right now can afford it It's 2008 And like 99% of the hands go down And he says here's the secret you're missing He says you don't need to have a single dime Tone rental income property He says you just need to have a friend Who has the money to own rental income property He says if you can go find great deals Put them together Structure them, manage them, run the show You become extremely valuable To someone with money So like the light bulb went off for me And I said who do I know That's not getting their ass handed to him right now That I could go talk to Because I have the ability to go find deals And then it was my buddy Who's my current business partner And I went to him and I said Chris I don't know how we're going to do this dude But we need to buy property now I said you know and I know We're like an adult We need to go get it You buy when there's blood in the street Even if it's your blood Like the name of the game And we did And it was our first condo man 100,000 bucks We put $25,000 down He was the 25 grand He signed on the loan I was the one that found it Ran it, run it, put it together We weren't making a ton of money But it worked And then from there we took it And we bought a duplex And then a triplex And a fourplex All with our own money Like I talked about But I had very little Physical check equity in it In the beginning Now we do both of that Now I have a skill set too You see where I'm going with it So if you're sitting out there Maybe you only have 10, 20, 30 grand To invest in real estate And that's it Well take some of that capital Because you can do this And then that's sweat equity Gotta learn how to do this Then become extremely valuable Because now your skill sets up here You bring a lot to the table from knowledge That you may have a little bit of capital And then a huge pocket of knowledge Now you can go become a very valuable to people with money I love it And it's good advice You can write the check It's not easy But it's simple We partner with people in our community Because some people They'll come in, they'll learn it But then they don't have the confidence yet Or maybe don't have a ton of capital yet And that's totally fine But they can be great deal finders Being a great deal finder is 80% of the battle Right there Is finding a great deal If you can bring that to the table We partner with people all the time We bring them into the co-partnerships All the general partnerships And we'll co-partner And then we become the sponsor basically Helping sign on the loan Raise the rest of the money Put it together Manage it Run it Until they get their further knowledge And better knowledge And then now they're like Dude I can run this on my own Sweet Go for it Think we should do some deals together Or stuff Carolina Well you know I'm gonna be out there In North Carolina here pretty soon We're looking in the southeast I love that market Great market If you have access to Quote on Quote Capital That capital doesn't need to commit They just need to say dude Go find a great deal and we'll commit That's all you need Because finding great deals is 90% of the battle And then it's a amount of just Knowing how to run them and put them together But if the capital is there They can strike relatively quickly Then everybody gets to make money together And if everybody's making money together Everybody's happy 100% Justin Where can everybody learn more About what you're doing There were to want to get some help With some of these things And keep up with everything else Official Justin Brennan on Instagram Or YouTube man We're trying to put out a bunch of long form Free content They want to do apartments Get their mindset right Then go find Justin Brennan on YouTube I would love them Check out some more long form stuff And see if they like it I love it man Justin I like your style We might could do some deals together And I do think It's a space that I would like to be in more I just don't know it So we'll use your knowledge I might got capital too But it's more Probably finding some deals Got a scale look Mine's more rocks though I know that I need to turn over Yeah people know people that know people That's like the rule I've learned You've probably heard this saying The more hands you shake The more money you make Here's my caveat The only way I'll do that is If you let me I know you're 65 I'm six foot And you're 200 Whatever pounds But I want to wrestle for that big old thing You have in front of you I got a feeling I'm not going to win But I'm going to sure give a try to it You can pick me up I might let you wear it for the day You can go to the office I'll let you put it on You can wear it around town You know I'll get my best effort And see what I can pull off That thing is rad I mean Hence the Radical is a radical Is that the company? Yeah Radical But then the belt's got right about now Number one business show on the planet That's incredible We've been one on Apple for three years They can come take it out of my hand If they beat us out of the thing But we've held that spot I'll send them the belt You tell me your background By the way I didn't know all that With how you got started In the agency field And working with Steve Jobs And all of them I mean the Verizon commercial Like you were there You were there Can you hear me now guy? It was a national campaign And I worked on it That was my very first campaign That I worked on We spread that word far and wide Spend in probably a billion dollars Over a 10 year period And then That spun off into a lot of other things I worked on all the major smartphone launches And everything So it was a Yeah, what a great background man What a great background It was good Justin It's great meeting you Great having you on And we'll definitely follow up after this Hey guys You need to find us Ryan is right.com We'll have links To all of Justin's stuff And of course the highlight clips How you can learn More about what he's doing This seems like a cool Got to do business with So I tell you to reach out And think Justin would be a help He's helping our troops He's helping the people That make what we do every day possible So don't forget that We appreciate you For making us number one We'll see you next time Right about now This has been right about now With Ryan Alford A Radcast Network production Visit RyanisRight.com for full audio And video versions of the show Order one choir about sponsorship opportunities Thanks for listening