House of Wolves - A Power Couple's Playbook

Tough Decision: From Attachment to Advancement

November 27, 2023 Randy & Mary Vasquez Episode 12
House of Wolves - A Power Couple's Playbook
Tough Decision: From Attachment to Advancement
Show Notes Transcript Chapter Markers

Have you ever felt so attached to something that letting go seems impossible? Yet, you know deep down that it's the only way forward? That's where we, Randy and Mary, find ourselves today, as we prepare to say goodbye to our beloved property, Merrifield. It's been an emotional journey, full of challenges, sacrifices, and heartfelt memories. But as the saying goes, "what got us here, won't get us there." So, we are making the tough decision to sell, in pursuit of our bigger dreams.

This episode is a candid conversation about our struggle, the reasons behind this decision, and how it is crucial to our future goals. We discuss how selling Merrifield will give us the capital we need for our next venture - getting into construction and flipping properties. We also extend the discussion to broader aspects of life, including fitness and personal growth. Change can be uncomfortable, but it's a necessary part of growth. Through our own experiences, we show the importance of having a blueprint and knowledge to lean on in times of change. Most importantly, we remind everyone that even if you lose everything, you possess the capacity to rebuild it all over again. So, come along on this journey of growth, change, and moving forward!

Want to join in the conversation? Subscribe to The Broke Millionaire Youtube channel or follow Randy and Mary on Instagram. You can also check out their luxury & exotic vehicle rental service at howmotorsluxe.com, and elevate your side-hustle education at The Broke Millionaire Academy.

To watch our episodes please subscribe to The Broke Millionaire Youtube channel: https://www.youtube.com/watch?v=zvci4bqKjDE&list=PLh_N9FtZhe5qF453HxF7SbrKqLg1D2PBT

Follow Randy on Instagram at https://www.instagram.com/thebrokemillionaire_/
Follow Mary on instagram at https://www.instagram.com/mary__mar/

Join The Broke Millionaire Academy to begin/further your side-hustle education. Courses and Life Coaching all available at https://the-broke-millionaire-academy.teachable.com/

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Speaker 1:

Welcome back to another episode of the House of Wolves podcast. I'm Randy, your co-host. This is my beautiful wife, Mary. Just in case this is the first time you're joining us, make sure you check out the others. Make sure you subscribe, like and comment. We definitely appreciate that. For those who have seen us before, as you can tell, we're in a different setting. This is actually one of our properties, as our friend intimately calls it, the Mary Fields. We decided to do this in here today, versus our usual setting, because we are actually selling this house and that's a big commitment for us. What we wanted to make sure is that we highlighted the fact that the reason why we're doing that is because the title and topic of this episode what Got Us here won't get us there.

Speaker 2:

Absolutely. I'm actually struggling a little bit. Okay, this is my camera, so my eyes watered at Randy saying that we're listing this house. It was my idea to have the podcast here, because it's kind of like me bringing closure to a space that we considered home for so long. But she's lovely and everything, but she has to go and, in a nutshell, the concept of what got us here won't get us there. It's pretty much that the efforts that got us this property. It's not going to be the same process for us to get to the next level where we have to be.

Speaker 1:

And where we want to be.

Speaker 2:

And where we want to be, and part of that process requires selling this property so that we can repurpose that capital into diversifying our investments and keep growing and jumping into different shit.

Speaker 1:

Yeah, and if you've seen, if you check out some of my other videos, you'll see where I specifically did a video in here and across, because we actually had our headquarters, our office, next door. We own both houses and we thought that we were gonna keep this property forever. But as we continue to grow, as we continue to look at what our goals are and our visions are and what it's gonna take for us to get there right In terms of capital, the opportunity has presented itself for us to be able to potentially sell this home, take that money and do some other things that we wanna go with it. So again, what got us here won't get us there. So again, we thought that here was a perfect place to do it, and it's a concept that we've talked about many times and we wanna make sure we share it, because it could be hard, it could be emotional, right? I think I've been telling Mary for some time hey, I think it's time for us to let go one of the properties. We can repurpose that money, we can do some other stuff, we could continue to grow bigger and better things, and she hasn't wanted to let it go. Me personally, I didn't wanna let it go either, but it's part of the process of growth.

Speaker 2:

Yeah, it's like Randy says, and I wanna touch on the piece that says that it's emotional when you come from a hardworking background like ours and we play Tetris with our finances and our ability to be able to pivot and do different things. And especially this house itself, because, even though it wasn't our first property, this was the house that I think that we had to get the most creative on.

Speaker 1:

Right, yeah, to make the deal work.

Speaker 2:

There's a footnote to the Cold War, asterisk to 5% versus 10%, and all right. There's a lot of stories that compound the closing of this property and because of those struggles, it's almost like we cherish this property so much and for me, it took me a long time and I wanna quantify that into months and months of probably us. We could have sold this house months ago or we could have rented this house months ago and I have been so stubborn at holding onto it because it is emotional. It's emotional seeing, touching what you've been able to accomplish and then saying, okay, I'm done here, I'm moving on Like if it were up to me and if we had it like that, I would keep everything and I would be a hoarder and keep investing. But we're still growing AKA the broke millionaire were constantly broke and we have to think creatively on how we continue to move forward and how, and sometimes that requires selling a limb and moving forward, yeah, so let's get into a little bit more details on that decision and what it's gonna do for us, right?

Speaker 1:

So, as you know, we deal with properties that we buy, we hold. We get that passive income coming in from the rentals of the home. This one, we were doing pretty well with it. We were doing about $1,000 or so, depending on what the hell happened that month. $1,000 or so in terms of profit that we were getting on a monthly basis on a rental perspective, and it's nice, it's $1,000 is great, right. But as we're looking at our vision and our plans, we're saying, okay, well, you know, we wanna do much bigger things. We wanna build, we wanna get into the construction side of things, we wanna be able to flip properties that are $1,000, $1,000, $2,000, $2,000, $2,000, and in order to be able to get into that realm, we no longer can play around with it like a 3.5% down. We can no longer play. We gotta play with the big dogs, and to do that we need massive capital.

Speaker 2:

We have to show up.

Speaker 1:

We have to show up with capital. Banks need to understand, hey, you know you're putting your $250, $300, $350, $400,000. So, as we were looking at, okay, well, where we're gonna get this capital from, what are the things that we're gonna do? You know, what do we have in our savings, what do we have sort of in some of our properties where the equity sit, and we looked at it and we say, well, which one of our properties is equity heavy right, we have a lot of equity in it and which one of them is making us, you know, money on what does it look like? So we ran our numbers and we say, well, you know this specific property, we do have a lot of equity in it and we're getting $1,000 a month on that passive income in terms of profits. So if we were to sell, how much are we going to make and what we can do with that and what the potential of that money is versus what we're making on a monthly basis? Right, and that's a hard decision because you say to yourself, well, what are you going to leave on the table? Right for us is like are we leaving that thousand dollars a month? Okay, what else are we leaving? Is this house going to continue to build that equity? Yeah, possibly, especially in the area that this house is in, but for us is it well, how much more equity? and how long and how long will it take to that? Okay, so let's say you know this property in next couple years, depending on the market and what it's doing and Average and historic value of what it's going up, I say it goes up another 50k. All right, let's let's run our numbers of what we've seen. Okay, well, 50k in what? Another year and a half, two years? Can we make more than 50k? We're selling it today and being able to flip that money into another investment that potentially can get us a lot more than 50k, right? So that's sort of where the assessment comes in in terms of making a decision like this is Can we make more money With the capital it can take from it today to be able to? Then what we can make by keeping it.

Speaker 2:

Yeah, it's simple math. It's kind of like Do we cash out now or do we cash out later? At the end of the day, it's our asset and it's our money being held either in tangible form or in cash form. And right now you know as volatile as the market is it is a good opportunity for us to sell. You know we've done our due diligence and we are betting on it selling and Knowing what we're gonna net and what we can do to ensure that this sale right is a beneficial, the gift that keeps on giving. So beneficial on multi levels. We got rid of the asset, we took our money. We invested it. That money is now not just giving us a thousand dollars a month in return.

Speaker 1:

Right, yeah, what was?

Speaker 2:

this giving, but it's giving us something else that could be an experience. That can be $2,000, that can be right, 300 thousand dollars a year. We don't know that. We're still trying to figure that out.

Speaker 1:

Yeah, no. Now what happens from here? Right, what happens from here is you take that money and then you reinvest it, right? So for us, it gives us a little bit more of insurance. I've been able to sell this today the fact that we know that we are going to take this money and put it right back into real estate it might be a different form of real estate, which is going to be, but essentially is we're reinvesting the money, which is the. The broke mill in our concept comes in that, exactly what Mary, and what you mentioned before. Right, it's the fact of yeah, we have the assets and we were able to liquidate it if we need to, to be able to, to do other things. But we're going to take this equity and this money and this cash and we're going to flip it right away, put in something else and be broke again, right. And it's going to be broke because we're going to try to okay, well, if we made 300 thousand dollars off of this property, well, are we going to make 500 or 600 off the next one? Now we're able to put this investment. So it's, it's a simple concept. It's emotional, but you just got to run your numbers, you got to do your math and you got to understand, okay. Well, what is this going to get me, if I continue to, to make moves with this money and keep shuffling it around? Right? If it was up to me, obviously I would keep every single property that I have forever. Uh, right, but that's not always the way that things work out, and especially as the market continues to turn and things continue to happen with the economy and you have to get creative, you have to be creative with what where you get right.

Speaker 2:

Yeah, you have to yeah, it's almost kind of like. This is I've always said it. Like you know, buying holding is my comfort area. You know, we know a good house when we see one. We know the bones in it, we know the powder price is just right, right, but if we continue to do that, it's almost like first. We're not growing, we're not learning anything new and we're probably not gonna make mistakes, because this is where we thrive. This is what we do and as Individuals, I think that we like to put ourselves in situations where we can well at least you, you like to figure it, the you like to figure things out, and by putting ourselves in uncomfortable situations it forces us to stay on point and and sometimes that comes with a level stress that it's kind of questionable at the moment, but then cut them, it pays off. So this is the first time and I'm telling you this is such a big deal. For me, this is probably the best time, the first time that I'm so on board with us, you know, doing a leap of faith, this big, because, like you said, the market is just unstable right now and it is important for us to think a little differently. And you know, just exercise a muscle that I haven't been willing to tap into.

Speaker 1:

But I ask you question don't flip a little bit, but what if it's a mistake? Then what?

Speaker 2:

other podcast on, on regret, I guess, but no, honestly, we had a podcast on Celebrating failures and it will be a learning experience. You know, right now, before we make this move with smooth, we are playing doubles advocate. Every day. Every day, we have a conversation. Okay, so what are you thinking? Well, and we just keep Running the place on where we can find efficiencies so that we can minimize that, that marginal first right and that margin of error. And I think that that is good, because we are getting smarter through our process and we know that this is like you said. This is a whole nother ballgame for us. You know we're no longer, you know, rattling up a 3.5 percent. We don't even longer qualify for that. You know what I mean and what we're trying to do.

Speaker 1:

So I don't know, it's like Faking out until we make it pretty much and I love that right because and I think I'll switch a little bit in terms of what the topic is, and not just about the house, but in everything I think we apply that and we've tried to I think I think it takes us some time To get to that point where we realize like, hey, we keep Beating the drum in the same spot, we keep beating the drum, keep beating the drum and nothing's giving. It's not working. Well, why?

Speaker 2:

and then we're not growing.

Speaker 1:

It's not growing or it's not changing, or I'm not trying, I'm not accomplishing what I'm doing. I've always done it this way and it's not working. What's going on? And I think we always, in every aspect of our lives, we get to that point where we realize like wait, oh Shit, I can't keep doing what I was doing before if I want a different result, right. I always talk about the definition of insanity, right, keeping doing, doing the same thing, expecting different results, right, yeah. And I think that that ties in nicely with sort of this concept and this topic, right, in terms of what got you here, won't get you there. And I look at it even from, you know, fitness perspective and a gym perspective. As I've gotten older, right, things have gotten a little bit more difficult in terms of the gym and I've had to change my workouts. And I get to that point, even in the gym, where I guess frustrated, where I'm like shit, I'm doing the same workouts that I've always done, I'm getting up at the same time, I'm eating the same foods, I'm having the same supplements, and I hit a wall and I'm stuck. And then I finally come to that realization, that point of like, holy shit, if I want to do something, I gotta do something different. Yeah, if I want different, I have to do something different, and I have to give this up to get this.

Speaker 2:

Yeah right.

Speaker 1:

So I think this whole concept is not just even with real estate. I mean, we're talking about it because it's the opportunity that presented itself today, mm-hmm. But I think with every aspect of our lives, we're always looking at like, hey, and we're always challenging each other hey, are you continuing to do the same thing, but you want a different results? What's going on? Yeah, if you want bigger and greater, you got to do different.

Speaker 2:

Yeah, and I'm sorry, I looked at my phone. I have another fire brewing on my phone right now. What I wanted to say with that is that the diversification and like catching yourself and having that awareness of where you're like shit, I'm in a routine. Routines sometimes can be good. You love routine.

Speaker 1:

I love routine.

Speaker 2:

But when it comes to your side, hustle your investments, how can you learn how to make more money or whatever like you can add? Just stick to what always works or what just gives you the safe sweet spot, right Part of the reason we're always willing to lean in on that and I guess, well, this is going to be a gem that I'm going to drop. Be, ready, drum roll please. It's the fact that and I'm quoting something that you said a long time ago and it's these are our earning years and these are the years that we work the most and God, thank God we're healthy and we are young. You know, if we fail, if we lose everything and we fuck up and make a bad call which we can, like you said, what happens if we just blows up in our face, then guess what? We're just going to have to go back at it and work to re-up and do it different. And you know it sucks and I'll cry about it for a while and I'll be kicking rocks. But you know, god willing, we're in a situation where we can work harder, we can sleep less, work more.

Speaker 1:

You can figure it out again, we will figure it out again, and that's a good view. That's a good vision to see right.

Speaker 2:

We won't be fucking around if we're, if we live at 80, we won't be doing this at 80 years old. We're like nah, it's just safe Right now we can disrupt comfort.

Speaker 1:

Yeah, you can take those risks, those chances and, like I always say, we have the blueprint right. We have the blueprint on how, if it doesn't work out, how to buy another house. That's similar to this we knew how we got this one, so this one's simple now, right. So I agree with that and I agree with that concept right in terms of we are in that stage of your earning and, whether you're not, you know, you're younger and you're watching this podcast, right, you? I think what we're trying to drive home is that once you have the experience right and being able to do something, it just becomes a lot easier. Yeah, when you have the experience of, hey, I know how to get this done, it becomes a lot easier. We know how to buy another house. Yeah, we know how to get another house at this price range. We've done this many times.

Speaker 2:

It ain't going to be a pre-COVID price. It's not going to be a pre-COVID prices.

Speaker 1:

But the beautiful thing about the state, it always goes out right and it eventually will down and up. But we know what we need to do. We know how to qualify for loans for this, we know the type of money that we need for it, we know who to call, when to call, we have that blueprint. We can easily turn around and buy another crib if we needed to. Now it's the how do we get more and how do we get different and how do we go outside of our comfort zone, right? So for me you know it's a little bit different for you, but for me it's pretty simple and it's easy for me to make those decisions because I'm like okay, I have my health, I still have my sanity, I still have my sanity right, I'm still able to work, I have my hands, I'm able to put in the work that I need to put in and I have the knowledge. Right, I have the knowledge. And if I have the knowledge, then that makes it super simple in my mind for me to be able just to get it again. So, to your point, we can lose everything. And for me I'm like well, it'll take me some time, but I'll get it again, because I know how to do it and I'll probably do it even faster. But for the next step, a realm that I've never been in, a realm that I've never experienced, the knowledge that I don't have. Right, I have to let go of the old to be able to get to new.

Speaker 2:

Yeah, it's just like yeah, it's really hard. No, I listen, I suck at that, but you know that it comes. I'm tall to me, you know. Um right, yeah, but I'm excited.

Speaker 1:

Are you?

Speaker 2:

I am. I am generally excited. I am generally excited, but change doesn't. I don't adopt change as easy as Randy does. I'm open to it, I'm nomadic in my ways. But it doesn't come without the upstream battle, Of course, and that's normal right.

Speaker 1:

That's a normal thing for a lot of people, right. When you're going into a comfortable place, right Something that's unknown, it's very hard for you to jump in and be again very, very comfortable with that change and that move. So it's a process.

Speaker 2:

It's a process and good.

Speaker 1:

Okay, alright, what else you?

Speaker 2:

got Anything else. I mean, we can stay here all day and talk about this. I mean, I think that this concept of what got you here won't get you there is applicable in so many things in our lives. If you go to school and you're having four-year degree and you want to be a doctor in a specific area, you're not going to study the same way, you're not going to have the same habits that you applied in for your university. You know, maybe partying and half-assing this half-assing that If you're going to go into a PhD program, you've got to buckle up.

Speaker 1:

You know what I mean.

Speaker 2:

So what got you there? For your degree is not going to get you that PhD, and that's just what this is. It's just you know we're leveling up. That means we've got to work smarter, not harder. In this case, I'm just going to require a little bit more money and selling assets or whatever rounding up. But I think that people can really walk away with the mentality that when you're comfortable, you're not growing. If you're able and, like you said, you have your sanity, take the risk. You never know if it's going to work out much better than you expected and if it doesn't, like we said, it's a learning experience and get your ass back to work.

Speaker 1:

Yeah, I like it. I mean it's a knit there because that was a hell of a close. I like that. That's actually a clip. You can use that clip.

Speaker 2:

I'm going to use that clip.

Moving Forward
Embracing Change for Growth and Success
The Process of Growth and Change