The Keith Andrews Podcast

Catching Up with the Creative Financing Junkie | Tim Yu E24

• Keith Andrews • Season 1 • Episode 24

Share episode

In this episode, Keith  reconnects with Tim Yu to discuss his journey in real estate, focusing on his recent ventures in Alabama while managing a full-time military career. They explore the challenges and successes of building a wholesale business from scratch and the importance of time management. Tim shares his aspirations to create a supportive community for veterans and discusses his new podcast, 'Mission to Wealth', aimed at educating others on real estate and entrepreneurship.

Connect with Tim Yu
Instagram: https://www.instagram.com/itstimyu
YouTube Channel: https://www.youtube.com/@itstimyu

Find Motivated Sellers
Perfect for wholesalers, investors, agents. Find sellers, get contact info, more. Try for free!

Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.

Connect with Keith:
Instagram: https://www.instagram.com/iamkeithandrews
TikTok: https://www.tiktok.com/@iamkeithandrews
YouTube Channel: https://www.youtube.com/@iamkeithandrews

Interested in the Colorado Springs Real Estate Market?
Explore Alpha Zulu Realty—Colorado Springs' #1 Investor-Focused Realty. From A to Z, we've got you covered in acquisitions, sales, and property management. Visit https://www.AlphaZuluRealty.com today.

there's nothing wrong with liking your job. There's nothing wrong with working. You can leverage your W-2 as super power, right? Yes. I can do a lot more risks because I have a W-2. Yes. You have that active income no matter what, and you're more bankable at the end of the day. Like if you're like me and you own as many properties as I do and you don't have a W-2, good luck getting a traditional loan. I've got dreams, boy I've got dreams Hey everyone, welcome back to the Real Estate Junkie. Today's episode is a little different. It's not your typical interview. It's more like you're eavesdropping on a catch-up session between two real estate investors. I've got Tim Yu back on the show. And for those who have been following since the early days, you might remember we had him back on episode seven in February. A lot has changed since then. We dive into his creative financing deals and the new business he's building from scratch in Alabama. So sit back, relax, and enjoy this casual catch up between two real estate junkies. Hey Tim, welcome back to my show man. It's been what like eight months I think. Dude, yeah man. It's it's been a while. It's good to be back man. I appreciate the invite. Yeah, this is actually gonna be my episode number 24. So I've been just dropping episodes every other week since I think it was episode six that you were on. Yeah, it's one of the OGs man. You were you definitely were. So what you've been up to I know the last time we talked you were like big into seller financing and lease options. And that's really what our episode consisted of. Tell me about what you've been up to lately. Yeah, man. No, appreciate you bringing me back on and I still love seller finance. I still love creative finance and most of my portfolio in Kentucky is still the lease option exit method. But we've done a couple of different cool things this last year. I bought six condos in Iowa city. right across the street from the university of Iowa. So if you guys don't know that place, it's where Caitlin Clark played basketball. everybody likes that place, but it's been pretty cool. That was a subject to seller finance hybrid deal. And then in Kentucky, we have a fully operational full wholesale and flipping business. And we do cherry pick some of the deals for lease options. we purchased, we have three right now on the books that we're renovating slash refinancing out. And, yeah, it's been pretty cool this year, a lot of growth and a lot of pain. it's been fun. lot of growth and a lot of pain. Well, pain's good, man. Every time I go to the gym, I leave sore. So that's a good thing. Yeah. So I know in Kentucky is where you really started building your real estate business, right? And. In Kentucky, you ended up creating essentially a wholesale business that you would get a ton of deals, right? You would weed out, weed down to a good deal and then decide whether you wanted to wholesale to someone else or keep it for yourself. Right? So that system has been proven and you fine tuned it. And now you find yourself across the country where you know, absolutely nobody, right? And you're building a wholesale business again. first of all, tell everyone where you are right now and how you got there and why you're there. Yeah. Yeah. So, I'm in Huntsville, Alabama. I'm a full-time army officer. So I'm still in the military working my nine to five and I'm here for a school. So when you transfer over to this job that I'm doing, you have to go to like the introduction course, which is like 60 days. It is an Alabama. So I'm literally in a hotel room. Like I'm not in my house or anything. My wife is still in Maryland and I was like talking to a buddy and I was like, man, like I'm seeing all these people complain online and saying like, I got a nine to five job and I can't do it now. Granted, you know, what, what the challenge I'm doing is I'm starting a business from the ground up in Alabama, just to show that it's possible with a nine to five, right? But the biggest thing that I think I'm showing people is how you maximize your time. So you're out there right now proving that working a full-time job is not a good excuse that there's plenty of time in your day. If you just sacrifice a little bit, right? turn off the TV, get off your phone unless you're making cold calls, right? put, put in some work and your complaint, you may be complaining that, this, I'm trying to build. a business, maybe it's a wholesale business and I'm not saying results, but you're also not putting in the work and you have to put in the work. so it's just about time management at the end of the day. Right. So you're proving that right now and you're, teaching people how to build a business from scratch and you're documenting this right now. Yep. So I do a daily like post on Instagram and YouTube shorts, but I am rolling up these videos into like weekly. things where I'm like breaking down exactly what I'm doing. Like I'm going to screen share my screen and say, if I have $0, I'm not going to pay for no fancy CRM. I'm going to make a Google sheet. Like, and I'm literally going to show you what I'm doing and like the messages I'm sending on Facebook. Like my first two deals I got this week were strictly on Facebook marketplace. No, like cold calling, no money spent. literally, you know, when you go on Facebook marketplaces, it this still available? You literally click that button 40 times to everybody and then like five people will respond to you. Right. And then you say, amazing. Do you want to get on a phone call? And like that one person I on the phone, ended up getting a deal for free. Nice. Nice. And you, you're, you're, this is all on video too. people jumped on your YouTube call on YouTube yesterday with the seller that agreed in my hotel. Right. So everyone knows that I'm in the same hotel. Yeah. The call two days ago posted it yesterday of the guy telling me I literally told him the truth I said I'm in a you I'm doing a YouTube series on how to make money in Alabama and I'm and I'm gonna help you sell your house and he was like bro, I love that He was I'll give you a couple more thousand dollars if you help me sell it I'm so I'm telling you bro. You just guys you just got a hustle out there and get out there Yeah, so we're Let's talk about your YouTube channel. Cause I don't know. Did you have that the last time we talked? No. So it's new, right? I two months ago. Yeah. Wow. So what is your handle on there? it's Tim you. So just like my Instagram. So if you're out there listening, a few episodes back, I had Tommy Har, he's big into wholesaling and he broke down how to do it and, you know, how to get started. I think, there's a wealth of knowledge you can get from Tim you as well. If you go check them out, he's teaching you how to do it from scratch. Like he's literally in Alabama right now, building a business. Wait, would you intend to like hire on somebody just for that market? Once you get it, you know, bubbling up a little bit here long enough and I'm doing well enough. Did I might, I might just make like, so my whole goal, right. Is, know, obviously it's just to inspire people, right. And I've gotten so many messages the last couple of days, like. Bro, this is awesome. I love this. I'm going to get on the phone. And that's what it's all about. Like I just want to like show people like it's possible, man. Right. It's out there if you want it now. Who knows if I end up assigning like 10 deals and I'm like cooking with grease, like I might tell my partners like, Hey bro, we, may need to have a shop down here. Right. Yeah. Yeah. We'll see what happens, but that'd be really cool too, to kind of document like the birth of Wow. That's actually a really profitable business here. Maybe we actually just have a Huntsville, Alabama armed to the business. know, I can show people like the true cycle of, Hey, I'm hustling, hustling, hustling. Let me start hiring. Right. And then like, can show the problems of hiring and all this stuff and maybe fully automating this business. knows? Yeah. Well, I know Huntsville is a very popular place. I know real estate. pretty hot out there as well. Right. I think just showing people that, you know, maybe it's a nine to five, or maybe they are in the service that it's possible to really build wealth and actually have a side hustle. That's more profitable than the money you're making in your W two job. Yeah. And I think like a lot of people, and I think a lot of people online are the problem too, right? Like we're all posting stuff and you know, it's like, You know, I just bought six houses with this portfolio. You know, we want to attract eyes. We want to attract views. And, and I do want to tell the audience, like, it's okay to have two, three houses fully paid off in 30 years. Yes. It's okay to have a W two and get a pension. Like I'm not telling you to be like me. I'm not telling you to be like Tommy Hart, right? Like, yeah, it's more be all these guys. Like you have a goal, your personal goal. if you love your, some people love their job, by the way. my, my, my, my wife's a perfect example of that. Like I keep telling her, if you don't have to work anymore, but she just absolutely loves her job. and plus it's given us medical benefits. And so that's something that we would have to figure out, when she did quit, like, okay, so now we actually have to pay for medical. So let's, let's figure that out. But, really she's working because she loves her job. And I don't want to take that away from her. If I loved my job, I would have kept working it, but I didn't. then I figured my way out and I created my own job in real estate. So yeah, here I am. There's nothing wrong with liking your job. There's nothing wrong with working. you can leverage your w two as super power, right? Yes. I can do a lot more risks because I have a W. Yes, you have that active income no matter what and you're more bankable at the end of the day. Like if you if you're like me and you own as many properties as I do and you don't have a W-2, good luck getting a traditional loan. Yeah, the only loans the only loans I can get I have to go to commercial banks. That's the only way and those those interest rates are always going to be higher. I there's no way I could buy a primary home right now with a traditional residential loan. I just not bankable. But that's the crazy thing about banks and I don't want to get on this rant because you know me, I'm a creative guy, my gosh, like, like, bro, I got like 19 properties and you're telling me that I am not bankable. Yeah. Yeah. Well, I mean, if you're doing things right, like on paper at the end of the year with depreciation and everything else, that's where it gets kind of like, yeah, these residential mortgages aren't just not for you anymore. Plus after 10, you can't even get them anyway. So Yeah. Yeah. They're just like, okay, man, sweet. it's a good problem to have. you know, seller financing is always there, right? You just got to get creative. There's plenty of ways around that, but it's definitely a good problem to have. So what's next for you? Where do you see yourself going as far as in the real estate world in the next five years? I'm working on buying a multifamily. Like, so my ultimate goal is buying a multifamily. And I want to do rent by the room. for veterans, because there's a lot of like, you know, displaced veterans or veterans that need to get their feet under them again, and they need affordable rent. and also the biggest thing is like, you know, man, a lot of veterans get out of the military and they're just kind of like by themselves. Yeah. They lack that camaraderie. They lack the community. So I want to essentially have a building or units. where we can house 15 to 30 veterans, right? In one building rent by the room so they can save up their money, have a community again. And then ultimately at the very end of it, the cherry on the top is being able to have all those veterans there and they provide them to the resources. Right? So it's an all in one stop shop where we have affordable housing for veterans. and to provide them like any service they need to get their feet back under them. Right. So that's my, that's my life goal. That's true. That's a good life goal. mean, you're giving back and there's nothing better than that. Like, you know, I say it all the time. there's for me, like I sure I could cashflow a thousand a month on one of my rentals and that's great. But what's even better is when I can move. a family in or somebody into a house that's better than they came from, right? And just see their smiles. I mean, that's one of the things that just really makes this business just worth it. So so worth it. Yeah, yeah, just being able to help people at the end of the day. And I think landlords get a really bad rap because there's a lot of good landlords out there that really are providing the community a great service, right? Yeah. I honestly like, and I, know, there are definitely bad landlords out there. I think we know a lot of them. Yeah. I don't raise rents because I choose to. Okay. And I want people to understand that, like not every landlord is a, a, is, out to just maximize their dollar. Like, unfortunately, like this year, all my taxes went up and all my insurance payments went up. Yeah. just like how inflation affects the tenant, right? Like we also like, yeah, I get it. Some people will argue like, well, don't buy real estate then. Well, you know, everyone else's rent is going up. So why, why should I lose money? Right? So now because the taxes are going up, insurance are going up. I have to ask my tenant, like, Hey, I'm so sorry. Like I, my mortgage bill went up by like 200 bucks. Right. And so I'm only going to increase you by 50 because I'm already cash flowing. Right. So like, but we can work something out with the tenant, but a lot of times like we're not raising rents because we're bad people is just everything is getting expensive and that's why I want to go the affordability route. Yeah. Yeah. That's great. Well, it's definitely, good to hear. Good to hear and good to hear that you're just, you're doing well. And, I'm excited to see how this, wholesale business out there turns out. definitely be tuning in and I encourage my listeners to go check them out. You also started a new podcast too, right? I did, man. I'm, I'm trying to follow suit, bro. Like I had, after our, our podcast, like eight months ago, I like, I'm going to make a podcast. And it's like anything else. it took me a long time to like take action and like, get not shy. You know, but yeah, right now it's only on YouTube channel, like on my YouTube. So if you tune into my YouTube channel, you'll see the mission, the wealth podcast. And a lot of it are, it's, it's a very broad spectrum of people. So it's like, got obviously my real estate investor friends, including yourself. You're a guest on there, but, we got like crazy private money lenders, transactional lenders. got a dude that like, buys landscaping company. So it's like pretty well, broad and different experience. So I'll hope you guys tune in and you guys learn something cool. that's the mission to wealth podcast and they can get to that off of your YouTube channel at it's Tim. You got you. Awesome. Well, I'll definitely be tuning in and I'm sure my listeners will too. Tim, it was great to just have this short conversation with you. I know we talked about a lot of different things. But I thought it would be fun just to catch up and let, let my listeners eavesdrop in on our conversation. So I appreciate you. Yeah. I love it, man. No problem. And, enjoy filming your 25th episode. I will, man. I, know what? I think I told you when we did our podcast and I think that that's going to be the last one for this, this season. And, I'll start fresh up in January and I may be rebranding it a little bit, but, more to come on that folks. But again, Tim, it was great having you to everyone else that's out there. Thanks for tuning in. God bless and happy investing. Later. Thanks, man.