EP. 71 // How to Turn $5k into $5 Million by 26 Years Old w/ Aaron O'Flaherty
On today's show we have our very first international guest: Aaron O'Flaherty, owner of The Brokerage out of Ireland.
From a computer store employee to a successful real estate broker and eventually a house flipper, Aaron's journey into real estate is packed with crucial information and insight. He breaks down his initial foray into real estate at the tender age of 17, propelled by his father's challenge to secure a 'proper job' and his subsequent steps into flipping houses, a strategy that served him well. Providing a comparative view of the US and Irish real estate markets, Aaron emphasizes understanding the nuances of deal financing and the fierce competition among hard money lenders.
Aaron discusses his mission of mentoring the next generation of real estate professionals, his philosophy of providing free value, and the importance of resilience in overcoming challenges. His advice on finding quick money and the story of his global travels as a millionaire make for a riveting conversation, so let's get into it!
In This Episode:
0:04 Achieving Wealth Through Real Estate Investment
7:19 Starting Real Estate at 17
16:33 Challenges in Real Estate Deal Financing
20:30 Navigating Challenges and Pursuing Dreams
29:20 Recruiting Mentees for Brokering Success
32:59 Finding Purpose, Overcoming Challenges for Freedom
45:12 Getting Quick Money and Free Value
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Jason Silverman
Host
00:00
the one thing that gives me the confidence that I have today and what we're doing is that, despite losing on a big project, all my investors got their principal back, all my investors got their return, they all got their money. And so, through the communication and through that process, as one of my bigger investors has already come back and recycled doing another project with us, three, two, one go.
David Choi
Host
00:28
Jay Silverman. What a pleasure to have you on the show. Jay Silverman is an experienced real-estate investor. He's been doing this for about six years, 30 plus projects, specifically in multifamily and development. He's raised millions of equity, working with both non-accredited and accredited investors. He structured many creative deals. So when it comes to working with banks, project management, working with investors, this guy has done it all. So, jay, it's been a real pleasure to have you on the show, brother, my man what an intro.
Jason Silverman
Host
01:03
Pleasure to be here guys.
Eric Panecki
Host
01:05
Jay Sylvie, jay Sylvie on Instagram.
Jason Silverman
Host
01:08
We're here. I'm excited man.
Eric Panecki
Host
01:10
We're pumped, bro. It's been a long long time coming. I feel like Well.
Jason Silverman
Host
01:13
I've known you guys for a long time. I've seen what you guys have built, the podcast, I mean, we've known each other for a few years, so I'm excited, bro, let's chop it up a little bit.
David Choi
Host
01:22
Amen, let's ride. Baby, it's always good to have a friend on the show. You could just sit back, talk shit and have a good time and drink whiskey.
Eric Panecki
Host
01:30
Drink the whiskey. What do? We got A bourbon tonight.
Jason Silverman
Host
01:34
A little bullet, a little bullet, dave's request.
Eric Panecki
Host
01:36
We also got the dog we also have Ozzy Ozzy the office dog. It's Ozzy Friday in the office.
David Choi
Host
01:41
I'm lying if I said I wasn't kind of really buzzed right now. All right, good, I'm sweating too.
Eric Panecki
Host
01:46
I'll try to catch up, josh, when are we going to?
David Choi
Host
01:48
get it like a fan or an ace.
Eric Panecki
Host
01:50
Is that ever going?
David Choi
Host
01:51
to ever be a possibility here. I don't know if it's in the budget. You know, what it's probably not in the budget. We need some sponsorship.
Jason Silverman
Host
01:59
Well, this pot's going to go viral. You get some money and then you get a fan Amen. I'm waiting for Stelzi as the sponsor. That's because 100% or bourbon, or bullet, I mean.
David Choi
Host
02:10
Jay, I want you to give the audience a little background on the Genesis story and kind of where you are now.
Jason Silverman
Host
02:18
Yeah, so the background story. So you know, I've been in real estate for six years. Like you said, I was a little late to the game. I started when I was 30, which, like we were talking offline and you know, we're getting around some people who, and you guys, are still in your late 20s, right?
Eric Panecki
Host
02:36
29.
David Choi
Host
02:37
So, I wish I started earlier 27, 28, 28.
Jason Silverman
Host
02:39
Right, but I didn't grow up around it. I didn't grow up I didn't see anyone doing it. I didn't know it was possible. I really didn't, and that goes to like the whole proximity thing that I constantly talk about. But I always wanted to do real estate, probably around 25, 26, started reading all the books that we all chat about and didn't really pull the trigger, save enough money until I was 30, a partner with my cousin. We had some capital, bought a standard rental. I was like I'm going to buy a property every year from here on out, still working W2. I had a sales and marketing background, went to college for business, went to college for sales and marketing. That was what I was going to be doing until I hit about my late 20s. I was like there's, there's no way I can do this. Forever. Started reading all the books, bought the first rental.
Eric Panecki
Host
03:22
What was the book? What was the first book? Rich Dad Board.
Jason Silverman
Host
03:25
No, it wasn't, it was. It was, oh my God, Jake and Geno's management book. Jake and Geno's book oh my God, I'm blacking on the name. Bring this a little, because you look at.
Eric Panecki
Host
03:37
You're looking at Dave and it's going away.
David Choi
Host
03:39
Cool what's?
Eric Panecki
Host
03:39
up. Maybe move it closer to Dave for some. Oh, we can cut this out.
David Choi
Host
03:44
It's our the YouTube video. Sorry, youtube people, they get the real they get the real the real deal.
Jason Silverman
Host
03:51
Yeah, it was Jake and Geno's book. Right it was. It was managing properties, it was like three legs. It was the wheelbarrow profits, so that's what it was called.
Eric Panecki
Host
03:57
Okay.
Jason Silverman
Host
03:57
Wheelbarrow profits sparked my interest. Late 20s bought the first property. Goal was to buy a property a year and then the company I was working for at the time was killing. It was doing a great job. You're a standard like New York City sales job when are you selling? Marketing, marketing, you know, lead generation, digital marketing, events, event marketing like ad tech stuff, ad tech stuff.
04:19
We were working with like high level CMOs, tech tech people who were trying to get in front of an audience. We sold access to the audience. Okay, nothing complicated, but it was a good New York City sort of sales job 150, 200 K a year Great Kind of cushy comfortable comfortable but, like I don't want to do it forever, right, you know the that, that kind of mindset.
04:40
And then I hit 30 years old. I had no girlfriend, I had no kids, still no kids. But I was at a time in my life I was like let's just, let's just take the jump.
Eric Panecki
Host
04:48
According to Instagram, you have a girlfriend.
Jason Silverman
Host
04:49
I do have a girlfriend. Yeah, beautiful, beautiful, great girlfriend, talian, italian, italiano. She supported.
Eric Panecki
Host
04:55
Italian we like over here.
David Choi
Host
05:00
We do you don't have Italian girlfriends All right, oh, sorry, sorry.
Eric Panecki
Host
05:04
No, you're good Like they can cook they can cook.
David Choi
Host
05:06
They're good, the food is good, high quality, high quality.
Jason Silverman
Host
05:09
As Jews, then grew up with good foods. It really isn't a great Jewish food there's like a couple of things the bagels and the locks.
Eric Panecki
Host
05:15
Oh, the bagels, that's the favorite.
David Choi
Host
05:17
That's the best, that's all you need bagels, right, and the matzabal soup, that's right. Matzabal soup is fire and kosher food is his bro.
Eric Panecki
Host
05:25
Kosher food yeah.
David Choi
Host
05:26
I love. I hey, don't talk about my kosher's.
Eric Panecki
Host
05:30
What kosher name? One kosher food.
David Choi
Host
05:31
Don't start with me, mr Pradakki, you can't Okay. Okay, I'll keep you on the side.
Jason Silverman
Host
05:37
It's a yeah, so I forgot where we're at.
David Choi
Host
05:39
but okay, so we're 30. Yeah, so I'm 30 years old. No kids, no girl, no wife.
Jason Silverman
Host
05:44
The company was like kind of going down the drain, Right. So I was like now's an opportunity. I had met someone doing some real estate, some flips. He needed some help, but I was scared to take the leap at the time. I had was going to leave and actually start a marketing company.
Eric Panecki
Host
05:57
Okay, was this your partner now?
Jason Silverman
Host
05:58
No, no, no, no. Different partner. Okay, so a guy named Rich Delaney Shout out, rich Got me started, but I was going to start, I was going to leave the company started marketing agency, left.
06:08
The company took the, took the leap with the assumption that this marketing company was going to happen, did not happen Was it had the expectation of all this money coming in different structures, the whole setup starting a new business, all the excitement that comes with that didn't happen. Simultaneously, rich and I had started working together. He needed help. He was flipping 20, 25 houses at a time and needed help. He was doing it all on his own. So for me I said, whatever you need, I'll help you. I left the job right I had.
06:37
I was making again 150, 200 K a year and I went to basically like $800 a week salary to take the risk, to get involved, to see how it was done, to learn the process. I knew shit. I didn't know anything. I learned how to put a house together and I and I and I learned how to do it on someone else's dime and I think you guys talk about this a lot is you know, if you can partner with somebody, if you can learn from somebody, strategically partner with them on on their dime and minimize your risk, that is the ideal way to do it. So that was that was my, my strategy, or that was that was the process. A couple of years later, about a year and a half into working with Rich, I started buying my own properties, flipping them my own, and that's really what kind of catapulted me. And then COVID hit and for a lot of us it was a major kick in the butt.
David Choi
Host
07:26
Yeah.
Jason Silverman
Host
07:27
And really at that point I pivoted, learned a lot. We can get into that and kind of where that was. But my background is is sales marketing business and started with kind of just project managing a bunch of flips.
David Choi
Host
07:39
I like that. You said that Everyone needs a mentor. Right, like you're not. I mean, some people just have it. They can figure it out on their own, but that's just like really a dumb way to do things. Yeah, like if you could lean on the experience of others, learn at a rapid rate and ultimately do it yourself. It just it saves you decades of your life number one and it saves you potentially losing hundreds of thousands of dollars. So I'm glad you went that route. I went down a similar route. Right, eric went down the similar route. So I would recommend that if you are looking into getting into real estate, do something of that nature, right?
Eric Panecki
Host
08:22
I mean, I think anything, but like I think a lot of people are too prideful, they don't want to act like they don't know shit and, like me and Dave really never had that issue Like we just call dude I don't know what the hell I'm doing.
David Choi
Host
08:34
Yeah, yeah, yeah.
Eric Panecki
Host
08:35
What my saying is always I don't know shit about shit, but I know somebody that knows shit about something right. And as long as you know that somebody right.
Jason Silverman
Host
08:43
It's, it's, it's. You know the cheesy you have to connect your network. Is your net worth that whole?
Eric Panecki
Host
08:48
thing, but it's actually, it's actually true.
Jason Silverman
Host
08:49
It is the most true Cause I don't know where I. We don't work to really do too many deals together with Rich. We obviously went our separate ways. We still talk, we still look at deals, but we don't have anything right now. But he he's the one that got me started and then I kind of took it upon myself to figure out really where I fit. What's my piece to the puzzle, what am I good at? And it takes years, it takes two years to figure that out. But I got the jump off with him. He was crushing it in Newark. He was big in Newark actually for a while Flipping a ton of houses. You guys might know him if you've seen his face.
Eric Panecki
Host
09:21
But what's the name?
David Choi
Host
09:23
Rich Delaney. I know the name. I know Rich Delaney, my name. Never met him.
Jason Silverman
Host
09:28
He's. He doesn't do too much in Newark anymore, but he was big. He was big for a while. So we started there. I was jumping in windows, I was, I was going into vacant houses. I was seeing people still sleeping there. We were doing all the things that you hear of Dead cats Dead cats raccoon shit. Yeah, we still see that, though in some of the flips.
David Choi
Host
09:44
Like I'm still doing that, but we pay people to no. Honestly like there's nothing like a breath of fresh shit A breath of fresh, deteriorating animal. I have. I'm going to be honest with you, I I haven't been. I haven't been in like out in the field. I'm doing a lot of desk work, right, and when I get the opportunity to go out and see and touch and feel shit and real estate how much shit are you feeling?
10:11
You know there's nothing worse than cat piss. It's terrible they're going out to a property seeing dilapidated stuff, but cat piss is where the line is drawn.
Jason Silverman
Host
10:23
Okay, this cat piss and then cigarettes mixed, it's the ill combo. Okay, all right. I have.
Eric Panecki
Host
10:27
I have something maybe.
Jason Silverman
Host
10:27
Cat piss.
Eric Panecki
Host
10:28
I have something maybe worse you ever been in a house with like a one year old refrigerator that has had like stuff in it?
David Choi
Host
10:35
I'm sorry Cat piss takes the bag on this one.
Eric Panecki
Host
10:39
The one year old refrigerator.
David Choi
Host
10:40
The one year refrigerator is really fucking bad.
Jason Silverman
Host
10:44
The milk, the milk's still in there.
Eric Panecki
Host
10:46
Dude, we like, you got like 95 species of fungus in there. Oh my God.
David Choi
Host
10:52
It was terrible. I smell it right now, I don't exactly. Anyway, like if you're going to be doing business in real estate, you're going to be taking down assets, let me tell you, you will smell cat piss. You will see rat dead, rat cones and cats. You will see squatters living in the craziest situations. We have one squatter. We have one squatter Wow. The operation that he had set up was very impressive A professional squad.
Eric Panecki
Host
11:23
Extension cords going in.
David Choi
Host
11:25
Yeah, he had, he was like an electrician or something, because what he had done was he, he, the whole house. There was no electricity, but he was, he set up like these, these, these wire rigs to the electrical, and he, his whole house was, he was, he was living.
Eric Panecki
Host
11:40
I remember what house was it. This was I remember. Yeah, like he, air conditioning at TVs, like everything, but the house didn't have electricity.
Jason Silverman
Host
11:49
I'm like what he's pulling it from the, from the neighbor.
David Choi
Host
11:52
Oh yeah, yeah, you see some freaky shit, cable, we have one squatter right now in a property that we're looking to buy and he's a professional squatter. He's got, he's got a whole operation and you feel horrible because then you got, you got a kids in there, you got people in wheelchairs and you're like you can't, you don't want to just throw these people out.
12:11
So you got to pay them to leave. But you, this game does require you to have a lot of. You have tough skin one, but you also have to be able to maneuver around difficult situations and solve problems right Going back.
Eric Panecki
Host
12:25
I don't want to keep going off topic, but do you remember the dog guy?
David Choi
Host
12:31
Oh, don't talk about the dog guy. No, the dog guy. Which dog guy? No, no, no.
Eric Panecki
Host
12:35
So we know this guy. I know, I have him in my phone as as Crosby, the dog guy with the three dogs. No, this guy puts dog. You know like you ever see the cages on the outside of the abandoned house?
David Choi
Host
12:46
Yeah.
Eric Panecki
Host
12:47
Like the on the windows. Instead of doing that, he puts the dogs in the house.
Jason Silverman
Host
12:52
Oh yes.
Eric Panecki
Host
12:53
And he has like a bunch of dogs, he charges. I don't remember what it was he charges and he just leaves the dog. If anybody goes in the house. They're fucked, they're fucked.
Jason Silverman
Host
13:00
Yeah.
Eric Panecki
Host
13:00
They have no idea.
Jason Silverman
Host
13:02
We used to pay guys with a dog or a pay guy and then bring his dog. He would sleep it. It would be fully under construction.
David Choi
Host
13:07
Is his name.
Jason Silverman
Host
13:07
Crosby, I don't know, I don't remember. Yeah, yeah, no no, no.
David Choi
Host
13:11
But you know, sometimes what they do is to break in cause a lot of if you operate in the hood, people go in, and not even the hood, but like really anywhere what they'll do is they'll go, they'll break into the house, they'll rip out all the copper and sell it Like this happens all the time and so what they'll do is they'll throw poison on Baloney and they'll kill the dogs and then they'll go in. Yeah, that's horrible. My one friend in Detroit. He had an army of homeless people. He had a homeless person operation. He would house homeless people to watch over his house that were in mid renovation. Yeah Right, Okay, we gotta stop talking about squatters and homeless people and dogs.
Jason Silverman
Host
13:51
It's important, it's gonna happen, you're gonna come across. Come across a lot of different types of people in this business, a lot of different types of situations. You've talked about it before in other podcasts. On this podcast with other guests. You have to stay calm, level headed and problem solve, especially in all those kinds of situations.
Eric Panecki
Host
14:07
So so. So, Jay, I feel like out of all of our guests, you're I mean everybody, you know that gets into business. You have to be problem solved, you have to be resilient. But you've had a couple of deals that I looked at on like damn like, and you I'm like that's a tough situation and you came out the other side like with flying colors.
Jason Silverman
Host
14:27
Yeah.
Eric Panecki
Host
14:29
I mean talk us through like I mean, cause everybody thinks this game's easy. Right, you jump in. You know you can make millions. 90% of millionaires are millionaires from real estate. So all I gotta do is just buy real estate and be a millionaire. It's not that easy, obviously. Talk us through some of the difficult situations you've been, how you came out the other side.
Jason Silverman
Host
14:50
Yes, I think the most recent one that maybe you're referring to is is. So during COVID I moved down towards the beach area it's kind of where I grew up had some some really good projects. I mean, I had a great Point Pleasant house. Love Point Pleasant. Yeah, I highly advise people looking in Point Pleasant to longterm hold Airbnb. Great town, all year round town. So I got that house. We killed that house, great rental, still crushing it, awesome.
15:15
At the same time as we finished that renovation up, I got another project which was more on the development side, which kind of started getting me to the development that we're doing now. We had to raise the house in Lavalette. So Premier Beach Town. But biggest project that I had ever done at that time it went from a $300,000 renovation lifting the house full, gut roof, siding the whole thing to basically what turned into a $450,000 renovation $420, actually.
15:48
And this was at the time and it wasn't too long ago, it was recent, kind of the first time I'm really talking about it and maybe this will get us into some other good combo. But it was supposed to take 10 months. Township completely screwed me four or five months of permitting. Inspectors just weren't a fan of the particular house we were working on, had it in for us it's my take on it so dealt with that we were six months past. Once we completed, we were well over the timeframe from investors obviously kept communicating with them, kept that up to speed, which is so important. So important because even it's easy to communicate when things are good.
16:30
I think we said this the other day, but it's the best operators, the best capital raisers are the ones that can communicate when things are bad.
Eric Panecki
Host
16:39
I want to just stick there for a sec. Every single person that we have on this podcast that raises money says that. Yeah, every single person.
Jason Silverman
Host
16:48
But it's true because I've seen it Good times and bad Good times and bad.
Eric Panecki
Host
16:52
You have to communicate, Gotta let them know, and because if you don't, and then all of a sudden she hits the fan and they're in the dark. I mean Just reassuring them.
Jason Silverman
Host
17:01
Look, I know we're a little behind Right. Here's some pictures. Here's what's happening and if you structure your contracts with them correctly, where they still feel like they're getting paid, like my investors, still get a point. We're getting a point every month on their money. So it adds pressure to me. Now I'm six past the deadline.
17:19
Last September the rates went double. I'm $120,000 over budget. It's a mess, but the house came out sick. The house looks so sick. Biggest problem I was so proud of it. The product we put out sick Contractor did a great job.
17:36
We didn't. You know you can't time the market, but the market got me. The over budget got me. But the one thing that I'm very, very, very, very happy about and I'm glad I got through it and it gives me the confidence that I have today in what we're doing is that, despite losing like $150,000 on a big project, all my investors got their principal back. All my investors got their return, plus the additional points that the project was delayed. They have an idea that it was a delayed project. Obviously. Clearly it went six months, seven months, past due, but they all got their money and so what has happened through the communication and through that process is two of them. One of my bigger investors has already come back and recycled doing another project with us.
18:25
So coming out the other side talking about kind of how you started this question is I lost my shit. I was ripping everyone in front of me, my realtor, what's happening? Why can't you sell this? There's no one coming through. All of the things Taught me a lot about myself, taught me a lot about the process and I came out the other side and I have the confidence now because I went through that. It was a shit storm. It was terrible. Yeah, absolutely terrible. I think I was hitting up some of your guys to get some opinions on it. Like, what do you guys think? I don't even remember who I was talking to. I remember that group chat.
Eric Panecki
Host
18:59
No, I remember talking to you and I was like how can we help each other?
Jason Silverman
Host
19:01
Yeah, your dad, your dad has a house in that area, right?
Eric Panecki
Host
19:04
Well, my uncle, your uncle, and he was like looking to buy a house. Yeah, I mean, I was like, you know, because it was a tough situation. The market turned all of a sudden. You had a high end.
Jason Silverman
Host
19:17
I was paying $5,500 a month. Right, I was so past due. The market completely changed. It went from yeah. I mean it went from making the swing on that. I was supposed to make projections based on comps and the timing. If I would have been ready in like that April to June timeframe before the rates really went, I probably would have made like $200,000. So the swing is crazy 350,000.
Eric Panecki
Host
19:39
Everyone was scared man. The swing was wild when the rates started ripping upwards.
David Choi
Host
19:43
Everyone's like I got to sell, now I'm not buying. It's going to crash. And then the crystal ball is never clear right, like nobody knows. No, inventory is still going up in like five times 15%. It makes no sense. It makes no sense, nobody knows.
Jason Silverman
Host
19:57
It's an inventory thing, obviously. But whatever, to end that little story, I came out the other side. I'm just grateful I was able to. I know I wholesaled a few deals covered myself, and that's how I'm resourceful. I figured out I'm resourceful, I figured out, I know how to make money, I have enough contacts and I'm now I'm confident that I can pretty much get through just about any deal.
20:20
So, it's communication. You're going to go through the bullshit. You're going to you're going to lose some money. If you think like you said, if you think you're always going to make money, then then you're in for a rude awakening. So in a lot of ways, I love that deal. I put it on my portfolio. I did, I did it. I did a 400,000, 350,000 dollar renovation oh, 400,000 dollar renovation and I almost lost my shit. Yeah, man, but we're here, we're sitting and we're now we're doing. You know, we have five million dollars in new development. That are actually seven million dollars in new development. That's happening.
David Choi
Host
20:51
I love that. I love that you do with the guy that we just had on the podcast. It is like you're going to see trails of success. People that are on the path to be successful are doing a lot of the same shit. Right For Quan. He lost two million dollars, made sure he paid back one point three million dollars to all of his investors. The guy lost his shirt. Right. You, your investors, got all their interest, the delays interest and the principal back.
Eric Panecki
Host
21:25
Right and remember we, we, just we just thought Ravi, when, when he lost his shirt, and Canada with those townhomes I mean Daniel Rosen, when, when, when. Yeah, there, there's more. I'm sure there's more happens to everybody. Everyone's got that.
David Choi
Host
21:44
You are just going to get. If you are in this business and you want to get in this, you are going to get punched in the mouth over and over again.
Eric Panecki
Host
21:51
It's at their point, like dude, like we only really have successful people on this podcast, and so I assume that's why everybody that we've had on has always paid back their investors. Yes, because the people that didn't pay back their investors aren't still in the game here, but you know what that comes down to.
Jason Silverman
Host
22:08
Yes, that's a great point, you know, and 100 percent because it's a reputation, right, but it comes down to just who you are Like. Do you have good character?
Eric Panecki
Host
22:15
Yes, do you have morals?
Jason Silverman
Host
22:16
Yeah, do you have good character Because, like my deal could have, my deal could have went, could have my deal went wrong Right, I could have been like guys, I lost, I lost a ton of money, here's your principal. But I'm not, I can't pay you. I can't pay you anymore. I just can't. I have to get some money back in my pocket. But I signed a contract. I want the reputation that I'm a good operator, that I'm a good person, and as long as you're dealing with someone who's got good character, then you know your. Your character is everything.
Eric Panecki
Host
22:42
I think character is everything and unfortunately you don't know that until you're kind of doing straight up Even me and Dave when, when rates hit the fan through the debt fund, we got stuck holding a bunch of notes and we had to pay back investors. This was really on my shoulders and I made sure we lost some money in the process. I had to sell at a discount, but we got our investors their money back. Dave just did a deal. I just lost a hundred grand.
David Choi
Host
23:08
I took it on the chin. I said, no problem, we, we took the money back, we took it over. It's your rep.
Eric Panecki
Host
23:13
Yeah, and we took every single. And it's easy. You could say, oh you know, declare bankrupt whatever, fuck it, and and but you wouldn't still be here today.
Jason Silverman
Host
23:22
But I also think that's something to be said about the type of investors that you work with and, depending on the type of Deal, you're doing syndication maybe a little bit harder because you need volume. Yeah, that when you have maybe just a handful of investors, like in development, you really only want like a handful. You don't really want that many unless you're doing a development syndication, which we're not doing it, um, the approach that we take is, as much as they're vetting me as an operator and a developer and someone who knows what they're doing. I'm vetting them because I don't want to deal with someone who's who, who, who, if and when there's delays because it's going to happen, yeah, they can't handle it. And if they're going to, if they don't understand it, if they don't have the mindset that, yeah, there is risk involved, I put my money into real estate. I trust these guys, yeah, but things are going to happen.
Eric Panecki
Host
24:06
Yeah.
Jason Silverman
Host
24:06
So we vet, I asked questions that have you invested before? Right, I've at them. You know, what have you invested in? What's your experience? Has things gone wrong? What has been your reaction to it?
Eric Panecki
Host
24:17
That's right.
Jason Silverman
Host
24:18
I'm interviewing them just as much because I don't need, I don't want to 200 in development. I don't necessarily need 200 investors, I want like 30 or 40. You know, in Alonzo or as whales, right, I want, I want bigger investors and we're working towards that and we're getting towards that. But I need to make sure that they understand, and whales generally will. But are they? Are they good for us? Right, right, I'm going to communicate. I know I'm a good person, I know I have good character, I know I'm going to communicate and do my part, but when things go wrong, I just, you know, you need to be built for this as well.
Eric Panecki
Host
24:51
When, when this was happening, like, take me through, like the low point, like what's going through your head, like holy fucking shit, is this ever going to sell? Like what's what? Oh yeah, I thought I was all my, all my money.
Jason Silverman
Host
25:03
I thought I was going to lose my money. I thought I was going to foreclose. I mean, I paid an extra five months of carrying costs. It's another 30 grand out of my pocket that I, you know, didn't raise. I didn't. I just, you know, I'm fortunate that I'm resourceful. I had money. You know I was, I'm a hustler. I had that, but it could easily. I dropped it from 1.2 million to 999,000.
Eric Panecki
Host
25:24
Yeah.
Jason Silverman
Host
25:24
So the swing was crazy. I think the low point when I was like just ripping my realtor, just ripping him, blaming him, blaming everyone, blaming my contractor, and ultimately it comes down to me. I'm the, I'm the CEO and the owner of that property, of that deal. You know, we all know, how contractors can be, but it all comes down to. You know my choices and how I operate. So I'm just glad we got out of it. I am glad we moved on and I'm glad to be doing what we're doing now.
David Choi
Host
25:53
So tell me what's going on now. Man, yeah, you, you. So you work for this guy, doing everything and anything to fill in the gaps, to add value. You get your. You get. You take down your first multi. You know your rental property. Then you take down this, this, you chew it off. A big deal, right? You raise money, pay everyone back and their interests Now what?
Eric Panecki
Host
26:18
and that was like to me, it like obviously just knowing you. I felt like that was like a catapult. You're like all right now. Now we fucking go so well, the catapult with that, you're back.
Jason Silverman
Host
26:27
Yeah, the catapult. The catapult was the pivot during coven, when, with the whole, with going to real estate lab and linking up with you and being around guys who were, who were younger than me, and buying these buildings, that was the pivot in the catapult. Nice, and it was around that time that I got the lava let project and all of this started happening. The snowball effect right, you just get motivated when you're around a bunch people like that.
David Choi
Host
26:48
I love that you just said that I want, because I went with. I met up with Jay. Yeah, and Jay's like dude, you got to join this, this mastermind. I was there. We went to Elm Street barbecue. Remember, though, this was, this was another, this was a meeting before Elm Street barbecue. Oh, and he's like dude, you got to join real estate lab David Tupin.
Eric Panecki
Host
27:07
Dave to to.
David Choi
Host
27:10
Dude, he's got fucking energy.
Eric Panecki
Host
27:12
We gotta get him on here but he says he never will come to New York. Oh, I'm gonna drive. I will say he hasn't been here in eight years. He's gonna.
David Choi
Host
27:18
He's gonna. He's about to buy his own private. He's gonna make his way out. I'm gonna slap him, didn't you do it.
Eric Panecki
Host
27:22
I saw you, bro, didn't you have one?
David Choi
Host
27:25
Yeah, virtually, though.
Eric Panecki
Host
27:26
Yeah, you heard that pot, that pot ripped.
David Choi
Host
27:28
I'm not gonna lie guys, you watch that one. But, um, real, stick, we, we, um, I Go up and I go look like we're doing like a hundred deals a year, we're doing like a couple million dollars in revenue. I Want to take down some larger multifamily. But like I have, like I'm like saying this front of, like I raised my hand and like I'm Q&A, I'm like um, but Like I have, I feel like I'm not capable, right, capable of doing this and he goes. She goes dude, what the hell are you talking about? You're doing over a hundred deals a year. He goes. You're making more money than probably like 90% of this room. You're clearly capable. You own over like a hundred doors. Like what do you mean? You can't take on large deals and I'm like he's big on mindset.
Jason Silverman
Host
28:15
I'm like he's big.
David Choi
Host
28:16
Oh, yo, d, You're right, playboy, you're right. Afterwards we linked up, we slapped hands and he's been like he's been in our corner Ever since. Yeah, right, like the guy I still. I guess I called Dave right now. Yeah, I go, I hate series. Called Dave. To this guy's answer oh, he's got your call. All right, like I'll call Dave and he he's here to be like dude, go win, you got this, I'm I got you. Like at what you the world the wind is at your back.
Eric Panecki
Host
28:42
Should we call him right now? Call me now See what happens. Let's call my at the end. No, call me, call him, just see if he answers real quick. Hey, siri, hey.
Jason Silverman
Host
28:51
Siri. This is also a guy who just he went off social media for like 60 days bought 21 million dollars, while I know how sick is that the guy's a freak of me, so he's super he's, he's, he's, he's building a software. He's great with the numbers. I'm not a numbers guy. He made me more interested in like spreadsheets. I know you love the spreadsheets. You need you sleep.
Eric Panecki
Host
29:13
They put it. Put him in the speaker. Put him in the speaker to pit, to pit. Tell me he's live on the podcast.
David Choi
Host
29:21
Yo, you're to open, to open your live on the podcast. We got Jay Silverman, eric Panek you were ripping baby, we're talking about you right now. I.
Eric Panecki
Host
29:35
Guess guess, the parents. Dave tobin, we probably all wouldn't be here today if it wasn't for him.
Jason Silverman
Host
29:39
David to. We're talking about real estate lab men the man, the myth, the legend.
David Choi
Host
29:44
Dave, to begin, give me like a one-liner and just rip it for us for the pot.
Eric Panecki
Host
29:50
Just give me one, your best nugget of advice. I don't know if there is just one thing how do we?
David Choi
Host
30:11
be like YouTube. Sir, how do we get, how we become big daddy to?
Eric Panecki
Host
30:20
Fair.
David Choi
Host
30:26
To open, to open the world is your choice to. We love you, man. We love you very much.
Eric Panecki
Host
30:36
The world is your choice. Okay, so almost as good as choice story, choice story investments.
David Choi
Host
30:52
All right. So so, jay, your, your, your, you took down. You just took down a five million dollar deal, dude to lay a $7 million worth what will be seven.
Jason Silverman
Host
31:05
We're developing $7 million worth of real estate six condos.
31:10
So you get hit in the balls, you get, you get punched and that you know. You get out back, you bounce back and Props to my partner and I think this goes to like our strategy of building our portfolio and our experience and Doing deals is just strategic partnerships. So, to answer your question, what we're doing now is is you know, we've gotten big into the condos. We've strategically partnered with a very experienced builder and it's allowed me to kind of realize what my role in this business is going to be and it's gonna be, for the most part, raising capital for development. We raised so we have we're doing four condos in unicydy and two condos, so two separate projects up the street. We strategically partner with a with a builder. He handles all the construction, chris and I, my partner, chris razor, who's also a huge piece.
32:00
I love Chris, huge piece to the puzzle on why my life in business has Catapulted. We partnered up through he wasn't checked us out, he wasn't even a part of real estate lab but was friends with one of the guys in it. Connected with him on IG Says hey, do you know any? Basically, do you know anyone in New Jersey who's doing deals? He says me, because he, we had connected. I think it was Adrian, this guy. Adrian, he says, okay, chris reaches out to me, we talk this is like two years ago and we just basically hit it off, kind of like you guys did, and he's we're like the yin and yang. He's the numbers guy, can be social, can do all that stuff, can raise money, can project manage, can, can do construction, but he's like the numbers guy.
32:42
I didn't really want to be that guy. It's not who I am, it's not my, it's not my specialty, it's not what I love. I can do it a little bit. That's his role. My role is being kind of a little bit out there, more raising more of the capital, and it works. Thomas handles the building.
32:56
So, like for us to have this sort of seamless or streamlined team, now it's exciting, yeah, like like we're ripping, like we're getting deals sent to us constantly and our and our one thing now we're struggling with now, like like most people do, is just this capital right. So we've, in the last year and a half, working with Chris, we've taken down a six unit in Jersey City which was 1.9 million. We've taken down and acquired these, these six condo projects which you know we acquired for, you know, a million and a half renovation, million dollar renovation. They'll all be worth five million dollar sellout, two and a half million dollar sellout. We raised eight hundred thousand dollars for those deals. Right, I wasn't doing that two, two years ago, right, I wasn't. So it's exciting, man, we, and during that time kind of getting punched, punched a little bit and you're gonna continue to get punched and you're gonna continue to go Through those.
33:46
It doesn't end.
Eric Panecki
Host
33:47
This is big Baker punches. Yeah, I know my Tyson punches.
Jason Silverman
Host
33:52
Hopefully we just have more money, so we can absorb Honestly.
David Choi
Host
33:56
I love getting punched in the mouth Like it's right. It translates right, we do it for the pod dude you, I'll take one as long as I get to push one back.
Eric Panecki
Host
34:06
No, you're gonna get another guess. We got two been on already.
David Choi
Host
34:09
Now we need a puncher dude, what like growing up wrestler, middle linebacker, wedge breaker, right like as captain of both teams in high school wasn't great, it wasn't great. I have they just like smack in mouths. I like hitting, and you, then I. Then I get into into the business world and you know, in my kickboxing I'm like, damn, I haven't, I haven't tasted blood in my mouth in like a month. I can't wait to spar today, right Now.
Jason Silverman
Host
34:36
it's like like when the pain comes, I'm like bring it, I live for this, like it's like warrior man the more you can suffer this I don't know what book it is who said it the more you can suffer, the more pain you can take constantly, day and day out, week after week, year after year. Yeah, it's just.
David Choi
Host
34:54
You kind of start to become numb to it and you, and you welcome, and you're like alright, I've seen this nice, another one, another one. Yeah, yeah, another problem.
Jason Silverman
Host
35:01
Good, bring it bring it, because the only way you grow, the Only way you make more money, the only way you, you, you, you do bigger deals. You have to go through those levels. It's like a game. It really is a game.
Eric Panecki
Host
35:12
Well, you know what it also forces you to do and when. When things are going good, you know you kind of just do like the status quo, this is what works. But when, when, when you're back against the wall and you said it before and you have to get resourceful, it's like holy shit. I came up with this idea. I called that guy. I should have thought why have I never done this before? Now I'm doing it like it forces you To to think different, right and and because you have no choice.
Jason Silverman
Host
35:43
Yeah, all freeze for a little bit, Like I froze for like.
Eric Panecki
Host
35:46
Well, you have three responses right, yeah, fight, flight or freeze right, those are the three options. Yeah, all right, so you can fight, you fight. I remember during COVID I Was never more in the zone, shit at the fan. We told our employees we're not gonna fire a single person or lay off Like we'll stop paying ourselves. And I was so in the zone and I couldn't be stopped.
Jason Silverman
Host
36:11
There's no way, right, no way.
Eric Panecki
Host
36:12
we were pushing through it, yeah, and it was hard because Nothing was happening, no deals, everything was dead. I mean, what we did we? We we had to keep everybody busy, so we had people creating like SOPs, like standard operating procedures, like it got to the point where we had SOPs on how to make an SOP right, like we were.
Jason Silverman
Host
36:33
There was nothing like it was crazy. Well, you took that time like better your business.
Eric Panecki
Host
36:37
Yeah, we're like we're gonna figure out like good, we're gonna, you know, create systems and and you know what that I would never take that back. Yeah we got every single good. We got every single government money that you could get, like we did every, every, you know, and you guys are beasts, bro.
Jason Silverman
Host
36:53
I give it to you. I mean, I've been following you guys for a long time and it goes back to the proximity. We don't hang out as much as I would like when I see you guys hanging out with some you're too good looking dude, you know what?
David Choi
Host
37:03
you go out. We both got girlfriends.
Eric Panecki
Host
37:05
We came to girlfriend to the problem is like a well.
David Choi
Host
37:13
When we were single really yes, the issue is when we're single and we wanted to. You know, go mingle. You're six foot, beautiful white teeth, great hair. Yeah jacked out of your money pack. We're not going out with you, bro 12 pack bro.
Jason Silverman
Host
37:28
Come on, 12 pack kid. Yeah, no it's.
David Choi
Host
37:33
we go out the shore king.
Jason Silverman
Host
37:34
You know what I mean, john LeBretty, that's yeah, who bailed on me today, but it's okay, john, it's alright. Yeah, you learn you. You learn a lot about yourself, man, and I'm the one bringing it back to a focus.
Eric Panecki
Host
37:50
Yeah.
David Choi
Host
37:50
I just you know what it's these podcasts that freaking rip yeah people love these ones. It's the ones that where you're just like you could like.
Jason Silverman
Host
38:01
it's like the boys on the pod, yeah and so but we do business, we do stuff like we like we're actually business, we're doing big things. Absolutely, you know, like I found myself having these sort of menial conversations with with older friends and, I hate to say it, I'm like tired of it. Yeah right, they're doing the same old thing, they're talking about the same old things, oh, and I want them to be doing more. But I can't be stuck in those conversations and I feel like I'm not. I feel like, as much as I believe in proximity and being around people who are successful and doing all crazy things, I feel like I'm not around it enough. I need to be around it more. Wow, I need more people. Like, so, like, so, like. Yeah, we have all these developments.
38:39
And then and then during COVID, I linked up with a lot right through LeBretty, I believe yeah, I think that's how it happened. Yeah, and we raised, we raised like almost four hundred thousand dollars for one of his deals. Wow, so, like, how am I getting, how am I getting involved in that stuff? Back to the strategic partnership thing like killer operator, killer deals yeah, I don't get deals like that right now.
Eric Panecki
Host
39:01
He also wears whale socks. He does wear a sock. Yeah, that's really important.
Jason Silverman
Host
39:04
He's a different beast.
39:06
It's all in the mind, it's all in the mind. He's, he's. I love that kid, love, he's a beast. So for us, like, why would you do a deal with that? Like you're only gonna get a small percentage of it, but it's like it's big picture, right, it's long game. We're gonna get a small percentage, but it's gonna compound. Okay, you know guys like that you raise deals for, for other large people, right, or other large operators. Yeah, could you put four hundred thousand dollars into a development deal, jay, and probably make more in the immediate future. Sure, you're right. But the ultimate goal for us is long-term cash flowing assets, right, doing deals with a guy like Alon and guys who are big operators. It just makes sense.
David Choi
Host
39:47
It educates our best doors.
Jason Silverman
Host
39:48
It opens doors, and one of our, one of our things that I love about racing capital dude, you know is is being a vehicle for people who who wouldn't normally have access to those kinds of deals. So like newcomers, maybe people who have some money but like just don't know what to do with it. Yeah, like Jay can be a vehicle, you know, eric can be a vehicle, choy can be a vehicle for people to just make a little bit of extra money. Doesn't need to be crazy. I Love that and doing the right thing. So educating people, getting them into, you know, offering them development deals which for us, provide higher returns, a little bit more risk.
40:22
Yeah and then you have the sort of medical office multifamily play which is long-term cash flow. We all know how that goes. Balance it's balanced. So it's like I have two options because I have relationships with operators to pin I could bring. I can probably jump in with a line Right. So let's help people make money while we all make money. So like that wasn't happening, if you know, within the last or before the last two years.
David Choi
Host
40:48
So what would you say is like I'm super happy that you said something today, like you have a great team. Hmm, you have a guy focused on deal sourcing, acquisitions, underwriting, you have someone for construction management and then you're raising and you're on the capital raising front. There's nothing better than being clear as to what you were going to do on a day-to-day basis. You're not doing this, going here, doing that, come back, then I'm raising for this next two hours. That is like talk about a miserable life. Doing a whole bunch of different stuff all over the map is. I have a high tolerance to be miserable, but doing a lot of different things is incredibly miserable and you and you think in the beginning and you can.
Jason Silverman
Host
41:36
I have a quick funny story. When I first started like even before the tupin or getting into real estate I feel like we're talking about this guy a lot today, love to you. Um, he deserves it. Anyway, I call a broker.
Eric Panecki
Host
41:46
We should get like a tubing cut out. We should, we should he's the core here.
Jason Silverman
Host
41:51
I call a broker, a ten unit deal in Ewing Ewing, new Jersey. So I was down there at the time, great deal. But I just didn't know how to talk to to brokers yet. So, oh, he's like what do you do? Oh, you know, we do some flips, we do, we do some development, we do some multifamily. He's like he's you know we're doing too much right. So he's like he's like well, you sound like you sound like you got a lot going on. Sound like a great guy, he's like. But the most successful people that and that I find in this business, do they?
David Choi
Host
42:18
do one thing.
Jason Silverman
Host
42:19
They do one thing and we've all heard this before, but it takes like you. You're scrapping in the beginning, you're trying to figure it out right, which is, I think, the way to do it. Yeah, you have to you have to like, in order to figure out what you want to do, you have to do a bunch of shit you don't want absolutely right and that was the route that I took right.
42:36
and as soon as I had that conversation with him, I'm like, holy shit, I got to get really good. We got to just do like one thing maybe two, maybe two and get really good, oh, what that happened now. Yeah, but I think, like I think, like you say, we do too yeah.
Eric Panecki
Host
42:50
Oh yeah, well, I mean, we your focus on one.
David Choi
Host
42:54
Yeah, yeah, exactly.
Jason Silverman
Host
42:55
No, I don't do. I don't personally do two things right.
Eric Panecki
Host
42:58
I'm raising capital for two types of different yeah, assets, oh, that's pretty focused, man, right, you just raise your deals.
Jason Silverman
Host
43:04
We're amazing. So what is your appetite? Do you like higher returns, more risk? Do you want it in a year or so, with development, cool? Do you want cash flow, which more people should want? Yeah, makes more sense to my brain, but I'm grateful that people like both you know. So what's your appetite? I'll educate you on both you know. How can we help you?
David Choi
Host
43:23
How can we help you. How can I be a vehicle? How can I?
Jason Silverman
Host
43:25
saw you right. You want to make an extra five grand a year. Awesome, you want to make, you want to go bigger. And for me, it's like you know I work with a lot of newer investors and it's it's the law of the first deal. It's it's getting over that first home, cutting that first check. Yeah, it's getting used to that. Getting used to that, like, holy shit, I'm writing a $50,000 check. You have to get over that.
43:48
Yeah and and then it starts to roll a little bit. And that's the part I think we all play in in raising capital and helping people, like Feeling comfortable, educating them on the deal and like, if you want a bigger life, if you want more, you have to at some point cut the check. You have to some point Take the chance. So I talked to people like what's your money doing in your bank? That's, it's as simple as that. What is your money doing your bank? I'm not.
44:16
I'm an operator who is not going to intentionally screw you. So that's number one, right. Like, if you're gonna invest with cap, invest capital I've invested capital and other deals. Like the one thing I look, I look for his character, morals. If I don't feel like you're going to intentionally screw me, cool, let's have to battle right. Right, the deal makes sense, can you execute? Right, the deal has to make sense, can you execute the deal? But if you have, if you're a good person, right. Yeah, I think that's why people invest with me. It's like I'm not going to intentionally screw them, right.
David Choi
Host
44:43
I get that across.
Jason Silverman
Host
44:45
It's tough because it kind of comes across like bragging, I feel like sometimes.
Eric Panecki
Host
44:48
but I think I. Think you can sense it. Yeah, how do you insin, how do you show them that they can trust you?
David Choi
Host
44:57
I mean, that's a good question. Here's my. This is my quandary, vince. Vince used that word recently and I've been. I've been interested to use the word.
Eric Panecki
Host
45:08
It's a good one.
David Choi
Host
45:09
Okay. Anyway, I, as a owner operator, my personal returns on obviously like 50 cents on the dollar deals or or astronomical.
45:25
Get like we've dude, we've gotten like 500% IRRs on some. Like, like, like legitimately, like yes, I'm ridiculous like 300% IRRs, right, and so like I Know that, like what, what we do does add value to people because they're just not gonna be able to get this Love, like this level of dedication, this level of service and like consistent 10, 12, 18% returns, right. But like my thing is, it's like I just turned down a girl. She had, like she had like $80,000 to invest and I was like you said you want to buy it, you want to buy your own two family and you want to buy your own primary residence.
46:06
One day I said I said, well, I don't think you should invest with me. Then I think that I think that what you should do is Let me like, let me introduce you to people that could help you find the two family. Right, I might have some deals in my pipeline that could sell to you. Maybe you should buy it, not buy it. Then, right, I could introduce you to the right property managers and Airbnb managers. If you need a contract, I'll put you in touch. Right, and I was like you. I've turned down more investors based on what they tell me, what they're looking to accomplish. I'm like doesn't make sense. I'm not your guy. Like you could get great returns with me, better than the stock market. Like, and I and like I'll put my life behind that right, I would back it with my soul. But like, if your goal is to do this, I'm gonna just walk away from that conversation and be like this is what you should be doing with your money.
Jason Silverman
Host
46:52
If I was in your shoes, You're playing more of like a fiduciary, and that's not fiduciary, not responsible, but you're. You're showing that you're a good person and that you're someone that probably at some point she's gonna come back to.
Eric Panecki
Host
47:05
Or refer you to someone, or sure? Yeah?
David Choi
Host
47:07
I never asked for for all. I should have asked for a for all, but I mean you.
Eric Panecki
Host
47:10
Always ask for the referral. I mean, at the end of the day, you're like for me, the success I've had me raising money it's. It's not a sale. Yeah, really like it's like. Here is this is what we're doing. This is the opportunity, right. Like these are the numbers, like this is why I think it's good. Like, if it makes sense for you, great. If it doesn't make sense for you, that's okay too, all right, right but if you know, somebody that might make sense for then one, because that'd be.
Jason Silverman
Host
47:40
You know, I appreciate that and yeah, I don't think it's a sale and you never want to get into a situation where you're like selling, selling right like yeah, it's a sale, yes, it's a sale, right, but it's like it's either for you or it's not.
47:51
You want to improve your life. You want more out of life. You want, you want to. You want to preserve your money. You want to put it into the proper deals. Yeah, let's figure out what that looks like. Yep, this is what it is. This is what we're working on. Yeah, it works for you. Yeah, awesome, yeah, awesome. So I think like yeah, how do you, how do you brand yourself as a good person? I think like Showing that you're Just like a normal dude, normal, normal or normal person like in social media, probably plays a big role in that right. Are you out with your friends? Do you have a girlfriend? Are you married?
48:20
Hmm, like interesting you know like do people? Do people like you?
Eric Panecki
Host
48:25
Yeah, people want to do business with people they like right so I'm fortunate where I have.
Jason Silverman
Host
48:29
I have a good amount of friends, I have a good network. You know. I know my morals, like I think. You just have to know that you. What you stand for, yeah what you stand for and you're and no one's gonna convince me otherwise right, something may go wrong, but it's not because I intentionally Messed it up, right, right or mark led you, or misled you more.
48:49
You know market conditions, construction right, I didn't mislead you, but things happen. So it's. It's like that's the big, that's like the biggest thing is is can I invest? Are you investing people who are just good people?
Eric Panecki
Host
49:04
So, I think that's huge. I think that's really big. So you know you found your focus. It sounds like you know mostly development and sound well, you got you know multiple, I guess, avenues for different investors, which is awesome. Where are you guys going?
Jason Silverman
Host
49:19
What's next? Yes, so more of the same. I mean, I think you find people who are like, all right, we got these two condo, great condo deals that are gonna spit out, you know, over two million dollars in profits for for the group. Let's go to the next big thing. That's completely different. Hey, let's, let's stick with that. Yeah, stick with that. Get really good. Stack our own stack, more of our own capital. Yep, continue providing the vehicle for our investors. You know we raised five hundred and fifty thousand dollars on the one deal. Right, strong returns on it. Let's get them full cycle. Yeah, get them coming back. Let's do two or three of those a year. Pump out two million dollars in profit a year In development, small, mid-sized development for three like those condo deals, right, yeah, that's neat to be this 20, 30, 40 unit condo project that takes five years.
50:08
Right, we're making a. We're making a million, almost projected A million. Six on on on this one particular deal, right, and even if it goes a little south, make you make a million. Oh well, big look, right, so it's so, it's so, they're meaty and they make sense, and they're a year and a half.
David Choi
Host
50:24
How well like? What kind of returns can investors expect to make when, when investing with you? Am I allowed to?
Jason Silverman
Host
50:29
say on the pond, is the SEC gonna come after me?
David Choi
Host
50:35
if you say anything above a 20 and we have to block this one off. No, just kidding. No, but they're strong, they're good.
Jason Silverman
Host
50:41
They're strong, we'll get to a year and a half right. So it's like we want to annualize it pretty much on a 15, on a 15%, so like, if you're, if it's, if it's over a year, we're annualizing. It a lot of times depends on the relationship with the investor, so it's not always the same. It's not always the same for every investor. It's like what do you want, what are you used to? So in that case it's kind of like a sale. It's like you know, we, the cheaper the capital, the better, but we also want people to make money with us.
David Choi
Host
51:05
Yes, of course.
Jason Silverman
Host
51:06
So they kind of go it's, it's, you know 15%.
David Choi
Host
51:11
So what is the biggest objection that you hear, like the most frequent? This is my issue. Or you know what? What? What is what's stopping people from investing, whenever just?
Jason Silverman
Host
51:20
not just being scared, I think with with my conversations, just not knowing being scared. You know, I get questions on like what's the risk, right, what's the risk in development? And I generally just say it's, it's the construction, right, it's not because we have bad construction, it's not because we have, we have the right people in place, but anytime construction there's a million and a half renovation, a two million, I mean we saw the crane collapse in in New York City the other day. Right, those are professionals, right, but, but a crane went on fire and it collapsed in New York City, right.
51:50
So you know, construction issue, construction can happen. So we hire, we offer a higher return because of that, you know. And so we have a lot of that. Conversations like look, we mitigate all those things, we go through all the proper channels, we go through, we check all, we check all the boxes, but things can come up still. So that's part of the risk and we get that a lot. So I mean we've had people join us like really we haven't had too many objections, and I think that goes back to like it's taken years of showing people that I'm doing deals, whether it's small flips, being active, going on trips, networking with people they're like, okay, jay is actually doing it. Jay sounds like he knows what he's talking about. Yeah, I would invest with you. Thank you, I would. I like I need 50 grand. Like honestly, I would like I trust you. You know like you're a good guy.
David Choi
Host
52:36
You have good morals, you have a good track record, right, and I feel like when I come to the point where we don't have enough deals for my own liquidity to go into, like I, you're the type of guy that I would say, hey, like I would, I trust this guy as a fiduciary. My money right, jay, thank you. No, no and I mean that from the bottom of my heart like you're a good dude and you're you're professional.
Eric Panecki
Host
53:08
I felt the love right there. No, it was a real thing left out.
Jason Silverman
Host
53:12
I'm copying you.
Eric Panecki
Host
53:15
I'm trusted.
David Choi
Host
53:15
Eric with my whole life. So there, that that goes a long way.
Jason Silverman
Host
53:17
That that goes a long way and you have to and I, and like I trust Chris with, with just about everything in my life, chris, we talked five, six times, ten times a day. We're excited. Yo, I just talked to this investor. He just raised 50 grand today for our, for a nice, nice job, and he's not, it's not even his main role, right? But you know, when you're starting some sort of in growth mode, we wear all hats. Chris, you need to be raising money, I need to be raising money, all hands on.
53:42
I need to check your numbers. Check my numbers. Yeah, like we, we check each other, right? We wouldn't. I wouldn't be doing any of these deals and have this project projected outcome in the next year or so. Capitalized money wise, income wise. If it wasn't, if it wasn't for him. God bless Chris right, so shout out. I told my, I told you.
David Choi
Host
54:02
I'm a razor, shout out big papa. I told you, I mentioned you and he's.
Jason Silverman
Host
54:05
It's funny because he's like he's. He's a social guy like sometimes we'll be in meetings and and he speaks very well so when it comes to the numbers.
54:13
We've been in meetings, so I'm just like Chris, I think, thinking myself. Like Chris, I speak fast and I get excited and Maybe sometimes it doesn't come across as eloquent or as as smart. Right, he's slow, he's steady, yeah, he's thoughtful, right, but he doesn't. His social battery is like super low. So we'll be like a meeting for like a half hour. We'll get out of the meeting. I'll be like, oh dude, I have to go home. So that's my value. My value is that I can, I'm, I can be more social.
54:45
You're Dave, I'm Chris, probably yeah, and it's your social though.
Eric Panecki
Host
54:50
I'm social, for sure but, Dave gets excited. He loves it. Yeah, like I got each other. Yeah, we feed off each other baby. Yeah, come on, oh boy, you need I think you need both.
Jason Silverman
Host
54:59
You need both. I've been around a couple different types of businesses. You know I've been in the entertainment business for a long time and in a company that I used to work with Complete different owners, you know One was the outgoing guy and one was the behind-the-scenes guy. Yeah, company worked well for 20 years, All right dude.
David Choi
Host
55:16
If me and Eric could be one human being, we'd rip be Elon Musk, so all right. So, jay, you got. You got a lot going for you, man. You got a very exciting future. You got great partnerships. You have great deals coming up the pike. If the people want to find you, they want to invest with you, they want to send you deals. What's the best way to find you?
Jason Silverman
Host
55:41
Yeah, so good question. So I Heard Ryan give out a cell phone the other day.
David Choi
Host
55:46
I always give myself on.
Jason Silverman
Host
55:47
so should we do it?
David Choi
Host
55:48
You make, do that, you know how much money I made on going on like other people's pods and trump myself. So we're gonna. We just made a hundred grand on one love that you love that so Instagram Of course we we're.
Jason Silverman
Host
55:58
At my personal is Jay silvi. At Jay silvi, it's my personal. Our business name is CJ investment group. That's CJ investment group. We just started that profile as well. So we talk about a lot, we document our projects and then the cell phone is 609 558 553 2, I repeat it 609 558 553 2 make sure you call them on Sundays 1am and pretend to be another girl. Jay, love you man.
David Choi
Host
56:34
Thank you so much.
Jason Silverman
Host
56:36
You guys, you guys are doing your thing. Love the podcast. Thanks for having me, dude.
Eric Panecki
Host
56:39
RELEVANT LINKS
The Brokerage Official Website
ABOUT AARON O’FLAHERTY
Highly driven Property Entrepreneur with a background and expertise in Portfolio Sales & Government Body housing transactions. I acquired my first Investment Property through Bank Debt & Private Equity strategy, since then I have Sold - Refinanced - Bridged and parked both Residential & Commercial Assets.
Whilst continuing to Focus on building out my SPVs on their different strategies, I have parlayed my experience and knowledge in the world of Property & Finance to start my most recent Company ' The Brokerage' where we focus on facilitating business to access Finance & assets to strategically increase their wealth, along with our Bootcamps & YearLong Masterminds aimed at Property Investors
I have extensive expertise around borrower eligibility, have a very unique perspective on transactional structuring and regularly advise and assist MDs & business owners on how to deploy Capital with the right amount of Debt, onto the right CashFlow Asset.
