Mar 22, 2022
Was it possible to 10X your portfolio in the height of the pandemic?
For Vince Rodriguez, it was, and he’s here to tell us how he did it. Vince is a Managing Partner at AnVi Investments, which helps real estate investors build their wealth through equity partnerships or private lending.
In this episode, he will share some creative strategies he has done to get into deals without putting out his own money and to 10x a real estate portfolio, regardless if there’s a pandemic or not.
[00:01 - 03:51] Opening Segment
- The unique deal structures that Vince Rodriguez has tried so far
- Which does he prefer, syndications or joint ventures?
[03:52 - 13:37] Creative Strategies to Get into Real Estate Deals
- How Vince and his investors get paid through the deals that they close
- Which should you prioritize, cash flow or equity?
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- Vince explains his position on this debate
- How to buy a house without downpayment
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- Listen to this creative strategy by Vince
[13:38 - 16:28] 10X Your Portfolio During a Pandemic
- What’s next for Vince in his real estate investing journey?
- This is the kind of asset that is good to hold in the long term
- How to grow your portfolio 10X during a pandemic
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- Vince reveals a secret
[16:29 - 17:24] Closing Segment
- Your way to make the world a better place
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- Helping people who cannot help themselves
- Reach out to Vince
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- See links below
- Final words
Tweetable Quotes
“...not only have I moved into a property that I put no money down, [but] I'm also living in it, and it's worth a million dollars, and I own most of it, and these are the deals you could do.” - Vincent Rodriguez
“Let's say you and I do a deal, I will spend more time thinking about how to make [it] worthy than you would ever do in your entire life. That is my talent.” - Vincent Rodriguez
“I help people. I like to help people who cannot help themselves…as long as it's mutually beneficial. I care about those things.” - Vincent Rodriguez
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Email vince@anviinvestments.com to connect with Vince or follow him on LinkedIn. Build wealth with AnVi Investments by either becoming an equity partner or private lender. You can also check them out on Instagram and listen to their podcast, RE Social.
Connect with me:
I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.
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Email me → sam@brickeninvestmentgroup.com
Want to read the full show notes of the episode? Check it out below:
Vincent Rodriguez 00:00
My whole life policy is the beneficiary of a $2 million life insurance. It's first right? I don't really care, right? So for me, it gets me to into places where I can help a lot of people because I don't really think of myself so much because it's not as exciting for me, but I would, let's say you and I do a deal, I will spend more time thinking about how to make you wealthy than you would ever do in your entire life.
Intro 00:22
Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor, we will teach you how to scale your real estate investing business into something big.
Sam Wilson 00:33
Vince Rodriguez is a full-time engineer, currently has 28 Plus units under management that he owns. Vince, welcome to the show.
Vincent Rodriguez 00:41
Hey, thanks for having me.
Sam Wilson 00:43
Hey, man, thanks for coming on. I understand. You know, right now you're taking the time even out of your busy workday. You're in the middle on your lunch break, if I'm not mistaken. So thanks for coming on the show and chatting. There are three questions I ask every guest who comes on the show. In 90 seconds or less, can you tell us where did you start? Where are you now? And how did you get there?
Vincent Rodriguez 00:59
I started in California, a bunch of my properties are located in Baker School in Kern County. I'm actually up to 30 units now. But yeah, start with the triplex over there, start with the $250,000, my first asset, I would say currently, my portfolio is worth over $5 million.
Sam Wilson 01:17
Wow, that's really, really cool. I mean, defined opportunity, as rental property in Southern California is kind of hard to do. And I think one things we talked about, before we started recording this was that you've done some really unique deal structures. And I'd love to kind of spend some time working or walking your way through some of those structures you've done. And I think we'll just use that for the bulk of this show if you don't mind. So give us a couple stories tell us what you've structured and kind of how you've done it.
Vincent Rodriguez 01:45
Yeah, so how I started was I have a W2 job I do all my deals so far. Mostly with my buddy Andrew so we are 5050 owners in a loc vo in Wyoming and we have a California law city, right. So how i do is i We've started buying the first million dollars we bought by ourselves, you know we have some money right? After that it's kind of difficult. As you know, in real estate, you can only save so much money because they print so much money, it's very hard to keep up right with inflation and such. So what I decided to do was to do what do you guys do like syndication style, however, I primarily focus on one to four units, right? So I structure the deals, I take people's money and I put it in an escrow account and then we go buy something in split it 50-50 Right. But I've taken this another level that I cannot give them you know equity split but equity split has like a basic returns structure in it. And you know, its tenants in common agreement, so you don't have to create, you know, freaking 50 LLC's with the all my partners and you're paying like California franchise tax. It just gets ridiculous, right? You got to know all the little intricate details to those kinds of deals.
Sam Wilson 02:49
That's really, really intriguing. Can you break down that for us? Maybe piece by piece, you syndicate it like a traditional syndication, but yet you said you do a tenant in common deal. How does that work?
Vincent Rodriguez 03:02
Yeah, so I steal the ideas from syndication, but I don't syndicate it, I don't have to do if I owe 60 and stuff, right? Because it's JVs. Right. So JV is when you go terms and comment is mostly JVs. Right? So what will happen is, let's say the same bone so it would be 50% owner and then on the holdings LLC will be the other 50% owner, right? So now you get no protection from SEC anyone because I'm just saying hey, you could choose the paint color, you could go paint it, you could you know, you could list a property with me. So there is no protection for you other than just joint venture partners, right? That's so I take that liability off so I don't have to register that to have that 506(c) or B and all those things right. So now I could go do a lot of these little deals I could go to easily raise 50 100k from someone and keep buying three four or $500,000 little apartment. That's right so I mostly just to duplex triplex.
Sam Wilson 03:52
Gotcha, that's really really intriguing. I mean, you even said which I want to I want to get into that. Let's talk a little bit about finding opportunities in Southern California. I mean, how does the math work on a $500,000 deal such that you and your investor both get paid?
Vincent Rodriguez 04:07
So yeah, exactly. So I live in Southern California my deals are not in Boise or LA County right. LA County is getting ridiculous with all the mandates and stuff so what I did was I buy in Kern County, which is because villages more awkward right so it's away from the ocean and stuff so you can still find cash-flowing assets in such over there. And I also own a few duplexes in in land, which is like mental, you know, Highland, California we just got something tied up a couple of days ago for a duplex for $665,000 it will bring in about $4,500 in income right so that still gives me like you know, five, $600 of leverage after I pay all the bills and stuff. So there are still opportunities but I am moving away from really see minus those kind of areas. It's kind of annoying. So for me to deal with it now. Now that I have enough assets. So I'm actually liquidating about a million dollars. And then I'm going to take I'm probably going to cash out maybe 350 from that, and then I'll go to my buddy's friends and family and raise another 350 pretty easily, like a couple months, right? And then $700,000 will let me buy easily over $2 million. Right. So now I take my garbage deals, which I bought, like back in the day, because I didn't know anything, right. So I'm going to exchange because people want to overpay right now. So I take all the cash and then go to some like state where they actually want our business like, you know, like Florida, Georgia, the more red the more landlord-friendly, I have a tenant in California hasn't paid me in 11 months, I'm just getting evicted on Wednesday. So took the people 11 months to say the court finally looked at it and said, he's not even he doesn't even have a lease, he's a squatter, he does not get rights anymore. But for them to realize that it takes 11 months, right. So it's like not really a good use of your time to, you know, deal with all these little tenants. So I say if you want to stick with California, if you want to do the properties here, definitely don't go for the very lower class, because you're going to they're going to play games, you want to stay with B neighborhoods, right? Because people who work out, have $100,000 job, they're going to pay rent, they're not going to want to mess up the credit.
Sam Wilson 06:08
Right? Yeah, that's absolutely true. Very, very fascinating. I love that kind of spin on the syndication model, one because it obviously saves you a ton of money when it comes to, you know, just legal documentation alone, but also keeps you as far as I know, out of trouble. And that's something you could do on the commercial side as well. You know, if the deal makes sense, where you can have, you know, one or two or three investors bring, you know, one to three million bucks on a larger commercial project, you can structure it the same way, I would imagine.
Vincent Rodriguez 06:36
Yeah, I'm actually going to do that. So right now that, you know, I'm going to be liquidating some of my older assets, which, you know, the cost management problems, right. They still cashflow, but it's not worth my time anymore. So I'm going to liquidate those, I'm going to have like, let's say $300,000 in cash. I'm going to go to my buddies, right. And then what I'll do is I will just create an LLC, let's say in Florida, right? Then I would say hey, you guys are our partners, and I'll split it 3070 Right, but I will keep the 30% and I'll be the manager on it. And everybody will just be members. Right? So now I control it. They get some protection because it's inside an LLC, and they're limited to the capital invested really under that's pretty much it right? But then I don't have to go make a $20,000 freaking syndication model it's not worth it for me, you know?
Sam Wilson 07:17
No, certainly not. What are some other things that you've done creative deal structures that you know are you across? I guess now 30+ units what are some other things you've done?
Vincent Rodriguez 07:25
So okay, so this will be really interesting for people who are listening right so I book a W2 job I make six figures it's not a lot of money in California. I probably should be on food stamps that that kind of money. Right? So I can't qualify, I know right fix in the tiny Raisa, too. So what I did was I wanted to buy a primary residence because buying more properties is not going to give me more joy, right? Like it's fine is good. But I want to go and live in my own house. So I found a really nice property in Costa Mesa. It's a really nice neighborhood. Right? So they had an asking of $1 million dollars. It's a 2,000 square foot with 8400 square foot lawn, and it has an, has an ADU. Well, that's good, right? Wow. Yeah. I call the they say never call the agent is ever going to pick up. So I say okay, I'm going to call the agent, right. I call the listing agent call. The thing is, I'm like, What's your best offer you got? I after I talked with him, he says he got about 115 on it. So I said, I'll offer 100k over your best offer, right? So I just destroy everybody else who's competing on the offer. It's over for them because I'm offering a quarter-million dollars for asking right. For me money doesn't matter. It doesn't matter, right? So I go into escrow. And then I find out I do the appraisal, I have no contingencies. I only have a loan contingency. I go into escrow and I say okay, let's do the appraisal. I comes in at 113. And then I do some inspection and I check. Okay, it's got some foundation issue. I already know it has foundation issue. So now I take this information, I say listen, this property is not going to sell, you already came out of escrow one time, you don't want to go back to the seller and say you can't perform again. So here's what I could do. I'll offer you 1,000,050. Right, give me and then we settled on 1,000,075. So I literally wiped everybody off the competition, right? And then I stole the deal, literally stole the deal, because you cannot discount somebody who offers 100k over the best offer, which is ridiculous. Right? And then I come back to what it's worth, right? So I actually bought the property at the end $40,000 below appraised value, and I can fix up the house easily for $40,000 right? Now, I don't even have that much money to put down right? So it cost me around 20 grand. So I go to my sister and I say hey, do you have 120 grand? She's like, What do you want now? She's already like one of my biggest investors. I just wired this wind, right? So I take her money, 120 grand, and I give her half of the house in equity, but I get to live in it. Right? So she has 50% equity, tenants in Common again, here we go. And I live in the house and I keep 50%. What are the chances that goes up by 5% a year in Southern California over the next five years? Probably about 1,000,000,000,000% Right? So it's going to go up right so in five years, I'll return her money now she owns half of an asset which is probably worth a million and a half dollars, right? So that's how I do the deals, I'm very long term focused, I don't make a lot of money per se in terms of cash flow when I structure these deals, and have millions of dollars in equity by doing all these little creative strategies, because I don't make a lot of money, open about it, but I can go and do these deal structures.
Sam Wilson 10:18
That's really Yeah, that's really, really intriguing. I love the kind of not gaming the system, that's probably the wrong word, but using the tools that are in place, the rules that are in place that say, okay, you know, this is the way this works. And you found a creative way to navigate those and come out with a favorable outcome, the house with the foundation issues, how did you know it had foundation issued to see it?
Vincent Rodriguez 10:38
I could see it, they said, “Hey, don't do this. Don't do that. Don't pull the carpet.” So I did all of that. Put all the carpets and I found the cracks and all that. So I took pictures, I got all the foundation guys give them quotes for about 150 grand. That's how much it was going to cost to repair, right. So then, you know, I released the properties from my bid $275,000. And then it's a good buy. 1,000,075.
Sam Wilson 11:01
Right. Yeah. Especially on that big of a lot with an accessory dwelling unit. Will you rent out the ADU?
Vincent Rodriguez 11:07
Yeah. So you know, you know how much money I made? Got totally right, the mortgage is $6,000. That's almost all of my money if I pay 40% taxes, right? Right. So what I would do is, I will have a couple of roommates pay me about three grand in rent, and then I'll go and then my buddy, my business partner, Andrew, he's going to take over that back unit, and then he's going to Airbnb it, right. So they'll easily bring you another, you know, 1500 or 2000 bucks, right? So that's about, you know, $5,000, almost, mortgage’s $6,000 after I put 120 down, so I'm only spending about 1000 bucks in a couple of years, I'll raise the rents there, we bring in more money. So now not only have I moved into a property that I put no money down, I'm also living in it, and it's worth a million dollars, and I own most of it, and these are the deals you could do.
Sam Wilson 11:51
Right, and I think the creative thing that you've done there is you're willing to give up equity, like you're willing to share the large portion of that with someone else, and just let the chips fall where they may because it lets you get in again, it lets you get into deals without a whole lot of money out of pocket.
Vincent Rodriguez 12:07
Yeah. So how I do it is I love to work with people I love, right. It's my sister, right? She owns half the house. I own so much property whose I have a trust and you know, the beneficiaries, her, everything goes to her, I don't have wife or kids, right, and she has a couple of nieces, right? It's all going to her anyway, my whole life policy is she's the beneficiary of a $2 million life insurance. It's first right? I don't really care, right? So for me, it gets me to into places that I can help a lot of people because I don't really think of myself so much because it's not as exciting for me, but I would let's say you and I do a deal, I will spend more time thinking about how to make you worthy than you would ever do in your entire life. That is my talent. Because I really do think about like, if my mom gave me money, I would think about my mom, or if my buddy's mom gave me money, I'll think about them for a long time. And I want to see what the best I can do for them. Because, you know, like the quote I like from Spider-Man, it's like, you know, great power comes great responsibility. And I like to think like that because not everybody can do what you're doing. They can't have an investment group and go raise millions of dollars. Not a lot of people can do but you're helping a lot of people because they will be titled some garbage yield with the Treasury or some bow, you know, crap. Find S&P 500. And then they say, Hey, you want your money back? Sorry, it's tight for 40 years, and we'll charge you 10% income tax on it? If you want your money, which you gave me and I'm buying yachts with your money? I can use it. But you can't. That is insane to me. That's what most Americans do, which is fascinating to me.
Sam Wilson 13:38
It's fascinating and mind-boggling, to say the least. That's really, really intriguing. I love that mindset, that ability again, to find a creative way to do that, too. I wonder if you were to sell this house because you own or occupy it? Would your sister then let's say you made by we'll just throw a number out there half a million bucks. Would your sister end up paying taxes on that? Or would it be owner-occupied?
Vincent Rodriguez 14:02
No. So I mean, it's my sister, right? So I could say it. That's the 20, $250,000 capital gains I get from it, right? I'll sell it. And I'll keep it. I don't know how that actually works. I have to ask my CPA. But assuming I can take all of it right. Or I could claim the deal. I'll change ownership. I'll say I own it. 100% sell the property give her 125. Okay, right. He could do that too.
Sam Wilson 14:22
Right. That's really, really intriguing.
Vincent Rodriguez 14:24
But I would never sell this asset. I would always rent it out, right.
Sam Wilson 14:27
That's the next question. I mean, other than graduating out of, you know, classy, C minus properties, is your long-term goal is to continue to acquire assets?
Vincent Rodriguez 14:35
Yeah, slowly I'll deliver the assets that I don't like as much but I'm still cashing out tons of money from it. And then I'll start acquiring assets but it's nice assets like the three the one I'm buying right now in Highland with my buddy Steve. It's worth 665 It's a 2021 build. It's nobody has lived in it ever. It's brand new. Right. So those assets are good to hold for a long time. What are the chances it's going to have plumbing problems? Probably zero.
Sam Wilson 15:01
Right? Yeah, I would much rather own something brand new and something 40 years vintage. That's for sure. Vince, this has been intriguing. Thanks for taking the time today to break down some of these creative structures. Is there any, one more that comes to mind that you've done that's been particularly compelling you'd love to share?
Vincent Rodriguez 15:17
Yeah, sure. So I'll give you I did four of these. But I'll just give you one example is, when COVID hit, I started doing these deals more aggressively. When COVID hit I had two properties, and my assets were about $500,000. Right now. It's still COVID apparently, right. And then my assets are $5 million, because I read the book 10X, right, Grant Cardone, I'm all about it. So I've done that. How did I do that? So for example, let's say 2020. I bought a house with my sister is a triplex was $200,000. She put $50,000 down whatever, right, we bought this simple math right. And I bought it that loan depot loan depot has this product that if you wait a year and you do a refinance is free of cost. They don't charge you for a scholar lifetime guarantee. So I waited a year property value went up by $50,000. Right? pulled all of the money out about the same interest rate, she got 100% return of her money, and she wants half of that asset. I did this with three other people. Right. So what are the chances these people are going to give me money again, right? Pretty high, is really high. So now my family's thinking about liquidating portfolio in India is handing me money. You know, that's a lot of stuff I could do with that.
Sam Wilson 16:22
That's fantastic, Vince, I love it. I love the creativity and the hustle involved there. That's loads of fun. Let's jump here, let's go to the final two questions. If you don't mind when it comes to investing in the world, what's one thing you're doing right now to make the world a better place?
Vincent Rodriguez 16:35
I help people I like to help people who cannot help themselves as well as you know, as long as it's mutually beneficial. I care about those things.
Sam Wilson 16:43
That's fantastic. I love that, and Vince, if our listeners want to get in touch with you or learn more about you, what's the best way to do that?
Vincent Rodriguez 16:48
Yeah, I have my Instagram. It's called AnVi Invest. And then I also have my own podcast. It's called RE Social.
Sam Wilson 16:54
RE Social. I love it. Vince, thank you for your time today. I certainly appreciate it.
Vincent Rodriguez 16:58
Thank you, sir. Talk to you soon.
Sam Wilson 17:00
Hey, thanks for listening to the How to Scale Commercial Real Estate Podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen, if you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners, as well as rank higher on those directories. So I appreciate you listening. Thanks so much and hope to catch you on the next episode.