Using Your Super Power With Erin Hudson and Liliana Delgado

Episode 69 of the Diary of an Apartment Investor Podcast With Erin Hudson and Liliana Delgado, hosted by Brian Briscoe. Transcript by – please forgive any errors.

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Brian Briscoe 0:00

That's it. Hey, Liliana, we got Erin on the line here with us. What do you want to ask her?

Liliana Delgado 0:04

What is the biggest lesson learned that you've had along the way,

Erin Hudson 0:08

whoever you decide that you want to work with, do not be desperate to get in a relationship with partners really vetted out make sure that they're really who you want to link arms with, right? But you really don't be desperate give it a try and see if they're really like minded, there is nothing more important than making sure that your values align, and that you all are on the same mission right and headed in the same direction. That is what I'm talking about with making sure that you link with the right people that are going to do right by people and for people.

Brian Briscoe 0:49

Welcome to the Diary of an Apartment Investor Podcast with your host Brian Briscoe. In this podcast we bring some of the top professionals in the apartment investment field to discuss various aspects of the apartment investing journey, with the sole purpose of educating listeners to make wise investment decisions. The Diary of an Apartment Investor podcast is sponsored by Four Oaks Capital, bringing you high yield returns through apartment complex investing. This is episode number 69 and part of our Ask the Expert series. Today you're gonna hear from experienced investor Erin Hudson and aspiring investor Liliana Delgado. Keep listening to hear how to differentiate yourself with brokers and how grit, teamwork and persistence helps you out in the business. And now the show. Welcome to the diode apartment investor podcast. I'm your host Brian brisco with feroce capital and once again very excited for today's show. It's one of our Ask the Expert episodes. We have two amazing women on the line with us today we've got Erin Hudson, and a motivated and energetic aspiring investor Liliana Delgado So first we'll talk about Erin Dr. Erin Hudson's, a chiropractor who began her real estate journey acquiring rental properties and has transacted over 230 acquisitions and dispositions. Today she's managing partner for 242 multifamily units and 30 unit commercial retail. She's also a partner in quatro capital and a proud mother of five children. That said very impressive. Erin, welcome to the show. Thank you. Thank you. Thank you, Brian. It's a pleasure to be here today. Yeah, and something we have in common. We both have five children. So you know, I know. I know what a challenge that is. So Incidentally, I was I was looking at your your website and caught your way. You've got a beautiful family love it too. So. Okay. So let's do this. Tell us a little bit about yourself. Tell us about your your your history and background and what got you into multifamily?

Erin Hudson 2:34

Sure, sure. Sure. So I am originally from Huntington Beach, California. And I had been a Doctor of Chiropractic, I wanted to invest into real estate. But being in California, you seriously have to pay a tenant to live in your property because it's so stinking costly. But with that being said, I've always wanted to invest in real estate. And I really just thought it was something that you had to be Uber Uber wealthy to get in the game. And long story short, in 2015, I finally made the jump into single family properties. And within two years, I had acquired 26 rental properties. Really it was an I acquired them in such a strategic way. I he kind of like buy for sell three, keep one for free. And so within two years, I had acquired those 26 properties from putting together and structuring a great negotiations. From there, I moved on to creating a little turnkey company with my husband and I were as you said, we did those 200 plus acquisitions and dispositions. And then, in 2017, I started my learning curve in the multifamily space, which takes a lot longer than the single family space to get educated and equipped. And I did that in 2017. I hit my head against the wall for a bit of time, call it a year trying to out where all the baseball caps of finding the deal finding the money meeting the brokers, and quickly figured it out. And once I really honed in on what my superpower was, that is when the magic happened.

Brian Briscoe 4:10

Yeah. Nice. So So a couple of questions on that. So you you got 26 by acquiring a lot more. So you bought four kept one. You know, first of all, where did you do this? And can you go a little bit more into that strategy on how that worked out for you?

Erin Hudson 4:26

I will you know a lot of people have gone to different courses and learn from gurus on how to do it. I will tell you I did not do that. I figured it out myself. I actually was purchasing in Indianapolis, Indiana. And I heard there was something called a double close. I kind of knew how it works, but I didn't know the details of it. So I was the chick that called the title company and said, Hey, Sally, I heard there's something called a double close and I'm just wondering, I'm so sorry, I am new at this. Do you mind just walk me through what this looks like. And so that is really between Me buying for selling three and keeping one for free. It really started with the double close the A to B and the BTC. transaction. And that was a massive game changer for me.

Brian Briscoe 5:12

So I see you're wholesaling a couple properties. And is that is that what I'm understanding?

Erin Hudson 5:16

If you want to call it that, I wouldn't call it wholesale. Here's the thing is really whoever solves the largest problem is the one that makes the most money, right. And I found out that I can be the wholesaler in Indianapolis and sell a property for $2,000, or turn it over or assign it. Or I can be the one that actually did a little bit of work on the house under $5,000, put a tenant in place, turn it on to my property manager and sell it as it set it and forget it. And therefore that's what we did. And it obviously makes more money. Yeah. Not only that, look, people don't need to get emotionally connected on their asset. If it's cash flowing, then it could be an absolute winner, right. And so that's what really we had created a cash flowing asset right out of the gate.

Brian Briscoe 6:03

Nice. I love that. I love that little bit, little bit of creativity, a little bit of elbow grease on that one, and you got a lot of a lot of assets to manage, and a lot a lot of cash flowing assets that are gonna appreciate. So next question I have for you in your journey. What was the prompted you to go from single family to multifamily? I think that's a jump that a lot of people end up making.

Erin Hudson 6:22

Well, I got invited to go to an event that a company by the name of Ari mentor that was was putting on in my town, and I went there. And quickly, I found out that again, that you did not have to be super Uber rich to get started in the multifamily space. And I also it dawned on me as I was sitting in the seat and getting educated. It was really about the game of Monopoly. Did I want to continue to invest in the single property, ie land on Vermont? collect $50? Or did I want to land on boardwalk and collect $5,000 with one roof and 50 doors? Yep. I knew that it was going to take some time to learn the space. But I knew that that ultimately is where I wanted to go.

Brian Briscoe 7:04

Yeah, and that's that's absolute key is the scalability, I mean, transacting on 230 something properties, I'm sure took a lot of time, but when you realise sounds like when you realise that you could buy 150 for free, it was just that quick, quick, easy jump for you. I'm not gonna say easy, but, you know, mental the mental jump on that was was quick there. Sure. So so when you transition to multifamily, you said you there's a long learning curve, but what was what was your first deal? Like?

Erin Hudson 7:35

Sure. So my first deal was actually 104 units in Texas. And it was, well, we had they were selling just a neighbouring actually colleague of ours had bought a property two weeks prior at 49,000. I apologise $70,000 a door and we were getting ours for $49,000 a door, we knew that we had to put 10,000 in a door, which still put us at 59,000 $10,000 less than this point paying for the same asset class. So that was really where it started. And I don't live too far from that, which was nice. They always say try and invest if you can, three hours from your home, if you can do that it's more advantageous to do so.

Brian Briscoe 8:20

Yeah, definitely. So 104 units for your first acquisition. Now you talked a little bit earlier about your superpower. I also want to dive in on that one. What is your superpower?

Erin Hudson 8:30

Well, if you haven't already guessed it is people I love people Investor Relations, although I I certainly love to negotiate and I love a good deal. So I would say probably resourcefulness if I had to claim one superpower, its resourcefulness. Okay.

Brian Briscoe 8:47

Yeah. And I think you've demonstrated that clearly, you know, looking at the the single family career that you put together, being able to take one property and say, let's see is this going to be a better turnkey to sell just going to be a better flip is just going to be a better buy and hold takes a lot of resourcefulness just just to be able to do what you've done. And I think that's absolutely amazing. Now what's, what's your big burning? Why, what what keeps you motivated in this industry?

Erin Hudson 9:12

So are now a great question. My burning y is honestly my children. You know, I came from a family that they kind of lived paycheck to paycheck, it was more of a poverty mindset. And I remember at a very young age that we can be in control of our future. And I knew that I had a massive entrepreneurial spirit residing inside of me and I without, I wanted to be in control of what my destiny and my future looked like. And so it's my responsibility to show my five children how to be entrepreneurial how to stretch a buck how to duplicate their seed money. So if you asked my why it's really about showing my children not just by saying it, but by actually getting in the game, right and then that at the end of the day, they can choose what they desire to do and can have whatever they desire. To have, it takes action, hard work, and some massive grit to live the life they want to live. So it's really about my children and setting up that that legacy and breaking racial Curse of poverty and paycheck to paycheck because guess what? The truth of the nature is I've got four brothers and sisters. They all think I'm crazy, right? But they're all stuck in the nine to five owned by their j, fo. B, do I want to live that live? Heck, no, a lot of time, money and travel wherever the heck I want to go whenever I want to wherever I want to go. And I can still conduct business.

Brian Briscoe 10:37

Yeah, I think that's absolutely crucial. I mean, I've I'm just finishing a 20 year career in the Marine Corps. And I mean, if I could get out today, I would. And it's not not because I disliked the Marine Corps. It's just because I've, I've had that that paradigm shift where I've realised that working a job nine to five or w two is never going to get you never gonna get me where I want to go. Now you also were working as a chiropractor. Now did you start out with with the mentality of you know, working a job like like, say your brothers and sisters are doing

Erin Hudson 11:10

now because here's what I did. I got out of school, chiropractic school, and I opened up an office. And I quickly I said, I knew I needed to be different than the rest of all the other chiropractors out there, again, about the entrepreneurial spirit. The chiropractors that are successful are the ones that have a business sense. Hence, like Dan Hanford, right, you got to think outside the box. And so what I did is I created, we were open seven days a week and had massage therapists in there. And it literally cost any person that walked down the street could come in and get an hour massage for $25 and get a chiropractic adjustment. And if they had insurance, it could be as little as $10. Right? And so that's really what drove the traffic in our doors. And we blew up so quick. So within six months, I said to my husband, I want to open up office number two, and he said You're crazy. And I said, Well, then let's make a fair deal. Once we have enough money to bootstrap it to open that second office, we'll do it. And so he goes, Okay, so that'll be about a year and a half, right. And within six months, we had enough to be able to go and do that. So I opened up my second office. And it was really about how can we just like apartments, we sleep at night, we're making money? Well, guess what I worked three days in the office. And I slammed it packed full of patients had other doctors come in on the other days. And I had my massage therapist working seven days a week, nine to five or 9010. So it was long days, but I had other people that were bringing in the money.

Brian Briscoe 12:41

Yeah, I love that. I love that. I mean, a lot of a lot of people I think fall into that same mindset that you were talking about where you go to a job, you exchange time for money. And true wealth comes when you disassociate the two when you learn to make money that's not associated with your time. That's that's when you really can start to be truly wealthy. And I mean, you've done that in your chiropractic business, you did that single family homes, and now you're doing that again with multifamily. So that's absolutely amazing. So one more question I'd like to ask you follow up what's next for you and your business.

Erin Hudson 13:15

Awesome. Well quatro capital is actually closing the second week in January on 110 unit, which is super exciting in Georgia. So we've got that next on our list and then I'm actually going in a little bit different direction with I love the multifamily but we're in the middle of getting ready to purchase 10 acres and we're creating a RV park slash container home park. So that's what I got that's in my backyard. So alright.

Brian Briscoe 13:45

Yeah, I've read a lot about the container homes and it seems intriguing I mean, it's just almost like plug and play for you know, for homes, you just yeah, you build a pad you you connect the utilities and you bring it bring it in on a truck, lay it down, and you're done. So

Erin Hudson 14:04

now it's pretty awesome. We actually have a Airbnb in the hill country here where I live and we just brought in our third container for Airbnb rent that along with the solid single family house that we have there. And people love the phenomenon. It's different outside in the forest by the pond, people like you know, the selfies and all everything else so it's all about supply and demand and there seems to be definitely a demand for it. So am I so catch the wave. Well, we can

Brian Briscoe 14:32

nice nice now are you are you selling off parcels in homes? Are you guys gonna be placing them and renting them out? More like a trailer park? how's that gonna work?

Erin Hudson 14:40

Yeah, placing them out like renting them by the night. So for example, our house there in the hill country rents for 500 bucks a night. Not everybody can afford that. Right? Right. So we're renting $150 a night for Airbnb. Okay. There are five acres.

Brian Briscoe 14:56

Beautiful, great, great idea. I love I love how you're taking advantage of What what people are looking for? You know, a lot of people want that that night away and camp can't pay the huge prices. So what is it? Good enough? All right, well, let's, let's shift gears a little bit. We got Liliana Delgado on with us right now as well.

Liliana Delgado 15:16

Hi, how are you? Hi, Brian. Hi, Erin.

Brian Briscoe 15:18

How's everything going? Yes. So real quick, I'll just read your bio for everybody. So they can they can learn a little about you. Liliana's has invested in real estate for 15 years now and his managing partner and CEO at Blue Fox adventures and works to acquire commercial multifamily real estate. She's an entrepreneurial leader with a an MBA from Duke University. She's fluent in Spanish and English. And just recently left her six figure salary in June of 2022, Lee blue Fox ventures full time so that said, Liana, you know, welcome and work. I'm excited to talk to you. Thank you for having me. Yeah, not a problem. So let's let's do this. Tell us a little bit about yourself. Give us your an idea of your background and history?

Liliana Delgado 15:58

Sure, yes, absolutely. Well, I'll start with a family business that I grew up in, because it was so crucial in my upbringing, and who I am today. So when I was 10, my parents decided or moved the family from Peru to the US. And we move because terrorism had really taken over the country. And we personally, our family, my family received kidnap threat calls. And of course, my dad wouldn't have it. I remember clearly one of those calls that I actually picked up and I was scared, I cried, I went to my dad. And it was two weeks after that, that we were on a plane moving to the US with whatever we're able to fit in our in our suitcase. So a year after moving to the to the US, my parents bought a bakery, and it was a small, little place. And it was actually in bankruptcy when they bought it because it was the only thing they could afford. So I worked there on the weekends, school vacation, managed the business, when, you know, my parents took some much needed break. And it was there that I learned about the work ethics, and really taking control of your own destiny. That's something that Aaron had talked about. And that was really ingrained in me of that. And so I knew one day, I would own my own business. I also discovered my passion for operations and efficiency, making things work better, you know, more practical, and again, more efficient cutting costs. That is how I grew up. And that's what I did in the bakery. So that led me to studying industrial engineering, which is all about operations, optimization, efficiency of processes, and eventually working for companies like IBM and Clorox, were, you know, they're really known for their operational excellence, and were great training grounds for learning to execute and execute really well. In along the way, I also got my MBA at Duke University, because again, I knew at some point, I would have my own business. So that was really important for me to, to go to school that and really learn more of the broader business concepts, not just operations, and real estate in particular, you know, the way I really got into investing in real estate, sort of I fell into it when I bought my house to live in when I moved to North Carolina, and then years later renting it out when I launched a startup. So it was a great way to get income while I was house sitting for our friend who had left the state to work abroad. So it was kind of perfect timing, how things you know, lined up, but that is what got me so bullish into real estate investing and just the beauty of how it worked. So since then, my husband and I have built a small portfolio of single family homes and small multifamily and we're also LPs in about 400 units.

Brian Briscoe 18:52

Nice. Nice, that's great. So you know a lot a lot of stuff there. I mean, now my day job I don't know if I told you this but I'm I'm a foreign area officer, I'm an international affairs and I've been to Peru several times. So you know, beautiful. We're in Peru Are you from Lima? Lima. Okay. Yeah, very familiar with what was happening, you know, you know, 1520 years ago Sendero Luminoso our shining path was was very active very unfortunate that you guys had to live through that but good on your dad for for you know having the foresight the ability to put you guys on a plane and get you away from that that situation but I'm really really enjoyed your your story and you know, I one question for you now same when I asked Aaron what's what's your big burning? Why?

Liliana Delgado 19:35

Wow. That's a big question because I have three at the top of my list is really the freedom of time. You know, time to spend it doing what I love. Part of that is business. I love business, right? I grew up in a business, I went to get my MBA because I really felt at some point I needed to really understand how a business operates positive impact in the world. That's something that It was in very close to my heart, I've sat on multiple nonprofit boards, and family. Three years ago, I had my son, who changed my world. You know, Erin talks about having five kids, you, Brian have five kids, I don't know how you deal with my kids, I have one. And it really made a huge impact in my life. And it was then that I started to really think about, you know, how I spend all day at work. And I picked him up, fed him and put him to bed, and I didn't get to enjoy time with him. And I needed to reclaim my time. So that was really the big driver, then financial independence, really, with the experience of the bakery and seeing my parents how they took control of their destiny by doing that, that is something that that was ingrained in me and I, I knew I had to create my own path. And then the third is generational change. And Aaron, you touched on this as well. And it really resonated with me, because, you know, my parents were in survival mode, right, we they left there were two professionals and left everything that they had, and started from scratch all over again. So they were trying to survive and give us food and shelter. You know, now with the education and the path that I took, and with my along with my husband, we are in the wealth creation journey, right? And then, you know, now the next generation, our children, you know, what they can accomplish is limitless, right? Because they're starting at another at another stage, the very different than where I started myself. So that's a big reason for for doing what I'm doing as well. Yeah,

Brian Briscoe 21:42

yeah, I love it all really great reasons. And very similar to my journey. You know, I remember once, when I was a young young boy talking to my dad, and my dad was a mailman, you know, and if you know anything about that, they don't make a whole lot of money. And my mother was a stay at home mom, her, you know, my whole life. But I remember once telling my dad that I wanted to be a mailman just like him, you know, and he looked at me, and, you know, the, the response I got was not what I expected. He just said, Brian, if you're a mailman like me, then I have failed you as a father. And I was just like, I was kind of taken aback. And then he explained, he's like, I want you to have a better life than me, I want you to have a better job. I want you to have a better career than I have. And I think that's something that every parent looks at their kids and says, You know, I want my kids to have it better than I had, you know, whatever level you start at, you always want your kids to have, you know, a better life. So that that diff definitely resonates and very thankful for parents that taught me that at a young age. So, you know, that said, Hey, Liliana, we got Erin on the line here with us. What do you want to ask her?

Liliana Delgado 22:50

Well, first, Aaron, I just have to say I love your passion, your energy that is just contagious. So just thank you for sharing your experiences. You know, one of the things that you said was your superpower, right? being resourceful. I think we lent less is another word I could think of when you know, to hearing your story. And so I think one of the big questions that I have would be you know, what is your advice on differentiating yourself when working with brokers, you know, to acquire multifamily, or other ways outside of brokers, you know, to grow that deal pipeline?

Erin Hudson 23:29

That is such a fabulous question. And I'm going to just chew on that for a minute because I have something that I want to share with your listeners. And I think it's really, really important. You hear a lot of people say loop net, don't go to loop net, you're going to find all the trash there. Listen, that is far from the truth. I want to share with you what happened to me and the opportunity that we got from loop net. So loop net, here's the deal. There was a we were getting ready to close in January of 2020. We were getting ready to close on a 36 unit and I was going out there for the closing mama five busy with my practice, got all these different things that I'm responsible to do. I wanted to make the best use of my time so I was dialling it up with brokers I when I got there, I wanted to have appointment set so I was really making the best use. So I called this I found this other property that was 35 units on loopnet. I called the broker and literally for seven days straight. I called this broker he's got this 35 unit every time I feel like I got a little more powerful with my my message that I leave on his answering machine. And finally I said forget it. I'm thrown in the doctor. And I'm going to say a little bit more so I called left a message on his answering machine and I said something to the tune of Hey, this is Dr. Hudson. I am so sorry to bother you. I know it's been seven days in a row but I just want to let you know I'm coming out next week I'm closing on a 35 unit and I want to buy your property give me a call back. I kid you not 10 minutes later that phone ring. Why okay maybe I said because a doctor but the truth is I created and made cloud for myself about closing on a property and the following week, right? So he automatically knew that Oh, shoot, this chick must be the real deal, right? So when he calls me back, I want you to hear what he says. He calls me back super monotone voice and says, Hey, I'm just calling you back. Thanks for being so persistent. Hey, tell me what property you closed on next week. I said, I'm so glad you asked castle terrorists. And he goes, Oh, well, I just want to let you know my property is better than that one. I said, Well, fantastic. Tell me how he goes, Well, yours is over eight buildings. And mine is over one building. I said, great. I can't wait to go through it next week. When I come to town. He goes well, so you're looking to come to town close on this property. And you want to look at this property. So well, truthfully, Okay, here we go another nugget. I'm not really looking for your 35 unit. Because we really like 100 plus doors. That's usually what we close on. But right now, everybody wants that. So we just got to break it down, take on these 30 units. And as long as we can get 100 within six months, or at least as soon as possible, then we're moving in the right direction he goes, you're absolutely right. And I said, so with that being said, Mr. So and so do you happen to have any other properties that you're looking to sell? He goes? Well, as a matter of fact, I do. I've got 300 plus doors. But first, Aaron, I'd like to build up some trust with you, and build up the relationship. And then perhaps I'll share with you. So that conversation you guys went on for 10 minutes, I got off the phone, and within 15 minutes, I had over 100 doors in my inbox. Why? Because it is so important for one to let people talk and to make sure that you make that call about them. And not about me, right? So I asked what how is it that you acquire these properties? Where are you looking to sell, right? So you figure out the story. He's owned them and actually built them in the 60s with his family. He's third generation, they've never had another owner. And because I asked the right questions, guess what I got out of him. He was selling this property because he wanted to 1031 exchange into a commercial building. Ding, ding, ding, ding, ding, the ball is now in my court and I get to be the driver. So anyways, that was a lot of information. But it was a powerful one. Indeed,

Liliana Delgado 27:29

that was a great actually example. And really talks to your creativity, and you're not giving up right continuing to push until you achieve your goal. And that's something that says a lot about you and your personality. So that's awesome. Thank you for sharing that, you know, kind of along those lines, because that was a good, I guess a successful story. What are those top three things that have made you successful successful in your journey, and whether it's real estate specific or just broader, just in your life?

Erin Hudson 28:06

Sure. So three things that make me successful. First of all, if any of you listening feel like you don't have anything to provide or give to find a deal, or to be a part of a group, you are so far from wrong, we all have something special inside of each of us. Just like for me, I told you, I was trying to do all of the jobs right in order to take down on multifamily. And the true true success started when I honed in on that superpower of the people skills and relationships. Right. And so from that, from that being said, the moment that I went and followed that superpower is when the magic happens. And now today with my partners, I feel like almost pinch me that I get to work with the most incredible team. Why? Because for me As humans, we all tend to think that we're not special, we're not important, and we don't have anything that anybody wants. But that is so far from the truth. I have partners that are like analytical analysing brain, put them in a closet and they would flourish there. I would not, it's not a great place for me. So I feel so grateful for their skill sets. And I probably I probably act as if mine aren't that great, right? But the truth is, they're so grateful for my skill sets, right? And together like a football team, you need every single one of those players in order to get that ball across the finish line, right? Same thing in the multifamily space, we got to be able to wear the different caps, but we also have to have different strings than the opposing right. And so with that being said, it's really about getting to work with a nice good solid team where my benefit, what my strength is benefits my team. And my weakness is their strength. Right. You probably hear it all the time. But that's I would say,

Brian Briscoe 29:57

Yeah, I agree 100% on that one. I mean Our first multifamily syndication, you know, I tried to do it mostly by myself with, you know, occasionally asking my partners to help. But once once we, once we figured out what everybody was good at, and started staying in our lanes of exactly what we were good at, you know, things got number one enormously easier. And we were able to pick up properties a lot faster, you know, and more efficiently. So, you know, figure out what your superpower is. And don't worry about doing everything, find people that can help you. And take it from there. Let that let them work in their area of superpower. And then all of you guys just go same direction.

Liliana Delgado 30:38

That's great. That's great. Thank you. And then with regards to now more focused on your real real estate journey, what is the biggest lesson learned that you've had along the way?

Erin Hudson 30:52

I would just say don't be so whoever you decide that you want to work with, you hear it from so many people. So I think this is great advice and maybe want some more touch on it. Do not be desperate to get in a relationship with partners really vetted out, make sure that they're really who you want to link arms with, right? And perhaps you and I would consider doing a background check. Right? Even if you say, look, I just want to do a background check on you. If anyone gives qualms about it, you know, there's a problem, right. But I will tell you with the team that I get the beautiful pleasure of working with, I said, you know, we started to do that first deal in January together, we all had our own little entities. We were literally putting it out for trial, right? Fast Forward, after our fifth deal of doing together we said, Oh my gosh, we are one incredible team, we truly need to link arms. And so that's when quatro capital was birthed. But you really don't be desperate, give it a try and see if they're really like minded, there is nothing more important than making sure that your values align, and that you all are on the same mission. Right and headed in the same direction. And I will tell you, this is when the true testament came out for me. And I don't mean if I'm okay on time, I'll definitely go there. Is that all right, right. Yep, go ahead. Check this out. This is where the true test came in you guys. When COVID happened, we lost We had a deal that we were getting ready to close on a 67 unit we had $150,000 hard, the banks pulled out on us for two weeks, we were literally trying to find a backup plan on our financing. And it was really predatory lender after predatory lender that we kept running into. And it no longer made the deal good. And I remember we had to sit down with our team. And we had to come to Jesus moment where we said, Look, let's give 24 hours and throw it on we were working morning until we ended the hours to the tune of I remember one of my partners on a column, they could hear my husband snoring in bed. That's how much grit we had to give it everything we got to try and see if we can get this to pull through. And we were at that table together. And we said look, this is looking grim. We are we all okay with having to lose $150,000 because that's about what's about 10 fold, right? And we kind of knew that that's the direction it was going and we didn't have a choice. And every single one of my partners said same tube, it is best for us to lose the $150,000, then to put our people at risk in a deal that was not going to know that was no longer going to push out that nice, pretty cash return. Right? So we said let's give it 24 hours. And if not, we're all going to take a loss and it's okay. And we're going to move on to something bigger and better. And I know that we'll be blessed in the future for doing what's right. And we will all in alignment. That is what I'm talking about with making sure that you link with the right people that are going to do right by people and for people.

Liliana Delgado 33:53

That's fantastic. Yeah, my customer, my husband is my business partner sort of I mean, he jumps in when I need him, he has a full time job that you know, that he is doing and focused on. But we had a formula and our deal a few months ago that we had to walk away from And to your point, we both looked at each other. And we were under contract negotiation at that point. So there was no hard money on the table. But it was really looking more at the longer term. Right? If we go into this deal looking the way it is, it's gonna we have to put our investors first and and we looked at each other without any doubt in our minds like yet we're walking away because you know, the contract, the terms are not looking the way they need to in order to really protect the investment and we knew that it was the right thing to do. So I can really appreciate what you're saying and sometimes it's hard, but if you find the right partner, it is absolutely you know, really great to work with, you know to work with alongside. That's, that's wonderful. Can you share how you met your your partners? Again, if we have time, sorry, Brian.

Erin Hudson 34:57

I can definitely do that best story. Ever on how I met my partners is from I met them at an event. That was a real estate event, there was 1000 people in the room. And I had just closed on 104 unit, I was receiving an award for closing on this. And the lady that was putting the whole event together had said, Aaron, how did you celebrate closing this property? And I said, Listen, I said, Our family is all about going and serving other people and travelling the world to places like Nicaragua, Haiti, Belize, and just loving on the people that cannot take care of themselves. And I said, So right now, our family's really focused on Nicaragua. And we've built 12 homes for single moms that have that are living in the trash dumps, in essence. So for $5,000, you can build a home, you can also build a chicken coop to help self sustain. So she said, You've got to be kidding me. So you did what and I said, so we built another home in celebration of closing on this property. And something came over me. And I started to get emotional as I was on the stage there. And I said, as a matter of fact, I would love to build two more if I could get two people to match me. And all the way in the back of the room. This strapping guy stands up and says I'm in for one. And all of a sudden a woman stands up in the front and says I'm in for one. And long story short, within 10 minutes, we raised $55,000. And we're able to build 10 homes in Nicaragua. Well, I remember going to bed that night saying why in the world did you put that on my heart, I could have got totally rejected by these 1000 people that I'm speaking in front of. And it was clear as day as night he said those are the type of people that I want you to link arms with, because they're going to do good for people. And by people. Long story short, that gentleman in the back of the room that stood up and threw his hand in the air is one of my partners Marie's filla Jean, an incredible, amazing man has a heart for philanthropy. And the second person that stood up was Kim wineland, my other partner of quatro capital, who again has a heart for people. And so that is what makes quatro capital. so stinking unique is the fact that we have four pillars in our company. It's people, obviously we want to do right by people, it's properties, finding the most profitable properties that have a lot of upside, right, of course, profits, we want everyone to win. And lastly, as I shared what's high on our heart is philanthropy. At the end of the day, if we can help one person at a time, have a better life than in indeed, we're sowing good seed into the world.

Liliana Delgado 37:45

That's awesome. I love that story. Thank you for sharing that. And I definitely want to talk to you about the efforts in Nicaragua. I actually used to live there for a summer working for a social venture capital fund while I was doing my MBA, and investing in small businesses there. So would love to talk more about Nicaragua can do that offline? Brian, don't worry.

Brian Briscoe 38:07

I've spent a week there. And, you know, I can imagine all the good that you've done there. I mean, it's it's a country where there's there's a lot of poverty, you know, there's a lot of people who are doing well, there's, there's a whole lot of poverty. And, you know, I know you've done other other work in, in beliefs in Haiti as well, which are other countries, you know, in Central America, in the Caribbean that really need assistance. You know, kudos to you and I, I talked with Moe several times, and I can imagine him, you know, from the back of the room standing up being the first one to say that, too. So

Liliana Delgado 38:37

I love that. And then Erin, if we can circle back on the deal pipeline conversation with regards to potentially other sources or just being creative, and how, how do you build that pipeline outside of brokers?

Erin Hudson 38:51

Yeah, such a great, great question as well. Listen, with quatro capital, we decided that there's so many colleagues out there that are struggling, right to find a deal to find the right partners. And we said how can we help put an end to that? How can we sow good seed? How can we help those other people such as myself, you guys, remember I said for the first year and a half, I was trying to find the team, the partners, the people. So what if we could help speed up the learning curve, and we literally can give people a hand up. So what we did is we created something called an alliance partner. And it allows for others to go out there perhaps maybe find a deal and underwrite it, bring it to quatro capital. And we will scrutinise it, obviously, if it's in our market, and so on and so forth. And if they're hungry, hardworking and they do right and want to do right by people, then perhaps we'll take that deal on and let them come in. And we're giving 50% of the acquisition fee and then they get to come in the deal as a general partner. So with that being said, because we are not being greedy about that acquisition fee, people want to work with a solid team. That is going to make sure they're taken care of and not taken advantage of. Unfortunately, in our market, when you're in our space, when you're getting started, a lot of people, you know, have to give their right arm, their left arm or their front to right to get an A deal and, and to make space. But it's not about that, together, we are more powerful, right. And again, you reap what you sow. So because of that word has gotten now and we are getting massive deal flow which pinch me It's exciting and fun. But the truth is, if we can change people's life, and they've been in the space for a year trying to find a deal, and all of a sudden they get this rainfall thing to how much that blesses somebody's life that's been struggling to find a deal or wants to get in the space. So it's about helping others get what they want, and quattros gonna get what we want.

Brian Briscoe 40:51

Yeah, there's a quote by Zig Ziglar that I'm going to butcher but he says, you know, you can get whatever you want in life as long as you help enough other people get what they want. And you know, whether you call it karma or just the golden rule, that's absolutely true. You know, you if you're if you're out helping other people, you know, eventually you're going to get you know, whatever it is you desire. So, with this, this has been great. We are at a point where we should probably start wrapping it up I would love to sit and talk with with you ladies for a while but I've got my my w This is my lunch break from my w two and I've got an appointment right after this. But one more question for each of you. And Aaron, you go first, how can the listeners learn more about you?

Erin Hudson 41:35

Absolutely login to or log into, actually just look us up at WWW dot the quatro again, www dot the quatro and that's two T's in kwacha primary booking appointment and click on either My name or partner's name and we're happy to jump on a call with you and see how we can help you have success in the space.

Brian Briscoe 42:01

And that'll be in the show notes. And it's definitely if you want to know more about her partner, Maurice. He was on an episode earlier and I will put a link to that episode in the show notes as well. You know both amazing human being so I'm sure together your other partners are also up there on the scale of amazingness. But Liana same question for you. How can our listeners learn more about you?

Liliana Delgado 42:22

Sure. Blue Fox is our website if you want to learn more about just the company and then if you want to reach out to me directly, please feel free lillianna a blue Fox that's my email. And it's li li n ey at Blue Fox ventures calm. Feel free to reach out I'm happy to happy to chat.

Brian Briscoe 42:43

Perfect, awesome. Well, ladies, thank you so so much for coming on the show today. This was you know an amazing conversation. And you know I love talking with both of you. Thank you. Thank you for having us.

Thank you for listening to the diary of an apartment investor podcast today brought to you by four oaks capital. If you'd like to know more about how to invest in apartment buildings or want to be a guest on our show, visit our website at four oaks capital comm slash podcast or email us directly. If you're still listening, you obviously like the show. So pull out your phone, tap subscribe and leave us a five star rating on your favourite podcast app. And we'll see you again next week.

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