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On Having Strategic Partners with Zack Childress

SHOW SUMMARY:

Zack Childress is one of the leading experts in the real estate and virtual investing business.He has mentored students and has consulted all over the USA and the world to those who want to learn the secrets of investing in real estate for big profits.

Zack specializes in teaching investors how to get started and how to grow their real estate investing business.

Zack is one of the few investors to have successfully maneuvered through the housing crash and come through it more successful than most. He has mastered the craft of investing in bad and good markets and that comes with years of experience.

SHOW HIGHLIGHTS:

  • On finding and applying a system
  • The 4 tiers:
  • - Tier 1: Wholesaling
  • - Tier 2: Creative Financing
  • - Tier 3: Rehabbing
  • - Tier 4: Buy and hold
  • Who Zack Childress is
  • How Zack got into real estate
  • On doing a strategy called co-wholesaling
  • How he started evolving
  • On having a team called deal partners
  • On growing his business
  • On coaching people
  • How his deal partners work
  • What's next for Zack
  • On being a good negotiator
  • What his team looks like

Quotes:

  • "It wasn't that they studied everything or read all the books. It is the fact that when they did get something, they consumed it and applied it."
  • "You got to work the process."
  • "The more you learn, the more you grow. And the older you get, you evolve into doing what you want to do."

RESOURCES AND LINKS FROM THIS SHOW:

SHOW TRANSCRIPT:

Larry: Welcome to the Brain-Pick-A-Pro show live from Lake Wylie, South Carolina. How do you do business in Wylie.

Zack: Wylie.

Larry: Lake Wylie, South Carolina and all the way down in Alabama is my good friend, Zack Childress.

Zack: Hey.

Larry: I’ve known him for many many years. What’s up, buddy?

Zack: Hey, hey, hey, man. I’m up here in the upper Alabama. Not L.A. Let’s get that clear.

Larry: Not lower Alabama, right?

Zack: Not lower Alabama.

Larry: That’s awesome. That’s awesome. So, Zack, we’ve known each other for many many years. I remember when you started out as a student. Now you’re teaching people how to do this stuff. Man, that’s awesome. You’ve come a long way, baby.

Zack: You know, man. It’s been a fine run and I’ve had a lot of great influencers in my life like you. You know, we were just digging a lot about how, I had a lot, and us years ago, you came in with you ultimate buying and selling machine. I’ve got to have that thing.

Larry: Actually, it’s funny. I’ve actually got a testimonial of you saying every new acquisition manager we hire has to go through the Ultimate Buying and Selling Machine.

Zack: That’s right, and I did. I did. I even had your websites back then.

Larry: That’s funny, man. That’s funny.

Zack: I was with Larry Goins machine, man. I was out there. Here’s why, you know, it’s so funny, Larry, because when you’re on that journey to try to find your path as an investor and you know you need education so you start, you know, traveling, going and just seminars and you’re looking for people that you connect with, right? I had connected with you and obviously I had invested in myself by getting your training and I went to your event. But, here’s what I always say like there’s a lot of things out there that just don’t work, right?

Larry: Oh, right.

Zack: So that’s why, when I got into your system and I went home and applied it, that’s obviously one thing people don’t do, to actually apply it. Here’s what I’d do. I had read enough successful books and I had been around some very high influential people that I had in my life. One of the biggest gateways that took wasn’t that they studied everything. It wasn’t that they read all the books. It was the path that when they did get something, they consumed it and applied it, to figure out if it was going to work or if it wasn’t going to work so they could move on to something else. Well, I did that with yours and it worked. surprise!

Larry: There you go. You know, it’s like the students now. We both have students and then they say, well this doesn’t work or that didn’t work, I’m like, well how many offers did you make last week?

Zack: Right. Right.

Larry: Well, I read this and I looked at that and I opened up this document. You know, well let me ask you another question, how many offers did you make? You know?

Zack: Yes.

Larry: So finally I end up saying something like, so what you’re telling me is you have a lot of education but no application.

Zack: Perfect. Yes. And I do the same thing, Larry, I’ll say well look you know you got to make offers every week and you got to actually pick up the phone and call people. How many people did you call? Well, I haven’t done that yet. Well, it’s not that it doesn’t work. It’s just you’ve got to work the process. That was, you know, my big thing. I mean, I don’t have bookcase the size of yours.

Larry: Thank you.

Zack: I’ve got a lot of invested materials. Look, let’s be honest. Not all of them worked, but I don’t regret any of it. I went through. I applied them. It didn’t work for me or my personality or that strategy, I just didn’t feel like was working in the market at that time, but there’s some things that will work over the test of time, right? In our world now, we call them the Four Tiers you know, it’s nothing magical. It’s not a loophole in the system. It’s none of that. It is tier one wholesaling, tier two creative financing, tier three rehabbing, and tier four buy and hold. Like those four tiers, you can do them in any market cycle. You can do it in up swings, down swings, and they give you the ability to be more of a transactional engineer, right? I know we were talking just the other day, we had an event together and I started how many rehabs I had, you went oh, I don’t do rehabs.

Larry: I know, right?

Zack: But, if you did them how I did them and how I do it in my world, you’d probably do.

Larry: Right, because you have a good team.

Zack: I do and I have what’s called deal partners and so, like I have 14 of them running right now, but I don't go to them. I don’t manage the contractors and in most cases, I don’t even find them, but I come in with the difference in the money that they need that they’re short.

Larry: Right.

Zack: That money is not coming out of my pocket. That money is coming from money I have raised from private investors. So, I’m just raising that money, using it in those deals but I get half so I’m not a debt partner. I’m an equity partner. I get half of all the profits that are made on it and that allows me to run multiple rehabs without having to have the headaches of contractors, without having to deal with the agents, without having to go out there all the time and check on it and see where we are.

Larry: That’s really good, man. That’s really goo. I like that. So, tell our listeners a little bit about Zack Childress and I know you’re doing rehab but you got a lot of other stuff going on too.

Zack: Oh, yes. So, who is Zack Childress? Well, they like to call me the Zack attack! Like I said, I’m in Alabama. Born and raised here. Left here and went out to California. Well, I had to stay in Florida when I was a bartender. Then I went to California. That’s where I got into real estate. So you’re talking 16 years ago, something like that. I was broke like most people. You know, I had 400 to 500. I had no money. I was living with the girlfriend’s parents at that time. But, there was something, man. There was something. I went to a, I call it the three-day awakening. I went to this three-day event, back in the day, held by the Whitney Organization.

Larry: Oh, wow. Yes.

Zack: I just was listening. They were talking about, you don’t have to have a license to do real estate. You don’t have to have money in the bank to do this. You don’t have to have great credit. It was just a different way of looking. Like I was told, obviously, you know growing up, get an agent, get a loan from the bank to like doing you that. So, that really started my journey. I mean, honestly, that was where I saw it and I said, it was weird. You know, you have those pivotal moments in your life. I was sitting there in that three-day awakening and as that three-day event was going on, I knew that was for me. I knew this was my journey. It was weird, Larry, because not only did I know that I was going to do real estate but I also knew that I was going to be teaching it one day. I didn’t know how, didn’t know when, didn’t know where I was going to get them, but I was in my bones at that point. I was fortunate. I was hungry. I was aggressive. You know, you’re talking about 16 years ago. So we’re talking 2002, right? So I was catching that up, swinging the California market, you know, things just couldn’t be any better at that time for me to get it, which is like what a lot of people are experiencing right now getting in, right? They’re catching that. I just became a machine at wholesaling. I mean, that’s what I did. I was wholesaling, wholesaling, wholesaling, and then it was very competitive in the California market but I started doing a strategy called, which we now trademark, on the domain, co-wholesaling.

Larry: There you go.

Zack: I couldn’t compete with their marketing, so I just started going to all these other wholesalers and I started saying, look, anything you can’t sell, bring it to me. All I did was focus on building my buyer’s list, just focus on building my buyer’s list and they started funneling me all these deals they couldn’t do anything with and I started selling those deals taking half of the assignment fee, half the assignment fee. That really is what catapulted me into the industry as an investor because I started building revenue. I started hiring people, building systems, and then not too long after that, I ran into you and that was when I actually started looking at virtual markets and I started putting systems together. Then I went from California to Dayton, Ohio. I started marking money in Dayton, Ohio out of all places, right? Then I was like, oh geez it worked. Then I just branched out it. One time, I was wholesaling deals in 12 different states.

Larry: Wow, that’s awesome, man. I love it.

Zack: That was really where it took off, man. Then like any, like journey of an investor, you educate yourself and you get the right help and you get the right training, you start evolving, right? Like, I started as a wholesaler because that was all I could do. But then, the next thing you know, I knew I needed cash flow to stabilize the operation but I couldn’t get a loan from a bank because I had a 500 credit score, so I started moving into creative financing, doing lease options and subject to’s and built that cash flow. Then I was like, man, I am going to do rehab and then I actually got into rehab. Then I started taking those funds and I started buying apartments and it just grew into what it is today. Now, I own properties from California to Florida. I own apartments, strip malls, warehouses, commercial buildings. I got rehabs all over the place. I still wholesale. I mean, just yesterday I signed a contract for subject-to deal. I mean, I’m just doing it, man.

Larry: That’s sweet, man. Now are you active in the business, yourself or do you have team?

Zack: I have a team. We call them deal partners. You know, we have acquisition processes. We have deal people, we have lead people. I mean, we kind of build it out to what it is. I have a lot of benefits because, you know, I’m the president of our local REA. I get a ton of opportunities through there for people wanting to come work and learn and adequate loads where there. That’s the biggest reason I have the REA. Honestly, it’s just the deals that come out of it. But, yes, we have all our little teams in the lending departments and so forth that run. Mostly, I pushed most of it all under my deal partners, because that was where I saw that I could do more. Yes, I’m only getting half of the deal but I could do more, right? Because I don’t just own an investment business. I own an education company. I own a software company. You know, I got my hands in quite a few things. If I was just going to do the investing business by itself, there is no way I could run, you know, well over 14 rehabs at a time.

Larry: Sure.


Zack: I saw it as beneficial. I also do funding in my market, so I moved, I’ve been into the hard money aspect of things, so evolution, baby. Evolution.

Larry: You know what, Zack, I think the most important part of that is your business doesn’t look anything like and mine included that it did when you first started out. The more you learn, the more you grow, and the older you get, you evolve into doing what you want to do. When you first start out, you have no cash, no credit, no experience, right? And then once you start getting some experience and some credit and some cash, then you could do a lot more things, and then you start to think, well, how can I do this with the experience and the money I have but not as much of my own personal effort, right?

Zack: Right, that’s it. That was the evolution over the last, I’d say 4-5 years of my life was. You know, I got kids. You know, I got little kids. I got a six and a nine year old and so I’m like, okay, well why did I do all of these if I’m just going to keep doing it, you know? Like, I needed to start taking steps back and like you said, like figuring out how do I still make money on my knowledge and the resources I have available to me without me having to go put all my sweat equity into the stuff.

Larry: Right.

Zack: That was a big shift, you know, almost six years ago that I made. I’ll be honest with you. You know, I love what I do. I mean, it’s not like I go, Oh, I got to go do that. I love it. I love the investing side. I love the education side, like I fell in love with the education side with teaching people, with writing books and courses and like sharing my experiences and the things that I have learned and what they brought me. I love that. So it’s not work for me, but at the same time, I had also remembered, well just because I love it, it doesn’t mean I need to do it all the time. So, I had to pull back from that as well and just, you know, I’m blessed. I’m so blessed. I’m PTA president at my kid’s school. It’s kind of funny?

Larry: That is kind of funny.

Zack: I do fourth grade part time youth ministry at my church and my daughters and my class with me now, coach, you know, baseball and soccer for the kids. I mean, I’m just able to do have all of these, love for the stuff going on with deals and business, and I’m able to do what I really set out to do which is have the freedom, right? You know, you build all of these for a purpose, not to have another job. You build it for freedom, but I think a lot of students get the misconception as they think it’s supposed to happen right now.

Larry: Yes, it’s not going to happen overnight.

Zack: Like they think, oh I invested in your course but I’m not a millionaire 90 days later. Well, it don’t work that way. You know? Like you’ve got to work it. You’ve got to work it. You’ve got to put the time in. You got to make the offers like what we’re talking about. You’ve got to make the phonecalls. You got to make the connections. You got to network. You got to build a team. You got to get your funding. I mean, You’ve got to work this thing. It’s not going to fall into your lap. Don’t get me wrong. There are shortcuts. You teach people shortcuts. I teach people shortcuts. There’s technology that we didn’t have back when we started that’s available now, right? It really help speedup the process but, you know, let’s face it, Larry. You know, I made a Facebook post about this yesterday. I was telling people, you know, like look, if you’re not understanding that you got to put work in and you’ve got to keep educating, I’m the wrong guy to listen to. I’m not going to tell you, oh go get this and you’ll be a millionaire in three months. That’s not reality.

Larry: No. Not at all.

Zack: It’s not what they want to hear. I can tell you that.

Larry: It’s not, and you know what, because some people are so lazy, you know, even if you give it to them, they won’t go out and use it, right?

Zack: I know.

Larry: I had a guy, I was looking for another boots on the ground guy, right? Most of our deals are within like an hour and a half of our office, so I put a post on Facebook which is a great way to find boots on the ground. I don’t care if you’re in Las Vegas and you’re looking for boots on the ground in Jackson, Mississippi. There’s Facebook groups in Jackson, Mississippi for real estate. You can find one. So, this guy, he was like, man I’ll work for free. I just want to learn real estate. I’m pumped up about it. I’m excited. I want to quit my job. I will do whatever you tell me to do.

Zack: That’s good.

Larry: So, I said, look man, you don’t need to work for free. I will pay you to put out signs, take pictures of houses, and all that stuff, right? So he came by yesterday morning. He was all fired up. We gave him like 150 signs, right? He could have made $300 yesterday just putting out signs. This morning when we got to the office, we show up into boxes of signs sitting on the porch at the office. He decided, oh this is too much work, right?

Zack: Putting out signs.

Larry: Yes, putting out signs. I would even train you to be an acquisition manager eventually, but you’ve got to start somewhere, right?

Zack: Yes. You know, I get it all the time too. I get them popping in my Facebook inbox. Hey, Zack, train me for free. You know, blah-blah-blah. You know what, when I first started, I fell for that trap, Larry.

Larry: Oh, you and me both. You and me both.

Zack: I fell for that trap. I thought you know what, yes, I’m educated now. I’m going to do this and I remember. I would take people and I had to put all this time into them. All I would hear is excuses back, oh, well I can’t. Oh, there’s that. Oh, that happened. I’m like, you’re not doing anything I’m telling you to do and I’m putting time in here. You know, deal splits, like I’m going to coach you and we’re going to split deals. So, I learned the hard way on that one, man. What I learned was, when people don’t have a vested interest in it, they have no need to have an urgency to get it done.

Larry: Right. They have no skin in the game.

Zack: Right.

Larry: You know, that’s funny. It’s funny you told that story. I did the exact same thing. I’m thinking, okay if I train you, you know, I was in the hard money business too. I’m like, you go out and do some deals and use me for hard money and we’ll partner on deals and stuff. Nobody did it and so I stopped training people for free. Then when I started telling people that, everybody would say, yes, but I’m different. Yes, but I’m different. Yes, but I’m different. So I gave a lot more free training and how many of those people do you think ever did it? So now I tell that story anytime somebody says, you know, I tell the whole story so they can’t say, yes, but I’m different because I’ve been through that too, right?

Zack: Yes. I’m with you, Larry.

Larry: Hey, Zack. Tell us how your deal partners work. I know you got deal partners for rehabs for wholesaling and there were other stuff. Tell us how you work.

Zack: Well, I’ll tell you, my most profitable model right now is my deal partners on my rehabs. The reason I think it works so well is because, you know, we average somewhere around 30,000 to 35,000 profits that we take all of our deals out of average amounts, about 33,000 to 34,000 which I get half of that. That’s how the agreement works. I get half of it.

Larry: Right.

Zack: So, how it all came to be was that I had a guy that was local and he really want to get into some deals, but he was capital short.

Larry: Right.

Zack: He was able to go to do a bank or hard money lender and get an initial purchase loan but they wouldn’t give him the down, wouldn’t fund it out, or the construction cost. So he came to me and he was telling what was going on. Honestly, Larry, I didn’t think he’d take the deal. I was just like, it’s okay. How much is the down. He was like 15,000. I said, okay, how much is the construction cost. He was like 20,000. I said, so you need 35,000. He is like, yes. So what’s the profits on the deal. He is like, 40. I said, I’ll give you 35,000, but I want half the profits. I thought he would be like, you’re crazy, but he was like, okay, let’s do it.

Larry: Yes, that or nothing.

Zack: Right. You know, I’ve been fortunate to raise private money for all these years. I mean, I’m an Alan Cowgill student from way back.

Larry: The luncheon.

Zack: So, I would just go to these privates and I would say, okay hey look. I need 35,000. I pay my private anywhere from 6% to 10% and then I would take it into the deal. You know, so that’s annualized fees. So if I’m in the deal for let’s just say, you know, let’s just say it’s 12%. Let’s make math easy. So it’s 35,000 and it takes four months to get the deal done. I mean, I’m only paying like $1,400 for the money.

Larry: Sure.

Zack: You know what I mean? Then it sells and I’m getting my 35 back depending on the private, plus I’m putting 20 in my pocket. I am like, this was a good deal. I didn’t find the deal. I didn’t manage the deal. I didn’t go out and swing hammers and any of that stuff. I said, man, I need to do more of these. Like, this is the way to go because now I have the freedom to do what I wanted. I wasn’t stuck on the rehab, right? I wasn’t stuck in the middle of it. I just needed to focus on raising private money and really building the bad infrastructure. Now, I have seven people locally I do it with. They go and they find them. Look, it’s kind of a scratch your back, scratch my back because I get deals too. If it’s a wholesale deal, we just do it in house. If it’s a rental portfolio property, we do it inhouse, but if it’s a rehab. I will take, well I kind of round robin, you know. I will throw one over to this guy. I will throw one to this guy. I will throw one to this guy. You know, so I feed them. They feed me. They’re getting deals that they won’t normally have. It was been an absolute blessing, man. I mean, when I say I teach people how to do rehabbing made easy, like I teach rehabbing made easy. This is how you to it the easy way, right?

Larry: That’s right. But you don’t do any of these.

Zack: Find the money and then let it run.

Larry: That’s good, man. I love it. I love it. So, what’s next for Zack?

Zack: You know, I’m moving more and more into commercial. I mean, that’s kind of where I’ve been. I sold off all of my single family residence rentals. I still hold my fourplexes. I still hold the office space, warehouse space, and commercial buildings, but it’s just moving more into commercial for that long term strategy. I will always rehab and I will always wholesale because they kind of go hand in hand. For me, long term is just keep moving into bigger commercial, bigger commercial.

Larry: That’s good.

Zack: I just like it. I like that commercial model too because you put them on triple nets and like you’re done. They cover everything at that point. It’s been kind of slow right now because as you know, I mean, the market is extremely hot right now and prices are like out of the roof.

Larry: Right.

Zack: So I’m just kind of weighing. I mean, we’re seeing the market is starting to make some shifts already. We’re seeing some prices in certain markets starting to stabilize and we’re seeing foreclosures are creeping up already. I think it’s signs. I think, I mean, I’m not making a bold prediction, but I think we probably got another 24 months before we start to see some real corrections that the general public can feel.

Larry: Right. There’s going to be some inflation. There is going to be some interest rates going up and some inflation. There’s got to be.

Zack: Oh, absolutely. Honestly, Larry, I’m excited for it. I mean, because I mean, if you look at the bulk of my wealth, it was made during that downturn in the market. That’s where I made it. I mean, I was buying houses in California for $80,000 that I’m selling 10 years later for $350,000.

Larry: Wow, that’s huge.

Zack: Yes, because I was smart enough to listen to a mentor back then that said, don’t be scared of this market. Buy. Buy into this market. Put a renter in it and sit on that property until it turns again. I wasn’t just dumb enough to listen to him. He was just right. I mean, I bought a ton of it at that time I am in California, up in the Bay area, Blaho, Fairfield, Vacaville market up in there.

Larry: Right.

Zack: You know, I’d buy them for $80,000 and I was renting them for $600 a month. You know? Because these houses, that’s what they rent it for. I was just getting them there because of all the foreclosures that came up. Then my agent. I don’t know. I guess it was towards the end of last year, he called me up, that I do business with up there. He was like, Zach, you probably need to start selling some of these houses up here. I was like, Wow. I didn’t think they went up that much. I said well, what are these properties at now? He came back and they were between 325 and 375. I was like, sell them!

Larry: Right.

Zack: Here’s the funny one for you. One of them I sold at the end of last year, was a house that I put the deal together and contracted it at your event.

Larry: Really?

Zack: At your event. Oh, man. I think it was the same one that I shot the video at.

Larry: Charlotte?

Zack: Anyways, I was working that deal in the back of the room. I was there with a friend of mine. You had two girls working for you back then too. I put that deal together. The guy who was wholesaling it to me almost backed out on the deal and I was in my hotel room just getting to why he couldn’t back out on me. He stopped acting out on me. I closed that deal and I sold it at the end of last year for $350.

Larry: That’s awesome, man. That’s awesome. You know, a really good point, you mentioned, you know about the guy backing out of the deal, real estate is a sales business. Man, you got to be a good negotiator, sales person, because sometimes, you have to re-negotiate the deal. Sometimes, you have to resell the seller. You have to resell your buyer. You got to sell the realtor on presenting your offer. You got to sell the appraiser to get to the number you want. You got to sell the lender to lend you the money, right?

Zack: Yes, that’s right. Yes, because what happened with that deal is, Thomas was his name, I still remember the guy. He realized the cash flow potential that was going to come off of that and that’s why he was like, oh I’m just going to go. I’m like, whoa, man, we’re already in an agreement. I’ve already given you money, like I’m in contract. You can’t. I fill a little guilt trip on him.

Larry: That’s good, man. That’s good. I love it. I love it. That’s awesome.

Zack: But think about it. If I had lost that deal, I would have lost a quarter of a million dollars, you know?

Larry: Yes, just on that one deal.

Zack: Just on that one deal.

Larry: You know, Zack, I love the cheap houses, right? I mean, I know you guys got a cheap house or two in Alabama.


Zack: Look. I just wrote a contract for a subject-to yesterday on a house. The loan on it was like 21,000 or something like that.

Larry: Really? Wow. I love it. We’re buying a lot of houses for 5, 10, 15, 20,000 and we’re wholesaling those for $10,000 or $15,000 profit or seller financing them, right?

Zack: Right.

Larry: We just bought a package of six houses in Lancaster, South Carolina for 35,000 for all six and they’re bringing in $2100 a month. You can’t beat that, right?

Zack: You made me want to go back into single families.

Larry: I know, right? It’s awesome, man. It’s good. So, what does your team look like. I know you have mostly deal partners but do you have any people inhouse or do you just work with all deal partners?

Zack: No, we have some people inhouse that deal with it, but they’re all part time because most of them are on the field looking at deals, right? Most of my real estate team actually works from home. I mean, that’s what they do. Like for instance, one of my deal partners, his wife is in the acquisition side of that organization, you know. I have another deal partner and then I have trained his assistant to be acquisitions. So, I’ve really said, look you know, I don’t need them all under this roof. I don’t need to come in and hear about who had a bad night or you got a belly. I don’t need to hear that, right? Because I run it the way I run it which is deal partners, 50-50 splits, I don’t have to worry about them so much if they’re doing it or not doing it. You know. I manage everything through like the Google doc aspect on per deal. You know, I have meetings. I mean, we meet every Monday. We meet every Friday and they meet on the job sites with the crews, Monday, Wednesday, Friday. The acquisition people, I always work with them on like their marketing, their communication because that’s really where I am able to kind of get a little bit of extra to them because they don’t have the experience that I have. So, they’ll come into the office with their team. We’ll sit down and we’ll talk and we’ll go over like, okay. here’s how that lead needs to be worked, or they’ll come in and you know, they’ll say, okay, we’re looking at these 15 leads and I’ll go through them with them and say, okay, you need to strap these 10, work on these 5. Here’s why. Here’s what you need to say. I’m always educating them. I mean, you could call it like coaching, but it’s really, I’m building the team inside because each deal partnership that I have, we have company set up with each one of them. I’m in the company with them. So, it’s in my best interest to get them trained and help them build that organization in each one of these little groups.

Larry: That’s really good, man. I like the way you’ve done it because you’ve set it up to where it’s not labor intensive for you.

Zack: Right. Yes, it’s not. I bring the money and I have meetings.

Larry: That’s good, man. That’s good, man. Give us your number one tip to raise the money.

Zack: My number one tip to raising money. Know your intent statement is always a plus. There’s hardly ever a time that I’m not talking to people about what they’re doing with their money. It’s just second nature to me. I don’t know if it’s so much as a tip as it is something internally, and I share this with people. I say it to them all time, look, if you know you can borrow a million dollars today and in six months turn it into five million, would you be asking everybody for a million dollars? Yes, yes, yes, I would. So, why aren’t you asking for it now? Well, I don’t know. It’s because you don’t have the confidence yet.

Larry: Right.

Zack: They don’t ask for money because they don’t have the confidence that they could execute the money necessarily. So that goes back to getting the right training and implementing, but once that’s in place, build the confidence. Start asking for the money. But, when I first started, when I very first started, where I think I had my most successful raise in private money is I went to an equity trust. I would go out to equity trust conference which as you and I both know, it’s a room full of private investors in most cases, right?

Larry: Right.

Zack: I just would go out and start networking with them and then after that was when I met our good friend Alan and I started doing marketing. I started holding my own luncheon. We just did one in South Florida with me in D.C. We did some marketing. We raised like, it was 12 or 13 million dollars from my luncheon. That’s just bring them in to me and doing an hour presentation on your business and what you can do. I’m going to drop a little one on you right here and right now. This will be the first time I told you about this, but we just partnered up with a hedge fund manager and we’re going to build our own capital fund. So, next year, we’re going to launch that so we’re going to actually become hard money investors.

Larry: That’s really good. That’s really good. We’re doing some of that now.

Zack: You’ve done that for a long time though, haven’t you?

Larry: Well I’ve been in the hard money business for years, many years. But, what we used to do is we used to use other people’s money and they would get the interest and we would get the points, right? But, fortunately we’ve been doing it long enough now where we just use our own money, we don’t use other people’s money anymore and we just loan it out so we get the points and the interest.

Zack: Yes, that’s kind of what we’re looking at, like he’s coming over. He has a very successful fund that he manages for the stock industry and he’s coming over because he has got a lot of stock people that wanted to diversify their money, so we’ve been talking for like eight to nine months now. So, he’s bringing funds in. We’re bringing funds in. We’ll probably still raise some funds too, but yes, I mean, that’s the same angle we’re going to take on. We’re using the fund for two purposes. Number one, to be able to be a funder to our students in house. Number two, to go after bigger commercials.

Larry: There you go. That’s good, man.

Zack: Just to go buy bigger stuff.

Larry: That’s good stuff, Zack. It really is. So, anybody can make it. They just got to take action, right?

Zack: I can make it from Alabama.

Larry: That’s funny. I love it. That’s funny. So, Zack, if people wanted to reach out to you, if they want to connect with you, how would they find out more info about you?

Zack: Man, right there. That’s the best way to kind of understand who we are and what we do. It’s called my first deal playbook. They can go to myfirstdealplaybook.com. We give the book away. We just ask the payment for the shipping. It’s the easiest way to kind of know a little bit more about what we do, our theory of how we teach. I have Facebook show every Tuesday, kind of like, you know, what you guys do over there. I mean, that’s a good place if they’re just looking to jump on somewhere and just kind of get some questions about real estate. I mean, we’re all these, Zack Childress - REI success academy. That’s on Facebook. Tons of free information on there. If you want to understand our theory of training and how we get people to understand like how they get their first deal and what is market segmentation and how to step all that into place, it’s myfirstdealplaybook.com.

Larry: That’s good, man. Zack, I really really appreciate you being on. These has been some good stuff.

Zack: Sure, man. I’m glad we connected again.

Larry: Yes. Me too. Inspiring. Motivation. All that cool stuff. Zach, what day is your live Facebook broadcast? It’s on Tuesday, right?

Zack: We do it every Tuesday at 1:30 Eastern time zone.

Larry: Okay. Good, good, good.

Zack: 1:30. Like I said, it’s Zack Childress - REI success academy. They’ll find it. Jump on there. I mean, that’s all we do, man. We just throw it out there. We’re usually on there for 30 minutes to an hour. It depends on how many questions we get or sometimes it’s the topic. You know, I get really passionate about certain topics.

Larry: Sure.

Zack: You can, I can go on and on and on.

Larry: That’s good stuff, man. I really appreciate you being on. This has been awesome.

Zack: Cool, Larry. Well good seeing you, man.

Larry: You too, man. Take care.

Zack: Alright, buddy.

Larry: Alright. Thanks.