ADPI_014: From 1 To 8 Properties In Just Over A Year

Aug 05, 2018


Episode Transcription:

Hey! Hey! what's going on guys, welcome to the Active Duty Passive Income Podcast you are in for a treat today folks. Let me tell you I've got Chad Peyton here and he is going to inspire you with the story on how he is able to acquire 8 properties in just over a year. So sit tag. 

Hey! Hey! Freedom Fighters welcome to the Active Duty Passive Income Podcast the only place where military members, veterans, and their families learn how to build wealth to real estate investing. I'm your host Mike Foster and I'm here to show you how to stop wasting your benefits. Now get off your ass, step up to the firing line and make ready for today’s lesson.

Shooters standby!

Hey! Hey! what’s going on guys welcome to another episode of Active Duty Passive Income Podcast we have a very special guest here. I've got Chad Peyton from Sta. Cruz California he is a father of two and he's got an awesome story for how he got started in real estate investing and I'm going to let him share but first..

Mike: Chad, what's going on welcome to the podcast. How you doing?

Chad: Hey, good Mike thanks for having me out men. I'm stook to be in to talk to you guys you today.

Mike: Oh men! We are absolutely stook to have you. It's really, really special being able to have someone who is just getting started out and you're sharing your success and we having a chance to talk to you a little bit beforehand. But first, tell us a little background about yourself and your military career where you are at now and just introduce yourself a little bit.

Chad: Sleeping in the piney woods, a small town and somehow manage to find my way over to what point. I have no idea what it even was, I was just kind of panic to a lot of people expose here I think, they want to go there from the very young age that we've been noticing that I have no idea but everybody just told me I had to go. So, I went and I'm very happy that I did. And I just started to pursue flying helicopters in the military and I did that for about 9 and a half years and I hit that mar fully whether I got to stay in or get out you know in my mind so I decided to get out and then stayed to Sta. Cruz California. Married my wife and we now got two kids and I'm still flying commercially for an area I'm doing company, close to home.

Mike: Awesome! That is awesome men, alright! So west point huh? Listen, I'll forgive you, you know for choosing the worst of the two academies it's okay. But maybe you'll forgive me because I--

Chad: We did win the football game last year. (Mike chuckling) One important thing is that.

Mike: Yes, that is true, yes you guys did. I knew you going to say it too. Then listen, this year is a whole year..

Chad: I've been able to run better for 14 years you know right. I pick Sola and knowing that even if it's only one year. It's one year.

Mike: It's one year, yup that is true. Alright men, alright that's fine. Just wait until this year, we'll see what happens. We view thousands and make it some bets so it is so good. We'll give it to you.  And it wasn't my year that messed it up, so I'm happy. Alright cool. Sweet, so alright man awesome! Yes you definitely had it sounds like a very interesting time in the military when we still flying was great. I knew you do what you love. But to tell us, how do you get started in real estate investing, at what point was it to you that you said I need  to move into something else or add something else in my life?

Chad: So, ugly enough I bought a house back in 2006, and that was my first real estate investment and I think everybody kind of knows how the that story place out. I didn't know how I was going, I didn't know how I was buying it. It fortunately work out so fast were about cash flow neutral for a long time and I made the... once to interest rate drop really low I decided "hey, I'm going to refile it in the 5th year on your note" not realizing that I just made a cash flow a negative but I was able to hold on to it I'm still only get that's actually up for sell right now and even with the bad purchase it's still built equity, had zero appreciation in 12 years unfortunately. That's what happens when you buy the peak of a market with no cash flow. But it did build a lot of back with it over the years and I'm about to you know, as soon as sell that it all, ten-thirty one exchange that in the two properties and now that I know what I'm doing, I can flip my monthly cash a little about a thousand dollars a month if I'm selling that in the quarantine of property.

Mike: Nice! alright men.

Chad: Yeah, but beyond that, once I got up in 2012, I knew, you know my wife and I want to leave in Sta. Cruz. I've been to visit out ere my mom such for a long time  and I just fall in love with area and I happen to fell in love with a girl that lived here.

Mike: Yeah, right, there you go. You fall in love I see--

Chad: I had build my career around that, so I finally got there about a year and a half ago and everything was going great and I sat down one day and I don't have any, you know I do not want to move in on to a management role and on in this industry I really enjoyed applying the schedule that I have. I was just a pilot but I was definitely not quiet with field so I sat down one day and just have to start raw invasion that I would after work until I turned 65 to hopefully retire at that point and I knew there had be a better way. Investing and built a massive portfolio and so you started selling, turned to your property and that was about a year ago. Now I have a 8 little properties, trying to acquire a lot more.

Mike: Alright. 8 properties, nice. so pretty much 8 properties within a span of a little over a year right? (Yup)

Mike: Wow! That is incredible. That is honestly incredible. I do know lot of people when they got started maybe they pick like 1 or 2 in their first year. When I started, I picked up duplex in my first year but I definitely not you know, aim property that's incredible. You said that these were turn keys?

Chad: All turn key properties.

Mike: All turned properties, nice. So can you do us a favor and just kind of explain to our guest what a turn key property is and why you would invest in something like that?

Chad: Yeah, so turn key is a pretty broad term but obviously it comes from the fact that you already walk up, turn the key and then there's way you go. My definition of turn key is you have an operator that is out there that know the area, knows where to buy and they find the distress property, they do the rehab they met subtle process and they take on all that risks and then they find the tenant and manage that property or find the property manager for your help you in that process. You know there's a burning degree the turn key but that's to my experience such to one-stop shop. Basically, I call for the loan and do my due with diligence, analyze the property and then they find tenant put it in there in cash flowing.

Mike: Nice, wow, so yeah. So something like that is just... it's so simple.

Chad: Yeah, it's very simple. Yeah, it's simple and does take out all a lot of investment when you just starting out. You know, trying to figure out the whole real estate space so it takes a little of the great out of the learning curve, you know and allows you to jump in and just get started, get that cash flow going and ultimately from newer lives just to do it, just a stage on that my letter personal like, you know, I've built my life around or built my career around the schedule that I wanted to. I go my job and you know, in the 2 young kids, you know my daughters, 2 and a half, my son was just almost 5 months and so I wanted to protect my son and that at the end of the day that's our only non-renewable resource and so it really is the way that take you know, get all of the benefits for real estate, get all the benefits of only may safe for sure and still be able to protect your family and not ridding of second job for yourself.

Mike: Yeah, absolutely man. You made it sounds like you know, you are definitely on the right path here and with the velocity that you've picked these 8 properties up. Where are you headed? What are some of your goals, your real estate investing goals?

Chad: Yeah, so shortest striving goals is to buy another house. You know that's my thing is as long as in numbers make cents, buy the next house and create the capital. To do that, midterm goal as to create enough passive income to cover my quick expenses on a monthly bases. You know that's my strike number and then beyond that, it created enough passive income to completely replace my lifestyle so now that I can basically work on my own terms.

Mike: So can I ask something and you can feel free to answer this with all honesty from on but for your financing turnkeys, do you usually get a mortgage with this or do you save up enough to pay the down cash? How do you use to work it?

Chad: So because I'm fully focused-- not fully focused but primarily focus on cash flow. I'll go out get a 30 year tax rate conventional mortgage and when your buying properties that the most efficient financing you can get. You know, in every person you can get 10 under a man you know, every person can have 10 sat early batch conventional mortgage using their name. so, that's my goal, my first goal of is to fill up to think and then somewhere you would just so my wife and myself and once those are full then we'll move on to the more greatest financing but I've done a lot you know I've done a lot, we were fortunate to buy in California in 2014 and so we realized still a lot of appreciation out hear so I've been able to harvest some of the equity in my primary without increase in my one out of about a ratio. Too much, exposing you for too much risk and then using that money to go out and buy property so just want to have you would be able to harvest the money I put it in my farm here as a down payment, knew that back out, angled by (inaudible) properties you're back, be acute.

Mike: That is awesome man. That is incredible. So yeah, you have tough using it kind of like hybrid you know, but even still would the appreciation that you've seen after that crash, it's been able to help you a lot. Honestly I found fascinating about the investors that I've spoken to you, out in from the last because the properties are so expensive and I always wonder (oh yeah) how they have all this money they just go around and buy all these properties but I guess through the appreciation that they'd realized from 2008, 2007. it's been able to kind of help question that so when they buy properties out in the Midwest just makes sense how they all pick up.

Chad: Yeah, absolutely and I think where some people and everybody values different things and my wife when I sat down we talked about it a lot you know, we only have a two bedroom townhouse to right now and obviously we got them to the degree quiet point within maximum appreciation in the market out here and so we kind of struggle and you know it said do we sell and then go buy a 3 bedroom house for a lot more than what we save for a townhouse or do we harvest with equity same with 2 bedrooms. Wait, for another market correction, potentially and then move in to the 3 bedroom kind of repeat that same situation you know, so that's why we decided to do. Everybody's different but for us we're kind of focus for long term so we will loan to have a kid bank up and you know, I'm still a little bit older and you did different earn you know.

Mike: Right, and they're young enough too right now so I guess yes, it's not really going to affect them as much. There you go man, that's awesome. Wow! You're making the work. That is good. So now tell me, what are some of the passions that you realized through real estate investing? Maybe through some of this cash flow that you've received. Are anything that you and your wife enjoyed doing on the side or that you found that you enjoyed through this, through building this passive income?

Chad: Yeah. So I think realistically instead of just like individual passion with it made me realize I think that's what it's done and just provided a little bit of space in my financial life or I can take a step back and kind of reevaluate what is actually really important to me just to my entire life you know, focusing on being present, just enjoying the journey that were all going through. It's really easy to get focused on your instinct and your goals for the present just to come that means to an end and so really that was it's a lot of my wife I didn't take take a step back and say "Hey, this is important, if not important cut out everything's not important just focus on the things that we value".

Mike: Amen. Wow, yeah. That is great and it is so true. I think you know, a lot of times we get so caught up with being able to afford our bills or to provide for our family and when you're doing these and you become successful at it you see, the passive income coming in and you start to feel that relief. You realized like all that that you just (inaudible) what's important and your family being able to spend more time and to feel the less stress that I was worried, it's great, it's really good. (Yeah, absolutely). Amen. That is awesome. So do you have any special trips to do all that you're planning with your family or any fund that you see through?

Chad: Yeah. We're going to Houston to visit my family out there. A lot of my family still back in Texas, between Dallas and Houston and we're doing that and we're going to Costa Rica in November and a little short trip Flash's friend 40th birthday party and the flash family vacation.

Mike: Okay, nice. There you go. That's awesome man and there's no worries because of the passive income you're building everything is... (Exactly) it becomes so nice so that's awesome.

Chad: Yeah, and that's what the passive income has really helped me. You know before when you're not focusing on the cash flow and you're investing for a... you know when you're in a simulation mind set. You know, for me out I kind of struggle spending money in building, did I value because I knew that every dollar that I was spending it was going in my flown okay, and that was the last of the chant that I build it and retire comfortably. Since of now, I focus on cash flow you know that you're overtime building the cash flow is you're going to need water dump road so eventually not working so it just take a lot of that anxiety and stress out of it.

Mike: Right. Yeah man, Absolutely. So dude, that is awesome man and it's so good to talk to you about this too because, really it's good to see your different perspective on always but even still with the different perspective, a lot of it is so similar and it's great. So thank you so much for giving us your time. I really appreciate it and where are you by the way? It sounds very busy back where you at.

Chad: Oh, yeah I'm just sitting at a coffee shop in town.

Mike: Nice. Another one of the perks of real estate investing, you could pretty much take your work with you you know right?

Chad: Yeah, absolutely.

Mike: That is awesome man. That's awesome, alright. So alright man. So like I said thank you much for your time. I'm going through a bonus round, take everyone through it but it's 3 questions and this little kind of help our audience get to know a little bit more about you too. So, alright. Let's do it. Question #1. what is your number one read? You have to recommend 1 book. What would it be?

Chad: Essentialism, it's a book by Greg Mckeown. It's a great book.

Mike: Tell us a little bit about it? What's that about?

Chad: It's a book about focusing how much important in your life, what you value in your life and then everything from business to personal and just put ways in time on non-essential task. You know, if it's something you value, spend some time enough further in to it. You know, if it's non-essential don't do it. It's quiet simple as minimalism for your life you know.

Mike: Right, right. That's good man. That sounds really good. Not heard of that. Some will look down one up today because I definitely need a little bit out of my life too to be honest.

Chad: Yup, absolutely. Everybody does exist we all constantly need to be reminded of that fact.

Mike: Right. That was a give man. Okay cool. So question number 2. Who is your biggest hero in life?

Chad: I don't think I could point the one person of the hero the people that I really look up to and tried to anyway. Their actions are just people who live life on their own terms and were comfortable in their own skin and just are themselves because that's who they are and not worry about what everybody else think.

Mike: That's legit man. Hey, I can definitely see that. You do saying that, just calls one guy to name Gary Vaynerchuck, he is super-- yeah, I'm not sure if you heard his name. He's out there man I've just ask you a little bit of 

Chad: Oh yeah. I'm very familiar with Gary V yeah.

Mike: Gary V then I do it's real I would say. You certainly is. I was just listening to a what--

Chad: What do you think then you know if you don't like it then that's okay you can have a different of I mean, I think you get so intrinsic in your opinions that someone has a different when you feel like you needed to defend your own you know its like "Hey we can add different opinions, why not?" you know, and you can debate it. Well you don't happen... I think we get married to our egos and still like we need to defend our provision all the time so like we're under attack and it doesn't allow us to have... you know, it's good to debate on what's actually going on because we feel like we're under attack that someone has a different opinion in there.

Mike: Alright, absolutely. Goodness. Alright, let's get you to the the last question to you. So what nuggets do you have for those who are just getting started?

Chad: Yeah. I think the first thing I would say is just start it, start learning. There's so many platforms out there you got-- let's have an amazing platforms for people starting learning on and there's so much pretty consent out there, podcast you know what I mean,  membership then think 14 or $15,000 a month, and could get you one three book every month you know, go to your public library, you know check out book like go to the public library all the time. just get started learning and then secondly, I would just say take some time to sit back and understand why you're doing what you're doing. I mean, everybody can just on the surface state, you know I want passive cash flow but if you really dig deep down on why you want that you know, at the end of the day from newer earth to pretty use in the passive income so I can get my time back and spend it with the most important people in my life and that's my family and my friends and my network of people that you know, we all have the same goals and in general and then invest in yourself you know, that in investing yourself is infinite. So spend money on yourself you know, buy a book you know, go to paper match your mind if you really resonate with people on that root you know, I knew you guys have to start to its part club, take break. Go out and spend money on knowledge because you will not get a better return on investment than spending some money on yourself.

Mike: Amen. Alright, dude that is awesome. Absolutely and all those points exactly super important you know, especially at that last one, investing yourself. I believe in that a 100%. that's for started me off on my journey, that's good advise too (absolutely). Great advise. Guys, I hope you guys take a good notes and listen and hear because that is absolutely true and go out and get started. Chad thank you so much man, really appreciate for having you in this podcast. It's been a blessing and a wealth of knowledge here and hopefully an inspiration to those who are just getting started as well are those who are on the verge of getting started and this will catalyst them in taking action. Maybe going after your first term key run all. We'll see. (Awesome) Man, best to you and your family and gets best of success. Obviously, we will chat on the podcast, so I was around on the Facebook group. So reach out to him and if you have any questions, we have our network that we have you know, anyone that will help you out there. Chad's got a bunch of experience especially with turnkeys. So he'll be available to be there and Chad, thanks again man. I appreciate it. Is there anything else that you want to say to the group.

Chad: No, I think that you can like you said I'm in the group on Facebook feel free to reach to me. I love talking to any and to talk and discuss about my experiences and I've been doing it for a long time but I can tell you I have immerse myself and everything will be the last year and a half and if I can't you know I don't know to answer to some then I probably know somebody who can help you out and I wouldn't feel a miss if I didn't at least make a plug for the guys that have helped all this make it happen for me and the guys that I work is actually one of the guys because they are better in this as well. He was a west point  drive range or bad guy, and be a-- or yeah, the website for these guys is cashflowassets.com and they are real estate investors and they basically help you set up a game plan to reach your strike number. Creating a passive income to replace your lifestyle and then so it worked really do sell really well on what you guys been doing they just have a very unique system in place and I can decorate it the system and that's what enabled me to go it's fact cause I have last here.

Mike: Word, alright. Absolutely

Chad: Feeling big things man. (Nice) Big things.

Mike: Alright, alright. We'll have to reach us then too and willing to that will be in the show notes. Make sure to check that out guys, if you're listening, cashflowassets.com. Sounds like they will definitely success here. So, they will hopefully for you as well. (Absolutely) Nice. Alright, alright man. Well again Chad, thanks again so much. I appreciate it and have a good rest of your life.

Chad: Absolutely man. Yeah, you too man, take care.

Mike: Alright. Alright, alright, alright. Well guys that's going do it. Thank you so much for listening. Chad Peyton guys, what a guy. Man I'm telling you that story was definitely interesting and make sure that you go through and take some of the notes and list down that he had to share guys because that is a great advice for those who are getting started and definitely make sure you're taking some action. Alright. Reach out to us, we want to hear what you guys have going on. What deals you're working on, what questions you guys have, hit us up on our Facebook group, hit us up on Instagram. We want to know what's going in. Take out our Youtube, go ahead and check the show notes. We got awesome stuff in there. Resources as well as the book that was mention like Essentialism great, read. So definitely make sure that you go in and check out all that stuff and connect with us. Let us know what's going on. Stay tuned. Friday, we got another episode coming up. Mike Foster and as always it's been a pleasure. Later!

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