Podcast Transcription
Melina: Whenever you’re ready… How many podcasts have you been on? Do you know?
Cory: I don’t know. Maybe, like, five?
Melina: Really?
Cory: Yeah.
Melina: Five different podcasts.
Cory: Different podcasts, yeah.
Melina: Probably…
Cory: No…actually, yeah. You’d be surprised.
Intro: Welcome to “Flippin’ Off,” a purpose-driven podcast about flipping houses and making a difference.
Melina: I appreciate that. Hello, hello Hello. Hey, everybody, Melina Boswell here, co-founder of New Wealth Advisors club, or as we say, NWAC. Or some people say NWAC, and my real fans say and NWACKOs. And today in the studio I have with me Cory Nemoto. Say “hey,” Cory.
Cory: Hey…aloha.
Melina: Aloha. So, I’m excited today to have Cory here in the studio with me. So for our listeners, I want to give you an opportunity to get to know Cory. And actually, it’s really funny because I’ve, like, “known” Cory for eight years, but I haven’t really known Cory yet. So, I’m still getting to know him. And I feel like the title of this podcast should be “The Student Becomes the Celebrity.”
Cory: I don’t know about celebrity status…
Melina: I don’t know, you’re pretty…you know, there’s people in awe of you.
Cory: Oh, wow.
Melina: Did you know that?
Cory: No, I…no.
Melina: Oh, totally. Even people from California.
Cory: Really?
Melina: Oh, yeah. Totally.
Cory: Oh.
Melina: Do you know…yesterday, it was so cute, I was watching one of my students, Richard, who has been with me for, I don’t know, maybe two years or so. And he is a really, really, really smart guy, and he’s, like, an awesome nerd. You know, I love me my nerds.
Cory: Nerds are awesome.
Melina: Nerds are awesome. I love them. So, and you know, I don’t know if you know this, but the vibe in the club is always, like, we’re the home of the misfits.
Cory: Oh, wow.
Melina: Yeah, we really…because all the misfits fit in well at the club. It’s our culture, you know? And so wherever people don’t belong, they all belong together in the club.
Cory: Well, everyone’s welcome it seems, right?
Melina: Entirely.
Cory: Like, the culture that you’ve formed…
Melina: Yes.
Cory: Yeah.
Melina: Yes, so I love all the misfits, the…you know, what we’d say, the black sheeps, the stragglers, the strays. Like, that’s really…that’s who our club is made up of.
Cory: That’s awesome.
Melina: Yeah. So, and I think I have this beautiful God-given talent to be able to see people through…I don’t know. They say I have “Jesus goggles,” and that’s how I see people. They make fun of me…
Cory: Jesus goggles, I love that.
Melina: Jesus goggles, yeah, yeah, yeah. So, which is fine. I’m like, proud of my Jesus goggles. I don’t care. But so, and I think that what that really is, is a gift of discernment to be able to see somebody’s heart, somebody’s soul, and not what they look like on the outside. Or maybe, you know, whatever…you know, funky things are happening to the tent that they live in, I have an ability to be able to see people. So, Richard is one of these guys that I really see, and I am very, very impressed with him. I’m impressed by his intelligence, and like, lots of different things. But yesterday, when you were up speaking, I was sitting in the back of the room, and I looked over, and he was ferociously taking notes of every single thing that you said.
Cory: Oh, wow.
Melina: Like, ferociously. And so afterward, you know, this is how we roll, we tease people. And so somebody said, “Hey…hey, Richard, did you ask Cory?” And Richard was like, “What?” “You know, to sign your chest.” Like, “To autograph you…”
Cory: Oh, my gosh. Yeah.
Melina: Yeah. Yeah. So…because he list-, a lot of people actually listen to your podcasts.
Cory: Oh, they did?
Melina: Yeah, they know who you are.
Cory: Oh, wow.
Melina: So, and they didn’t know that you were coming in. So it’s kind of like, hey, I listen to this guy on his podcast, and then you showed up.
Cory: Oh, wow.
Melina: Yeah. So, that was…it was a really big deal.
Cory: Oh, that’s cool. Yeah.
Melina: Yeah. So, congratulations.
Cory: Oh, thank you.
Melina: So Cory, so tell me, like, a little bit about you. Like, I know…I feel like I know, we know from maybe 2011 forward. So would you just share a little bit, like, you know, your family life. Like I realized yesterday, I don’t know, like, how many siblings you have, your parents…I know a little bit about…you know. But like, tell me about, like, your personal family. You were born and raised in Hawaii, so…
Cory: Yeah, so I was born and raised on the island of Oahu. And my immediate family is small, it’s just me, my dad, my mom, my sister, and now my brother-in-law. But I have a lot of aunties and uncles, right?
Melina: Mm-hmm. Yeah, yeah.
Cory: And everyone in Hawaii, it’s like, is auntie and uncle, right?
Melina: Uh-huh. Oh, yes. I know…everybody’s auntie.
Cory: Yeah. Auntie Melina.
Melina: Uh-huh, totally.
Cory: Well, so but, I have a lot of cousins, second cousins, and we’re really close, you know? And I was fortunate enough to be raised by, like, a great family, who always supported me. And so…
Melina: So, is your sister older or younger than you?
Cory: Older.
Melina: Okay.
Cory: Yeah, she’s three years older.
Melina: Oh, three years? Okay. So like David and Andrew, three years.
Cory: Mm-hmm.
Melina: Yeah.
Cory: Yeah. So, growing up in Hawaii, I just had a normal childhood, you know? I went to public school.
Melina: Yeah. And what school? Because we know that that matters in Hawaii.
Cory: Yeah, it does. Right. I went to Kailua High School.
Melina: Uh-huh.
Cory: And that’s on the east side of the island. And I grew up, like, in Kailua, which is kind of like a, you know, a little bit more rich area, that’s closer to the beaches. But, and then we move to Waimanalo, because that’s where my grandparents lived.
Melina: Ohh…
Cory: And so we ended up moving in with them, I think I was around 12 or so…or maybe I was younger. I think I was younger. And growing up in Waimanalo is different. Like…
Melina: Why? Tell me, tell me…
Cory: Waimanalo is a little bit more country.
Melina: Ohh, yeah.
Cory: And I guess Kailua and Waimanalo is, like, right next to each other.
Melina: Mm-hmm.
Cory: But if you say you’re from Waimanalo, you know, sometimes…it depends who you’re talking to, right? So they might think, like, oh, Waimanalo, oh, wow…you know? And for me, all my friends, like, I love them to death, and they have, like, thick Pidgin accent, you know?
Melina: I just found this guy on YouTube, this Pidgin guy…what’s his name? Oh, my gosh, I just went blank. I’ll tell you….anyway, he has a YouTube channel…
Cory: Fuzzy?
Melina: No, not Fuzzy.
Cory: Okay.
Melina: No, no, he has a YouTube channel, and that’s all he does is… Andrew will tell me, or I’ll think of his name. It’s going to take me a second. But it’s hilarious. Like, I love it. I love, love, love it.
Cory: Are you starting to…
Melina: Oh, of course.
Cory: Yeah.
Melina: Yeah, I understand it.
Cory: Right.
Melina: You know, I’m understanding it more. In the beginning when I saw, like, a video, and they were playing…they were like, showing the words, like the actual English words…
Cory: Right.
Melina: …like, that’s where I was watching. But the truth is, if you just listen to what he’s saying, you understand what he’s saying.
Cory: Yeah.
Melina: Do you know what I mean?
Cory: Right, yeah.
Melina: So, yeah. It’s really good. And he, this guy on YouTube, that’s what he does is he educates haoles, you know, and tourists.
Cory: Right, mm-hmm.
Melina: That’s what he does. And he just…it’s hilarious. It’s so good. So good.
Cory: Yeah.
Melina: And it’s actually…like, I feel like anybody going to Hawaii should watch it.
Cory: Yeah, I bet. Right.
Melina: So you understand the culture.
Cory: Yeah. One time when I was up here in Riverside, somebody asked me, it was like, “You have an accent. Like, I can’t place it. Like, do you speak another language or something?” And I said, “No. No, I’m from Hawaii,” you know? And I was thinking in my head, I was like, man, if you think I have an accent, you know, like, my buddies back home, who I grew up with, it’s like, I don’t think you’d understand them. Yeah, but…
Melina: Oh, that’s so good.
Cory: Yeah, growing up in Kailua, Waimanalo, it was awesome, normal childhood, you know? And went to high school, public high school, played sports. And…
Melina: Mm-hmm. What sports?
Cory: Believe it or not, basketball.
Melina: Really?
Cory: Yeah. Yeah, right. And so, but I think for me, like, I always…I was never really, like, gifted at something. Like, I always had to work hard. And even school, like in school I got good grades, but I was never really the guy that can just do something last minute, and like…or study like an hour before the exam, and like…
Melina: And then pass?
Cory: …and pass. Like, I had to study, like, days in advance, you know? So, it never…like, I’m a slow reader, even to this day. Slow reader, and a hard time comprehending because I have to read over…you know, my mind goes somewhere else when I’m reading.
Melina: Uh-huh.
Cory: And so I always had that problem. But so I always had…I felt like I always had to work harder. Which I think is…it’s definitely something that’s helped me today.
Melina: It’s a blessing. Yeah.
Cory: Yeah.
Melina: Yeah. No, it is a blessing because there’s this saying, right, “More heart than talent.”
Cory: Yeah. Right. Yeah, and you know how you were saying you have Jesus goggles, right?
Melina: Yes.
Cory: Like, I can kind of understand that. I…whenever I’m talking to somebody, maybe in real estate, and somebody’s coming up… There’s this guy, Brian, who is an investor in Hawaii. And I always tell him, it’s like, “You know, you’re going to make it, bro. Like, I see it in you,” you know? Because…you know how you can just kind of tell…
Melina: Entirely, you can tell.
Cory: …when somebody has it in them?
Melina: Yes.
Cory: You know, they have good heart, good intentions, and you can tell that they’ll bust through walls, you know?
Melina: Mm-hmm. Yeah.
Cory: Because there’s a lot of walls in this business.
Melina: Absolutely.
Cory: Right. Yeah.
Melina: Yeah, totally. That’s good. So, and I’m just curious, is your sister…do things come naturally to her? Did she not have to work as hard as you?
Cory: I think she had to work hard too, but she’s definitely, like…yeah, I think she’s definitely…
Melina: More natural talent?
Cory: Yeah, a little bit more natural talent than me.
Melina: It’s always that way. It’s always that way. Yeah.
Cory: Her and my dad got, like, more the artistic…like, they’re the more artistic side…artistic.
Melina: Okay, okay. Uh-huh.
Cory: So like, my dad is in film and acting, and he does plays.
Melina: Oh, really?
Cory: Yeah, and so does my sister.
Melina: Ohh…
Cory: And they’re good at writing, and…you know? So, they’re creative.
Melina: Uh-huh.
Cory: And I did not get any of that.
Melina: It’s funny, I have two kids that are musically inclined, and I can’t…I’m telling you, I have a good ear, and like, I love good music, but I seriously…like, I don’t have a clue what a note is. I like, look at an instrument, and I’m like, uh-uh. I wish I had that gift.
Cory: Yeah.
Melina: And David learned how to play the drums and the guitar by watching YouTube.
Cory: Wow. Yeah, see, I could not do that.
Melina: I couldn’t either. I’m like, what? You did what? And I watched him one time pick up…we walked into a music store, and he started playing the piano. And I was like, “How did you learn how to play the piano?” and he said, “The notes are the same.” I’m like, that’s like…you’re speaking a different language. I don’t even know what that means. Like, don’t you hit one with keys, and when you strum?
Cory: Right.
Melina: Like, what do you mean, you know?
Cory: Yeah.
Melina: So like, it’s that foreign to me, so I get that. Yeah.
Cory: Yeah. Yeah.
Melina: And what about your mom? What’s your mom like?
Cory: My mom is, like, one of the most caring…yeah, she’s the most caring person that I know, obviously, I mean…but I’m her son, right? But like, yeah, she…she’ll do anything for somebody, you know? And I love her to death. I’m a mama’s boy. Like, all the way, you know?
Melina: Mm-hmm, yeah. Yeah, yeah, yeah. Did she work outside the home, or no?
Cory: Yeah, she did. Yeah, yeah.
Melina: Oh, okay.
Cory: She still works, yep.
Melina: She does?
Cory: Mm-hmm, yeah. Yeah, yeah.
Melina: That’s great.
Cory: And so, she always, like, checks in on me. Like, even though I’m, like…I feel like I live on the other side of the mountain now, right?
Melina: Yeah.
Cory: Like, I feel like I never see her kind of. Yeah, even before I was leaving, she was texting me and saying, “Are you going to be home? I’ve got something for you.” Because I guess everybody’s buying up, like, toilet paper and stuff, and like…
Melina: I guess that’s happening on the island, this whole coronavirus…
Cory: Right, yeah. And so, like, she was going to come all the way to town just to drop off, like, toilet paper and, you know, antibacterial stuff because she knows I’m traveling, you know? She’s a total mom. Yeah, I love her. Yeah.
Melina: That’s so sweet. Oh, that’s so great. That’s so great. That’s so great. So after high school, you decided you were going to college?
Cory: Yeah. So after high school, I went to college because that was the thing to do, right? I guess.
Melina: Yep. Yep.
Cory: And I got my associates degree from Windward Community College, and then went to UH for a little while, and then decided to go to Cal Baptist. And that’s when I decided to go to Riverside. And actually, one of the main reasons, too, that I went to Cal Baptist is, like, there was a Jiu-jitsu school, and I was, like, really into Jiu-jitsu. I was competing a lot, and training a lot, and there’s a school in Riverside. Now they’re in Corona.
Melina: Mm-hmm. Who is it?
Cory: Oh, it’s 10th Planet Jiu-jitsu, Corona.
Melina: Okay. Okay, okay. Huh.
Cory: Yeah. So I wanted to keep going, you know, I wanted to kind of test myself, and compete on the mainland circuit and stuff. So…
Melina: Really?
Cory: Yeah.
Melina: So, I didn’t know that. Huh.
Cory: Yeah. So like, I actually grew up in martial arts. Like, my uncles were both heavy into it, and kickboxing and stuff, so they trained me from, like, a young age. And early on, I was always the smallest kid, you know, so again, I always had to work hard, and…
Melina: Totally.
Cory: Like, I learned a lot of lessons. Like, I think one of my first mentors was my uncle, you know? Because he would…like, now that I look back, some of the lessons that, you know, he taught me, I can see that he was kind of training me, you know?
Melina: For life?
Cory: Yeah. And I think because maybe I was always the little kid, you know, so I, maybe…I think he didn’t want me to get bullied, maybe, you know? And wanted me to be able to take care of myself.
Melina: Yeah.
Cory: And all my cousins took martial arts, too.
Melina: That’s so great.
Cory: I used to get really upset before, like, if I would lose or something, you know? Like, I’d usually cry, you know? And like, then I’d get the life lessons, you know, after that. So I think early on, like, that…I think all that helped prepare me because I learned that it is okay to lose, you know? And like, it’s part of growing, and actually winning. Yeah.
Melina: Winning, absolutely. Absolutely. You really can’t win without failing.
Cory: Yeah.
Melina: You know? You can’t win without losing, yeah.
Cory: Right, yeah.
Melina: It’s just so true.
Cory: So I came for school, but really it was kind of for Jiu-jitsu. I don’t even know if my parents know this.
Melina: That’s so funny. Because didn’t you get…you got a break in tuition or something, too, right? Through your dad?
Cory: Yeah. So my dad, he used to be…he used to work for Chaminade University in Hawaii, and I guess they had, like, a sister school thing. So I got some…like a scholarship for, I think, like a semester or two, or something like that. But then I just fell in love with Cal Baptist, you know?
Melina: You did? Wow. Mm-hmm.
Cory: And their campus, you know? So, and they’ve expanded, right? Like, its…
Melina: Did you…
Cory: I haven’t been on campus yet.
Melina: Oh, my gosh…
Cory: I want to see it.
Melina: I can’t wait…well, I can take you on a tour. I can get you in there.
Cory: Oh, that’d be awesome. Yeah, yeah, there’s…it’s ridiculous how beautiful it is. Oh, that’d be great.
Melina: Yeah, that’s so good.
Cory: Yeah. So I started training in Jiu-jitsu, started competing, and then I got hurt, I hurt my back, and so I was out for, like, maybe six months, half a year or so. And then after that, I got a staph infection, like, on my ear…
Melina: Ohh…
Cory: …and it didn’t go away for, like, a year. I was on antibiotics for, like, a year until… The doctor was getting kind of worried about it. But during that time is kind of when… I think it was meant to be because it made me kind of think, like, what am I going to do, you know? It’s my last year in school and stuff, and…
Melina: And maybe Jiu-jitsu isn’t my…the circuit isn’t my answer because it’s hard on my body…
Cory: Yeah. Yeah, I think it was just a wake-up call for me, it was like, it’s time to grow up and start thinking about, like, what am I going to really do when I graduate, you know? So… And then, that’s kind of what led me on to thinking about the future, you know?
Melina: Uh-huh, uh-huh. So you were studying…what were your majors when you first came?
Cory: I was studying kinesiology, exercise science. And then in kind of, like, my last couple years, I started to realize, like, I should have went into business, you know? Because I feel like I always had that entrepreneurial spirit in me. And then, like, it wasn’t ’til, like, the last couple years I started to realize, like, I don’t really want to do what I’m, you know, paying to learn, you know? So, which was like exercise science for, like, therapy, you know, physical therapy, or exercise physiology. And as I’m learning more and more, I also learned that this isn’t really what I want to do. But I…
Melina: Like, the information is interesting, but I don’t want this to be my career.
Cory: It’s interesting…oh, yeah.
Melina: Got it.
Cory: Yeah, like, I learned a lot, but I…yeah, I couldn’t see myself, you know, for the rest of my life doing this. And so then I started to get scared because I’m spending a lot of money…I felt trapped, basically, you know, because…obligated, you know, to follow through.
Melina: Yes, yes. To finish, mm-hmm.
Cory: Yeah. It’s just like, okay, if I switch my major, that’s going to be like another two years, and like, thousands of dollars, you know? So yeah, it was a pivotal moment in my life. But I knew I wanted something more anyways. Like, I wanted to…I didn’t know what it was at that time, but I think I was searching for, like, fulfillment. And I remember…I actually haven’t told this story to many people. But I was sitting in the parking lot of the Corona 24-Hour Fitness, because that’s where I used to work out.
Melina: Okay, yeah.
Cory: And I had just finished my workout, it was kind of, like, evening time. And I realized, like when I got back to my car, I realized that there wasn’t…I looked at my phone, and I didn’t get any phone calls, you know? Like, no missed calls, no text messages. And so I just remember thinking, like, I don’t remember the last…I had to look back when…who was the last person that called me, or like, who…you know, like, why do I even need a phone, you know? And so I just kind of sat there, just thinking. And like, I’ve never been one to be, like, down or depressed or anything like that.
Melina: Right, right. Well, your Jesus goggles probably won’t let you. In general.
Cory: Yeah. Yeah, so but if there ever was a time, it was that moment. And I think what it was, I was…I felt like, I even remember thinking, it was like, man, if I was, like, to die today, then people would be sad, like my family and friends, but like, nothing would stop. Like, I felt it would be a shame because I didn’t get to help, like, build a legacy, or like…
Melina: Wow.
Cory: …help other people, you know? So, I remember that feeling, and like…
Melina: And how old were you?
Cory: I was probably 23, maybe?
Melina: Wow.
Cory: Yeah. So, but I just remember that feeling. And today, now, like whenever I…because now the phone doesn’t stop, you know?
Melina: I bet. You now know the opposite of that.
Cory: Yeah. So I get calls all the time, text messages, emails, you know, Facebook messages, Instagram messages. And so now, whenever I feel that overwhelm, that sense of overwhelm or anxiety, like, I have to stop and just put me back in that other place, and just switch my feelings of anxiety to gratitude.
Melina: Mmm, gratitude, yeah…
Cory: Because I remember what it felt like when I had nothing going on, and I wasn’t important to many people, you know?
Melina: Right.
Cory: And if I did stop today, it would affect a lot of people. And so that does make me grateful, you know?
Melina: Wow.
Cory: So like, that was something that I carry with me today.
Melina: That’s amazing. That’s so amazing.
Cory: Yeah. And I’m actually really grateful for that moment, even though that moment, at the time, just felt really, you know, low and bad for me, you know?
Melina: Yeah.
Cory: It was…I knew I was searching for more, and it felt like it was…I didn’t know what it was, and it was so far out of reach that it was almost like is this going be my life, just, you know, get my degree, and work?
Melina: Right. And go to the gym, come home, watch TV, right? Get up, and do it again, and again, and again, and what kind of a life is that?
Cory: Yeah.
Melina: And you felt definitely destined to something more.
Cory: Exactly. Yes.
Melina: Yeah. So, what did you do when that happened?
Cory: That was actually right before I started to… My dad was telling me to read “Rich Dad Poor Dad” for, like, years. And I hated to read at the time.
Melina: Ohh…uh-huh.
Cory: And so I think it was right around that time that I actually picked it up and read it, and it was the perfect book at the perfect time for me.
Melina: How about that? Wow.
Cory: Yeah. Because I also felt that not only do I not want to go into exercise science and be a physical therapist, but like, I don’t really want to work at all, you know? And like, but I grew up in a normal family where everybody gets…
Melina: Yeah, everybody…yeah. Sure.
Cory: Just like everybody else, you know? I’d get a job, and you know, work, start a family, and…
Melina: Mm-hmm, yep.
Cory: So when I had that feeling, I was like, I don’t really want to work at all, you know? And I felt a little bit of shame, or like… Because I’m not a lazy person. If anything, I’m the opposite.
Melina: Right.
Cory: But when I read the book, it put me so much more at ease, you know?
Melina: Like you’re not crazy.
Cory: Yeah, I’m not crazy. It’s not wrong to feel like you want more…
Melina: No, no. Right.
Cory: …and you don’t want to struggle or work a nine-to-five forever.
Melina: Right.
Cory: So, it was…
Melina: And that there’s another way.
Cory: Yeah. And it’s okay to feel… In fact, I think he even says in the book, it’s like, “The way you get rich is to be lazy,” or something like that.
Melina: Yeah, because…that’s…
Cory: Because it forces you to be creative.
Melina: That’s exactly right.
Cory: Yeah.
Melina: And leverage…mm-hmm.
Cory: Yeah, and leverage, and… So when I read that book, it really, like, you know, changed my life. And it actually led me to you guys.
Melina: Right.
Cory: Because like, it’s a business book, it’s an entrepreneur…like, it’s about entrepreneurship. But he talks a lot about real estate…
Melina: He does, mm-hmm.
Cory: …and investing in real estate, because that’s where he, you know…what he supports. And so he mentions, like, to just go to the local clubs, the loc-…you know?
Melina: Right.
Cory: And that’s where, as soon as I put the book down, I was like, I want to do this, you know? Like, I don’t know how, like…you know?
Melina: Did you feel that fire in your belly, like this is it?
Cory: Oh, yeah.
Melina: Like, this is it. This is it. I just have to figure this out…
Cory: Oh, yeah.
Melina: It’s so good.
Cory: I even was, like, telling my dad, like after I put it down, I was just, like…you know, I was kind of proud, I thought he’d be proud, like, “Oh, I picked up…I finally read “Rich Dad Poor Dad.” He’s like, “Oh, okay. Cool,” you know? And I was like, “Yeah, so…I’m done with school,” you know? Like, I’m just… And he’s like, “Whoa…” like…
Melina: That’s not what I meant.
Cory: Yeah. He’s like, “How about you just finish out the last year or so?”
Melina: Yeah. Uh-huh.
Cory: And like, I did, you know?
Melina: Uh-huh, yes. And are you glad you did?
Cory: Oh, I’m so glad.
Melina: That was good advice.
Cory: Yeah, I’m very proud of that moment.
Melina: Yes, you should be.
Cory: Like, I got to, you know, get my diploma, and some of my family flew out…so yeah, I’m very proud of that, actually.
Melina: You should be.
Cory: And that’s why, like, sometimes parents know best, right? Yeah.
Melina: For sure. For sure. Sometimes we don’t realize that ’til we’re, you know, much older.
Cory: Yeah.
Melina: Then we realize, oh, yeah…they weren’t so dumb after all.
Cory: Yeah. So after putting down the book, I had the fire in me already, you know?
Melina: Mm-hmm.
Cory: And so I was searching, and then I googled, like, real estate investing clubs in Riverside, California.
Melina: And there’s one.
Cory: That was basically…yeah. And also what’s funny is, like, I saw one of your guys’ signs on the side of the road.
Melina: Oh, uh-huh? Uh-huh, okay. Yeah, a roadsign.
Cory: Yeah. And so I think it was on a major…like, I would pass by it all the time. And after reading the book, and googling, like, I just remember that sign, I was like… So the next time I passed by it, like, I looked, I took down the number, and I called, you know? But it just so happened to be the same club.
Melina: How about that? Yeah.
Cory: Like, you guys were online, you had the Google ad…you guys are everywhere.
Melina: Yeah.
Cory: So I ended up calling, and it wasn’t until later I realized that oh, that was the same club I googled anyway. So…
Melina: Yeah, yeah.
Cory: Yeah. And that’s where I think Tony took my call, and he kind of told me what it was all about, and invited me down for the…I think it was, like, the intro workshop.
Melina: Yeah, the intro. Mm-hmm. Yeah, introduce you to the club and all that.
Cory: And that really, like, changed my life.
Melina: Really?
Cory: Honestly, yes.
Melina: Just the intro?
Cory: Just the intro.
Melina: Wow.
Cory: Because it was you and Dave on stage, and I went from reading it on paper to hearing it from real people on stage, you know, about the same thing.
Melina: Yeah.
Cory: And so it was just confirmation to me.
Melina: Wow.
Cory: And it was…when I left that room, I knew that this is…like, there are other people like m, like how I was feeling. Not only was I reading it from the book, you know…?
Melina: Yeah. Yeah, which seems maybe a little unattainable, you know?
Cory: Yeah.
Melina: Or there’s a little bit of doubt. You’re like, well, somebody…you know, this makes sense, but…yeah, to see it…
Cory: Right.
Melina: And how weird that you’re in Riverside.
Cory: Yeah, I know.
Melina: All the way from Oahu.
Cory: From a…right. Yeah.
Melina: Sitting in the 24-Hour Fitness…the one at McKinley? Is out the one?
Cory: Off McKinley, yep. Yeah, I just passed by it today.
Melina: Yeah?
Cory: Yeah. I was like, oh, there it is…
Melina: There it is. Wow.
Cory: It’s still there.
Melina: Wow. That’s such a great story, that you…your phone…
Cory: Yeah.
Melina: Like, that’s so…
Cory: Yeah. And I had never… Because it was a heavy moment for me, you know?
Melina: Yeah, yeah.
Cory: And I never really had heavy moments, you know?
Melina: Right? Totally. Totally.
Cory: Yeah.
Melina: Thankfully, you were…you know, you were wise enough to pay attention, to heed it.
Cory: Yeah.
Melina: Right? Because you know, I believe that that’s how God speaks to us. You know, he brings, you know, ideas. That’s what God does, right? God lives in us, and so, you know, he will bring things to your attention, and you know, we get to choose whether we listen or we don’t listen, right?
Cory: Mm-hmm.
Melina: And then from that moment something happens, and then you…you know, you get to choose. That’s what free will is all about, right?
Cory: Yeah.
Melina: That you get to choose what you do with it. You could ignore it…you could have decided, you know what, I’m going to go to the bar, I’m going to meet some people, right? And I’m going to drown this kind of feeling out, I’m going to numb it, and there’s a million ways you could have responded to that moment. And I believe that that is, like a Kairos moment. A Kairos…you know?
Cory: Yeah. Right.
Melina: You know, like a very appointed moment in your life that you, how you respond…it’s like an invitation. And how you respond to it is…literally can change the course of your life.
Cory: Yeah. And I didn’t know it at the time, but all I knew was I was searching for something now, you know? Something more. Yeah.
Melina: Yeah. And what’s remarkable to me is the way you responded. You said yes to the invitation, and then you took action by picking up the book. So for however many years, your dad said read this book, read this book, and then you decide oh, yeah…you know? You said yes to the invitation to do something different.
Cory: Yeah. And I always had that book on me for some reason, you know? It was all torn up and everything. And I remember that I was in the middle of, like, exams…like, we were always having exams.
Melina: Right?
Cory: And they weren’t easy. Like, Cal Baptist is a good school.
Melina: Yeah, CB is no joke. It is.
Cory: Like, yeah. Because I went from UH, and…you know, no offense to UH, I mean, but it’s just Cal Baptist is another level.
Melina: Not as intense. Yeah.
Cory: Yeah. It’s another level school. And so I just remember, like, I shouldn’t be reading, I should be studying right now. But I read a couple pages, and it was just…I was hooked.
Melina: Oh, yeah. Sucked in. Mm-hmm.
Cory: Yeah.
Melina: I feel like everybody who picks up the book for real and finally reads it, it does. It’s life-changing. I know it changed my life too, entirely.
Cory: That’s why I’m looking forward to your…story.
Melina: Thank you. My book, yeah.
Cory: Yeah.
Melina: Yeah, thank you.
Cory: I didn’t know if you were making that public or not. Sorry.
Melina: Yeah, I am. I mean, it’s…yeah, it’s definitely…
Cory: Oh, okay.
Melina: You know, I don’t know how I’m going to make it public, but here we are. I’m writing a book.
Cory: Oh, okay… Oh, sorry, guys. I’m sorry.
Melina: Don’t be sorry. Don’t be sorry.
Cory: Oh, okay.
Melina: It’s like, the perfect way. Because there’s this question, you know, how do you organically and authentically roll it out without it being like, hey, I’m trying to sell something?
Cory: Right.
Melina: Because I don’t really…do you know what I mean? Like, I am the most reluctant book writer in the whole world. Like, I am not the one that’s like, oh, I really want to write a book. No. No, no, no. I’m very much like you, responded to an invitation. And the invitation…and I’ve been fortunate in that I’ve had the invitation several times, and I’m always like, no thanks. And so…because truly, I am very private.
Cory: Yeah.
Melina: I’m a very private person, and so…and I’m an introvert, too. I don’t know if you know that.
Cory: No.
Melina: Full on introvert.
Cory: Oh, yeah.
Melina: Entirely. Yes. Yes. Every single time I get on stage, it is…it’s never easy for me.
Cory: Oh, wow.
Melina: Uh-huh. So I recharge…
Cory: That’s actually comforting for me.
Melina: Yeah…is it?
Cory: Yeah. Because I still have that in me. Even though I’ve gotten a lot better…and I’m proud of myself around that…
Melina: You should be.
Cory: …because I came a long ways. Like, a long ways. And a lot of it was through the growth of trying to tackle business, you know? And also from sitting in rooms where I’m watching you and Dave, you know, and having other mentors kind of guiding, and just taking from everybody that I can.
Melina: Really smart. That’s what smart people do. Don’t try to reinvent the wheel.
Cory: Right.
Melina: And know you don’t know it all.
Cory: Yeah. And what was cool yesterday was getting to meet one of your mentors, you know? And just the fact that you have a mentor.
Melina: Oh, absolutely. I have, like, four now. I’m constantly searching for mentors, it’s not easy. The higher up the chain you get, the more difficult it is to find mentors. And here is the truth, and I don’t say this to brag at all, but at some point, you begin to outgrow your own mentors.
Cory: Right. Yeah.
Melina: When you outgrow your mentors…and that’s what Dave and I did. We had, like, one mentor kind of in all areas of life, and what I’ve learned now is I need a real estate mentor, I need a business mentor, I need a personal mentor, I need a spiritual mentor, I need a physical mentor.
Cory: Well, I think it’s awesome because I see other people who hit a certain level, and they take the leadership role. And it’s almost like they’re reluctant to say that they have a mentor, you know?
Melina: Oh, gosh.
Cory: And to me, it’s the opposite. It’s like…
Melina: It should be the opposite.
Cory: Yeah. Like, you should always be learning, you know?
Melina: Mm-hmm. Well, I think somebody who doesn’t want to admit that, they’re just operating in scarcity. That’s what it is.
Cory: Yes. Yep. A hundred percent yes.
Melina: Exactly. So you know, that’s…yeah, no. And it’s interesting, one of the chapters in my book is called “From the toilet to the stage.”
Cory: “From the toilet to the stage?”
Melina: Yeah. Yeah. You know…get this, there used to be a point in time when Dave would want me to be up on stage, and I would hide in the toilet.
Cory: Oh…no way?
Melina: For real. I would…
Cory: Wow.
Melina: Yeah. That’s how…like, that’s how reluctant and how much anxiety I would have from being out there. So they would be like, “Melina,” you know, “Dave’s calling you,” and I’d be like, “I got the diarrhea. I’m on the toilet, I can’t get off.” And sometimes that was true because I would get so much anxiety, but then probably 90% of the time I was hiding in the bathroom, because I did not want to go up on that stage.
Cory: Wow. Yeah, I…like, it’s funny to me…well, because diarrhea is funny.
Melina: Right, diarrhea is always funny. But it’s real, you know?
Cory: It’s real. But…
Melina: It happens. Especially if you get anxiety, it always happens to me. Just like, bam, that’s it.
Cory: But I identify with that.
Melina: Yeah.
Cory: So that’s why it’s even more funny.
Melina: I’m glad.
Christian: Hi, this is Christian Rios. As many of you know, I had been a member of New Wealth Advisors club for over seven years, and got started when I was 17 years old, with absolutely no real estate experience. One of the biggest lessons I have learned from being in the industry is the need for authentic relationships. If you’re looking for an actual team locally in Southern California, with all the resources needed to close deals, register for one of our free workshops by visiting www.joinnwac.com. Thanks for listening to the “Flippin’ Off” podcast.
Cory: But I’m so glad that you are telling your story, you know? Because I know…like I told you yesterday, it’s just like…you’ve changed my life, you know, you and Dave, and Andrew, David, your family, and the New Wealth Advisors Club family. Like, truly, really put me on a path that, you know, I’ve been driving along to this day. And I’m never getting enough.
Melina: Isn’t it interesting how we’re sitting here talking, and how, like, in sync we are, right?
Cory: Yeah.
Melina: There’s like this vibe, and like yes, and this, and yes, and this… And that we didn’t know each other.
Cory: Yeah, mm-hmm.
Melina: You know, like know each other, know each other.
Cory: Yeah, know each other. Yeah.
Melina: So it’s really wonderful for me… The truth is this. Because the reality of this is that I didn’t personally, Dave didn’t personally get the opportunity to mentor you, but it was what we created.
Cory: Right.
Melina: And it was the ripple effect, which is so important to me. Like, I don’t want to take credit for you. I don’t. Like, I don’t…you know? Like, I love that it was the dream, it was the idea that Dave and I had to create something that would truly launch people, and give people an opportunity to create something…whatever they wanted. And like, Dave and I used to say, man, nothing would make me happier than somebody comes out of here and earns more money than us, and becomes bigger and better and more fantastic than us. Seriously.
Cory: Yeah. Well, it’s shone through. Like, because I could tell… And I didn’t know, because that was the first kind of event or meetup, you know, that I had been to.
Melina: Yeah. Oh…
Cory: So I didn’t know if this is, like… But I kind of, in like, deep down, I kind of had a feeling it was different, you know?
Melina: Mm-hmm.
Cory: That these are genuine people. And also, the fact that you guys are here and you’ve been here. It’s funny because I was able to say, like, yesterday when I’m giving the talk to everybody, all the students, and I’m thinking it was this exact room…
Melina: It was that exact room.
Cory: …and this exact training that I went through.
Melina: Yes. Yes.
Cory: And you guys are still here. And not only that, and I’ve told you this before, but it says a lot when eight years later, and that’s only eight years, and you guys have been around longer than that. But since I’ve, you know, met you guys and been in the room the first couple days, I see the same faces, you know? Oscar, or Kevin…
Melina: Yes, yes. Yes.
Cory: …yeah, I just…everybody. And then Frank, and… So, that says a lot. Because you don’t really stick around for eight years at something unless you care, and you just feel that it’s so different. And I wish I could find the words to tell the students, the new students coming in that they are so lucky, you know, without sounding…
Melina: Slamming someone else?
Cory: Well…yeah. Well yeah, I don’t mind slamming somebody else.
Melina: Oh, good. Really? Oh, good.
Cory: Yeah. But there’s…
Melina: Because sometimes it’s infuriating, you know?
Cory: Yeah. And I was talking to Andrew yesterday about it, it’s like, they probably don’t know how lucky they are, like, the opportunity that they have in their hands. Because it’s so hard to make it in this business on your own, and they have the support from you guys, for one. And the office is there, they can come anytime, you know?
Melina: Seriously.
Cory: And the other thing, too, is the resources that you guys offer. Like, Andrew was telling me the resources that you guys offer, I’m like, wow. Do you know how many people, like investors in Hawaii that I know that would love…like they, they have…it is hard. Especially raising private capital.
Melina: Yeah, it is. Yes.
Cory: And so it’s not easy. You need a track record, you need to, like, maybe partner on deals to build that track record.
Melina: Mm-hmm, that’s right. That’s right.
Cory: And so, it’s so hard just to do it on your own without the resources, you know? And you guys offer that to the club and these new students. So I wish I could have found the words to say it without saying, like…having it sound that “You guys are lucky, you don’t know how good you have it,” you know?
Melina: Right, right. Yeah. Yeah, yeah, yeah.
Cory: Like, ” would stick around, you know? And if you don’t make it, you know, with this club, that’s on you, you know?
Melina: Entirely. Entirely.
Cory: Because that’s the truth.
Melina: It is the truth. Thank you. You know, I do say to people, and it’s hard because, you know, it’s me, right? But I say this, if you can’t make it in real estate in my organization, then you’re never going to make it. You’re just not going to.
Cory: I believe that.
Melina: I do, too.
Cory: I believe that. I think if I did stick around up here, it would have been so much easier, honestly. Yeah.
Melina: So, that’s…I really appreciate that, you know? And I don’t know if you know this, but this is our sixth iteration of the company.
Cory: Oh, wow.
Melina: This is the sixth one, yeah. So we’ve been in business for about 12 years, and so about every other year, there’s been a shift, you know, in the way that we structure the organization. So it’s, you know, in the beginning, we didn’t have like a one-year membership, you know? I think in the beginning, Dave, and I were like, come one, come all, you know? Dave and I, we made it in real estate investing because after going to all those places, you know…and then once we cracked the code, right, cracked the code for the first time… And it was because somebody taught me about an equity split.
Cory: Ohh…
Melina: That’s what happened. I learned about an equity split, and… So, Dave and I were broke, but we had good credit.
Cory: I see. So, you…right.
Melina: So, see? I took advantage of the equity split, we used our good credit, partnered with an owner who had horrible credit on a property that was in foreclosure.
Cory: Wow.
Melina: That’s what we did. And so in that deal, we made $83,210.
Cory: Wow.
Melina: First deal we did.
Cory: That was the first?
Melina: The first ever. And that was in 2007.
Cory: 2007…oh, okay.
Melina: Mm-hmm.
Cory: Wow.
Melina: Yeah. And I still own that property today.
Cory: Oh, you still own it?
Melina: I do, yeah. We had a…you know, there was an agreement, like a one-year agreement with the sellers to buy it back. And then we tried to, you know, work with…you know. But we actually…they made $50,000, so we, you know… Actually, the $83,210 payday, Dave and I only kept $33,000 of it. We gave $50,000 back to the sellers.
Cory: Oh, okay. Wow.
Melina: Yeah. Funny, right? And now that I think about it, I’m like, huh, that’s…
Cory: That was a lot, actually, right?
Melina: It was a lot. Now I’m like, holy cow, you know?
Cory: Yeah.
Melina: But then it was…but there was supposed to be a plan for them to buy the property back because it was in our name, and it just never happened. They were never able to get it together. So finally, probably…
Cory: But then 2008 came, right?
Melina: Right, exactly. Then 2008 came, and then 2009, 2010, 2011, whatever. And so, I think it wasn’t until, like, probably 2012 or 2013 that we were like, okay, guys, like, you know, we need to make sure…and they were in full agreement, so it was fine. But I’ve had it rented out all these years to the same renters, and…
Cory: To the same renters?
Melina: Same renters, ten years…
Cory: To this day?
Melina: No. Last year, you know, just based on where the market is, I thought, hmm, it’s probably a good idea to start liquidating a little, you know? Because I know that the market’s going to crash, and…you know, at some point, maybe in the next two years, I think. And so there’s…you know, I’m thinking business, so I’m like, maybe it’s a good time to, you know, sell stuff off, when we’re in a seller’s market at the top of the market.
Cory: And hold onto some cash. Liquidate.
Melina: And hold onto some cash. Liquidate, that’s right. And wait, so that when the market goes down, I can, you know, pounce. Because the reality is all of the wealth that we’ve created for ourselves was in the down market.
Cory: Oh, wow.
Melina: Everything was 2007 to 2011, that’s where we bought everything…most of our properties, and that’s where we created all of our wealth. So now I’m, you know, being strategic in what do I get rid of, and what do I…you know? So, there was that whole conversation. And so we got rid of the renters, and you know, we hadn’t walked in the house for probably 10 years, so we had to rehab it. So David, and Andrew actually stepped in, rehabbed it, and we were going to sell it, and there was this conversation of some kind of nostalgia, you know? Like, this is our first deal… And also, you know, it’s in a great position. It’s in Ontario.
Cory: Oh, okay.
Melina: And so…it was actually David, David said, “I think we should try to Airbnb this.” I’m like, “In the ghetto in Ontario? What are you talking about,” you know? Because it’s like a four-bedroom, two bath, and I’m like, “What are you talking about?” And so we were like, well, let’s just see, you know? I think we finally all came to the agreement of we don’t want to sell it, we’re going to keep this one, you know? And so we’ll try to Airbnb it, let’s try it for 30 days, like, it doesn’t hurt, and see what happens. So it’s been almost a year now, and we’re, like, 90% occupied.
Cory: Wow. In Ontario?
Melina: In Ontario. It’s been just, like, a fantastic strategy for us.
Cory: I know Ontario as like…like, the dairy farms.
Melina: Right.
Cory: Because I remember it smelled like…
Melina: Yes.
Cory: Because my aunt used to live in Ontario.
Melina: Okay.
Cory: Yeah. And I actually liked Ontario.
Melina: Ontario is nice. It is nice, actually. So it’s really funny, but that’s been, like…so, we still own it.
Cory: Oh, you still…yeah. And Airbnb it?
Melina: We still own it, and we Airbnb it.
Cory: That’s awesome.
Melina: Yeah, I have, like, three of them now, and they’re doing very, very well.
Cory: In Ontario?
Melina: No, Riverside and Ontario. Two in Riverside, one in Ontario.
Cory: Oh, okay.
Melina: And all three of them do very, very well.
Cory: Wow. Wow.
Melina: Yeah. So you know, it is funny…and that was from Chris Albin, the guy you met yesterday.
Cory: Oh, yeah.
Melina: He is the one who taught me about an equity split in 2007.
Cory: Oh, that’s awesome. Oh, he taught you that, and then you guys did…
Melina: Mm-hmm.
Cory: Oh, okay.
Melina: Mm-hmm, yeah. I learned it in 2007 from him, at some training he was at where I went to. And when he shared the idea of an equity split, I was like, oh, I think…okay, I think I can do that. Because I had this deal I didn’t know what to do with. And you know, in 2007, money was hard to find.
Cory: Yeah.
Melina: And also, we didn’t have any track record.
Cory: Oh, okay.
Melina: Do you see that?
Cory: Yeah.
Melina: Like, we didn’t. In the beginning, when I look at how we built our business, we had no credibility, and we had no money. And in those days, there was one point when Dave and I were actually building the office, and we were building the office on our own dime, and we had probably, I don’t know, $200,000 in credit lines. And we went to go write a check one day, and the credit line was just shut off. That’s what would happen in 2008, 2009, like, they would just cut your credit limit, and you’re like, wait a minute, I don’t own anything… Right, and you don’t have any more credit. Because the world is freaking out right now.
Cory: Yeah.
Melina: So you know, we experienced that. So we had to get really creative to find where to find the money, and how to create the money. And so that’s what we did, we used our credit. And I learned that from Chris Albin.
Cory: Wow. And were you in touch with him all this time, or…?
Melina: Mm-hmm.
Cory: Oh, okay.
Melina: Yes, all these years.
Cory: Wow. Yeah, I bet he was proud.
Melina: He’s been very proud. So that’s why yesterday, when we were sitting at the back of the room, I’m hitting him, going that’s our baby. Because you don’t know this, but he’s been a huge part of the success of our club.
Cory: Oh, wow.
Melina: Because he’s a real real estate investor current, today.
Cory: Right. Yeah.
Melina: He’s not just slinging stuff, you know? He’s actually doing deals, and he’s a brilliant, brilliant man. And he’s humble and, you know, all those things. So, we have a real connection.
Cory: Yeah, he seemed every bit of that.
Melina: He is.
Cory: For like, the one minute that I got to meet him yesterday.
Melina: It’s all true.
Cory: Yeah. That’s awesome.
Melina: Yeah. And he’s a storyteller, too.
Cory: Oh, he is?
Melina: Yeah, he’s a public storyteller.
Cory: A public storyteller?
Melina: Yeah, so he goes to different places, and he…
Cory: Like poetry kind of thing?
Melina: Yeah. Like, and most of it is allegories.
Cory: Oh, okay.
Melina: He’s really cool. So most of his allegories, he tells stories and it usually brings people…it’s the gospel.
Cory: Oh, wow.
Melina: Mm-hmm. He’s a good dude.
Cory: Oh, cool.
Melina: Extraordinary.
Cory: Yeah.
Melina: Geeky, nerdy, but like, deep and wonderful.
Cory: Awesome.
Melina: Yeah. Very in line, very much in line in the mission, you know, with who we are and what we stand for.
Cory: Well, the fact that…I mean, because those were hard times, during…
Melina: Really hard times.
Cory: Like, I’ve…like, I’m always asking people, like, who are, you know, more experienced than me and have been through a crash. I haven’t been through a crash yet.
Melina: Yet.
Cory: I came right at, like, the end, going up, you know? So, life’s been good.
Melina: Oh, absolutely. I talk about this a lot, that we’re in the longest expanding market…
Cory: Longest bull run ever, right?
Melina: …we’ve ever seen, in the history of the United States.
Cory: Right. Yeah.
Melina: And that’s pretty…that’s something.
Cory: Yeah. And I always ask people, like, you know, what was it like, you know? Because I want to know, because I want to see… Because I know, like, when the turn happens, like, a lot of people are not going to be here anymore, you know?
Melina: That’s right.
Cory: Like, the real investors who understand the fundamentals, and you know, they understand market cycles… Which we ignore early on, because we want to just do the deal, and we don’t care about, like, where we are in the market, you know?
Melina: Not me, man. It’s day one of my training.
Cory: But when…yeah, when I’ve learned that… Oh, yeah, it is.
Melina: Day one of my training, market cycle.
Cory: And I remember you guys talking about all of that, right?
Melina: Yeah, yeah.
Cory: And I remember me brushing over that.
Melina: Yeah, it’s because you didn’t feel it.
Cory: Yeah, I didn’t feel it. But now, all the conferences that I go do, now that I’m in the lending space, they’re all about the market because that’s…they’re real high level, you know? They’re very intelligent. And so I always want to hear what that person has to say about the market, you know?
Melina: Yeah. Me, too.
Cory: And just kind of form my own opinions. Because nobody really knows…
Melina: No, of course not.
Cory: …but at the same time, there’s indicators.
Melina: There is.
Cory: So the fact that, you know, I haven’t been through one yet, I’m trying to prepare myself. I want to see what I’ve got, you know?
Melina: Right?
Cory: I want to see…you know?
Melina: Yeah, yeah, I totally get that. So, what do you think? Based on everything that you listen, you know, you learn, and people you surround yourself with, what do you think?
Cory: I think I agree with you.
Melina: You do?
Cory: Yeah. I think it should be soon. In fact, I just…my cousin called me, he lives in Huntington Beach.
Melina: Mm-hmm.
Cory: So I was asking if he…you know, what he’s doing later tonight, and I might go see my niece’s softball game. And so, but he has some money, you know, and he was asking what he should do with it, and he wanted to maybe rent out his place and go buy something, you know? And he asked if that was a good idea. I was like, ehh…I don’t know, you know? Because you’re buying kind of at the top, you know?
Melina: Exactly.
Cory: So, I’m just very cautious about any long-term purchase, you know? Unless you’re going to hold that thing for 10 years or something.
Melina: Exactly. That’s…you know, I sat with two students yesterday who had just come from another seminar, and they have equity in their primary residence. And so what they were told to do was to get a HELOC on their primary residence so that they could, well A, buy a ridiculous amount of…you know, of a package, right? And then B, take that money and go put it down on another property. And I said, no, you will not do that. Don’t do that right now. So if you guys want to buy another house right now, then we need to make sure… So one of the things Chris taught me that I live by, which is you either get your price or your terms.
Cory: Right.
Melina: Price or terms, price or terms. And so right now, it’s very difficult to get your own price, you know, the price you want. You just can’t get that. So if you can get terms, right…I just bought a house in Riverside. I bought it, the house you…oh, no, you haven’t been there yet. But I bought it because I actually said out loud I want to have a small house really close to the office, that I can buy, that I can put people from Hawaii in.
Cory: Oh, that’s so cool.
Melina: When they come to train, I want them to be… So, I really want to find something like that. And so, do you know, like two weeks later, I had a student come to me and say, “Hey, I got this deal. It’s not really a deal, it’s…” Kind of like, basically, “She owes what it’s worth, but she’s in foreclosure. I don’t think we could sell it and make any money, it needs work. Not enough for a short sale, she needs cash, I don’t know what to do.” And I’m like, “Well, where is it?” “Well, it’s a quarter of a mile from my office.”
Cory: It’s funny how when you start to put things out there, right?
Melina: I’m telling you, that’s why I said…I said it out loud.
Cory: Sometimes you’ve just got to ask.
Melina: I’m telling you, you’ve just got to put it out there, and then things happen, right? So I was able to buy that property, subject to.
Cory: Oh…
Melina: See?
Cory: Yeah.
Melina: So, and why, because well, she came to my office in 2017, we helped her get a loan modification. You know, we have a foreclosure prevention event that we put on for homeowners. And so it’s a free event that we put on, I have HUD come, I have attorneys come, and yeah, they serve homeowners. And so we helped this woman in 2017 get a loan modification. And her interest rate, the modification that they got for her was, like, 2% interest, you know, it’s like a 10-year-old loan. It steps up, but it caps out at, like, 3.75%.
Cory: Wow.
Melina: Right? So I said…so see, I like those terms.
Cory: Yeah.
Melina: Right? So I overpaid, probably, a little bit for the property, and I made sure…but it was a win-win. I made sure that she had cash, I gave her, like, $13,000, we moved her…you know, we helped her find another place…
Cory: Oh, wow.
Melina: …we did all those things, so created a win-win. And now, that’s my property that people can stay, like when they come from Hawaii. And right now, this is the good thing about the coronavirus, it’s cheap to fly. So I’m like, hey, you know, come stay. So, that’s what I did. So now I Airbnb that, and I’m full all the time.
Cory: Oh, that’s awesome. Oh, that one, right?
Melina: Mm-hmm.
Cory: Oh, okay.
Melina: Yeah. So, you know, there’s all of these opportunities. So, I agree with you. I said this to somebody, so I bought that as a buy and hold, but not because the price was right, but because the terms were good.
Cory: Mm-hmm.
Melina: So, that would be how I would speak to your cousin. Like, hey, you know, it is at the top of the market, and frankly, if you have equity, I would…you know, I’m a big fan of HELOCS, I think that’s a great thing to do, you know? So that you can liquidate as much as you possibly can right now, so that when the market does turn, we’re ready.
Cory: Right. Yes.
Melina: Because it was tough back then. It was really, really tough. But we just used…we really went shopping for mentors. This is why I’m really clear that I needed mentors, because I just…we had nobody to… Like, we didn’t have any experience ourselves, so we had to just find mentors. And we sought out mentors, and learned everything we could. And then probably the most important thing is we put it into action.
Cory: Yeah.
Melina: You know? And it was…so, that’s what we did. And ever since then, over the last several years now, I’ve been able to build credibility. I have a portfolio, and now, you know, people want to give us money all the time. I have more money than deals right now. That’s the truth, you know?
Cory: That’s a great problem to have.
Melina: It’s a great problem to have.
Cory: Right. But it is still a problem, though. Yeah.
Melina: Yeah, it is. It is. It’s a seller’s market, so it’s…you know? And Dave used to say all the time, “Deals aren’t found, they are created.”
Cory: Yeah.
Melina: They’re not found, they’re created. If it were easy to find deals, everybody would do it, right?
Cory: Right. Yes.
Melina: It’s not. It’s not. And you make your money on your buy.
Cory: Right.
Melina: Nobody wants to know that, nobody wants to talk about that, you know?
Cory: Yep. Yeah.
Melina: So, my training is very, like, I keep it real, and people’s…you know, like, hey, you and I are going to end up in an argument at some point because you’re going to try to find every reason to make a deal work, and I’m going to find every reason not to make it work.
Cory: Yeah.
Melina: Because guess what? This isn’t monopoly money, it’s real money.
Cory: It’s real money. Yeah.
Melina: Somebody’s real money.
Cory: Yes. Yeah. And it’s a lot of money.
Melina: Yeah.
Cory: Right. Yeah.
Melina: It’s not $30.
Cory: Nope. Yeah.
Melina: Yeah. So…all right. Well, I think…I don’t know where we are in terms of timing, but I think it’s probably a good time now to take a quick break, and we’ll continue on in this conversation. So for those of you that are listening, the next podcast that you’ll hear will be the turning point, how Cory went…we’ve got to come up with a good slogan, like how Cory went from running out the back door…sitting in the back of the room, googling words you didn’t know…
Cory: Yep. All of the above.
Melina: …to celebrity. So hey, would you just share the last story about how when you would walk into the room and you would take notes, and what you would do, how you would write down words?
Cory: Okay, yes. So…yeah, I’m an introvert, super shy, especially back then. And so I came to the event just because I saw your sign, I read “Rich Dad Poor Dad,” I googled. And before that, my whole life was something else. It was I’m a student, you know, and I come from Hawaii, so already I’m out of my comfort zone.
Melina: Yeah.
Cory: And so I come to the event, and you guys have such great energy, you know? I wasn’t ready for the energy, actually. So already, I’m like, uhh, what am I…?
Melina: What’s their deal?
Cory: But I was the guy that sat…I was a ghost in that room. And I would sit in the back of the room, strategically closest to the exit, and kind of just put my head down, shoulders down, you know? I don’t want anybody to call on me. But I was listening, you know, and I was definitely interested. I had the fire in me, I was just kind of containing it, I guess.
Melina: Of course.
Cory: And so I would hear you guys talking and giving content, you know, talking about short sells, escrow, and wholesale, and so I didn’t know what those words meant, you know? I was like, I don’t know what any of this means, but it sounds cool, you know? There’s a lot of people in this room, so it sounds like this is important information. So I would write down words I didn’t understand, you know, which was escrow, and like, title, and short sale. And I would, since I was too shy to raise my hand and ask, right… Actually, I’m kind of glad I didn’t. Because if I said that, like, maybe I…you know? But no, I really, looking back, I shouldn’t have been ashamed. Not in that room, you know?
Melina: No. You could have totally asked.
Cory: Not in your guys’ room, in the culture that you guys have built. Now I know, you know?
Melina: Yeah.
Cory: But at the time, I didn’t…you know, I was…
Melina: It was still intimidating.
Cory: It was intimidating. Right. So I would write down the words in my little notebook, and go home and go straight to the computer, and Google every word, and try to piece it together, you know?
Melina: Wow.
Cory: And so I remember doing that. And like, actually, just only like a year ago, you know…I think, like, slightly before we reconnected and you guys were in Hawaii, just out of coincidence, I found it. And one of the words in there was mortgage. So when I say that I didn’t know anything about real estate, I really didn’t know anything. Not even what a mortgage was, you know?
Melina: That’s amazing.
Cory: Which is surreal, because today, like, I own a lending company. So we do a lot of loans, and it’s a lot of mortgages, and I have to understand the docs that are, like, you know, 100 pages long sometimes.
Melina: Seriously.
Cory: And I also give mortgages, and I get mortgages, right? I have private mortgages, I have millions of dollars of debt to my name.
Melina: Yeah, yesterday I was like, woohoo!
Cory: Yeah, you’re the only one that kind of cheered, and I was like, oh, I got…
Melina: You know, you’re winning when you have millions of dollars of mortgages. Trust me, I know that.
Cory: Yeah. So, I did say that. I said, you know, I have millions of dollars in debt to my name.
Melina: Yes. Yes.
Cory: But it’s good debt, right?
Melina: Of course. Of course. Yeah.
Cory: For the most part. You know, every now and then you have a couple of deals where it’s like, oh, man…
Melina: Yep. I’ve got to pay for this.
Cory: Yeah.
Melina: I always tell my students this, I could probably teach an entire seven days at least, like eight hours a day of what not to do in real estate.
Cory: Oh, yeah. Right.
Melina: Easy. I try to sprinkle them in too, every time I’m training because I don’t want to, like, scare the living daylights out of people, because I do want to inspire them. But I’m very, very honest. Like, hey, don’t do this at home. Like, don’t try this because this did not work, right?
Cory: Right.
Melina: This was bad. And so I’m always telling people don’t do this, don’t do this, do this. And then I say, oh, do you know why I’m telling you don’t do this? Because I did this, and this sucked.
Cory: Yeah.
Melina: This hurt. This was really painful, I don’t want you to experience this. And you still get stuck. You still sometimes…there’s things that happen that are out of your control, and you can still learn something from every single one of them…
Cory: Oh, yeah.
Melina: Like, you don’t suddenly have a podcast, and then don’t have deals that suck.
Cory: Right. Yes. Yeah. Well, I always say this, like if somebody says that they’ve never lost money on a deal or never made a mistake in this business, that person is either lying, or they haven’t done it long enough.
Melina: Seriously.
Cory: Or they’re crazy, you know? So, maybe three.
Melina: Right, it could be one of those three.
Cory: Right.
Melina: Or maybe all of them.
Cory: Yeah. Because I’ve never met anyone successful in this business that hasn’t been through it, you know?
Melina: Yeah. Gosh.
Cory: And that’s why I don’t have any shame, you know, like, sharing everything, you know? Luckily, like, I’m surrounded by great people, and so I trust that nobody would, like, take that and use it against me or anything like that, when I’m as transparent as I am.
Melina: Mm-hmm.
Cory: But like, I’m not afraid, you know? Because I see people who have success, and they’re not afraid. They’re not afraid to lose.
Melina: No. Oh, no.
Cory: I just want to make sure, like, if it’s your first deal, like, let’s make this a home run, you know? Like, let’s not…
Melina: Seriously. You don’t want to lose on your first deal.
Cory: Yeah. I always say you don’t want checkmate on the first one.
Melina: Oh, my gosh. No kidding.
Cory: And it’s easy to do that because when you’re new, I know this was me, I was forcing the numbers, and I was very optimistic… And you know, just the ignorance, the young ignorance, you know, is…
Melina: Yeah. You don’t know what you don’t know.
Cory: …it’s cute, but it’s dangerous. It’s so dangerous.
Melina: Yeah. That’s why, you know, I tell people we have way more money than we do deals, but then I always follow it up with this. But hear me clearly, you’re a member of my club. That doesn’t mean if you bring a deal…like, I think you’re great, I love you. And you come to me, you’re like, hey, I have this deal, and I just need $300,000. And I’m going to say, that’s great, but I’m not going to write you a check for $300,000, and I will not recommend anybody I know to write you a check for $300,000 because you don’t know what you’re doing.
Cory: Yeah.
Melina: And you don’t even know what you don’t know right now. But what I’ll do is I’ll make sure that you get a partner with somebody who will take responsibility for that money. I’ll write them a check all day long. And then you will split profits with them, and you will learn in the process.
Cory: Yeah.
Melina: Like, you’re welcome.
Cory: Yeah.
Melina: And they don’t really get that. They’re like, well, I’m only going to get 20%? And I’m like, are you joking? Like, what do you…? Like, people are… And I think it’s because they watch TV, and they go to things, and they get sold this dream. And I’m like, no, because I actually want you to be a successful real estate investor.
Cory: Mm-hmm. Yeah.
Melina: I want to teach you how to fish.
Cory: Yeah. Yeah, and early, I guess I could put myself in that place, and… I don’t think I was ever like that… But even if it’s your first deal, it’s a home run, like I would still partner with somebody. Because you don’t want your…you want to hedge because it’s so important to make the first few deals go really well so you can build off that momentum. And if that means that you have to take a cut in your profits because you just want someone looking over your shoulder, I think it’s worth it. Because there’s so much at stake when you’re first starting out, because if you fail on the…if you take a big hit on the first one, you may never come back.
Melina: Never recover, Mm-hmm. I agree.
Cory: Yeah. Or it would be very hard, you know?
Melina: Seriously. It’s very, very true. You know, it’s so funny, I’m in, like, you know…I said this the other day, I don’t even have the capacity to do, like, a 90/10 split anymore. Because I don’t have 90% to give…you know? Like, I just don’t. I’m in so many deals. And me, with as many deals as I…and I can handpick whatever I want to be in, right?
Cory: Mm-hmm.
Melina: I still go to my guys, and I still split profits with them. It’s my deal, somebody bought it to me, I could take 90% of it, but I don’t even want to.
Cory: Right.
Melina: Because I don’t want to make a mistake. Like, you know, there’s something to just having other people, and I am more than happy to. And I always tell my students this, I liquidate myself first.
Cory: Right.
Melina: Right? So, and I liquidate myself with people I trust, my partners, you know? And so if I’m on a 50/50 deal, I’ll split my 50% with one of my guys just so that I don’t have to take full responsibility. And if I’m willing to do that, why wouldn’t you?
Cory: Right. Yeah.
Melina: When you don’t know what you’re doing.
Cory: Because you have the abundant mindset, right?
Melina: Yeah, I want everybody to win.
Cory: Yeah. And it’s not fun if you’re the only…you make it to the top of the mountain, and you’re the only one, you know?
Melina: It’s lonely.
Cory: Like, I tell this all the time, like Kekoa and I, we don’t really need each other. But he’s a high performer, you know, he doesn’t need me, he can do this, I don’t need him, you know?
Melina: Right.
Cory: But in a sense, we do need each other because I don’t want to be doing this by myself, you know?
Melina: Right. I don’t, either.
Cory: Like, it’s not fun.
Melina: It’s not fun.
Cory: Yeah. Like, what’s the point, you know?
Melina: Totally.
Cory: And when things get hard, and there’s things, like tough decisions, real decisions that affect people’s lives, like, that we have to make, I don’t want to make that on my…you know, by myself.
Melina: I hear you.
Cory: And like, when you take a hit, or you know, things get hard, you want someone there to hug when things get…you know? It’s like…
Melina: Isn’t that the truth?
Cory: Yeah.
Melina: You want somebody to just lay on the floor, and maybe cry next to you.
Cory: Yeah. Misery loves company. That’s real.
Melina: But seriously, it is. It really is. I mean, as much as we all talk about wanting to celebrate together, and we do want to do that, but you know, it is true to have somebody that you can really just, like, wow, that sucked.
Cory: Yeah. Yeah.
Melina: And then you look at each other and go, we’re going to be okay, you know? We’re going to be fine. We’re going to get up, and we’re going to…you know?
Cory: Yeah.
Melina: Like, it is so much easier to do it that way. I agree.
Cory: Yeah. Yeah. I think it’s…I wouldn’t want to…I don’t know how people do this on their own, you know? So…
Melina: I don’t either. Or why.
Cory: Or why. Yeah, I don’t know why they would.
Melina: That’s the real question people should ask themselves. Yeah.
Cory: Right. Yeah.
Melina: So, all right. Well, thank you.
Cory: Thank you.
Melina: Thank you, thank you. So much fun, so much fun. So, we will be back. Stay tuned for the next podcast, because the story continues. So, I’m Melina Boswell, and I am “Flippin Off.”
I’m Melina Boswell, your host of the “Flippin’ Off” podcast. I really hope you enjoyed it. If you did, we’d love for you to subscribe, give us a five-star rating, and tell your friends all about us. You can find more episodes of the “Flippin’ Off” podcast on Apple podcasts, Spotify, Google podcasts, Stitcher, or wherever else you’d like to listen to awesome podcasts like this. If you like what you’ve heard, we’d really appreciate it if you’d follow us on Facebook and Instagram, and tell us the stories that you’d like to hear.
Tim Jackson is our senior producer, Luke Jackson is our editor. Brothers. Josh Mauldin is our producer. Sound design by Frequency Factory. Our executive producer is Mind & Mill. This was all created by Dave Boswell for New Wealth Advisors Club.