Investor On A Mission To Rebuild C Class Neighborhoods, with Brian Grimes- EP 174

On today's episode of the Lab Coat Agents Podcast, host Jeff is talking with Brian Grimes - Founder of 24/7 Cash Flow University. He is an ivy league grad who loves to play basketball. Brian grew up in Philly in the C Class neighborhood, during that Allen Iverson era. Brian has experience in the C-class which from a real-estate point of view is very risky. Brian talks about how he is kind of building a model that is a bit more recession proof. Tune in for all of the details! Episode Highlights: Basketball took Brian around the country, around the world to degree and then landed him at Columbia University. At Columbia University, he met former athletes that became mentors of him in the trading field for options traders down on the New York Mercantile Exchange to commercial and mortgage real estate brokers. The mentors gave Brian principles and knowledge that transformed the way that he thought about himself. Brian shares instances from his career and how his interest in Finance spiked.  Brian became a financial planner so that he could build his own schedule. He was selling insurance annuities. He was on a 100% commission, and he didn't make a dime for his first six months.  If you put in energy today two months from now, it will come back in the form of you know cash flow or whatever you were looking for and you start to trust that when you are in a Commission based environment, says Brian. Brian went on to work at a high-net-worth boutique firm in New York managing where they managed 1.4 billion for about 300 wealthy families. He worked at an insurance startup policy genius, where he was running their call center nationally. They were selling thousands of policies a month and building that out and using his sales skills.  Brian talks about his struggles in the real-estate market and how he got duped by a contractor.  He continues to iterate and get better over the course of time and that had led to, 300 full gut rehabs over the course of that, maybe the next five to seven years from that point. The more risk you take the more reward there is. So, the cap rates in the C Class are definitely juicier, says Brian. At the end of the day real estate in cash flow investing is all about picking good tenants, says Brian. Brian bought properties in a marginal C class neighborhood that he knew new working-class people would live in. People who work for the city, who work for SEPTA, who drive buses or who belong to the working class. Brian has the required skill set, a 20,000 square foot warehouse, 150 contractors, best contractors and city. He can go and flip properties like anywhere in the country and he has the experience to do it.  He can flip them in the eight class neighborhoods, but it doesn't match his prime mission which is to re-build the C Class neighborhoods until they look like the beat or a class neighborhood to put people back into the neighborhoods to run out blight and to restore money bouncing in those neighborhoods.  If you get mentorship, you can navigate and learn from somebody who has done it 100 times in these types of neighborhoods and get all the lessons that you need so that you can do it successfully from day one, says Brian. People are not their credit score. The credit score model is a is a slightly outdated. You will find people with good credit scores who don't pay for whatever reason. You have to underwrite people, not credit scores. So, you have to get into, like, their job. Is there a job actually durable? What type of job are they doing? You have to test your tenants as well, says Brian. People who can articulate themselves well, speak well, calmly, they are going to be the same way when something goes wrong in your property and something is always going to go wrong, says Brian. Brian talks about the importance of landlord tenant law and how one can save themselves a lot of trouble by learning and understanding the law. Brian warns about people who know how to gain from the system because the credit score doesn't tell you that. Before you hand over possession, you better do everything in your power to ensure that you picked a good tenant.   No matter what sector of real estate you are in, if you can't pick winners, it's not long before you will be out of business, says Brian. Brian is a strategy agnostic, and he believes in having multiple strategies. He suggests as a new real estate agent you need to be able to adjust to the market. The more knowledge you have about different strategies that are available to you, the more money you'll make.  If you went to Baltimore right now or Cleveland or parts of Philly, they're not going to experience major downturns in the market right now even with rates going up and some of these things. So, you have to look at the hard-core data and realize. "We are state specific," says Brian. 3 Key Points: Brian shares how  he has best used his experiences from different jobs to start his own real-estate business. If you are not from the C Class, you would want to have some type of mentorship from somebody who is, if that's something you want to do because the cap rates are better, the cash flow is better, says Brian. Jeff and Brian talk about the importance of identifying good tenants.  Resources Mentioned:  Lab Coat Agents | Website | Facebook | Facebook Group | Twitter | Instagram  Jeff Pfitzer   | Instagram | LinkedIn | Twitter Follow Up Boss (Sponsor) Chime (Sponsor) Z buyer (sponsor) Street Text (sponsor)   Brian Grimes: https://www.youtube.com/channel/UCTYE7wOTs5VMHGdHnfLcWyw https://www.instagram.com/briangrimes_247cfu/?hl=en https://www.247cashflowuniversity.org/ https://www.facebook.com/247cashflowuniversity/?_rdr https://workwithgrimes.com/cashflow50596073