The Three Step Process to Build Real Estate Wealth with Chris Rood

Wake Up to Wealth

Host Brandon Brittingham interviews real estate investor Chris Rood to discuss a disciplined, sequential approach to building long-term weal

Key takeaways

• Chris Rood utilizes a three-tier wealth system: fast money (active/30-day), medium money (flipping/seed capital), and slow money (buy and hold).
• The 'ABCs' of real estate investing start with learning how to buy at wholesale prices to avoid the high failure rate in the industry.

Main topics

• Real estate wealth sequencing
• Mobile home park investing

Notable quotes

Social media is Hollywood for wannabe entrepreneurs that are not real operators.

Conclusion

The episode serves as a reality check for aspiring investors, emphasiz

Transcript preview

Speaker 2 (0:02) This is Wake Up To Wealth, a podcast dedicated to helping you change the way you think about wealth. And now, here's your host, Brandon Brittingham. Speaker 3 (0:20) All right, this next segment is brought to you by my good friends at Accruity. Now, if you run a business, most business owners neglect their back office and they don't even know where to go or who to trust when it comes to their financials or CPA or taxes. That's where Accruity comes in. You can trust them. They can give you advice and they understand the back office. Listen, you're not running a business correctly if you don't have a hold of this. And it's really hard to trust people that are out there. And most CPAs, frankly, work for the IRS and don't work for you. That's not the case with Acruity. Check my good friends out at Acruity for any needs that you have when it comes to helping with your back office, getting your book straight, getting your taxes correct, and they guide you and give you advice, which Speaker 2 (1:04) most firms don't. So check out my guys at Acruity. Tell them I sent you. Speaker 3 (1:10) Hey, what's up, everybody? We are back again with another episode of Wake Up To Wealth. And as of today, as we start. And I say thank you to everyone for the support of the show. We are at of today, 4.8 million downloads, which is just insane to think that we didn't start this very long ago. And you guys have supported us to be one of the top investing shows in the United States. And a few times, you know, I have nothing wrong with Dave Ramsey, but, you know, I have a little bit different views than Dave Ramsey. We have been number one who usually Dave Ramsey's number one. But several weeks we have leapfrogged Dave. And because of you listeners, we typically are in the top five consistently on Apple podcasts and investing. So can't thank you guys enough. Thank you guys so much for your continued support. And I get to bring on really cool guests again, like we are today. And I'm bringing on Chris Rude, who I've wanted to get on the show for a while. Thanks for coming on the show today. Speaker 1 (2:10) Absolutely, Brian. Appreciate you having me. Speaker 3 (2:13) So, um, a couple of things I want to talk about, you know, I know you you're involved in a lot of different things. Um, number one, I appreciate, uh, I appreciate your content on Facebook, um, and on social media in general, because I think you tell it very straight. And, uh, I think we live in a world, not say anything negative about anybody, but we live in a world where there's a lot of gurus on social media that I think give bad advice on investing. And I think you give very, tactical, real, you know, great advice when it comes to real estate investing. So I appreciate that. It's just refreshing to see and hear. Speaker 1 (2:51) Yeah, I appreciate that, man. I mean, look, social media is Hollywood for wannabe entrepreneurs that are not real operators. I've been an entrepreneur since I was 22 years old, started in bootstraps, many companies out of the back of my truck from scratch and took them to seven figures before I was even on social media. So when I got on to social media and I started seeing all the half truths and bullshit. It's pretty easy to pinpoint who's telling the truth, who's lying by the over-exaggerations. Anybody can do this. It's so easy. No, dude, not everybody can do this. This shit is the hardest thing you would do in your lifetime. Speaker 3 (3:30) Yeah, no doubt. I want to talk about a couple things. One thing that I've seen you talk about, and I don't want to misquote this, so I'm going to let you say it, but I think it's so true, is you talk about... And I want you to say it in your words, but you talk about kind of like, you know, it's either three or four buckets of like real estate, like today money kind of in the middle money, long-term money. I just think that's a very simple way to explain it. And I never really see people talk about that. Like, if you wouldn't mind kind of dive into that, because I think that's so good. Speaker 1 (4:06) Yeah, I mean, look, I'm a very simple, basic guy. I could barely read and write coming out of high school. And I like things broken down into a way and a manner that I can understand. And I had to break down for myself first to really digest how to invest in real estate because there's a lot of... things that are said on how to invest in real estate. And there's so much information that at first glance, if you're just getting started, it's very confusing and you don't know where to go. And they'll tell you, well, you should wholesale. No, you should flip. No, you should buy rental properties. No, you should do this and that. And they're all right and they're all wrong. You know, I did everything backwards when I was, you know, I started buying and holding when I was about 28, 29 years old. Because that's what you were supposed to do. You're supposed to buy assets and try to live off your passive income. Well, come to find out that none of that shit was passive. It barely cash load because of the fact that, you know, tenants messing stuff up or vacancies and just things that that just you can't foresee. And I was like, either I'm stupid. I don't know what I'm doing or the people I'm listening to are just selling a bunch of bullshit. And I come to the conclusion that a lot of shit that's sold in books and on Instagram and Facebook and social media gurus is just a bunch of bullshit because they're half right and half wrong. And there's a thing in business, and that goes for just about anything in business when you're trying to make money. You can do everything right and have all the right information, but you do it in the wrong order. Speaker 3 (5:45) I Speaker 1 (5:46) talk about this in my book, Skill Up. You have to do things in the right order. Sequencing, right? Yeah, should you wholesale? Should you flip? Should you buy and hold? Yes. But you should start off with learning how to buy at wholesale prices first and foremost, which is your fast money. And it doesn't necessarily mean wholesaling, that you should just be doing wholesaling. Fast money is categorized as anything that pays you on a 30-day basis. It's your active income. You need active income to pay your bills every month. So I had to coin the term for myself, fast, medium, and slow money. And yes, I coined it. A lot of people try to rip off my content. I've been talking about this for probably eight years now, fast, medium, and slow money. You need fast money. You need money today that pays you, whether that's your W-2 job, whether that's wholesaling, whether that's a small business that transact on a daily, weekly, or monthly basis to pay your bills. And then you need what I call media money, which is a midterm money, which is how you create seed capital. You need to learn how to flip stuff, whether that's houses, whether that's apartments, whether that's mobile home parks, whether it's cars. You need something to flip to give you a bigger rip so that you can have seed capital to invest in what I call slow money, which is what? Buy and hold, land development, things that... pay out in a, you know, one to two, two to four year process, whereas your midterm or your median money usually pays you within a three to six, six to eight month basis, maybe a year. But it gives you a bigger rip. You might make 40 or 50 grand. You might make 60 to 80. And if you do that