Build Your Own RESimpli, ChatGPT As Your Lawyer, And Home Sales At A 31-Year Low

Dan Austin: [0:01] We're talk about how all the women in the world had a bad week this week or what?

Mike DeHaan: [0:05] Did all the women have a

Dan Austin: [0:07] bad week? The feminist movement had a bad week.

Dylan Koch: [0:09] I think he's referring to Sydney Sweeney. Right? Like, yes. Well, no.

Dan Austin: [0:13] Okay. Yes. Actually, there's this is a good one. The the lady that pooped her pants

Mike DeHaan: [0:17] on the Hyrox thing, which That's pretty bad.

Dylan Koch: [0:19] Not cool. I didn't know about this.

Dan Austin: [0:20] Not cool at all. Like, they tried to put her up on a pedestal, which is not cool. That's pink guy.

Mike DeHaan: [0:24] That's not a That's pink guy. That's not a female thing. That's just a human, like, what is wrong with you? I mean, shame on her for doing that. Yes. You're in high rocks. Not in the fucking Olympics. Chill.

Dan Austin: [0:34] You don't even make money in high rocks. Isn't that like being Like, like a Spartan it's not cool.

Mike DeHaan: [0:38] Yeah. It's yeah. It's not cool.

Dan Austin: [0:39] It's another activity for runners to feel like they're functional, but they're really not.

Mike DeHaan: [0:43] Yeah. Exactly.

Dan Austin: [0:44] That's what high rocks is. It's dumb.

Mike DeHaan: [0:45] And the fact that they let her keep doing it too, someone should have like dragged her off. It's probably good that it was like in Asia where they're like super polite. So imagine if shit like in The United States, they'd be like, no, get out here. Get out of here, dude. I don't want pink guy.

Dan Austin: [0:56] Yeah. So there you had that. Then you had the what was the, what was the, the lady that killed the kids? God. Clancy. Lindsay Clancy. You know, they're trying to, you know, put her up there. It's like bad look, bad look. And then most recently, Sydney Sweeney being beat up by all the women athletes. And it's like, ladies, she is advertising for a a betting app, which is almost all dudes probably. Guaranteed their population is 99% dude. She was not advertising to women out there. And also, it was fine. People do that.

Mike DeHaan: [1:25] Also, I guarantee you that no one that wasn't gambling is gonna start gambling because Sydney Swinton did that app.

Dan Austin: [1:33] No. But you I never knew that app existed. I never googled it. But had I been looking for an app, would have gone and googled that app now that I know it existed. I had no idea that was a betting thing. So to that point, it worked.

Mike DeHaan: [1:44] There you go.

Dan Austin: [1:44] But it's just like, you know, women tearing women down. You know what I mean? Why you gotta beat her up?

Mike DeHaan: [1:49] There you go. Great way to start a show with three white dudes talking about women. Women turn women down.

Dan Austin: [1:54] Leave her alone. Leave her alone. You wanna tear somebody down? The lady that shit her pants and pooped all over everybody, that's not acceptable.

Mike DeHaan: [2:01] Oh, it's definitely not.

Dan Austin: [2:03] That actually pissed me off.

Mike DeHaan: [2:04] Yeah. That's like unexcusable. Inexcusable.

Dan Austin: [2:08] 100 percent.

Mike DeHaan: [2:08] What's going on, guys? Welcome to Collecting Keys. Mike DeHaan here with Dan Austin and Dylan Cook. And, Dan's rolling down his high horse today, which I'll join you on that horse, Dan. I fully agree with everything that you said pretty much. So Yeah.

Dan Austin: [2:22] Here's the thing. You know what? The whole poop in your pants thing is just is as a dude, hey, it happens once in a while. Okay? But don't do it where it affects other people.

Mike DeHaan: [2:30] Okay? So I was big in the, like, Olympic weightlifting world for a while. And there is a very common thing that happens with female Olympic weightlifters if their Kegels aren't strong enough or they're doing like a heavy lift. And they'll especially, I guess more powerlifting. They'll like pee. Right? And It's acceptable. It's not acceptable. It's it's super not okay. It's pee. When you're like on a platform at a competition at like your local YMCA and you're like pissing

Dan Austin: [2:53] Oh, on I see. No.

Mike DeHaan: [2:54] Don't do that. Okay.

Dan Austin: [2:55] Yeah. No. Don't do that. Yeah.

Mike DeHaan: [2:56] And for a long time that was like, in like the whole fitness sports world, that was like probably one of the grossest things you could do. This lady topped it. Like, and the tenacity to just get defensive.

Dan Austin: [3:09] Well, it's like people have seen like the Ironman athlete who poops their pants and they're like, I'm not stopping. Like, I'm just going. It's like, you know what? I will applaud that person because it's not hurting anybody. And you could actually like get paid to win Ironman. Like, and that's freaking it's a hard thing. Right? But being a high rocks champion is like Well, it's also the photos, dude.

Mike DeHaan: [3:25] It's like running down her legs, like all over her arms. I'm like, what are you doing?

Dan Austin: [3:29] What is wrong? People have to do burpees after her, dude.

Dylan Koch: [3:31] I I don't wanna see this. This is gross. That's You

Dan Austin: [3:34] seen this, Dylan? Oh my god. It's so gross.

Mike DeHaan: [3:37] People are like doing burpees after?

Dylan Koch: [3:39] No. Haven't. I don't I don't want to.

Mike DeHaan: [3:40] Yeah. It's everywhere. I can't like unsee it. And then like, Hyrox is like the Finishing. Don't go after the athletes. I'm like, she has a problem.

Dan Austin: [3:47] Yeah. Totally. And what did she have for dinner last night? Because that's her problem.

Mike DeHaan: [3:51] She probably just had too much freaking pre workout

Dan Austin: [3:54] and yeah. Nerves, but still Nerves. She's like, oh my god. I might not win this indoor high rocks championship thing.

Mike DeHaan: [4:04] This completely optional thing. Right. I might make tens of dollars. You don't understand. Tens.

Dan Austin: [4:10] No. She'll get a headband and a and a thing.

Mike DeHaan: [4:13] Yeah. A little a little metal that, hey, if you didn't know, they just ordered those. They came in a giant box. Everyone gets the same one. Chill out.

Dan Austin: [4:19] You know, like, yeah. I don't know. I have a whole thing about High Rocks anyways, so

Mike DeHaan: [4:22] Like hyper hybrid rock stars. Yeah. Which is we're not we're gonna stay off that because I have nothing nice to say. So one thing I did hear

Dan Austin: [4:29] is that this

Mike DeHaan: [4:30] High Rocks. You confirm that my

Dan Austin: [4:33] Instagram news channel is correct? And Grindr bought Hirocs? Is this a real thing or is this a

Mike DeHaan: [4:38] total it's like fake. That is not real. Damn it. I was wanting that

Dan Austin: [4:43] to be real. I thought it was a meme and I was like, god, I will hope this is real. I kinda knew it wasn't. That is Wouldn't that be hilarious

Mike DeHaan: [4:49] if they did?

Dylan Koch: [4:50] Dan's getting his news source from the Babylon Bee and this is

Mike DeHaan: [4:52] Exactly. Like

Dan Austin: [4:53] Dude, that's my only source of news. Who watches who turns the news on anymore? I'm not going

Mike DeHaan: [4:57] to Reddit. You're the one that's like sharing stuff on Facebook. It's like, do you know that Bill Gates is trans?

Dan Austin: [5:02] Like, he always tells No, dude. It's Michelle Obama, dude. Good off.

Mike DeHaan: [5:06] Yeah. That's old news at this I hate this timeline of news, everything. It's like impossible to know what to believe. And the problem is with AI stuff too. Oh, it's so cool. Things are becoming like better and better and harder to believe. I've started to see more and more videos go around that have gone like semi viral. It's always kind of like weird stuff. And it's hard to tell with some of them. Like there was this one recently, Dan, you you sent it to me. It was like Dude, it was hard

Dan Austin: [5:31] to tell if Grindr really did because

Mike DeHaan: [5:33] I would believe that. Well, that's because you're dumb. But then the one time, there was that video that was going around, which I'm sure several people saw it, where it was like, this is our cul de sac on a Sunday. And it's all these, like, these people that are, like, running and they're working out. It's basically like a like a like a weird, like like, flex. They're like in these neighborhood, these ridiculously huge houses. And they some for some reason have like a coffee stand in like the cul de sac.

Dan Austin: [5:56] Of

Mike DeHaan: [5:56] course. Like the way it was cut and the way like the people moved, I was like, is it AI? I can't actually tell if it is or not. And there was just certain things with it that didn't feel right. It might have been a real video that was like cut by AI and that's how it was. But, like, you're starting to see more stuff like that all the time.

Dan Austin: [6:14] I think some people do weird stuff, like do CrossFit competitions or cul de sac to show off how awesome they are. Of course, they do.

Dylan Koch: [6:23] Isn't it ironic that the people who I feel fall for these the most is like the boomer generation. Like, hey, you can't believe anything you see or everything you see on the internet. And then they're like, they're resharing some political thing that's just like, bro, none of what you just reshared is true.

Mike DeHaan: [6:37] Dude, this I mean, I just spent six weeks back with my my parents and my son in Montana. And my parents are great, like most of my in laws says about them being boomers. But my, my sister-in-law got married period of time and her grandmother came and talk about peak like boomerisms with stuff where you're just like, really? Like why would she do that? So like the great, great example is she really made like a, like a whole point around stuff with the baby and like making sure the baby's safe and all this sort of stuff and like wanting to be protective. All of sudden my baby gets sick, gets a little cold. Like where'd that come from? Oh, well grandma had been sick all freaking week. I didn't tell anything. Tell anyone. And had been going around like smooshing the baby.

Dan Austin: [7:20] Yeah. And grandmas never tell people that there's yeah.

Mike DeHaan: [7:23] They're against the rules. And then same with like the, you know, she's making comments about, you know, people being on their phone and that kind of stuff all the time. All the young people. Talk about the original iPad kids. Boomers. Always. They're always on a screen. Always on a screen.

Dan Austin: [7:37] They're also like taking pictures pictures with their iPads.

Dylan Koch: [7:40] That's also because yeah. It takes three like, something that takes us, like, ten seconds takes them about three minutes, like, just to, like, do the thing.

Mike DeHaan: [7:47] So It's just so weird. I don't know. But, anyways

Dylan Koch: [7:51] I'm gonna transition to little AI thing real quick because AriSimply, which is a for people who don't know I've heard this is a shit show. Transition to a six point o update. And it's like a platform that I'll Wait. AriSimply's trans? Shut up. Is it a big platform that a lot of off market people use? That you guys use it. Still use A lot of people use it.

Dan Austin: [8:12] Michael put our, referral link into the show notes for you guys.

Mike DeHaan: [8:16] Bro, we we still get like $1,500 a month sometimes from that.

Dan Austin: [8:19] We get cash. We get cash, dude. Go sign up so we can keep this podcast on

Mike DeHaan: [8:23] the air. It's the only thing that's paying for

Dan Austin: [8:25] our producer

Dylan Koch: [8:26] right now. That's dope. But I should get But an affiliate anyway, they went from this like six point o update or from five point o to six point o, and dude, everything broke. And Nice. The implementation of this doesn't make sense because I don't know why you wouldn't have done these, like, in small increments to make sure they actually worked before you fucked all of your users. But my going back to AI thing, there's a lot more AI thing that he's trying to promote. And my, like, you know, opinion on all this is, Sharad probably wants to sell Ari Simply to some private equity company, and you get a much higher multiple if it's an AI company or a tech company. And so, like, they're trying to roll out all these things super fast and to the detriment of your users. I know a lot of people who are, like, switching platforms because this isn't getting fixed.

Mike DeHaan: [9:09] That's probably these days, I would say, the dumbest thing you could do as a SaaS company because it's so easy to build your own version of that exact thing.

Dylan Koch: [9:17] Yeah.

Mike DeHaan: [9:17] Right. Right? Right. Like, honestly. So for the I currently recently built our own loan origination system with Claude. It's taken me a while to get all the features and stuff, and I'm still adding stuff every day. But we can add, like, literally anything that we want in there. And a lot of like the base functionality to get what I needed to sort of like match the previous system, the stuff that I did like, I literally just said to Claude, I was like, look at what this platform does and make it do that. And it goes, okay. And it's just building like a carbon copy. Right? And you can do that with anything. So I tried to sync with PandaDoc to have e sign through there. Yeah. And when I originally started, I was like, oh, I'll just use PandaDoc's API. We can go through there. PandaDoc, the sales guy I talked to, they wanted a thousand dollars per person per year to be able to use their API. So we had 12 staff at that point. It's gonna be $12,000. Plus they wanted to charge us $2 per thing to go through the API.

Dylan Koch: [10:12] I'm like, that's That's insane.

Mike DeHaan: [10:13] That's wild. That's stupid. So I just went and built my own freaking PandaDoc. It took like an hour.

Dan Austin: [10:18] Right? Isn't that crazy? How silly they are.

Mike DeHaan: [10:20] Yeah. And then we needed like some more e sign functionality. Literally, after we're talking about this, I was building out the ability to add like templates and and roles and all that sort of stuff. If you don't wanna pay $500 a month for your small team to have e somewhere, just go build your own with Claude. It costs nothing. It's absurdly easy, and you can do all the same stuff. You can have the signatures. You can have everything exactly the same. Yeah. Right? Things like Ari simply are gonna get cooked. I bet that's I bet honestly his thing, just before you start start talking again, I bet you that he understands that. Sharad does. And he is racing against the clock to try and sell this thing off to some schmuck private equity company who doesn't quite realize that yet before all of his users figure out that they can just build their own ARI simply.

Dan Austin: [11:00] That's what our previous previous LOS developer did. He's like, I sold it because I knew I was basically cooked. Yeah. Mike's like, yeah, I basically built this exact same thing in a weekend. And he's like, yeah, I know.

Mike DeHaan: [11:11] Yeah. Bryce, the owned Lender. Don't know if you know that he sold. He sold Lender.

Dylan Koch: [11:14] Oh, wow. Did he really? Yeah.

Mike DeHaan: [11:16] He said, yeah. And I and I asked him about it. I ended up saying congratulations. And he's like, he's like, yeah, he's like, honestly, I saw the way the AI landscaping landscape was going. So I realized that I was about to become a dinosaur. And so I sold he sold out to one of the the big legacy No. Not to Baseline. But I wouldn't be surprised if Baseline follows suit with this. But he sold out to one of the bigger companies who's now marketing to me constantly saying like, hey, we acquired Lender. And I literally responded to them yesterday. And I was like, that's awesome, bro. I was like, but we already built your whole thing and it's way better. Yeah. And then like, and that's what's gonna happen. And the the small companies are realizing that.

Dylan Koch: [11:49] Well, I was talking to my buddies here, I'm like and the problem is like the texting function doesn't even work right now, or like this stuff, or like the eSign stuff doesn't even work. And so like there's hundreds of thousands of dollars, probably millions of dollars in potential lost revenue between them fixing any of this stuff. I don't know. It's so hard for me to like justify anything.

Dan Austin: [12:08] Let me ask you this. Do you think that because I felt like Sharad was a very I think it's like a very common story. Like, he's a great guy. I have nothing bad to say about him. But he's there's dudes that had relationships in India that were able to get cheap labor for software development. And so a lot of those guys, they were in an industry that's the same thing with our our LOS. The guy was a private lender, had relationships in India, had some background in software development, used the cheap labor in India to develop software. That was a competitive advantage for a lot of these guys. I feel like that's what Sharad's competitive advantage was in this off market space. And he was kind of a a first mover. So he had an advantage there. Do you think he just canned all those people and used AI and then found out that his AI developer didn't do a very good job and just trashed the whole system?

Dylan Koch: [12:51] Maybe. It just it just doesn't make sense on why you had

Dan Austin: [12:55] because that is not an alignment.

Dylan Koch: [12:56] No. And like, this seems uncharacteristic of the previous, you know, iterations that they've done. I just don't know why you would roll out a new update on a Saturday night and not verify that the base functionality of what you need of just like organizing your leads, KPIs, reporting, and seller communication, make sure all that doesn't work before you add on all these extra layers.

Dan Austin: [13:17] I don't know.

Dylan Koch: [13:17] A lot of people are pissed.

Mike DeHaan: [13:19] I think too, it's a lot harder probably to add that stuff into an existing platform, especially when it's been around for so long. Sure. I mean, because we started using RE simply when it first launched back in 2020. Like I remember when we first joined Brian Dossi's group, everyone was still using Podio. We set up Podio for like a month and then like the month later he started promoting RE simply. Right? And so we switched over to that. And so we have six years of development with this thing. We're in version six, which is way too many versions in only six years, I feel like. But also, he had all this infrastructure that was already there. He's trying to keep some of it, trying to like patch up in. He has all this data that's gonna be in like different data structures and those kind of sort of things. I can't imagine that that's an easy transition. It's not an excuse for what happened. I honestly think what a better way would go is instead of trying to like plug it into everybody's system and break everything is you build it as like its own thing. And then what you do is you offer all of your users like, hi, we will give you free migration to this new system. Right? Mhmm. The risk with that, obviously

Dylan Koch: [14:24] Yeah. And we have no option to go back to the old version.

Mike DeHaan: [14:26] No option.

Dylan Koch: [14:27] There's a force. Yeah.

Mike DeHaan: [14:28] Which sucks. And it's forced. Now everything breaks at once. But if you did that migration, yeah, y'all people don't wanna do it. Then what you do is you put a time gate and say like, hey, we're gonna do it for you for free for the next ninety days. If you don't do it in the next ninety days, then we're basically gonna break you do it yourself and it's gonna suck. Yep. You know? Like, there's a lot of better ways you could have done it that would have alleviated that. But

Dylan Koch: [14:49] I think the overall business, like, thing here is like, in any business, and, like, unless you're building it yourself, like, you're doing is, like, you rely on third parties, and which is just a lot in this business. And there are some people in the Facebook who are like, hey, suck it up. Be an opera. It's like, yes. There's there's a truth to that, but at the same time, like, the way this was implemented was just dumb. Like, I don't have another word for it.

Mike DeHaan: [15:09] I would say the ones that are saying, hey, suck it up, they're either not doing any business, or they have like a big team and they have like some button pusher that just fucks around with CRM in their office. They're not like you that's the single operator that's trying to work your leads and do all the overhead stuff and do all your financial work and do everything at the same time. You guys are the ones that get bit the most. And I would also bet that that is the vast majority of their users.

Dylan Koch: [15:32] Yes. I agree with everything you just said. Yeah. Well, anyway, I'll maybe I'll pick your brain on how I build a RE Simply Lite through Claude because I might have to figure it out.

Mike DeHaan: [15:42] Do they have all their videos?

Dylan Koch: [15:43] There are recordings.

Mike DeHaan: [15:45] Yeah. Literally, just go in, like, take your Claude account and you set it up with a an online platform basically to host your website. Right? So it's, it's actually public.

Dylan Koch: [15:55] Yep. I've done that. I've done, yeah.

Mike DeHaan: [15:57] So you should it on Netlify, whatever you do. Point it to those videos and say, look at these videos, I want you to build this exact thing. And it'll ask you like some follow-up questions. But you can also say, get as far as you can without asking me additional questions. The thing will just run for like four hours, and it will probably get you something that you are shocked how close it is. Wow.

Dylan Koch: [16:17] Do you have any 10 DLC stuff with your lending stuff that you have to be No.

Mike DeHaan: [16:20] So I'll say that that will be the hardest thing to do, think, is the texting and the calling because of those regulations. Anything that, like, involves moving money is really tricky and anything that involves anything over the phone system is gonna be really hard.

Dan Austin: [16:34] You can set up a batch account though, like to bridge you for now until you can get to that point.

Mike DeHaan: [16:38] For sure. Batch, we use JustCall. JustCall getting like 10DLC stuff was set up, but just integrating it with a platform is like kind of tricky. Yeah. Because there's like rules around how the communication somebody don't want you to do any robo stuff. But I mean, that's been a freaking mess in RE simply anyway forever. Like, remember when they first had all 10 DLC stuff and it would take like two weeks to get approved? Yep. And if

Dylan Koch: [16:59] your number got marked spammed, you're basically screwed.

Mike DeHaan: [17:01] You're just screwed. Yeah. Yeah. Then they're like, hey, we pay a thousand dollars, we'll give you, the blue bubbles, green bubbles, whatever bubbles the iPhone people That

Dan Austin: [17:11] was the, what was what was that company that did that? The the CRM that charged off?

Dylan Koch: [17:15] Well, Arty Simply tried to do that.

Dan Austin: [17:18] They tried to do that too?

Mike DeHaan: [17:19] Oh my god.

Dan Austin: [17:19] That was like a whole thing for a while, I think.

Mike DeHaan: [17:21] Yeah. Well, I remember arguing with Cody about that, because he really wanted to pay for it. And I was like, this is what you wanna pay for of all things?

Dan Austin: [17:27] Yeah. Makes

Mike DeHaan: [17:28] Do you think this is the reason it's hard to get deals is because our bubbles are different colors? No, bro.

Dan Austin: [17:33] Do you don't wanna put any more money on mail, but you want bubbles?

Mike DeHaan: [17:35] Yeah. You know, maybe if we just called the leads.

Dylan Koch: [17:37] I pulled up Mike this morning because I this is a local wholesale operation. And I just got, like, you know, blah blah blah blah homebuyers. Thank you for opting in to receiving SMS messages from us. And I replied and said, I didn't opt into shit. That means I didn't. I just got the auto thing.

Mike DeHaan: [17:52] Dude, so I got one of those for actually my parents' house. This is how outdated their data was. So they sent it to me wanting to buy my parents' house. And the same thing got opposite. Thanks for opting doo doo doo doo. And it gave like the little spiel. It was from a real estate agent. And then they included, this is how they, you know, they're rookies prospecting. It included their like business card with their photo, with their kid.

Dan Austin: [18:12] That's really dumb.

Mike DeHaan: [18:13] You know, like, all their company stuff. And I'm like, well, now I got you, dummy. So I responded back and I was like, I'm pretty sure that you can't do that. It's like a $10,000 fine through the TCPF. You just, like, opting me in and cold texting me. And he was kind of a little bit snarky and he came back and said, oh, I'm so sorry. So then I found this this petty lawsuit company and I I filed a, like a petty lawsuit against him just trying to like He paid? Distort him from my nine hour baby.

Dan Austin: [18:38] But He just ignored it?

Mike DeHaan: [18:39] He got harassed for several days, including people going to his door and serving him papers at 9PM. And he just ignored it, You

Dylan Koch: [18:45] know what? Maybe I'll do that. This is a very large competitor of mine, so maybe I'll just do that for them too.

Dan Austin: [18:50] You should do.

Mike DeHaan: [18:51] So I can I can hear the recordings of him talking to the person?

Dan Austin: [18:55] What did he say? I wanna know.

Dylan Koch: [18:57] Oh, dude.

Mike DeHaan: [18:57] He would get f he would get elevated super quick, and then he stopped answering. So I I had, like, someone I paid an extra, like, $50 to have someone go and surf him papers, and I didn't choose this deal. But they went to his house at 09:30 at night. Oh my And knocked on the doors. And they like left details about like what the exchange was. Dude, you gotta keep pursuing this dude. I just got tired of it. But I started to feel bad because you could like see the notes that he was getting very stressed. That's so funny.

Dylan Koch: [19:23] I bet he didn't say that anymore unsolicited text messages.

Dan Austin: [19:25] I don't feel bad. Is this did you follow him on on like social media so you know, like, does he do like stupid skits and dances like all the other real estate agents that are

Mike DeHaan: [19:33] out He's of their mind right definitely like a dude, I think, that is trying to figure out his thing and just got his real estate license.

Dan Austin: [19:40] And you slapped him with a lawsuit day one. He he saw some stuff on YouTube about how to do that exact thing, he's like, damn it.

Mike DeHaan: [19:47] You know, he just got me right on the day where I was feeling a little spicy. And also to the fact when I first was like, hey, I don't think you can do that. And he kinda like elevated at me, like right away the next time. Was like, okay.

Dan Austin: [19:58] Okay. You wanna go? Let's go, dude.

Mike DeHaan: [19:59] I don't think you understand how versed I am on this. We can make this Yeah. Right.

Dan Austin: [20:03] Yeah. Have been using ChatGPT as my attorney lately and using that to write demand letters for for businesses that piss me off. And you can surprisingly get a lot by just doing that.

Mike DeHaan: [20:14] This is a whole new business. What demand letters

Dan Austin: [20:16] have you been sending? This is a whole new scam. Well, Mike knows about the one.

Dylan Koch: [20:20] The one They're coming from Sir Lends a lot. Mike, you should know about them.

Dan Austin: [20:22] So Well, and it's not like I'm trying to rip people off. It's like just people that are trying to rip me off. Like we had a like a pest control company at one of our rentals. And so what they did, there was like a there's a rodent at the house. So they went there, it's a thousand dollars. They didn't catch any rodent. They put up some half assed like chicken wire stuff around the foundation of the house where there's like clear holes where they, an animal could still get in. Guess what? Right where those holes were, the animals still got in. Anyways, in that contract, which I looked at on my phone, which is 40 pages, which was supposed to be a quote, which is actually not a contract, it's like a quote basically saying, we're going do these, these things. It's a thousand dollars. I was like, cool. In there, had stuck in. It says, we also recommend you do our monthly service for pest control. It's a $100.

Dylan Koch: [21:07] Oh,

Dan Austin: [21:08] no. I just saw it as a line item and a bunch of line items of that added up to a thousand bucks. So then they start sending me bills for a $100 a month. Nice. And I'm like, no, I'm not doing that. Because then their their technician would call me and be like, I'm on my way to your house.

Mike DeHaan: [21:21] I'm like, for what? Like, what are you

Dan Austin: [21:23] talking about, dude? And I was like, don't go there. And it got to the point to where the technician would text me and he's like, oh shit, I'm sorry, dude. I know you don't like me going to your house. So I'll around and leave. And I was like, okay. And this whole time I'm emailing the lady at the office, cancel this thing. And they're like, well, you need to submit a request and you have to pay a thousand dollars to cancel. And I was like, absolutely not. So I had ChadGBT write a demand letter. And I was like, break down their contract and make them like, look stupid and say it's from my attorney. And I sent it to them literally that same day. I got an email from the owner saying we've canceled you and you don't have to pay us.

Mike DeHaan: [21:55] There we go. Perfect. And

Dylan Koch: [21:57] like, this goes back to We have a house that This is like, you're part of like doing the due diligence on the front end. Is we had a property. It's just It's like one of the only rentals on the Like, single family rental we have left. And they had water coming through the, like, the ceiling in their living room. And I was like, send someone out there. They're like, hey, you need a new roof. And I didn't like double check it. I paid for a new roof. It's a small house. It was like $6. And next thing, like a week later, was like, hey, it's still leaking. I'm like, what? Does this make any sense? And the the furnace is in the attic here for this place. And so there was no the condensation light was just dripping right into the freaking attic.

Mike DeHaan: [22:35] Yeah.

Dylan Koch: [22:36] So I paid for a new roof, but I probably didn't need to.

Mike DeHaan: [22:38] No shit.

Dylan Koch: [22:39] And it was a couple $100 to fix like this, you know, drain condensation

Mike DeHaan: [22:42] line. Yeah.

Dylan Koch: [22:44] And I was like, goddamn it, dude. But like

Dan Austin: [22:46] That sucks, dude. At least you got a new roof.

Dylan Koch: [22:47] Yeah. I guess. But like the stuff like that.

Dan Austin: [22:51] Yeah. It's a little stuff like that that gets people like we had the house recently that was like not our one that we own, but it was like, yeah, the whole basement smells like mold. There's probably leaks somewhere. It was a condensation line wasn't getting drained.

Mike DeHaan: [23:03] For the furnace.

Dan Austin: [23:03] Same thing. Surprising a lot of water comes out of those things.

Dylan Koch: [23:06] Yeah. Well, they just they're continuous a lot of times.

Mike DeHaan: [23:09] Right? Yep. Dude, so like on the same line with the condensation line, think that's a must be a common issue. So last Christmas, right before my parents got a new furnace at their house, the the furnace is down in the crawl space. Like some of the stuff was like, the HVAC wasn't working right. Was kind of weird. So I crawled down there just to look at it. And they had just gotten a new furnace in like October. I discovered that they had never even put the tubes into the sump pump that was down there. And they were just basically draining into their base or across Basically the moist the moisture barrier in the basement.

Dylan Koch: [23:41] Oh, yeah.

Mike DeHaan: [23:41] So on on Christmas day, I spent two hours down there with a cup and a funnel, and I just did a thousand scoops dumping. My god. Merry Christmas.

Dylan Koch: [23:53] He's like, Mike's like, I was getting coal for Christmas, so this is better. This is my good dude.

Dan Austin: [23:58] Yeah. Oh my gosh.

Mike DeHaan: [23:59] In case people didn't know, houses cost money. You know? And the longer you own houses, the more money they're going to cost you.

Dylan Koch: [24:05] Mhmm. I just got quoted 14,000 for a new rubber roof on a building. We put like, roofs have been my nemesis this year. I bet we spent $40 this year in just in CapEx. Wow. That's unit turns, roofs, furnaces, waters.

Mike DeHaan: [24:16] Just on the one house or for all of them?

Dylan Koch: [24:18] No. All of them. But still, like, that's 40

Mike DeHaan: [24:20] bad for how many units you own, dude. That's like one house here.

Dan Austin: [24:24] That's a thousand bucks a unit for you, dude.

Mike DeHaan: [24:26] If you're not putting that into your cash flow numbers, don't I don't wanna tell you.

Dylan Koch: [24:28] You're just being financially irresponsible. Well, no. I mean, that we're like

Dan Austin: [24:32] It does suck though. It does. That's what that is a good chunk of money.

Dylan Koch: [24:35] We're doing okay, I just see $40 going out. Like, especially if like you try to burrow them on the front and you have I've loaned these space for less than five years. And so like, the one thing is I'm like, oh, this is future Dillon's problem. They're all coming at once. It's just annoying.

Dan Austin: [24:47] That's how it happens, man.

Dylan Koch: [24:48] Do you guys still keep a pulse on like the local Spokane market now that you're not like wholesaling or flipping? Because we have three on the market right now that I know are priced, like, accordingly. And they're, like like, not even showings. Not even, like Yeah.

Mike DeHaan: [25:02] It's it's rough. So this is in tangent with where I was gonna go. And, yeah, we have here's really, really bad for the market right now. I mean, huge part of that's interest rates. The base rates for our company, for Sir Lenzalot, have jumped a whole percentage point in the last two weeks. Right? And, I mean, I can't imagine I don't know what it is on like the conventional homeowner side. They must be up in like the mid to high sevens by now.

Dylan Koch: [25:27] I just looked it up before this podcast. If you're like a highly qualified borrower, they're sewn in quotes in the low sevens.

Mike DeHaan: [25:33] The low sevens. So if you're like the a plus, so that means that the average person, the person that can afford a home is getting an FHA loan, or like a low down payment loan. They're probably getting like, what, 7.75 plus having to pay, you know, mortgage insurance.

Dylan Koch: [25:47] Probably PMI.

Mike DeHaan: [25:48] Yeah. Yeah.

Dylan Koch: [25:48] Yeah.

Mike DeHaan: [25:48] Right. There's no way people can qualify for that monthly payment.

Dylan Koch: [25:52] I agree. Literally no way. Yeah. Yeah. We're gonna

Mike DeHaan: [25:54] be seeing eights here soon.

Dylan Koch: [25:55] Two of the three listings that we have are well, one's for $5.50. So like your buyer pool's already lower, especially here. Yeah. And the other one's for $3.60, so more like the nicer starter home. But my point in seeing this is like the prices that we thought we were gonna get, like, we're still gonna make money. We're still be profitable, but like, damn. It's a lot less than we had thought.

Dan Austin: [26:14] Yeah. Yeah. It's tough out there.

Mike DeHaan: [26:16] Yeah. A lot of these flippers have to be getting cooked on stuff. Or even if you're just like trying to, you know, move on, if you're just a homeowner, it's probably like the worst time ever to like have to like relocate. Like you should really just be expecting to keep your home as a rental. And if you can't afford to buy a home in wherever you're going, then just be a renter for a little bit honestly, and don't make it so that you do take a haircut on your house. Yeah. Because the only way you're gonna sell anything is if you're doing it at like a crazy price.

Dan Austin: [26:42] The way I know it's a bad market is just by the amount of realtors on my social media that are just doing weird things for attention. You know what mean? Just like they're like playing out skits and they're like doing more dancing and they're just doing weird stuff. They're just getting desperate for attention to try to make money as hard out there. And most of them are all complaining about the same thing. Like, please somebody buy a house. Like, because people aren't buying houses and Yeah. The amount of houses for sale just keeps climbing and they're not, it's not going to go anywhere.

Dylan Koch: [27:11] Some stuff will still transact, but what I just see the other day, it was like, it was like a thirty one year low for volume of sales. Like worse than 2008. Yeah.

Dan Austin: [27:20] It's tough. The difference is, is there's a lot of equity in those houses. Still a lot quotations.

Mike DeHaan: [27:25] Right?

Dylan Koch: [27:25] Right. So like there's no forced sellers, right? 2,008 people were forced to

Dan Austin: [27:29] sell. They're not upside down with those a 100% financing loans, I think is the saving grace for all those people. Because they can, they cannot sell their house. So

Mike DeHaan: [27:37] Well, yeah. I mean, it's like what we've been talking about for years though, is we're gonna be at that just stalemate where people don't wanna sell because they can't afford to move up in housing and people can't afford to buy anything. What's So gonna happen? There's gonna be a ton of houses on the market. Nobody looks at them. But also nobody's necessarily incentivized to drop their price. Right? Yeah. Especially because you have a ton of these people that have so much more equity than they ever thought that they were gonna have

Dan Austin: [28:03] in such a short

Mike DeHaan: [28:04] period of time. And so why would they do that?

Dylan Koch: [28:07] Really, the only people that would have to move are like, if you're relocating for a job, which hardly ever happens anymore because a lot of these are remote. Or maybe you have like two kids, and now you're in a two bedroom house, and you're like almost are forced to like try to film. But even then, like, that's kind of tough.

Dan Austin: [28:22] It's more of a luxury move.

Mike DeHaan: [28:24] Even then. How old are your kids? Right? I mean, if they're younger kids, they'll just share a room. I mean, that's not that weird until they're like getting into a teenage age, and then they eat their own space. Yeah. It's it's a tough time. It's hard to know. But I know and that's not even considering like the general affordability with everything else right now. Right. You know, because we're just in the middle of the shitification of everything. I follow this subreddit that specifically just like points out like that in different things. Some of the stuff that people discover of like the reduced value in items that like appear to be the same is actually pretty crazy. One of them had a packet of they posted this like Foster's chicken that they bought. So just like, you know, the standard factory farm chicken, which is always kind of junk, but, you know, you'd find it at any grocery store. So they had basically like a older packet that had been in their freezer from, you know, year or whatever ago. And they had a pack they just bought. The weights of them were technically the same, but they had noticed on a previous packet that it had shrunk significantly more like the chicken breast had. So they looked at the ingredients. And on the old one, the first ingredient was chicken.

Mike DeHaan: [29:32] On the newer one, the first two ingredients were water and salt. So essentially they were giving significantly

Dylan Koch: [29:39] So they just like making it more dense.

Mike DeHaan: [29:41] Yeah. Yeah. Basically just pumping it full of stuff, charging significantly more money. And now you're getting the chicken breast that is like almost all water. Right? And you're starting to see more and more stuff like that constantly. Or there was another one somebody posted out, I forget what the jar was. But they had essentially just like changed the units on it. And the jar size was like the same, kind of. But like what was actually in there, there was like a a liquid and there was like more liquid and less of like the actual thing. And they basically just said like instead of it being like, you know, half a liter or whatever, they changed it to like point seven five down. They're like, what whatever it was. Right? But they changed the unit.

Dan Austin: [30:17] Yeah. Some weird number.

Mike DeHaan: [30:18] It looked like it was more, but it was actually less. Yeah. Right? It just moved so many things.

Dylan Koch: [30:23] And the other thing, like, with the inflation stuff, so, like, the Fed had their decision yesterday, and they met twelve zero for raising Fed funds rate by 25 basis points. But they basically said in his, you know, post conference meeting, like, we're probably gonna raise again this following year. So or not near the end of the year, which to me is like, I don't know what breaks first. Like, is do we have revolt? Like, do we go into a recession where people actually have to start laying people off so that wages come down? I don't know. But I it doesn't seem like the trend is in anyone's favor right now.

Dan Austin: [30:59] I think if we bombed another country, that could potentially save us. That could get

Dylan Koch: [31:04] us Even to the military veteran, that's always his first If go

Dan Austin: [31:07] we can blow something else up, I think that can get us out of it. It's actually interesting though, because like, let me add this. So oil has like per barrel has been more expensive in the past, but gas prices are like all time highs. What's up with that? Mhmm.

Mike DeHaan: [31:20] You know

Dan Austin: [31:20] what I mean? Like oil has been up to like a 100.

Dylan Koch: [31:21] Refineries, I think is the big thing there. So I just learned about this. There's something called crack spreads. And, basically, if you take, like, crude oil and make it into either it's gas or diesel or other or, like, petroleum, like, the different things that you can actually turn raw oil into, The refineries have are a lot of the bottlenecks right now, and depending on where that bottleneck and logistics come from is those increase in spread.

Dan Austin: [31:45] When you say refineries though, like, they're all the same refineries. Right? So why are they

Mike DeHaan: [31:49] Yeah.

Dylan Koch: [31:49] But some of these are like in The Middle East and legit got blew up in this world.

Dan Austin: [31:52] Okay. So we're getting actual gasoline and diesel shipped from The Middle East, not

Dylan Koch: [31:56] just crude oil. Yeah. We have our we're a large exporter of oil in The United States, but we're not a big refinery.

Dan Austin: [32:02] Yeah. Well, we better start refining something or get battery cars. We gotta do something.

Dylan Koch: [32:07] Well, even if you do battery cars, we don't have the electrical infrastructure.

Dan Austin: [32:11] We could bomb China and grab it.

Dylan Koch: [32:12] There you go. Yeah.

Dan Austin: [32:15] It's it's a real it's a real thing though. And I was listening to some some pundits on this stuff and like, what is the the behind it? Is it really the petrodollar? I was gonna ask you, Dylan. Is this the just hanging on of the petrodollar by bombing Iran, going into Venezuela, and trying to keep it towards the petrodollar, not the yuan dollar, or the yuan the petro yuan or whatever.

Dylan Koch: [32:38] Well, think America wants to keep the petrodollar. And I know like Yeah.

Dan Austin: [32:42] Yeah. But is it are we at the final hour? And that's why the military has taken such drastic actions against countries, and it's not really doing Maybe it's doing what it's supposed to do, we just got to tough it out, or maybe it's absolutely not doing.

Dylan Koch: [32:55] Well, exports from Venezuela have gone up exponentially since we took What's His Face out of

Dan Austin: [33:01] Well, and so before he was it was going yeah. He would have been aligned with the Petro one, your Yeah. One, And was also exporting to China anyways. And Russia, I think, as well under like black flag ships, whatever they call them in other countries.

Dylan Koch: [33:16] If I had to put like a baseball analogy to it, like if you know the ninth inning is the end of this, I don't know. Everyone's speculating, but I hear some really smart people say anywhere from third to fourth inning versus yesterday, I was listening to two guys, Darius Dale and Luke Gromen on thoughtful money's podcast, and they said seven to eighth inning, talking about the same thing. And they're more referring to like a debt crisis with the bond market with these yields continuing to go up, But there those are intertwined things. Like, those are not one without the other.

Mike DeHaan: [33:44] I just wanna know, like, what the possible outcomes are. You know? Like, I I don't even know.

Dan Austin: [33:49] Yeah. Exactly. Like like, how low does it go? How high does it stay? I mean,

Dylan Koch: [33:53] their consensus, and this is not this is gonna be a 50,000 foot view.

Dan Austin: [33:57] Just dudes on a podcast. Right? So they're stupid.

Dylan Koch: [33:59] Yeah. Well, I mean, they sound smart, at least when they talk. I

Dan Austin: [34:03] don't. But you guys do.

Dylan Koch: [34:05] Okay. Inflation is probably gonna be running hot, and they're gonna have some version, even though they won't call it a yield curve control. So keeping the ten year, let's say, below 5%, if inflation's running two, three, 5%, then they have to run inflation higher than that to inflate out of the debt. Right? So make your dollars worth more. So it's the debasement trade all over again. But if you don't already own assets, then you're still kind of fucked. Yeah. That they did this is a playbook they ran in like the thirties and forties, like during World War II. Like so war is, you know, part of this equation. Okay. So none of the outlooks are are rosy. Like, none of them look really that good.

Dan Austin: [34:41] It's gonna be a rough road. You're better off owning stuff than not owning stuff. Don't sit in are you saying don't sit on cash?

Dylan Koch: [34:47] Own things that the government can't print. So no. I mean, cash is I would not own anything longer than five years in duration. Like if you're a bond investor because you're just I mean, that par value is gonna be worth much less five years from now.

Dan Austin: [34:59] Yeah. Yeah. Interesting. Okay.

Dylan Koch: [35:01] But we've said this over and over again on the podcast. I would own some cash for optionality if things do go down. But other than that, I mean, hard assets, and that's precious metals, gold, silver. You can own some of the electrical infrastructure. If we do have this AI and electrical build out, right, you're gonna need the raw components to that. And then good blue chip stocks and obviously, gold and Bitcoin.

Mike DeHaan: [35:24] Alright. Raw components. I'm gonna go start stealing copper. It's a good idea.

Dan Austin: [35:28] Oh, is that the trade again? We steal copper?

Mike DeHaan: [35:30] That's a raw component. Right? It's a bunch of shitty abandoned houses. We just had a fire. There's a bunch of maybe copper

Dylan Koch: [35:35] in those burning pits. Yeah. You're right. Wow. What's the thing that people catalytic converters, some of the things that people steal

Dan Austin: [35:44] a lot of. That's still a problem in Spokane. Surprisingly.

Dylan Koch: [35:46] I was

Mike DeHaan: [35:46] like, how do you

Dan Austin: [35:47] know people still stole those? Spokane, they do.

Mike DeHaan: [35:49] It's because everyone here is behind the times. I mean, there's half the people here that, you know, they still talk about Obama, and that was a long time ago now. We we we can move on from that, seriously. Yeah.

Dylan Koch: [35:59] The thanks Obama memes were funny for quite a while.

Mike DeHaan: [36:01] They're still funny. I say

Dan Austin: [36:02] it all the time

Mike DeHaan: [36:03] for things that are obviously not anything related to that at all. I'll be like, why is this parking lot so small? Thanks, Obama. Classic North Idaho for you.

Dan Austin: [36:12] Everybody loves that phrase though, because if you're if you're a liberal, you're like, you get the joke. But if you're Republican, you're like, yeah, pound it, brother. It it plays well in Spokane is what I'm saying.

Mike DeHaan: [36:23] It does. For sure. We have that that You're always gonna run into one of those sides.

Dan Austin: [36:27] And and everybody's happy to hear it.

Mike DeHaan: [36:28] Yeah. Totally. Awesome. Alright, guys. We'll wrap up here. Thanks for listening, everybody. I'll talk you guys next week.

Dan Austin: [36:34] See you.

Dylan Koch: [36:34] See you.

Mike DeHaan: [36:35] This episode is sponsored by Sir Lenzelot LLC, also known as SLA Capital, which if you didn't know, is Dan and I's private lending company. So, yes, we are sponsoring our own show, but what you're do about it? It is our private lending company that offers hard money and DSCR loans to real estate investors of all types. So you can be a new investor, an experienced investor. You can be buying flips. You can be buying rentals, whatever. We can do everything. And not only that, but the rates that we offer are just as competitive, if not cheaper, than pretty much every other company out there. So whatever big company you've been working with, bring us their term sheets, I guarantee that we can probably beat it. We have the same connections they do. We just don't have all the overhead and middlemen. So if you wanna come and check us out, go to slacapital.com/keys, and I will know that you came from the show. And by seeing that you came from here, when you get the closing, you will save $500 on your first loan with us. So slacapital.com/keys, we would love to fund your next deal. Thanks for listening, everyone. If you want more from us, you can shoot us a follow on Instagram. I am at Mike underscore Invest. Dan is at investor man. Dan and Dylan is at Dylan underscore does underscore deals. Choose to follow and send us a DM to let us know what you think of the show.