Check out my life lesson on dealing with the goverment and the word "asbestos"....about 9 years ago Seattle was trying to slow the BOOM in "flippers" in Seattle and sent out an army of inspectors to "find" any violations on flipper jobs. We got hit with a $800,000 Fine for not handling a single family home small remediation "by the book"...sub said he pulled all permits! (check, double check, triple check next time!) ....which is why i teach the "by the book method"...and also discuss the real life "how s**t gets done"...and let you decide best path in each situation and projects. I always recommend by the book. But errors in process; accidents and events do happen in real life renovations and builds. The "how' I teach you to prevent these errors is worth it's weight in gold! Coaching Tip: Hire the expert consultant or contractor in these type of situations. (100k in attorney costs and the fine was later reduced by 90%, but the goverment point was made! They wanted a trophy for the wall and good press for their department) Great thing i look good stuffed over a fireplace! If you’re working on a deal right now — or about to — send it to me. I’ll take a look and tell you exactly where the risk is.

CHAPTER: Why NOT Having a Real Estate License Can Make You More Money Clubhouse 100 Training with Will – Direct to Seller Dominance Opening Story: Will’s Realization “Thanks to Will, one of our 100 Club Partners…” Will came in like most smart people do—thinking a real estate license was the next logical step. More credibility.More access.More control. Sounds right… but it’s actually backwards for what we do. Within weeks of working inside the Clubhouse system, Will saw something that most investors never fully grasp: A license doesn’t expand your opportunity—it restricts your strategy. This chapter breaks that down. Lesson Objective By the end of this chapter, you will understand: - Why being licensed can limit your deal flow - The legal and practical risks wholesalers face when licensed - Why off-market, direct-to-seller investing thrives WITHOUT a license - How Clubhouse 100 partners structure deals cleanly and powerfully SECTION 1: The Core Truth Most People Miss We are NOT brokers. We are principals. There are two worlds in real estate: 1. Broker World - MLS - Commissions - Representation - Disclosure-heavy - Competitive, picked-over deals 2. Principal World (OUR world) - Direct-to-seller - Off-market - Creative structuring - Seller financing - Value creation Will’s Shift Will realized: “If I’m licensed, I’m expected to act like a broker…but I’m trying to act like a buyer.” That conflict is the problem. SECTION 2: The Hidden Problem with a License When you hold a license, you take on fiduciary duties. That means: - You must act in the seller’s best interest - You must disclose more than a normal buyer - You may be restricted in how you profit - You can’t always “structure” deals freely Example Unlicensed: - You make an offer at $1.5M - You assign it for $1.65M - You make $150K Licensed: - You may be required to disclose your profit - Seller may question your intent - You may have to act as their agent instead

Cap Rates Don’t Tell the Whole Story Institutional buyers and brokers love to anchor everything to cap rate. Cap rate.Cap rate.Cap rate. But in the small multifamily space—duplexes, triplexes, fourplexes—that narrative is often incomplete. Many of these properties don’t trade based on cap rate at all. They trade because: - A buyer wants to owner-occupy - A family member is being housed - Someone plans to hold long-term - A value-add investor sees repositioning upside - There’s potential to add units or convert to condos Now layer in reality: You have a seller who has owned the asset for 20, 30, even 40 years.Rents are often 30–50% below market. On paper, the cap rate looks weak—or completely unworkable. So the typical broker response is:“Doesn’t pencil.” We see it differently. You’re not buying the current income stream.You’re buying the delta. The spread between: - Existing rents - Stabilized market rents That’s where the value lives. This is why we go direct-to-seller and structure seller financing: - Control the asset without bank constraints - Reposition rents to market - Increase NOI - Double the value—sometimes more—without relying on initial cap rate metrics Cap rate matters. But it is not the full story—especially in fragmented, under-managed small multifamily. The real question is: What does this property become once properly operated? That’s the game we play.

Huge shoutout to Jim — seriously grateful for everything you’ve poured into me. Following your method step-by-step, I’ve already gotten two properties under contract, and we’re just getting started. Love you brother, God bless you. Thank you for the guidance, the straight talk, and the push to stay consistent every single day. To everyone here — if you have questions about anything (deals, outreach, dispo, underwriting, whatever), I’m always happy to help however I can. Let’s keep stacking wins and keep killing it with Mr. Jim.