David: Alright welcome back guys. This is the Discount Property Investor podcast. This is your host David Dodge with Mike Slane. Hey Mike.

Mike: Hey guys, how's it going? Hey Dave.

David: Going well, going well. We are joined today by a special guest, Steve Cavanaugh. We met Steve at a real estate event a couple of weeks back. We kicked if off really well. Steve is a real estate investor just like us we have a lot in common. So before we jump in with Steve we also want to let you know the freewholesalecourse.com is a program Mike and I put together. If you haven't listened to our podcast or our podcast in the past; check it out, it's a great course that we have built and designed to get you started doing wholesale deals immediately.
Again, we are joined by our good friend Steve. Steve, how are you today sir?

Steve: Man, I'm great. I am just loving it, it's a chilly day here in South Florida... but hey man it's awesome. It's probably about 71 degrees outside but it's sunny, it's beautiful.

David: Man, in St Louis that's a warm day. That's awesome. So Steve, tell us what you have been up to. It's been a couple of weeks since we saw you last. What have you been up to in terms of doing real estate investing?

Steve: Well I primarily for the bulk of my 14 year career now have been in buy fix flip seller... rehabber primarily. So I have been doing that and I also run a coaching program in Southern Maryland. So I live in South Florida, my business is in Southern Maryland, and I run everything we do remotely. We do hard money lending as well in Southern Maryland. Of course I run the Southern Maryland Investors group which is the REIA for Southern Maryland so...

David: I remember you telling us about that. So how many... I love the fact you live in Southern Florida and you are an investor in Maryland. That is awesome. How often are you travelling back and forth to do that?

Steve: Typically once a month for two days.

David: Wow that is very impressive.

Mike: I assume you used to live up in Maryland? So you are more of a snowbird now a days.

Steve: Yeah, born and raised in Maryland. When I went to college I just went to Eastern shore Maryland. So I am very familiar with Maryland, especially Southern Maryland. So if you go to Washington DC and you get in the car and drive 30 minutes south you will be in Southern Maryland, that's right where I’m at on that.

David: Cool.

Steve: Yeah. We want to get out of the winters for good so we moved to south Florida.

David: Yeah...

Mike: A little bit jealous.

David: Cold as hell outside.

Steve: If anyone wants the story on how I did that they can go to my website snowbirdflipper.com.

David: Snowbirdflipper.com?

Steve: Snowbirdflipper.com.

David: Sweet, we’ll check it out. So what kind of fix and flips are you into now? Is that primarily what you are doing is fix and flip? And of course coaching too?

Steve: Yeah it is. So primarily... we buy homes typically in the first time home buyer range which in Southern Maryland... ARV on those homes is going to be anywhere from 250 up to about 330 ish. So we are buying those homes in the low to mid 100's. We are doing what I call a heavy cosmetic rehab on those homes. So typically we are about 30 bucks a square foot on our rehabs on those properties. So you are going to be anywhere from 30-35 grand up to 60-80 grand depending on the size of the house, and depending on the scope of the rehab. But, in those homes typically they are built in the 1965 upward to say 1995 range... they require in most cases wholesale, re-plumb, rewire etc.

David: So you guys are going in and doing... a pretty big project then as far as re-plumb, rewire. You guys are gutting them down to the studs...

Steve: We're not. They are built in-between 75 and 95. So we are doing what I call heavy cosmetics. So always kitchens, always baths, always paint, carpet, a lot of times windows. Sometimes roofs, doors, all that stuff we're doing.

David: So you are not doing the full gut though?

Steve: That's right; we are not doing full guts in that area.

David: Okay interesting. So what would you say you are purchasing these... in terms of a percentage of ARV?

Steve: We run the good old 70% formula. ARV times .70, times the repairs. That's what I have run my entire career and we have always made money on them. I would say as far as profit wise; we are making about 22% of ARV on average.

David: That's a good number; 22% ARV, wow okay. Are you doing a year, a quarter, a month? How do you look at the numbers like that?

Steve: You mean as far as how many deals we do a year?

David: Sure.

Steve: I think this year will be right around 30 this year.

David: That's a lot, holy cow man.

Steve: Yep.

David: I have a great team in there; I am blessed to work with some really great people up there and... some of those deals a joint ventures with my coaching students. A very big part of my property. I am teaching other folks how to go out there and do it; they are in the driver’s seat making all the decisions and everything like that. I am just walking behind them to make sure they don't fall in any potholes. Kind of advising them and offering them... just a consultant, holding their hand throughout the deal once we get to the finish line. I just allow them to plug into my network I have built in there. We have got contractors, attorneys and realtors and everything. They just come on the coaching program; they just really get plugged in. We walk hand in hand with them for the first three deals. We just got the systems in place we built up... where they can just plug in, and I am happy to say that my coaching program I have coached 35 people over the last 8 years in Southern Maryland. We sold... somewhere in the neighbourhood of 60 million dollars worth of retail real estate during that time... around 250 deals between me and my coaching students. I am happy to say that we have a 100% success rate in my coaching program which is unheard of.

David: Yeah that is unheard of. That's awesome, 100% success rate in terms of... not losing money on a deal or...? How do you define success?

Steve: I am going to knock on wood, are you ready? We have never lost money on a deal. We have come close don't get me wrong. Very close, one day we made 500 bucks one time.

David: Hey you didn't lose.

Steve: That's right, we haven't lost money on a deal... and I haven't had a student who has not applied themselves which then becomes successful. I had two students who moved out the area; that doesn't count, right? They moved.

David: Yeah, sure.

Steve: The student who stuck around and the students who have applied themselves...100% success rate. I have not had a student go bad as of to this point. A lot of that has to do with the coaching funnel, a lot of it has to do with bringing in 'A' players, I only want 'A' players in my group and stuff like that.

David: Right, right.

Steve: Very good systems, we are very good team members for this... coaching operation that I believe is one of the best in the country.

David: Okay.

Mike: Yeah that's amazing. So Steve let me ask you... I know you said you referred us to your website; thesnowbirdflipper.com. But why Southern Maryland still then? You are down in Florida now, why not start flipping...? I know you have got the root there, you have got the teams? What is the thought process?

Steve: Well... first and foremost I only moved here in July. So I am brand new to the area from the stand point of living here full time. Let me back up a second; we... Snowbird are down here two years ago; hence the Snowbird flipper thing; so we tried it out for four months we lived down here over the winter, January through April. We figured out... it was pretty awesome, so we might just want to go ahead and do this full time. So I tried during that period to go back two days a week; I run my REIA meetings... make sure everything is going good there then fly back home. So we decided to go ahead and do it. We have only been here since July. I do have a handful of contacts down here; I am starting to put my feelers out into the market. Bottom line is, as you guys well know; whenever you are learning a new market... if you want to do deals the right way, I believe it's prudent to be conservative and make sure you know the neighbourhoods, make sure you know the inventory, make sure you know the players. So I am in team building mode... I have got operations in Maryland going that could carry me for many years right now. I think I would be foolish to give that up. I have set up a great team there; I am responsible for a lot of people's incomes up there. I am just not going to pull out the rug to take advantage of...

David: Absolutely.

Mike: That's awesome. That makes sense.

David: Yeah that makes sense, absolutely.

Mike: Kind of a follow up question. You are flipping up in Southern Maryland and... you are building the coaching business up there through your REIA. You said you had the contacts, I guess my question would be... in your position... a lot of people have this mentality that... if I give away all my secrets; there is not going to be enough deals for me. Where I am going with that is; what about all your contractors? Like if you are partnering with all your students... aren't you going to eventually run out?

Steve: That is a really good question. This is one of those things that is almost counter intuitive. That is a great, great, great point. I think a lot of people will say... and myself sometimes, especially getting started with it, why do I want to train my competition? But here is what I have found. When you... when you coach these people... look you have future wholesale buyers that you can wholesale to. You have got future clients you can lend hard money to. You have got future people that if they don't know how to put a particular deal together; they are going to come to you because you took the time to coach them and teach them. They are going to know that you are going to know how to put that deal together. They are going to come to you if they need a strategic partner. On and on, there are so many benefits that I have found both from running a REIA and teaching real estate, and a formal coaching program where we really get out hands dirty. So yeah absolutely, what I tell my coaching students when they come into the coaching program with regard to contracts and marketing, some of that stuff that would be more considered to be trade secrets... is I will introduce you to the types of contractors that I expect you to cultivate relationships with on your own. I will introduce you to the types of private money lenders that you are expected to cultivate relationships with on your own. Once they see those personalities and once they see those team members; they then know how to press their network to find those same types of individuals. We teach them methods on how they can go out there and raise money, how they go out there and find contractors. A lot of times what I have found too... which is maybe not readily apparent is... let's say I link you guys up with one of my long time contracting crews; you guys might butt heads. This is a people business and not all people get along. Not sure if you guys have seen that or not... I have had plenty of people where I have linked up with... guys I have worked with for 10 plus years... they just butt heads and agree never to work together again, so they are all fine with their own contractors. That is what I have to say about that, but it hasn't become a problem for me but certainly I get that question a lot of time from other investors in the market who don’t have a coaching program, and don't understand the whole coaching thing and how it could work. They say, Steve why are you teaching all these people this stuff?

David: Right, right.

Mike: We have the abundance mindset here. We always think the more the merrier. There are plenty of deals for everybody, plenty of money out there in the world. You can make it and someone else can make it; it's not going to affect your success... other than making you feel better about helping people.

David: I love the fact you have so many benefits from... having the coaching program. It is not so much as... training your competition because... they essentially can become partners and they can become customers. Of course friends, so there are a lot of benefits from that. I have a quick question... kind of a curve ball because it's not really related. Me and Mike, our primary business is wholesaling. We don't do a ton of fix and flip. We have started to do a little bit of it but we don’t do a ton of it. So how do you guys find your deals? How are your students finding deals? Are you guys working with wholesalers like me and Mike for example in Maryland? Or are you guys working with agents or...? If you are doing 30 of these a year, which is impressive by the way, that's a lot of work. How are you guys finding 30 properties that meet that 70% ARV minus repair ratio? That's my question.

Steve: Well... to be exact; we do get a ton or referrals. We don't have a ton of wholesalers or wholesale... wholesalers in Southern Maryland because it happens to be more of a... suburban to rural type of area. If you were to go up into DC or actually up into Baltimore, you are going to be able to buy from wholesalers... because what I find is that the number of wholesalers experientially increases as the inventory experientially increases. So Southern Maryland in my main county that I operate in; we got somewhere around 200,000 people. In the other two counties that we operate in we got... around 300,000. So you are looking at about 500,000 people in the three counties total that we operate in. I don't know the comparison of where you guys are at, but it is probably very small; you guys are probably in the millions where you are at. So... just by the function of the amount of people that you have, you are going to have more inventory, which means more wholesalers, more wholesalers means [00:15:23.06 - inaudible]. We don't have much of that. That being said... I wholesale property from time to time. Like I said, a lot of times I will wholesale them to my student. I take it easy on the front end of it because am participating a 50, 50 on the back end of it with them. Back to your question; we do a lot of direct mail, we do... a lot of online lead generation with the pay per click or whatnot. We get a lot of referrals like I was saying. Believe or not; we still buy stuff off the MLS and the hubs. It's not easy... people say "Oh Steve, there are no deals on the MLS." I don't believe that. We buy something off the MLS at least every month. There are deals to be hand. Online auctions, court house auctions...

David: You guys are going...

Mike: That's great. You are sourcing your properties yourself because I think... you indicated there are not wholesalers there. So I guess as a wholesaler my question... and I know we will probably get off topic here... isn't that a huge opportunity in your market? Couldn’t somebody who is in your club... just be like, "Hey I am just going to find deals for everybody." Couldn't they go be good at that? Or is it too small?

Steve: I mean look man, I have run that club for close to 15 years. If there is a good wholesaler in Southern Maryland I haven't met them yet. Yes there is an opportunity for somebody... a wholesaler that is really good. Here is the good thing. I have wholesale deals that you guys probably wouldn’t believe if I told you. My very first wholesale deal I made over a hundred grand on. I wholesaled two lots to a builder. I have done a couple of 50,000 plus wholesale deals. It is one of those things... you are going to have high margin, low volume in my area so... a wholesaler would have to be able to sustain themselves for probably... longer time because it creates a feast or famine kind of thing. As opposed to where you are making a thousand or three thousand or ten thousand bucks a handful of times a month... and you always have that churn. This would be more a quality over quantity type of thing. Which I am all about by the way, and all my businesses are built on that.

Mike: Excellent. Well one last question on this and I promise I will move on. How big is your club? How many members are regularly attending if you don't mind sharing?

Steve: My list is around 1300. My membership at a typical meeting... attendance of a typical meeting is... going to be in the 40-50 range.

David: Okay.

Mike: That is a pretty good sized club.

David: That is a great sized club.

Mike: I will tell you what... we might have to branch out to Southern Maryland... for our next market.

Steve: Bring me deals.

David: We know who to hire.

Mike: Alright I promise we can move on now. I am done here.

David: Steve, I would like to... get back towards your coaching program. But before that just real quickly; can you tell us about your team? Obviously I don't want you to get into too much detail because... it will take all day. But can you just give us a brief understanding of how you were able to... leave town for the most part and... go back to your hometown for two or three days a month, I am sure where you are up there more, or less. But essentially you would never have been able to do that without building a team and putting systems and processes in place. So I am just curious, and I am sure all our listeners and viewers are as well. Is your team six people or is it 60 people? How does that work?

Steve: That is a great question. We could go all day with this, I will just try and make it...

David: Sum it up, no problem.

Steve: I have got a brokerage team so... I have a main real estate agent and she has agents who work for her... and about 95% of their business is me and my coaching students.

David: Wow, that's great.

Steve: Within their brokerage they are in the top 20% of performing realtors out there. So we... represent a lot of business for them and they are a very strategic partner for us. Handling all our acquisitions and sales. So that is number one. Number two is contracting; I have several general contractors that I work with. I use the general contractor model. I don't mind a general contractor making an extra 10% on the job or whatever it is if they are going to babysit managing the entire job... as opposed to a lot of other rehabbers out there that try and kind of line up all the different pieces themselves. It saves money but your times involved. So again... I am always looking at everything through the lens of how can I make more and work less. That's always the way I am evaluating any opportunity. A third and this is probably the most important thing for me, especially for being able to do everything remotely is a great... operations manager and a good assistant. So in house I have an operations manager and she has an assistant that has directly.

David: Got it, so you guys are... you are not micro managing these projects. You are essentially hiring a general contractor to come in... after you have acquired the property, and you say... here is what we need to do. Like you said in the beginning, we are doing heavy cosmetics so... go in and say make this thing look pretty.

Steve: Yep.

David: Fix all the old, ugly and the dirty, make it look new and pretty, and then your project manager essentially manages the GC's, right?

Steve: That's right.

David: Than you have an assistant that helps you I assume with the acquisitions and inquiring... then the real estate team probably helps with that as well and they also help sell.

Steve: Yep, that's right.

David: I am impressed because... that is not a massive team, but you have kept it simple. You have proven that can be ultra successful so... well that's great, man. I am sure there are a lot of people who will be interested in learning about the coaching program. So let's jump into that. How does that work? How does it work? You said you have had 35 students who have had 100% success rate. I am intrigued.

Steve: Let's say you guys were just beginning investing and you want to learn how to rehab properties... that is what I am passionate about. Sure I love wholesaling every now and again. I do own a rental portfolio that... just between us hate managing, hate everything that had to do with it. I put it with property managers. I have done all that stuff, got the t-shirt. I understand that part of real estate. I personally like to rehab, I like to coach and I like to lend money, okay? Those are the three things I really like to do. But you guys are brand new and you come into my REIA, you meet me and you see that I am successful, you see that students of mine are at the REIA, they are talking about the success that they have had. A lot of people come in and want to be wholesalers. I take the time to educate them just like I did with you guys. I say loo, if you want to be a wholesaler go to Baltimore because you are probably not going to be doing it full time down here. They say, okay I want to start a rental portfolio. I say no you don’t, not off the bat, not until you have reserves and all that good stuff; because you guys know what happens if you have a rental property and you don't have reserves.

David: I had a water heater go out this morning. I know all about... oh shit.

Steve: I have people that will say, "Oh well I just want to bird dog." I say, "You might as well get a job delivering pizzas or something..."

David: You got to be out and about, that's right.

Steve: I take the time to educate them and say look, if you want to do any of those things; bird dog, wholesale, buy a rental portfolio, get into commercial real estate, that's all good. But the fundamentals of real estate are what is so important. You learn all the fundamentals when you rehab a house. You learn acquisition, you learn repair cost, you learn managing contractors. When you have a water heater go out, how do you know the contractor isn't going to take you for way too much on replacing your water here when you own a rental? When you have a tenant that skips out and now you have to paint the house, re-carpet the house and all that stuff. How do you know what contractor to call? You learn all these skills through rehabbing. You learn what stuff costs through rehabbing; you learn how to properly value houses. How many times have you met wholesalers in your market who cannot properly do an ARV? Don't know what the house is worth, don't properly evaluate the repairs. Now they are shopping it around to all these investors in town. The investors in town are not giving the time of day because they are over estimating ARV, they are over estimating repairs and what they bring to the table is not a deal. So if someone wants to start a wholesaling business it's great, but come learn how to rehab first, then you can branch out... then you really have the breath of all those fundamentals and that experience. So that is what works in my market place and I think that is what works in a lot of marketing places across the country. But I think when people are just getting started; they are taught they natural progression of bird dog, wholesale, rehab, buy and hold commercial. I think that's crap. I think the best thing to start on is rehabbing, because it is very simple. It is a very simple concept. Wholesaling you guys do is a hustle, right? Rehabbing is very simple. Buy low, improve, sell high. It is very simple.

Mike: You can tell you are passionate about it.

Steve: So a lot of times people hear me say that and they are like... okay how do I get started? So they come to my coaching program. The way it works is that there is an upfront fee, there is a monthly fee for the duration of their involvement, then we split their first three deals 50:50 on the backend of those sales, okay?

David: I like how you said that you introduced them to all the people that they are going to need to build their... quote unquote power team. But you don’t... you don’t force it upon them, you just say hey listen, this is who I am using and these are the people you need to meet. You kind of need to create your own team. I love that, that's great.

Steve: Yeah so... we have systems as soon as they come into the program. We introduce them to... first and foremost the real estate team... so we can get everything stream line with them. People to make offers and... I take them around; I show them projects we are working on... just to get them into these houses, familiar with the houses. Then we do a day where we spend together, we go evaluate listed properties, so they can kind of some ugly nasty ones, ones what they looked like beforehand. We spend a little bit of time with them, educating them on the different types of marketing and... we do several tests on them before they are even a student, we do an evaluation... an application... to see what assets they have going for them. Do they have money? Do they have time? Usually it is one of those two, and that is going to help us develop a marketing plan for them based on what they have going for them. Then once they have that all set up, then we kind of push them out the door. They go out there and see what they can do in that first month or two. They come back, we have two [00:26:48.02 - inaudible] where we hop on a conference call with other coaching students. We just take care of their issues at that point. Between my experience and the experience of the other coaching students on the call... we are always able to give them our story from our experience and we overcame that same hurdle that we had in front of us so... it has been a great thing. Like I said, I have had many successful students. It has really changed people's lives. It is extremely gratifying for me as a coach to see somebody to go through that change of... so somewhere out there, there is a video of this woman Eliza... that I did this woman Eliza and I coached her and... I just completely changed her life and we were able to capture that in a very short documentary. So if you YouTube my name and Eliza you should be able to see that.

Mike: We will put that in the link. That is a great video, I am not sure if you have seen it. Makes me wonder to be a student of Steve's.

David: That's right.

Mike: It's good.

David: Steve I... uh... I have a coach right now, we do coaching. Mike has had many coaches in the past. I just want to agree and just build on something you just said. Whenever you have the group calls; I feel like I have learned just as much from other students in the program as I have the coaches... from things they are either struggling with or... problems they have recently solved. You actually worded it perfectly, by doing those mastermind calls... with a group of people is so beneficial. All the listeners out there, all the viewers... if you haven't already hired a coach; you need to look into it. It is so important. We do coaching, but we also have coaches. One of the requirements that I have whenever I go, and I look... to hire a new coach; no matter if it’s a real estate coach, an investment coach, a relationship coach... it doesn't matter... is that they have a coach. If they don't have a coach it typically means... I should actually keep looking. By having a coach it helps you continue to build yourself and your business. It is super important so... Steve, how would somebody contact and connect with you to learn more about your program? You said you had a REIA... tell us about that, then... you have a website, phone number, e-mail. Let's...

Steve: Well I can answer your question... but first I would like to speak to your last point. If free content was all it took, then all librarians would be millionaires, right?

David: So true.

Steve: I hear a lot of people say they can just go on YouTube and figure out how to do that; I can just go on... nothing against those sites. Obviously I looked at that stuff when I was starting too. But the bottom line is... until you get plugged in with a coach that knows your market and can really... has been where you want to go; that is how it happens. They can cut through all the clutter and all the crap. If you want to spin your wheels for 11 years like I did getting stuff. When I started YouTube didn’t exist yet. But if you want to spin your wheels going through video after video you are just wasting time. That is one thing we don't have a whole lot of in this life.

David: So true.

Steve: Tomorrow you are going to be as successful ten years from now... there is a cost that is attached to that and people just don't think about that so. Anyway I do, I run the Southern Maryland Real Estate Investors group. We have been together... I guess we have been doing it for 14-15 years now. SOMBREIG.com is the website for that...

David: Say that again, Steve.

Steve: It's SOMB, as in Southern Maryland, and then REIG as in Real Estate Investors group dot come.

David: Okay cool, I will put it in the show notes.

Steve: That would be great. Facebook as well. Best way to get in touch with me is just to find me on Facebook, Steve Cavanaugh and friend request me or send me a message or something like that. I would like to if now is a good time... I would like to tell everybody a little bit about this new thing that I am doing.

David: Please. We are all ears.

Steve: There is this investor in Memphis Tennessee. His name is Mike Stansbury, he is a good friend of mine. He came to me a little over a year ago and said, "Steve I really like what you are doing with your coaching program in Southern Maryland. Will you teach me how to replicate that model in Memphis?" I said, "Absolutely." At that time when I was living in Maryland, he flew into DC and he spent two days with me at my office and... I basically broke down the entire process into a mind map for him. I put it down... I will just real quick list this stuff for you guys, but I basically. Model platform, sales, screening and signing, boarding, fast start team immigration, fast start fields and mastermind, acquisition, project management, listing, marketing, sales process, membership termination, record keeping, book keeping, miscellaneous.

David: Wow.

Steve: These are all the chapters if you would, okay? I brought this guy in and said, "Look, man. Just go back to Memphis and do every single thing, I am going to teach you all this today and tomorrow. Go back and just don’t do anything different, right? Just put it all into place just like I showed you and let’s see if you can replicate this process." He goes home, today I am happy to tell you he has got six coaching students... they all pay him a nice five figure entree fee. They pay him hundreds of dollars per month for the ongoing coaching, then gets 50:50 split of their first three deals. He is... certainly on track to make hundreds of thousands of dollars with this additional revenue stream with... very little of his own time involved, and that is... if you set it up the right way I am here to tell you that it is very little of your own time involved in this... coaching model. So... that is great, his name is Mike Stansbury, you can look him up on Facebook and friend him too. He will tell you that we had a good time working together. So now what I am trying to do now is... I am pushing this out there now. I am on this podcast and I am on several others in the coming weeks... just telling everyone about this coaching program... this model that I put together. I would like to be able to share this with others out there. [00:33:32.03 - inaudible] South Florida this winter... spend a couple of days with me down here or I can fly out to you and your market there... and help teach you this and help you implement this. I can tell you for me, this has added a very significant... six figure income stream to my bottom line for many years now. I believe if you are a major player in your market; by that I mean you are already rehabbing homes, you already making 250-300 a year easily in your local market rehabbing... you already have the local contacts, so that is contractors, attorneys, private lenders and stuff like that. Then you would qualify to work with me on this... on this program implementing this coaching program in your local market. There is a lot of stuff to it; I make it sound very easy I am sure just talking about it. But there are a lot of ways you can get completely screwed if you set up a coaching program the wrong way. Another thing I do is I do offer a consultation to people who have set up coaching programs but have problems with them. I seem to have this talent... to where you can tell me about a problem you are having with your coaching program, and I will be able to identify within five minutes exactly what the issue is, and exactly how you should rectify it. So I have helped several people... essentially put band aids on and fix and rehab their coaching programs as well.

David: That's cool. That's great. So not only do you have a coaching program, but you have a program that teaches... and helps other coaches set programs up

Steve: I call this coaching the coaches.

David: That's super cool. So... if someone... I guess there is two things we need to jump into at this point. If somebody is in the Southern Maryland area, they can go to the REIA I imagine... that is probably where you would want... that or Facebook to just connect with you, right?

Steve: Yes.

David: Do you have an outlet or more information on the coaching of the coaches... program at this point?

Steve: Yes. So again, Facebook is going to be your first contact. But I will also have some information for you on REIcoaching.com.

David: Awesome, REIcoaching.com, like real estate investing?

Steve: Yeah.

David: Okay, sweet.

Steve: That website will exist until somebody wants to pay me 25 grand for that URL at which point in time I will be happy to sell it.

David: Awesome so... it only takes you about two days with the coaching coaches... to kind of explain the program, give them the blue print of what you have been using... roughly 14 ish years or so. With that... do you give them further... mentoring and coaching on that coaching program? Is it kind of like... here's the blueprint, how does that work?

Steve: I am not going to leave you stranded. If you come in and we work together, we set this model up in your market, I am going to do a 12 month follow up of phone calls with you. One hour per month, and we are just going to help you overcome any hurdles, any challenges that you are having with students. I want to make sure you get this thing implemented. If you set it up right it should be six figures in the first year. If you set it up right you should be close to $300,000 in year two. Every market, every person is going to vary but... I believe that I have got a really good model here, and like I said, the proof is in the pudding. We got... I will tell you about a student of mine, Jeremy Campbell, he just graduated my program... he netted 44 grand on his third deal with me. He is... he is a teacher. He happens to get paid very well believe it not. The teachers in Maryland get paid pretty well. He has been in the system for a long time. He is now talking about quitting his job. So the proof is in the pudding. I have students who are just super successful. We have made a ton of money together. Tony Robins talks about the 6 human needs, the top two being the needs of the spirit growth and contributions. Those are like the highest after the [00:37:46.06 - inaudible] of personality so.. if you are crushing it in your market, I am going to assume the four needs of your personality are met, and you are probably searching for the needs of the spirit. So that is like growth and contribution. Developing in the coaching program will allow you to achieve both of these needs. So somebody who is crushing it is just isn’t feeling completely fulfilled. When you see somebody else’s face light up, or their life change, or they are able to quit their job... that is a cool feeling.

David: Oh yeah a great feeling.

Steve: I want to work with people out there who are passionate about helping other people for that. The extra 300 grand a year is great. But that is not what this is about. This is about changing people’s lives and using real estate as the tool, that is what I am passionate about. I don’t work for free; you guys don’t work for free, nobody who coaches works for free. This isn’t free, but the bottom line is... when you change those people's lives... the money is secondary.

David: Right, right. Oh absolutely. We have a couple of students’ right now... we feel the same way. Obviously we don’t do it for free because time has value. The most rewarding is not collecting the payment from the student. Its seeing them become successful, make money then be able to... grow from there. If they quit their job, awesome. Not something we necessarily encourage but...

Mike: Until they are good at it.

Steve: Not on the first check.

David: But it happens... super rewarding whenever you have a student that contacts you and tells you their just quit their job and going full time. It's like one of my favourite quotes, "Consistent, persistent action." If you stick with it and you don't give up and... you can definitely do that so. That's awesome.

Mike: Just wow though, Steve. That's awesome. You have mastered the flipping then... doing a REIA from another State, then coaching people. That's awesome and taking it into another level by coaching coaches essentially. That is really neat, keep it up.

David: Do you have any aspirations to cut down on your work load? Two days a month is... got to be stressful.

Steve: I do a lot... here. I still do all of our outbound calls. When calls come in we use an answering service and then they pre-screen. I go through the database on Podio everyday and see which ones I should call back, and which ones I shouldn’t. So I still do that and I still make all final decisions on acquisitions and sale prices, negotiations of any contracts, I still do all that. There probably will be a time in the not so distant future that I will outsource the acquisition management part of it... with the outbound calling and what not. But... I still like to make the investment decisions because... at the end of the day I am an investor. I thoroughly enjoy investing. When it comes to the actual dollars I do like to make those decisions. I am not the type of person... at least not at this point in the game where I would hire a CFO and let them make all those decisions for me.

David: Sure.

Steve: So when it comes to moving money around I enjoy that part of it and I do that part of it. Sometimes I think I would have less worries if I didn't even think about that at all.

David: Yeah... right. That's awesome.

Mike: This has been great. Steve, is there anything else you want to share that we didn't cover or ask about?

Steve: No I think we pretty well covered it. But I just want to let you guys know and anybody else know... that if they want to set up a coaching program in their market, please contact me, I am extremely passionate about this model I developed. I believe if you are the type of person that wants to add another six figure income into your business, and wants to help people in the process... this is a no brainer, it is a very easy switch to flip and there are really no downsides to it if you set it up properly.

David: Absolutely. Well I am interested.

Mike: Sign us up.

David: Absolutely, that sounds awesome.

Steve: We will talk about that.

David: Let's do it. Well Steve, thanks for coming on the show, we appreciate it. I know I have learned a lot, our listeners and viewers... I am sure they have learned a ton. I imagine you will probably have a couple of people who are going to be reaching out to you in the very near future. So once again, Steve Cavanaugh. That is C.a.v.a.n.a.u.g.h. Facebook is a good way to connect with Steve. I am going to go through a couple of websites real quick. So if you are interested in the Maryland Investors Group that he hosts; SOMDREIG.com. Then snowbirdflipper.com.

Steve: That's a story of how I got started.

David: So I am going to check that out, that sounds awesome. Then the last but not least would be the REIcoaching.com. That is where you can learn about connecting with Steve and hiring him to help you... build a coaching program, to fix any glitches in any existing program you may already have.

Steve: That's right.

David: That's awesome. Well Steve thank you so much for you time. We have had a blast having you on the show today. Anything you want to add, Mike?

Mike: No, thank you so much Steve, I appreciate it.

David: Yeah absolutely.  Steve we will be in touch. We will check out some of your sites and talk to you soon. Thank you Sir.

Steve: Alright, thanks guys.