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ADPI_029: Unlimited Growth And Success With Buddy Rushing

Sep 27, 2018


Episode Transcription:

Hey hey what's going on guys welcome to the active duty passive income podcast. Mike foster here and I'm so excited to bring you today's interview. It is with Buddy Rushing. He’s an amazing guy, a personal mentor of mine and man you were in for a serious threat. Check it out.

 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 through 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. Shooter stand by.

Mike: Alright alright hey what's going on guys how you doing Mike foster here and I am on the phone with buddy rushing and this is not our first run. Ironically we actually tried this back when I was in Dubai. Unfortunately for us the Wi-Fi there was really crap. But also had some issues with the computer. But I'm really really excited to get him on. Buddy how's it going.

Buddy: Oh it's great man. I appreciate you taking the time to do this again. I just got home from work and ran straight upstairs and plugged all my crap in and so I'm ready to roll.

Mike: All right. Hey you know I am really appreciative of your time too. Actually ironically just got back from a movie with Cheyenne with the wife here. So I plugged in all my stuff so I'm like all right let's do it, let's do it. So this is real cool. Hey so I know you're enjoying California weather right now. We’re in the middle of this hurricane flow that's about to come through here on our doorstep. We got wind blowing in the background and stuff. So I hope that's not going to affect the audio on my end.

Buddy: Yeah I hope you could just you know stay alive and connected out there. It literally is 72 degrees with a light breeze here. Really sucks that the East Coast is getting crushed by a hurricane.

Mike: Amen you know what East Coast Beast Coast right. But anyway again like I said thanks so much for taking your time. So please introduce yourselves to our lovely guests out there. I feel like I know a lot more about you already. But I want to let you go ahead put it out. 

Buddy: I am you know like you said my name is buddy rushing. I'm an active-duty marine Naval Academy grad same as you guys and you know I guess the more pertinent stuff. I've been in the Marine Corps you know just coming up on about 15 years. I'm a combat engineer by trade. So I've you know I graduated the Academy and I went out to Okinawa. That was where my first duty station was. I've pumped out of there twice once on the 31st MEU around Thailand, Philippines, long Korea and then I went to Afghanistan on an embedded training team with you know we kind of partnered up a little bit with the ODA 171 which is a you know army green beret unit. Anyway so we did that.

That was back in 06, 05 and then I came back in I was stationed at Twenty-nine Palms in the middle of the Mojave Desert and that's where the real estate journey began. We can talk about that in a little bit. but I was stationed out there for three years that's where I you know my wife and I reconnected and we ended up getting married while I was out there and then we moved to Quantico and I went to school there and then out to the west coast again to first combat engineer battalion. Pumped outta there twice to Afghanistan and then I went to the Naval Postgraduate School not of my own choosing. You’re going to go here, you're going to get a degree and I was like all right I guess. Turned out to be a blessing in disguise. Because you know I learned a ton.

I learned a ton about the information technology industry. which is what my master's degree is in. came back here and now I'm doing a payback tour at 1st Marine Expeditionary Force Headquarters and yeah so that's the kind of military side of it. In between all of that craziness my wife and I built and developed a real estate investment business that has evolved over time. But basically it started out buying rental properties and then we kind of branched off from there in to doing joint ventures and trust deed lending and we did some flips. We did purchases in a trust. We did apartment building purchases, IRA investing. just a smattering of a lot of different types of investing and then now we have our primary businesses, we've got a massive investor group that's just buying the crap out of houses all over the place and building wealth that way.

Mike: There you go, nice. That is awesome. I mean you guys have been crushing it and I know that a lot of folks that have been you know listening to you and the Facebook stuff that you post out always seeing you closing deals with the military folks. It’s great. But I also want to highlight you’re not so recent father right.

Buddy: I am. It’s the 13th. So in 5 days Alana will be 7 months old.

Mike: Seven months.

Buddy: It is the coolest. It’s absolutely the coolest thing. Everybody says that and it's one of those clichés that's only powerful whenever you can say it for yourself. It really literally meant nothing to me. Babies meant nothing to me for a decade. I was just like they're cute I get it. They’re small right. But it wasn't on the inside and oh it's on the inside now. [06:12 inaudible] I want her one day to utter the words I'm so proud of my dad, he built an empire. That’s what I want her to say.

Mike: And she will, she's beautiful by the way. So better watch out. You better bar up some of those windows in the properties.

Buddy: Why so you think I am building a massive group of [06:39 inaudible]

Mike: Yepa hey I get that and while you are building your empire you might want to build a moat too you know.

Buddy: 400 big brothers.

Mike: There you go, year absolutely.  That is awesome man. All right so tell us a little bit about how you got started out there in 29 palms with your real estate investing.

Buddy: Yeah it was you know as I look back over my short life thus far, I realized that the most powerful things that I've ever done right were always preceded by gut-wrenchingly bad decisions right, with the one exception of my marriage. So far that was working out. I said this on stage one time last year and you know and somebody was called out. I was like so every single time I do something right I make a horrible decision first. So you know and then I gave all these examples and somebody yelled out they were like well aren't you on your first marriage? [07:50 inaudible] you know the long story short is I was in Afghanistan on my first pump, this was a no.6 and I read Rich Dad Poor Dad leaning up against you know the hood of a Humvee.

Because we still had Humvees at the time and dating myself a little. But you know I came back and I was like man this is awesome. I think you know I'm going to get into flipping. Even though Rich Dad doesn't actually talk about flipping. It talks about building passive income. But that's not the lesson I took from it. So I know exactly what my formula is. my formula is I'm going to find a house, I'm going to buy that house, I'm going to renovate it and then I'm going to sell that house. That was my whole formula right. Not a single number entered into it. So I drove into town on this you know young first lieutenant and I drive by and I see a realtor sign. It’s a shoddy little building right.

So I pull into the parking lot, parking lots completely empty except one car. I walk in and there's this really old decrepit guy sitting at the big piles of stuff on his desk and I was like, are you a realtor? He is like yes I am. I was like is this a good time to buy housing? He says yes it is. [09:05 inaudible] house you can find. Because I'm going to fix it up but I'm going to sell it. He was like sounds great. So we went out and found this 2-bedroom, 2-bath and you know about 1,200 square foot house and we bought it and you know financing was pretty easy. it's you know at this point it was you know early 2007 and so I got it, closed on it and then spent the next 15 to 18 months pouring every bit of money I had saved up all the $30,000.

That’s all I had to my name. I spent all $30,000 and renovated the entire house myself from the ground up and it was absolutely gorgeous at the end of it. I mean just you know fully redid kitchen countertops, roof. I did the ceilings, I rewired, I did everything and I was like this is amazing. I had a great time doing it too, but it was a lot of work and I had it appraised at the end of it. This is mid 2008 now and fully renovated, it appraised for half of the value that I purchased it out. So every single dollar I put into it plus all of the loan [10:14 inaudible] about 50% at that point.  Because [10:18 inaudible] to me at the time, because I didn’t have any education, the market jumped off a cliff. 

You guys know this. It’s now it's one of the most famous events in American history right. It’s the housing crisis of 2007 and 2008.  I bought, right you can look on Zillow. If you type in 7285, Sun Valley Drive which I still own the house by the way, still underwater right. Zillow goes up, it starts to curve down and then a dollar sign where some idiot purchased it and then it doesn’t have a dollar sign for it being sold up like [10:55 inaudible] into investing and you know I thank God for giving me resiliency and for raised like allowing me to grow up in a family that had absolutely nothing. Because you know I grew up in East Tennessee and you know we were on WIC and food stamps and you know if a tire blew out, it ruined our week. You know you do what you do.

You know I mean you just make it. You try to make it and you don't really have any expectations for what you deserve. Because you know that life doesn't work that way. you don't get what you deserve, you get what you earn and so it wasn't actually even though it was, I got to be honest man when I back at it I think I don't know why I didn't over react. Like I really don't. It wasn't bravery or anything like that. I think I just didn't take it that seriously or something. But the lesson that I took from that wasn't oh my god real estate sucks. It was every house in this town is half off and the rents are going up.

Because we're now in two wars right. We are Afghanistan, we're in Iraq. They’re beefing up troop strength. We’re going to 212K, 212 K and BAAH is going up and BAAH is linked directly to rent in a military town.  I was like there's a huge opportunity here to buy cheap houses and rent them out. That was my thought and you know for Sun Valley we're still living there. So I was like what would you know we're living here anyway. so anyway long story short the second choice that we made was when we were driving down the hill on every bit of 29 palms there's a big old hill going down to morongo Valley, which goes to Palm Springs. We were driving down that bill hill and we were like you know we know that we love each other.

We know we wanted to get married for a while. We were planning on you know I said you know I don't really come from money. so we had every bit of money that we scrap together we were going to use for to pay for our wedding and we kind of decided together we were like you know what let's just put that on hold. Let’s just get married at the courthouse. Let’s put the wedding on hold and let's use the 16 thousand dollars that we've scraped up from everything that we've done and let's buy a property and so we did. We bought 6403 El Dorado and you can look at the Zillow on that one too. All the way to the bottom and there's a dollar sign of that's where we did buy.

Its brand-new double foreclosed, but the contractor who built it went out of business went bankrupt. We bought it, paid $300 to have it cleaned. So we bought it for 69 thousand right. Our mortgage was three hundred eighty-five dollars a month. We paid three hundred dollars to have it cleaned and rented out for 950. So it was all cash flow. It was like 22% or cash on cash return.  so that was our second deal and that deal cash flowed for another eight years and we sold it about a year and a half ago and took that money and bought three more properties in Memphis that now have a value or equity of over a hundred grand. So sixty thousand turned into a hundred thousand and it's still cash flowing and that's our wedding present that keeps on...

Mike: Keeps on giving. Amazing man. Yes I love that story man. I love it. Absolutely love it and the second time personally hearing it. But that is still so motivating you know it gets crazy. Because I mean you have that attitude where you're just going to go ahead and do it you know, make it happen right. I mean yeah but you also learned that education played a big factor in finding that second deal and it made it ten times better. So you know you still have that property, you're still riding the market back up. Once you do you know you'll make a bunch of money off that too. But still you know it's all good man because things work out in time. It’s just how long it takes for you to get there is based off how educated you are. 

Buddy: What a great way to put it. That is a very very good way to put it. In real estate if you have the time you'll win. Ultimately if you have the time to wait it out you will win. But if you've got good education and a good team, you don't need to take that much time. I'm not saying you're going to get rich quick. Cause I really don't like the even the phrase of get-rich-quick. Because I honestly think that even if you could get rich quick, even if you do win the lotto or even if you do get lucky on a you know on an investment; you're not building generational wealth that way. You’re getting rich. There’s a total difference, because you are not a different person if you get wealthy.

If you make a lot of money from one day to the next, you have not changed yourself. You’re still a poor person, you just have money and eventually you will get back to your stasis level. You will get back to homogeny like that's what happens it's like there's something called the upper limit problem. You should read this book called big lead. there's something called the upper limit problem and basically it's why like athletes who you know land huge contracts will go out and blow it all or people who win the lotto will become you know more you know they'll be poorer than when they started eight months down the road and it's because you haven't grown to that level yet.

It takes time and it personal development. So I am completely against it rich quick. I tell people all the time. What we do is a full like I do high probability of success investments and it's the Money ball theory. I want base hits that end up giving me a championship instead of swinging for the fences every time and missing. You know because you're not growing when you're doing that. You’re just out there flailing and I believe in growth and I believe that it's inevitable. I think that if you pour yourself into growth and you take action, educated action; success in life and in your finances is inevitable. 

Mike: So much wisdom and goodness man that is amazing. Definitely could not have said that any better. That’s legit, Wow powerful. By the way I'm writing down every single book that you mentioned in this podcast. Another awesome thing that I love about you is that you read a lot and you're knowledgeable. Like I've loved that book you recommend it to me abundance. Guys if you have not read that book you definitely do read it. It is an amazing book. I'm forgetting the author's name right now off the top of my head. There you go thank you. Yeah that's great book. 

Buddy: And we have like a whole, I mean there is a whole like revolution basically that's happening within the tech industry. I mean you guys have seen it. You’ve seen it all. I means literally this, your smartphone which every single person was in this has, you have a smartphone you have more computing capacity and more access to information, doesn't matter if you have an Android or an iPhone you have more access to information than the President did 15 years ago.

That’s insane.  It cost you what? What six hundred bucks, 300 bucks whatever and it doesn’t even matter, because the unit price is negligible at this point for the amount of power that you have. There’s a million times more computing capacity in this than there was in the Saturn 5 rocket or the lunar excursion module to put Neil Armstrong on the moon.  So anyway the abundance is all about, it's about capturing all the stuff that's going on in the world around you that you don't even know is half that's changing your life. 

Mike: So definitely check that book out guys.  It’ll definitely change your mind set on a lot of things. Awesome man. All right so tell us about what you're going into now. What kind of things you have going on and I know that you got big things happening with WFI. 

Buddy: Yeah WFI has grabbed another gear. Okay so about 18 months ago was when we first started this new business model and I told you that we've spent the last ten years doing a variety of different types of investments. Trusty, lending, joint ventures and we've done notes and we've done flips and we don't flip to rent and all this different type of stuff right and we poured yourself into education. I mean I've paid for the $30,000 rich that education courses and the $10,000 new wealth courses. I mean it did it. I definitely don't recommend it. Access to information and education out there. I don't mind spending a few hundred or a few thousand on a course.

But there's no reason to pay ten thousand dollars or more for a course. I'm just going to say that and I know whether if they ever hear that they're going to be like angry at me, but I don't care. I mean get started with something free like bigger pockets. You know just go into www.biggerpockets.com, listen to their podcast you know there's anyway I do believe that there is value in focused education. I do believe there's value in courses and accountability and mentorship and all of that stuff and value should be compensated. But anyway I don't want to go off onto like this issue.

But I did spend the forty K and it was great information and we spent years and years educating ourselves. I would go on deployment, my wife would be going to all the classes and the courses and all that and so one of the benefits of all that education though was that we learned how to do a lot of different types of deals and so the one downside was that you know we always had our friends that were seeing us do all this and they would be like hey man I'd really love to get involved in this, is there anything you can do for me and I never had any excess deals.

It was always me just finding deals for us and I didn't have time to find deals for other people and I didn't want to just point them out there and say hey yeah go invest in this. Because it's not vetted. if you don't have the due diligence, if you don't have an ecosystem to protect you, if you don't have a team to protect you; you're going to get burned and I do want people to just go out there and invest in real estate like I did in Sun Valley. because you're going to get burned and so I kind of just was like I'm sorry you know for like a decade and about 18 months ago really almost two years ago now I ran into this guy who had a turnkey investment business in Memphis and a turnkey business is basically one where in this one where they buy a property cash, they'll renovate it, they do all the quality control, they place a tenant, they put it under management and then they sell it as an investment. Cash flowing investment.

I love turnkey businesses. I love the right turnkey businesses, there's some shady ones out there right. But the right ones they do a great job and they take all the hassle out of it for you. So you if you have a full-time job or whatever, you can just fire boom periodically. I save up some money, hit this investment, save up some money hit this investment. You can build wealth passively in your spare time while you have a full time job. That’s a beautiful thing right and so that's one of the services that. So I've always kind of liked the idea of turnkey providers. So the El Dorado house, we were like man there's about 80 K and equity in the El Dorado house.  This is a side-story, but there's a sewage project coming through Yucca Valley.

We know that that's going to tax the homeowners when it goes into schedule too. So it was going to crush my cash flow and not give me real value and so I was like well we need to exit before this thing comes in. so we put it on the market, sold it, we did pull about $80,000 out of it and we did a 1031 exchange. which is a tax-deferred exchange as long as you take that money and invest it in other properties, you don't pay taxes on it and so we basically took that 80k, sprinkled ten thousand dollars on top of it, broke it into three thirty thousand dollar increments and bought three properties through this turnkey provider at Memphis; his name's Matt Owens right.

Before all that happened I did about four months of due diligence on him, on his business on Memphis on turnkey investors in general, turnkey providers in general. It was just an insane a savage amount of duty of diligence and I could find nothing wrong with this guy or his systems. Everybody was like he's the most honorable guy ever, fully transparent, on all of his numbers, on all of his business. So I was like yeah let's do it. So we went through the process and it was phenomenal and I was like we'll shoot, I'm going to sell the rest of the properties I am having on 29 palms and buy more properties in Memphis in surrounding areas.

Because it was full-fledged for me, I do a lot of due diligence and I take action action action. It’s not one of those things where like I'll just jump into something and I won't sit here and spin with the analysis for seven months. Like I will do a rugged amount of due diligence, but then it's just fire fire fire fire. So it's kind of like playing cards. Like I don't know if you're a poker player but basically you wait until you have a good hands and then you act aggressively right. You play tight, but aggressive. Same concept. So anyway I bought several properties with him, ended up buying more.

I was at five and I was like man this is great, like this is a phenomenal experience. the numbers are exceeding everything that we anticipated and it looks like you have about 30 more properties on your portfolio that are eligible to be sold. I was like I you know for 10 years I've had people asking me to become a part of this, I really think that this could work. I think that I can help now all of the people who've wanted to join what I'm doing, I can help them get access to these deals and he was like yeah man you know go for it, like you know let's see and so I started making phone calls. This was February of last year. Wow hasn't been that long. February of last year and literally every single person that I talked to was like not just yes, but hell yes right now let's do it, we've been waiting.

You know we're like okay there's a monster here, so we need to get this in the bag. We need to figure out some systems and figure out how to do this to where everybody's protected and we don't want any room for failure. We want a hundred percent success and that's hard to do. So long story short, eight hour days, six hour nights, you know work work work to get it happen, eighteen months later we've closed on sixty seven properties. we bought everything that he had, forced him to hire a bunch of new people and scale his business and even that wasn't enough, so we convinced him to give us all of his systems and processes and access to his capital and access to his mentorship and we basically are franchising his business model in Little Rock Columbus and St. Louis now. 

Mike: Wow that's amazing. 

Buddy: We're building it around life for other people. The guy in Little Rock is a marine and yeah he's a white feather guy. So we're building that. He’s got a turnkey business that's now it's sold for properties. It’s got like nine more in the pipeline. Yeah so st. Louis and then Columbus is an Army Special Forces guy. So we're taking the military Network and we're creating turnkey operations that then feed inventory back into the white feather group. So it's our own little military coalition. 

Mike: That's amazing. 

Buddy: It's going to be almost impossible to stop. 

Mike: Yeah I believe it. I believe it. I mean you took a good model and you just you know planted it in multiple areas to scale it all up and you... 

Buddy: Go with our people, military people. 

Mike: Exactly right and you definitely you know in our conversations right I noticed that you touch a lot on integrity and you speak about how important it is for you know the people who you work with as well as the people who you hire need to have that integrity and that's one thing always resonates with me. 

Buddy: It's the overarching guideline for every business decision. We make so you will see integrity as a bumper sticker in a lot of places.

But if you drill down and take a look at what they say and the business decisions, they make you'll see whether or not it actually is a guiding line. like one of the scriptures or quotes guidelines of us is to what benefit is it if I gain the whole world, but lose my soul in the process and that's the point. It isn't about getting rich. It’s about becoming a wealthy person. There is a critical difference in getting rich and becoming a wealthy person. A wealthy person is somebody who's wealthy in mind and spirit and riches right and in finances. But ultimately has, ultimately understands that money is just an enabling function.

That’s all it is. It is not an end in and of itself. if it doesn't help facilitate you doing something to make the world a better place or to make your family you know more to make their life better or more enjoyable or to change the community that you grew up in or I mean we've got people who have just eye watering like beautiful dreams of what to do. You know my dream is to create an entire generation of military people who are empowered financially to go do well in the world. because it is my belief that if you have signed yourself up and you've gone through the trials and put your body in between war and your home, then you've earned the right to express yourself financially as well as vocally and it's just a fact of life that you know finances are a key to influence and so I believe that if we have a world especially in America, we have a nation that is being influenced by those kinds of people with high integrity, that are action oriented that have you know service before self-kind of mentality; then our whole nation will be better as a result. So that's the driving factor in how it plays out in real life is integrity like well I'll just give you a perfect example, we've only done 67 deals in 18 months.

That sounds like a lot but it could have been three to four times as much. Because there are companies that are cranking out 30 deals a month and there's so much demand just from word-of-mouth, there's so much demand coming at me for these deals that we could do four times as much as we've done. the reason we didn't is because when I approach those bigger companies and I said hey here's us, here's what we want I mean we're ultimately about educating and empowering military investors to build wealth through real estate, that's what it's about at the end of the day and they would hear it and they would say yeah sounds great we'd love to work with a military integrity, yes that sounds amazing and then everything that when we started doing, started looking at deals and talking about how the deal would be structured and talking about you know what happens if this happens, I don't want that risk to be passed on to the investor, how do we protect the investor right? They weren't interested in that. They were interested in volume.

They were interested in how do we get, we can trim the margins down that's fine, but let's get volume and I'm sorry but volume is not the name of the game. If we do a whole bunch of deals that are half assed, you know who's going to end up taking the pain? The investor three four years down the road. this guy who trusted us three four years down the road is going to end up with a lemon of a property that's hemorrhaging cash, he is not going to be any wealthier. So we waved off on all of those that could have gone, we could have done so many more deals. But we waved off on them because their focus wasn't on the investor and ultimately when I say focus on the investor, I don't mean baby the investor. We do not baby anybody. Like you're responsible for your own due diligence. You’re responsible you know hey if you want to step up and become a part of this group, you have to accept responsibility for your own destiny. 

Mike: Yeah absolutely. 

Buddy: Right we'll help. We’ll show you opportunities, we will help educate, we will help hold your hand a little bit, but you're a big boy or girl. so am I and so ultimately I am not going to blame Mike foster if this deal that I closed yesterday it goes to crap. I'm not going to blame you right. I'm going to look at myself and I'm going to say what I can learn from this you know. 

Mike: Right exactly exactly man that's powerful and you know it's sad, because you were talking about it too. A lot of turnkey companies out there you know they fail at doing a good job, because they have so much going on than they're putting out. They don't really focus on those deals. You know I've followed a couple of mentors that I've listened to in podcasts that have their own turnkey company and I've heard so many horror stories from their companies. You know even though they're but now all these deals you know people that go months or without you know tenants in them and they actually go out there and check out their property and it looks like crap. It’s terrible. 

Buddy: And the sad hang is that you know a lot of them start out with the right mindset and then the temptation is just too great to do volume. Because the fact is man you don't have to create good products, all you have to do is be good at marketing. You can create mediocre products, you can strip all of the margin out for profit for yourself and then just market the crap out of it and just say 15% ROI. It doesn't matter if it's a lie, it doesn't matter if you're just saying oh but I mean the ROI 15 years down the road. If you just throw those big numbers out there and then ran it down with marketing people will buy it. But that's not what we did, it'll never be what we do. 

Mike: Absolutely man, hundred percent. That’s powerful man. That is absolutely powerful. Guys listen to that. because you know even if you don't have aspirations to build anything you know big yourself, you know you got to understand the risks out there when you're dealing with people and you want to make sure that the folks that you're dealing with have integrity. They have that integrity that you know that buddy has, that white feather investments has. you guys definitely need to go take a look at their you know their website right, their company and see what they're doing and just kind of take a look you know I mean they're definitely a shining light out there and so you want to make sure people understand. 

Buddy: I will tell you, you're going to find that it's a little bit unusual getting in touch with us and we do this for a deliberate purpose. If you go to www.whitefearherinvestment.com, I think that it's probably a cash flow calculator or some kind of holding pattern on there. If you go to www.lazyequity.com, you can read a little bit about like our lazy equity program. But we don't have a lead funnel, we deliberately don't have a lead funnel and it's because every person that we help facilitate a deal for talks to me and you can imagine the volume right that restricts the volume.

There’s a reason for it. It’s because we want the highest quality people and what I mean by highest quality is I want somebody of integrity that is just has a passion for wanting to build wealth through real estate, has an ultimate vision of a financial freedom that includes more than just money right. It includes you know giving back in some way and we want action-oriented people. we only have like I said we got about four times as many investors as we do inventory and so we really only want the ones that are serious about changing their lives and so if they want to reach out to us, they can absolutely I mean we're on Facebook right or they can send Gregg an email. [email protected] he’s the guy and he'll vet them and he'll talk to them and yeah we at this point at least we don't want to put up a landing page that serves as a lead funnel. Because that's not the model that we have. That’s the model that you know that's a great model.

Mike: Absolutely no and then that speaks you know to everything that you've spoken about so far. You know I mean that integrity. We want to make sure that you put out a great enough product as well too. so when you limit that amount of volume that comes to you right filter and make sure you get to know those people right on a very intimate level and you can identify the type of needs that they have when they're going into what they're investing. There’s nothing wrong. 

Buddy: Because honestly Mike it isn't about a deal. I'm not going to hook you up with a deal. What I'm going to do is sit and talk with you, it's called a financial freedom consultation. I'm going to sit and talk with you. I'm going to pull from you what are your dreams, why the hell are you on this earth. Like what are you doing this for, you may not know. but you'll figure it out over time and ultimately what you're buying, what you're you know really committing to is a journey of financial freedom and that's a heck of a lot more than doing a deal. 

Mike: Hell a lot more. 

Buddy: You have so much more. So literally I mean we're building a family, we're building a coalition. I mean out of the 67 deals that we've done there's you know somewhere in the neighborhood of 50 people and I know every single one of them by name, I know their friends. We all connected through their social media and through you know everything. Like so it is being a part of white feather is very much like being a part of a family. It’s not a high-volume business. 

Mike: I believe it, absolutely believe it and that is kind of you know along the lines of what we're trying to grow with active duty passive income too. We are start the spark Club right, where we are having a mentorship. We’re constantly trying to retune it, refine it. We just recently launched a new app, it's called well not an app, but its mighty networks has an app that we have merged start the spark two. It’s really awesome, I'll put a link on there. Yeah it's dope.

But still very new, we're still you know trying to trying to build a lot with it. But exactly the same same principle right. We really want to get to know our community. We want to make sure that everyone's on the same page. We know where everyone's shortfalls are with education and we can you know tailor the right content to you to help you out and get you to where you need to be in your investing journey. 

Buddy: In my opinion that's so much more powerful having done the stock courses right. where it's just basically a whole bunch of... having something someone that would be willing to tailor education to me if I'm a 21 year old second lieutenant just getting ready to start, I just put myself in where I was, having somebody be willing to tailor education to me and in a mentor package with that right. so the education but also the mentoring like hey man I've got a question, I just I'm getting ready to put in an offer on this house, he's 90 years old doesn't want to face tax ramifications; what options do I have? and having a real live actual military person who is just like me reach out to me and be like, hey man try an installment sale. like that'll help him create passive income for his you know,  it creates a legacy for his children, it helps him avoid all the taxes and it gets you the house for less money out of your pocket. You know that kind of stuff.  It’s so invaluable to me. It is like having that community in that Network that's all kind of growing together. 

Mike: Right absolutely man that relationship and the journey like you said. That’s the most important. Gosh man I'm telling you buddy I love talking to you man. this is awesome and I really love doing this podcast you know as not just you like I've had the opportunity to meet so many awesome people and I've learned so much from it and I really think that that is one of the benefits that we are at ADPI really learned from you know all the awesome people we are meeting, we get to interview legends like you, you know going out there and crushing it and it's inspiring. So really really growing myself. I am kind of feel selfish you know with this podcast. It’s great but I know that this information is going to benefit our listeners too. So hope you guys are getting some great stuff out of it. 

Buddy: You guys are doing great things at ADPI. Like the most impressive thing about it for me is there's so much youthful energy in what you guys are doing that in my opinion barring a Black Swan event like you guys go into war with each other. Your success in it is inevitable right. Like I mean you've got like you guys you and Eric and Marian and the rest of those guys, like you have so much talent and so much youthful energy and you have a backbone of education right. So you're not just out there you know scurrying around and swinging for the fences. You are putting your money where your mouth is, I know you're doing deals. Because I see them right and I know markings done deals and I know Eric's doing deals and I know that. So you're doing deals, your backbone is education and you just got an incredible amount of energy that you're pouring into this.

You don't have to be doing this, you guys great paying jobs. You know like you don't have to be doing this and I've talked to each one of you and I know that your focus is on providing value first. That is such a critical misunderstood component of building a successful business. Most people think that like you know I deserve this money, I deserve this value, I deserve this compensation because of what I'm worth or whatever. No, create value without expectation. Provide the value first right. You don't look at a fireplace and say burn and then I'll give you some wood. You put the wood in first and then it gives you heat right. Provide value first and you guys are doing it, that's why I know you'll be successful. 

Mike: I love that quote and it's on your Facebook page. That’s why laughs and that's awesome. You want to make a billion dollars? Help a billion people.  That’s amazing yep yep. Awesome Buddy. You have given us so many nuggets of wisdom. It has been amazing and like I said I absolutely love talking to you. Let me take you through our bonus around so I can get you out of here. I know you're busy guy and you got to help a billion more people out there. So all right what is your favorite book? You’re an awesome awesome reader and so I'm writing this one down.

Buddy: Favorite book, well the last time we talked I you know I gave you the one that was at the top of my mind which was abundance. I'll say man I chew through a lot of them, so let me just look at my library. 

Mike: Go for it. 

Buddy: Let’s see. Oh you know well what was actually really, so I can tell you all kinds of real estate investment books and stuff and that's cool. But I'm just assuming you're reading all those. So Leon Musk's biography. It’s called Space, Tesla and something or other just type it Leon Musk biography. It is really cool. So here's how cool it is. I listen to it on audiobook and it was so good that I bought the book and read it. It’s so inspiring to me on so many different levels and quite literally this is going to sound stupid. But the vision and the inspiration of Space Tesla, Solar City, even PayPal which started out as you know the whole journey of Leon Musk and in the barriers that he's broken and the mindset that he uses to tackle the grand challenges of the world, they're the main reason I bought a Tesla.

Like no kidding I mean it's a super cool slick car and super-fast and it's awesome. It’s the best car I've ever had. But I knew it would be. It wasn't about that and I'm not a Motorhead like I couldn't really care less mostly about cars. but it feels like I'm sitting in the future and I'm at least a part in some way of pushing the innovative edge of having that childlike sense of wonder combined with a savvy business acumen that makes things happen right. Because you have too many stodgy businesses and you have too many people that sit around dreaming and never do anything. But when you can combine the two, you make miracles happen. Like it would take too long to list the amount of you know just paradigm shattering discoveries and innovations that he's done and I have you know my wife got me a thing to hang on my wall.

It’s like a frame that says what something's important enough, you do it even if the odds are not in your favor. So basically what its saying is another way to say that is you could fail, in fact whenever he said that whenever he started Space he thought he had about a 90% chance of failure and by the way he sunk most of his PayPal money from it. He made about 22 million in PayPal. He sunk most of his PayPal money into that and he said there was about a 90% chance of failure. But the reason that I did it anyway was because I thought that it was too important not to do to become a multiplanetary species and even if I failed, I would at least push the ball forward and then hopefully somebody would pick it up and run with it.

Go on YouTube and you know like watch some videos about Elon Musk journey. it was December after three failed rocket launches almost like he basically was borrowing money for rent and he was on like the respirator for his business, all of his businesses and they had a fourth successful rocket launch and then NASA gave them a grant. but I mean the guy risked literally everything and you can say what you want about you know you know multiple divorces and you know his little Twitter, whatever focus on whatever you want. I'm going to focus on the innovative genius that's moving our nation forward and he's the guys at American Exceptionality too. But he believes in American exceptionalism. I mean obviously we're all Patriots. You know I'm incredibly pro-American and I've been all over the world and I'm not saying that other countries don't deserve their do, they do. I mean do your best you know I mean like everybody deserves a chance to be free and to be happy. But I happen to be an American and I happen to love America and you know and so does Elon Musk. 

Mike: Oh man, that’s awesome, that is awesome and I'll tell you if anything with real estate fails you can definitely go into being a Tesla car salesman. Write a little book report on that too, because that's really cool and guys that'll be in the show notes as well as soon as I find that book, a link will be there and you guys will be good to go. Okay so next question who is your biggest hero and why? Another hard question. 

Buddy: I think most people have more than one, most people who pay attention have more than one. Obviously you know Elon Musk is up there.  I have a lot of different facets of my life and of my personality and so I have different heroes for each one of those General Mattes is a huge inspiration of mine and then mostly I guess most people listen this podcast would know who general Mattes is.

So you know I mean just for a whole lot of reasons, for a whole lot of reasons about the way that he approaches leadership and really it's about that. It’s about you know because leadership it's tested differently in combat than it is in peace. But leadership by and large is leadership. It’s your ability to influence people to inspire them, to help them feel safe and motivated and you know passionate about something. Inspiration at its very core is about influence and I believe that influence is the currency by which you touch the world around you. It’s more important.

Like money is a part of it. Way you speak is part of it, the way you act as a part of it, the way you love as a part of it. the way you look unfortunately is a part of it and overall though it's about influence and I believe at the end of the day if I'm going to provide the value, the value that I believe that God has put in me if I'm going to provide that value to as many people as possible and as powerfully as possible, I have to be able to be influential and that means leadership.

So General Mattis is a huge huge and he also he's one of those guys too that he has a really great way of breaking through nebulous concepts and getting straight to, how do you make this work in the real world. Because I'm a pragmatist at my core. I may sound like, I may sound like I live in the clouds and all that. I do believe in casting a vision, I do believe in manifesting things in the distance. but I'm a pragmatist at heart and one of the saddest things that I see are all of these creative and these wishful thinkers that will sit around and they'll get themselves mentally drunk on their dreams and visions and they'll create vision boards and do all this stuff and then they never put it into action.

Because the fact of the matter is Trench works hard. The work that you have to do to take a vision and make it a reality is brutal knuckle-busting tear-inducing work and you got to be willing to go through the trenches. You got to be willing to do eight-hour days and six hour nights and sacrifice in order to get there. Elon Musk says that creating a business is like staring into the abyss and chewing glass and if you're willing to do that, you can create a business right. So at the end of the day leadership man, leadership is about influence which is about in my mind providing value for people. So president Mattis 2020. 

Mike: We will see. But if you had to narrow it down to three all right let's say the world is ending and you wanted to Give young people three things to live off of right, to help them on their journey towards real estate investing maybe getting started, what would you tell them? 

Buddy: I think an overarching theme, this is not one of the three. But the overarching thing that you've got everything is never sacrifice your integrity. Because when you do you will wake up with money, still make money that's the problem is people they make money when they do deals and so you're like well I'm making money this must be the right thing to do, you are confused. Okay you can make money, there's so much money out there. You can make money and still do it honorably. You can make money and still do it legally. There’s much money to be had to ever do anything illegal remember that kids. There’s never a reason in my mind to do anything overtly criminal or illegal.

There’s just too much money to be had legally. So never sacrifice your integrity. But the three things I would say number one is try your best to figure out why you're doing this. Simon Sine start with why. Watch that TED talk. Simon Sine, Simon Sine did a TED talk it's like 20 minutes long.  It will change your life.  It’s not a glib statement. No kidding you really pay attention to that TED talk, he wrote a book too.  He basically is saying the same thing in the book as he did in the TED talk. He wrote a book called start with why and he did a TED talk on it. It inverts everything that you think and if you do focus on why you're doing this and just bear in mind you won't know at first, you will not know why you're going through life. Because you've never thought about it right. you need to spend time peeling back the layers and you need to spend time thinking about how this works and whenever I talk with people, the first thing I do you have to understand that in order to get to the reasons why people are doing it, you have to get about five layers deep. So why do you want to be wealthy?

Because I want to be able to live on my own terms. Okay why do you want to be able to live on your own terms? Because I'm tired of somebody telling me what to do at work. Okay well why are you tired of somebody telling you what to do at work? Well because I feel like I'm not valued right. I don't feel like my contributions are very valued and when they tell me what to do, it feels like I'm just a tool. Okay but why does that upset you? Well ultimately because right fill in the blank. So you get where I am going at. whenever you get through those and you dig down what we do is we as humans we build up defenses and we start talking about what so much instead of talking about the emotional drivers for why we do things.

Every single thing that you do has an emotional reason deep inside as to why you do it and oftentimes it's linked to pain. So when you peel back those layers, just by asking why. why do I want this car, why do I want this life, why do I want this person and you peel those back you'll get to the fundamental reason of why it is and ultimately everybody's just looking for value, they want to feel valued. Okay so you start by figuring out why you want to build a real estate portfolio. Oh I want to flip houses. Okay why? Ultimately right. If I gave you a million dollars would you still want to flip houses? Is it about the joy of flipping or is it about the means to an end. Normally it's about the means to an end. It’s about money.

But why? What are you going to do with the money and then have them paint out that vision of what their ideal date would look like once they have the money? Then they'll get to the reasons. Normally it has to do with family. it has to do you know it has to do with doing something important, something of value, giving back, whatever, we're hardwired as human stuff to value family time, to value connection with other humans and things like that right or excitement and adventure traveling the world stuff like that. So paint your vision.  Just to recap right. Do everything with integrity. Number one is paint your vision. I don't care if you believe that it works or not, do it okay and if it doesn't work for you then we'll move on to something else.

But it will okay paint your vision. Number two, you got to get plugged in. like we are a as humans we are not hardwired to work alone. We are hardwired to work with other people. In fact I would say the top three investments I've ever made they were made possible just by ideas given to me freely in a conversation. Get connected, get into a group, and get connected with people that have similar passions and mindsets to you. You’re the some of the five people you spend the most time with. So if you spend the most time with losers even if they're related to you, that's one of the hardest problems. Like are just negative toxic people, oh but it's my brother you know.

So what? Right. People you choose to spend time which should be people that inspire you and push you and don't fill your head with like lofty crap that doesn't do anything, but rather hold you accountable. You said you were going to be a millionaire by the time you were 40, you got three years how far along are you? Step two is get plugged into a group of people or build your own that are doing what you want to do or have already done what you want to do. That will help you get education. So as an adjunct to that you will get the information and get the education as a part of that and then third is to take action. Like without action all the rest of this stuff is just smoke and mirrors. It’s just a waste of time if you don't take action. There was a guy and I'll finish up with this.

A friend of mine who he was 55 years old about ready to retire. He decided to take his retirement and get it as a lump sum and invest in the same education course that I was doing. so he spent 40 grand on that, he'd add another 200 or so and he was like I'm just going to use this 200 now I'm going to bankroll my investment business and he spent the next two years doing everything you can possibly do to prepare himself. He created a logo, he created a website, and he created a CRM. He did he created the perfect marketing. all of this you know an entity and all of this different stuff and two years later he was broke and had to go back to work and the only thing that was missing, that consistently was missing throughout there was making offers.

He made a few offers here a few offers there. Hundreds of offers, hundred literally hundreds is what you need to be doing if you want to build that fast, if you want to grow like that. He just wasn't taking action. He was taking the wrong, he wasn't doing income-producing activities. He was doing all the busy work that we often will fall. Because it's scary to talk to a seller. It’s scary to make an offer that might be rejected or it’s an offer that's accepted and now what do you do? Right down IPAs next to your desk. IPA's, that's what you should always be doing is income producing actions right and if you're not doing income producing actions, then you're not moving closer to your dream.  So step one cast your vision, create your vision. Step two, get a team and get educated and step three income producing activities. 

Mike: Wow outstanding Buddy. That is so motivating and it took my headset out of you. I'm telling you guys you really, if you are listening to this podcast you got a re listen to this episode again like over and over you just continue to build nuggets out of it. Because it's great, it is great. Wow man thank you so much for your time on this. I really really appreciate the nuggets of wisdom that you have given us. So many throughout this this episode.  But even then breaking it down in that last three. That was absolutely clutch. So definitely appreciate that man. 

Buddy: Yeah absolutely. More than happy, I'm more than happy. I would also say to you as we kind of sign off here is if someone listens to this and I put myself in their shoes, if I listen to this you know a decade ago whenever I first started you wouldn't be able to tear me away. Like I would like detective my way into finding out how to get in touch just. Because that was me. But that won't be everybody and that's perfect actually. Because we just don't have the bandwidth to help everybody. But if somebody is truly motivated and they're like you know what this is me. This sounds like you know me.

I don't want you to not be able to get in touch. So send Gregg an email. [email protected] whitefeather.com. Let them know who you are, let him know like kind of how you heard about it and everything and then talk to him about like you know put in the email like what you want to accomplish and I've already told you that we're going to focus first on your vision. So you know talk to talk to us a little bit about what you ultimately you know what you're looking to accomplish and at the end of the day we want to help as many people as we can. You know that's the goal. 

Mike: Amen buddy, amen. You guys are awesome. I'm telling you. So I will have Gregg's contact information in there in the show notes. But hey you know like we said if you're motivated enough make it happen. Buddy thanks again so much for your time, really really appreciate it. I know our guests will truly appreciate this and Wow! 

Buddy: Absolutely my pleasure. 

Mike: Al lright thanks again man it was great talking to you again. 

Buddy: Wow incredible, that's really all I have to say. Such an amazing guy and I'm so fortunate to be able to interview with him and take heed to the wisdom that you learned here in this session. It’s absolutely ridiculous. All right guys if you guys are looking for more education out there, go ahead to our group on Facebook, on Instagram. Check us out www.activedutypassiveincome.com. Make sure you are connecting with us. Cause we have a lot going on. For example the book that we are launching, our military house hacking 2.0, we got a bunch of great minds coming together to put this thing together. It is amazing. We are also starting to expand. We are doing a bunch of meatus in different areas. So if you are in a particular area listening up for when we are coming your way. All right guys I'm out of time, it was great catch you later. 

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