Special Guest Josh Adamek PT1

Count money man money back riches. I'm trying to try and told him I'm a beast.

What's up gang welcome to another episode of the grindcast get ready. It's a new day and we got big permanent house

up y'all and we got my dog Josh Adamick is that how you pronounced the last name the right way like what is the proper way to

pronounce this last name you don't even know okay whatever you just go with the flow Adam. Okay, all right so we're on the right track and so Josh owns a

real estate company real estate investment company or real estate development company and

We've been we've had a relationship now for a few years and not only have we done business

But we've done we've done personal and it really started there. So I

You know, I got to I got to know Josh

We had some mutual friends and then you know one day. I don't know. I think maybe Natalie told me that hey, you know

Josh were gonna meet up at Jimmy Wands or something

You know, I think she linked us up and and Nat D and you went to the same high school right and a right same same high school in

Pittsburgh North aligaini and that D's like my gate my gatekeeper his his mic closer. Okay

Nadis like the gatekeeper and

You know she's a great person, but she'll tell you how it is

So I'm like hey before I meet up with this guy was the 401 on him, you know what I mean?

What do you think and she's like I don't have nothing bad to say about him

I think he's a good dude. I think you guys should should meet up. I think he's a good person

And so that was that's a major endorsement. So I sat down with Josh and and we hit it off

You know from there and then you know as I started to continue to grow inspiring minds

Shout out to inspire minds overall inspire minds Pittsburgh and the house though rocks and

Over to over a couple of years, you know, I would have my youngstown fun razors and youngstown events and

Josh would would end up supporting them and he would drive all the way to youngstown a few times to be there and support and

And it was just like a genuine genuine vibe and we started to talk a little bit about

You know possibly bringing the youth program to to Pittsburgh and a lot of people like to talk about it until

It's time to be about it and then we started to get down

You know to the nitty-gritty over the last over a year ago talking about it and his wife was on board and he was on board and and

And so we started to form the board of inspiring minds

Pittsburgh here and I could tell you right now, you know, Josh, you know married he has two children

I think is that's your high school sweetheart at your what not high school. Okay. How long how long you been together?

20 years 20 plus years. I don't think you're 40 yet. Yeah, so so so the you know long time and and

Those you with kids you know how busy life can get so

He got a job, you know, he has a career. He's an entrepreneur

He's dealing with a lot of other people's money. We're gonna get into that and how Josh could help you make some money

Possibly in real estate, but as he's helped me and

But the time that he's been able to put into kids in the Stowe Rocks community

I mean, he's I call him our MVP. I'm like manners. No way. I'd be able to run this thing here without without Josh

He's picking up kids. He's communicating with me. He's in the hood picking up kids talking to parents. I mean

He's all frickin in dude like all in like he ain't there just me he's there like he's rolling his sleeves up

Getting the job done man, so I'm bringing to you a first class

Individual today and and we want to gain in knowledge in the real estate world

And we want to gain in knowledge overall and wisdom and advice on

Entrepreneurship no matter what business that that people are in and so Josh first of all

It's it's how did you get into real estate and it's it's avid that's the company right avid

Company is Adam McVanchors and Adam McVanchors

A management company under that okay avid is the management company

Adam McVanchors is the is the main because the main parent parent company and then you got a management company that helps

The manage the properties and all of that stuff. Okay, and so how did you get into real estate?

so

Almost 20 years ago I was my my girlfriend who's now my wife

We were living in in you know in the hood

So yeah 20 years ago we were we were living in Swissville in which is pretty comparable to youngstown in a

350 dollar a month apartment

my

Landlord came by to collect the rent he got my rent. He got the other guys rent got the got the two people downstairs

Then he spent the afternoon, you know hanging out drinking beer with the fourth guy and

The numbers guy kind of ran in numbers and I'm like you know what if he can do it so can I so

So so I got involved with a corrupt Pittsburgh a real estate investors association local club for real estate investors

then I helped run the group now and that was almost 20 years ago

Got involved with that group red a boy. Wow. You've been with them for almost 20 years. Yeah, yeah, Jesus

Yeah, when I'm in I'm all in all in cross board

I like it. So I know we got him for least 20 years

Yeah, I'm stuck. Yeah, so so I started I read a book I got involved with the group six months later

I bought my first property, which was a duplex down the street

That was so I think I was 21 years old when we closed on that

bought that property

Fixed up one apartment moved in rented the other apartment out textbook

Yeah, textbook what they tell you to do to start now they go in one side and rent out the other

Yeah, now they got all kind of crazy terms for it, you know house hack in or whatever it is

So we did that moved in lived there for a while and you know we're in a hood

My wife's a country girl so that was that was a short-lived thing there and either one of us really wanted to be there

But it made sense so I bought a house

Not far from here in Ohio township same thing fixed it up moved in

Ren it out the other side of the duplex

The income from the duplex paid for the house that we were living in so again still

you know kind of house hacking and

Group from there just started buying more properties buying more properties and then

In 2010 I

Transition went full-time in real estate. So when was when did you start that process? That was 2001?

Okay, so 2001 2010 you went full-time in real estate

So that's what people miss say it's oh man

I want to get it they think I'm gonna get a real estate

We're gonna be rich because I know people that are rich. They got real estate

So now we get real estate. We're gonna be rich with they miss is the nine year the nine-year process

Right of what that would all that process and tailed and why people don't ever reach that you know that that level

So how long did it take for you to get to where you are in your business and like give us some things that like when people say

It must be nice give us some things in the process that you had to overcome that maybe people didn't see yes, so

You know it's 20 years in we're still grinding so we're still growing

Still adapting learning you know trying to do better than we did last year

So still at it every day

You know, that's what it takes to to be a business owner as far as the you know when people say it must be nice

I mean, you know must be nice comes with a must be price so and and you know

I really I really don't

Wait on that stupid comments come from stupid people so you never hear you never hear that

Kind of stuff coming from people that you know you respect their opinion or you'd want to train places with so you know

We're blessed. We got a good circle of friends

You know, we we motivate each other. We push each other to do better

You know, I never hear a comment like that coming from you or from parmed from anybody else

I mean, you know, I know what it takes you know when you get there

So why don't you you know maybe somebody's out there listening and

You know, I think before people transition into seeing what it what it requires if you've never done it

Then then you think it must be nice like it look look if I look at you and you and you pull up in a nice orange card and

And the things go up and you got all this real estate, you know clean cut white guy

I'm thinking man. He must have two perfect parents rich doctors

Gave him everything and started his business not a nine-year grind starting out in a Swiss bill

You know, $350 or rent and built his way up and and all of that stuff to where he is right now

So what specifically you know to to to the person out there thinking I want to do this

Give him a dose of reality of like like when people start in my business

And I know they got it and they want to do it

I'm gonna say you can do it

But here's the things that I want you to understand you're gonna have to do in order

Here's the things that all these people had to do in order to get there

What are the things that you've had to do in order to get there?

What are the sacrifices you've had to make? What are the things that separate you from others that want to do it?

That may that that people need to know as a part of the business process or entrepreneurial process or just your process. Yes, so

You know, you got to stay focused. I mean, you know, so many people get up get caught up in shiny objects syndrome

Where you know, they're they get in real estate or any business they get a couple of properties get a couple of paychecks

And then you know, there's there's some other infomercial or something else or there's some other opportunity or you know, grass is always greener on the other side

You know, you got to stay focused. You got to stay grind grindin

I mean, you know, I've been I've been at it for 20 years. I've seen a lot of a lot of people come and go

The other the other big thing is is getting caught up in instant gratification

You know

credits readily available and that'll kill you

I mean so many people start you know, where I started where you started where you started start making some money and then

Go buy a nicer car go buy a bigger house go run a bigger apartment and you go for making whatever it is 10 20 30 50 grand a year to

Make in two three times that and then your expenses go up two three times your your payments. So you're you're no further ahead

You know the the big thing for me was was you know trying to stay conservative

Increase the income increase the expenses the same. So you got money to invest increase the income

Reinvest reinvest in your business and try not to buy dumb shit

Love it. Yeah, love it aside from the orange car

So that's that from the orange car. Yeah, that was like you know 20 years in the game

Twist your arm, you know what I mean? So tell us you know

I know oftentimes early and you know

I called you was it yesterday we called Josh like seven o'clock in the morning. We left my house at six a.m

Yeah, and you answer I said I figure I could catch you there's not a lot of people that are up and working

Like functional working at 7 a.m. But I know you are right

You know there's times where we used to when I used to hit the the same gym you went to them

Josh is already in there getting a sweat in and I'm walking in the door

It's normal for you to be up and at it. So what would give us a look at like what you what your typical morning routine looks like and why?

Okay, so typical morning alarm set for five seven days a week

Typically get up seven days a week typically get up between Sundays four and five Saturdays every day Friday

Okay, so there's a tip you see cats that they let the weekend be their weekend

Right, so I want the real estate, but I don't want that right okay

Well, here's the things you're missing already. It's the seven days a week. Yeah, okay, so seven days a week

It's set for five o'clock. I get up between four and five. I'm usually up before the alarm goes off like this morning

10 after four I'm up and at it

You know

My bags pack my clothes are ready in advance in advance. Yeah, so I get up

I before you know

I got two young kids and it's like you got to you got to be in stealth mode trying to get out of the house

So everything's ready to go and grab my stuff brush my teeth head to the gym on the gym floor by 5.30

Get a workout in during the workout audios

books

podcast

Different training so try to try to double up not waste any time get out of the gym by seven o'clock at my desk by

7.15 7.30 when you called yesterday 7.15. I'm leaving my gym on the way leaving the gym on my way, so

Yeah, so that's that's Monday through Friday

Saturday and Sunday

Get up at the same time and I got two three hours before the kids get up in the chaos break

It's some stuff done huge points right there huge pointers right there

Notice right there you're up and Adam and at your desk with the mind and the spirit everything already mind a body everything connected before people even wake up

7.15 am so tell us tell us why your

model

Works because you have a you have a unique model. Yeah

You know I mean you have partnered in in what I like to think is a lot of property now not a little bit of money

Yeah, no, no, you know to me. Yeah over you know M's in it. Yeah, and and and so that takes a lot of trust on my end

Oh, yeah to to put into somebody and to want a partner with

Somebody in real estate functions and real estate transactions

One of the things that I love about you know your investment model other than the person and the character

You know that I believe in you if I'm gonna put money in somebody's hands man

I love when I could see him touch him talk to him

You know

Put in somewhere else that you know what I mean I can't hunt these people down

Yeah, no and and but outside of that man, you know the the model that I've loved about yours is it's it's pretty much

Almost as close as a of a I don't want to say guarantee as you can get

With a little bit of risk you have a little bit of risk in order to have reward

But there's like mostly all upside not a ton of super risk and you're in a scenario where it's almost a

win-win, you know people have an opportunity to buy and if they buy we celebrate and cash out and reinvest if they don't buy they keep paying

The rent and if

If if rent is is a thing and there's less houses to buy or something fluctuates with the with the interest rates and it's harder to buy homes

Then all of a sudden people need to rent and when they need to rent you can increase the rent fairly

You know a market value or you know a price or whatever so I just I love your I like your model up because I like to tell people

I take my risk in my business

What I know that's what I know so if I'm gonna rest if I'm a bet something I'd rather bet on us

I bet on me a bet on you will bet in our business and we're usually gonna win nine times out of ten

Those are good odds betting wise by the way, and so when it gets

I send it outside of my zone, which real estate is my second love

and something I feel like I get a B in understanding

if there's a black belt or somebody that's an A in it,

I gotta get myself a B.

And it's something where I don't want stupid, crazy risk,

but I wanna make money in it.

Sure.

And that's what I love about your model.

It's just like my business.

You know, it's not as sexy.

You know, it's not like, oh, he's buying malls or always,

you know, you've done some sweep, Mount Washington developments

and stuff, but it's not always the developing a half a million

dollar home or nothing.

It's like running the ball.

It's good old Pittsburgh Steelers football

in a real estate business.

Right.

Of run the ball and play good defense.

And we ain't gonna turn the ball over

and we're gonna eventually score.

So why don't you break that down a little bit?

Sure.

And I'll just tell you now, I think, you've let people in on favors

that I've sent you, but as you were getting nervous,

you know, before the podcast, I'm like,

there's nothing to be nervous about.

You're asking people for a quarter million dollars,

like it's nothing.

Yeah, that'd be a quarter million.

The minimum buy-in.

I'm gonna need a quarter million.

By the way, my name is Josh.

I got you covered.

Oh, great.

So why does the model work?

Yeah, so just to sum it up,

we operate under a private equity model where we work,

one on one with private institutional investors

to create and manage their portfolios.

And it's just, we buy regular houses

and regular neighborhoods.

So the focus of the model is safety and security.

You know, we don't do the flashy stuff,

we don't do the risky stuff.

We don't do it for the Graham.

We do it for the safety, the security, the cash flow,

tax benefits, capital growth.

Break that down to normal.

Okay.

I got people from Youngstown.

Okay.

So capital investment.

What?

So we give investors the opportunity

to own real estate while we do all the work.

And it's a partnership.

So it's not a lender borrow or type scenario.

It's a partnership.

So when an investor comes in, the capital investor,

they fund the portfolio

and then our management company does all the work.

As far as acquiring the properties,

the day-to-day management.

So they bring the money.

They own the property.

You find the property, fix up the property,

manage the property, get renters into the property,

and send the people checks.

Correct.

That sounds great.

That sounds great to me.

Where do I find?

Yeah.

So it gives, like I said,

it gives investors the opportunity to own real estate.

You know, guys like you,

I mean, you don't have the time to run around and change,

or the desire to run around and find properties

and chase tenants and fix stuff up

and deal with contractors,

but gives them the opportunity to get all the benefits

of owning real estate without having to do the day-to-day.

The headaches, though.

Okay.

And typically we get our returns.

I don't think I've ever missed a return quarterly.

So he gives the checks quarterly,

sends the checks out quarterly.

And then sometimes we'll have a cash out scenario.

So he'll price the property.

Why don't you tell him?

Yeah, tell him how you do this.

And then if they cash out, we reinvest it.

So we place that in crisis the returns.

Yeah, yeah, absolutely.

So we place the residents on a lease option type program.

They rent the home and they have the opportunity

to purchase the home at a predetermined price.

So we're buying our houses typically 50 to 70 cents

on the dollar.

We're buying them cheap with our ability to define them

through our marketing,

dealing directly with the sellers.

So we buy them right.

We fix them up.

We replace the residents.

So you're coming into it automatically with equity first.

Because you're buying them at 50, 50, 70 cents on a dollar.

And then you're gonna put some work into those homes.

Almost like you would treat it like a flip.

Exactly.

But you hold on to that.

And so now automatically you walk in

and you already got equity into it.

But the equity is only really in play

when if somebody were to cash out typically.

Somebody were to buy that, choose the option to,

because you do the lease to own.

If they have the option to buy.

Yeah, they're not required for purchase.

They don't have to.

But they can't at a predetermined price.

So you come in and say,

hey, you're renting this place.

If you want this one, it's gonna be 120,

whatever, 150, whatever, we'll agree on it.

And that's it.

You could choose the buyer or rent it and stuff like that.

Right?

Absolutely.

And then what happens?

Let's say they choose the buy.

They choose the buy.

They go to the bank, they get a mortgage,

refinance the property, they own it, we cash out.

And we can reinvest the proceeds into new properties.

Typically, if we sell one, we'll buy two more.

So we can reinvest the initial investment into one property.

We can distribute the returns or we can, you know,

re up and buy two more typically.

Yep.

Count money, man.

Money back riches.

I tried to told them I'm a beast, but.

What's up, gang?

We're going to the cry and cash.

Stop it, there he is here.

Get ready to do the day.

New day.