Table of Contents - Lifestyle design through real estate with Daray Olaleye
Dave Debeau [00:00:09] Well, hey, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast and the Ray. Don't try to say that three times in a row. Quickly, it's a tongue twister. My special guest today on the podcast is The Rate Alali. Yeah, I hope I got that fairly close to a yes.
Daray Olaleye [00:00:29] Yes, sir. Perfect. I love it. I love it. Thank you for having me on. I'm super excited and hopefully I can add some value to your listeners.
Dave Debeau [00:00:34] I know you can, my friend. I know you can. I love your I told you this before we start recording. I love your mission statement. I'll read this out to you. So if you haven't heard of Drake, he's the founder of the Before the Millions Educational Coaching Company. I love the name of that. It's got a podcast, has been doing that for a long time. And he mentors, overwhelmed and unfulfilled employees in the professional world through the process of creating and building a lifestyle business through real estate investing so that they can escape the rat race and live the life of their dreams. Love it. That's beautiful. Beautiful. Absolutely beautiful. Let's get started. Let's talk about your journey with real estate investing. How did you get involved in this crazy fun, fulfilling, somewhat, sometimes profitable business
Daray Olaleye [00:01:24] sometimes, man. So how do I get started in real estate? Well, if you don't mind, I'm going to take the story back a little bit further to my maybe my first real estate encounter. And it's a weird one. So kind of strap on your seatbelt. But it started when I was 11 and. My mother, my sister and myself, we lived in a quaint two bedroom, one bedroom house, I believe, and it was next to her best friend and her best friend had two kids as well. They were much older than us. They were maybe 10 to five years older than us. So that the guy who was way older than me and how we would connect with our video games naturally. But her daughter, how we would connect, would play this board game called Monopoly. And it was such a fascinating thing to me as a kid. I was say, man, this is this is so interesting. I feel like an adult. But I would go over there after school. I would get so excited because the game was so fun and it was so, so thrilling. I would get so excited, drop off my back. I probably on the floor and then I come out the game or to just beg her to play with me. And every single time we played, she would beat me every single time. I still remember, but anyways, so I felt like I needed to come up with a strategy, I felt like she was doing some kind of wizardry and I was just like, how do you it's a game of chance. How can you be so succinct and beating me every single time? And I started to notice that when I looked at the pieces on the board, that if I paid attention, if I tried to acquire the property with the most foot traffic, I have a lot better odds of beating her. If I also tried to acquire the property with the highest rents and have a lot better odds of beating her. And with those two things, I went on to beat her every single time we played Monopoly after that. So that's kind of my first foray into real estate. But again, this is 11 12 year old me. Fast forward to maybe twenty two year old me. Let's actually go back a little bit. And then we got some time and we got about 20 minutes. Let's go back. So let's go back to an 18 year old. And I get to college and they tell me, they say, OK, because I was like two days ago, I had no idea what I want to do in life. I knew I wanted to be successful, but there was there's no plan in place. I like my little sister, who from the age of 19, she want to be a doctor. Last week, in fact, she just got her math scores back and she killed it. Right. She's she's brilliant. But for me, I had no idea what I wanted to do in life. So I was just like, man, let's go to college and let's figure this whole college thing out and let's let's get some grades and get our get on out of here. So I asked people, I was like, hey, like, what do I major in? I don't really have a path and I'm going to be successful. But how that's going to happen, I don't know, like what's good for me. And if so, what are you good with numbers? How about you become an accountant? So as I said that I grab hold of as I started studying and researching, I think I want to go talk to my counselor, I was like, hey, how do I become an accountant? What's the what's the best way to get there and make a ton of good grades? And actually, there's certain prestige in accounting, right. Similar to Harvard and Princeton and Yale. There's a ton of accounting firms, some local, some national. And they're for their super big international. They're called the big four accounting firms. And they said if you make it into one of these firms, it's like going to Harvard. Right? If you make it into one of these firms, you have it made, you're set. Right. And what you're going to do the right is for the next 10 to 15 years are going to work your butt off. And at the end of that 50 mark, just around that point, they're going to offer you a chance to buy into the company. So you become what's called a partner. Right. And at that point, you're going to be making anywhere between half a million dollars and seven hundred and fifty thousand dollars a year. And I said, wow. Let's do it. I said, let's do it. So I studied hard, I got good grades. I became a leader on the campus in every form and fashion, and I got in nice. Yes, I made it. And again, the perks right there are just like you're going to be able to travel. I love guys. If there's anything that I want to just let me know now. I love traveling. That's something I've always done from a six month old up until now, like the digital nomad lifestyle, the location, independent lifestyle. That's what I'm about today. But I'm going to kind of show you guys how is restricted from that for a small period of time. So they told me that I'm going to be able to travel and I love travel. They said we're going to eat a time. I mean I mean, we actually did these things like they force fed us all types of restaurants, all types of cuisines. Right. We stayed in four star hotels. We got Purdum's rental cars, the works. You would think this is the corporate life. Like, I was just like I finally arrived. What's crazy about that scenario is that my first year in was probably the worst time of my life. I was working about seventy five hours a week, no, what I remember there was a Saturday I was called to buy my ticket and head to San Francisco. And again, guys, I love I love San Fran. You would think I'd be excited at this opportunity. I was told to buy my ticket to San Francisco and I was going to be on an audit and engaged because I audited the financial statements of some of the biggest companies in the world. So I was going to be on an engagement that was going to last about a month out there. So mind you, when I got there, I did not see daylight, not once during the engagement. Again, I'm in San Fran. I want to enjoy San Fran. Right. I do not see daylight, not once, because we will work from seven a.m. to midnight, sometimes to three a.m. and on the weekends. You think we have the weekends off? No, we work Saturday and Sunday. You are sitting in a cubicle. So these people are force feeding me every day. They're bribing me to keep working and I'm a fit person. I love being free. I'm literally gaining weight. I'm literally being miserable. And what's crazy is, again, I never had a full time job before. Yes, I understand how taxes work as an accountant. So I get my first check and they took away half of my money. I said, wait, wait, wait, wait, wait. Somebody come talk to me, tell me what this is. Tell me what I'm seeing on this paper, please. I don't get it. They've taken away half of the money I've earned. Where did this go?
Dave Debeau [00:07:34] If you're a top notch scout,
Daray Olaleye [00:07:37] you would be so surprised at how many accountants, how many CPAs have no idea how this stuff works. It's incredible. So I said, where did all my money go, like, oh, the either are in the S.. Oh, so you mean to tell me and this is not just a tax that comes out of my check with sales tax and all the other taxes, you mean to tell me when you add up all these taxes? I'm working from January to June just to pay the government. Most professionals are doing that. I'm just like, how can you be OK with that? My first check, I immediately said, there's no way I'm going to do this for the rest of my life. How are how people have been doing this for 40 years? Yeah. And then I'm fresh out of college, so not only do I have student loans, but whether you're renting or you own a home, you have a rent or you have a mortgage. Right. That goes to the bank. Your student loans go to the bank, your credit card bills, they go to the bank, your car note that goes to the bank, everything else goes to the bank. So the second half of the year, from July to December, I'm working for the bank and then the papers that I'm pushing because I'm a paper pusher, the papers that I'm pushing, I'm literally just just making sure the numbers add up. Like, OK, to doesn't go for OK, check mark. That's right. Next. So there's actually literally no fulfillment in the work that I'm doing. I don't see the bigger picture. I don't see what's happening with these papers once they get them. I don't see, like how these financial statements mean anything to the people that run these companies. I don't see anything. I just know that I have to add these numbers up so there's no fulfillment. I'm working for the bank and I'm working for the government. At the end of the year, I have zero having nothing. I said there's no way I will do this for the rest of my life. After a year later, a woman approaches me and she's like, I understand you've been suffering and you've been struggling. And this is obviously not the place for you. I've been reading this book and for some reason I call her my guardian angel for some reason. I think you should read the book.
Dave Debeau [00:09:28] I bet I can guess which book it was.
Daray Olaleye [00:09:29] Oh, of course you can. Of course you can. In my adult life, I hadn't read a single book. Not once I had tried to read 48 Laws of Power, like numerous times. I could never get past the first chapter, but something about her telling me I needed to read this book. I read, I read the book. And as you know, it's Reshat for the little Purple Book. From that day forward, I read a book every single week till this day. I read a book a week. I've read over a hundred books. There's no popular self-help book that I haven't. I haven't read it like I am a voracious reader from somebody who hasn't read it their whole life because of this one book, also from this book about my first investment property 30 days later. But it's all going to start in real estate about a single family home,
Dave Debeau [00:10:14] single family of
Daray Olaleye [00:10:15] three two, bought it for one. Sixty five, rent was fifteen hundred and I was netting two fifty dollars my first year.
Dave Debeau [00:10:22] I've actually graduated from Monopoly up to cash flow to
Daray Olaleye [00:10:24] exactly, exactly, exactly
Dave Debeau [00:10:28] same. Now that's exactly I love Casswell. So what do you focus on these days. The what's what's your main real estate investing strategy?
Daray Olaleye [00:10:38] So I focus on creative financing and what the term that I've created and I'm still coining it because I don't want to buy a stilli. But the term that I've created is called the motivated seller strategy. Now, again, most of the strategies that you'll hear about, including my strategies, they're all the same thing. And you'll find them on YouTube, you'll find them on a ton of different podcasts. But why I coined my strategy, the motivated seller strategy is because I no longer want people and I don't know if this is many of your listeners are interrelated or just passive income in general, but real estate specifically. I don't want people, especially people I work with, to go into a scenario with a certain hat on so I can give you an example. There are many people who start off in real estate and wholesaling, right when you have a wholesale head on. There are certain requirements that a deal must meet for you to be able to wholesale that do OK. So, for instance, if you want to be a wholesaler, you have to get a deep discount on any property that you're looking to buy or any property that you're looking to get on a contract. That's the law. That's the name of the game. How deep of a discount can I get? So if you're a wholesaler and you have that hat on again, I'm not saying wholesale is not a great strategy. It's part of my motivated seller strategy. So it is a great strategy. But what I'm saying is, having been a wholesaler, being categorized as a wholesaler and having that hat on specifically, only it limits you and it pisses a lot of people off, OK? It limits you in that you don't see the bigger picture, right. You don't connect with motivated sellers. Right. You're after a bottom line. If this deal doesn't mean similar to real estate agents, if a deal doesn't mean you're crazy, if there's not enough equity in the deal, real estate agents stay far away from them. Same with wholesalers. If I can't get a deep discount, I want I'm going to stay away from that deal. Right. Or I'm going to try to get that deal and I'm going to beat somebody up right in my verbiage and in trying to get aggressive so that they see, hey, let's do this wholesale deal. So I'm not serving them. OK, the motivated seller is about serving right the other way that you miss out velho sounds that let's just say that because you don't have other strategies, let's say you build rapport with the seller and all you know how to do is wholesale because you don't have other strategies and all you can offer is a deep discount on their property. You may have had a deal if you had a few other strategies under your belt, but now, because all you know is wholesaling, you have to move on from that view. So, A, you're pissing people off who have a wholesale deal is not the best thing for them. Right. And maybe you're getting deals done every once in a while and then, B, you're leaving a ton of deals on the table because all you know how to do is wholesale. So what I want people to become is real estate entrepreneurs. That's why the motivated selling method is more about focus on the motivated seller. I believe that if you truly connect with somebody, if you truly connect with a seller, same as any other industry. Right. I'm a business culture, so I need to truly connect with my clients, any other industry, same as me. We need to truly connect. Right? These people are not transactions. If you truly connect with one of these people and you have the tools in your tool belt to get a deal done, you're no longer going in with the mindset, hey, I'm a wholesaler, how do I make this fit my wholesale parameters? You're going in with a mindset because you have wholesaling under your toolbelt. You have subject to owner finance in your toolbar. You're going in with the mindset, how can I help? What's going on? What do you need?
Dave Debeau [00:13:52] Yeah, I know that when you go. I made myself way back in the day when I first got started, a similar idea, creative strategies, and that was all the tools in the tool belt. Like you say, I don't mind the multiple office strategy. So you go in and find a motivated seller and say, OK, here's here's an offer one. Here's offer two completely different offer, three offer for which one suits your needs the best. And then it's not a matter of yes or no, it's a matter of
Daray Olaleye [00:14:20] which one is one. And that's what people need to understand. Right. So again, people always ask me, they're like, how do I get started in real estate? How much of a down payment do I need? What's my strategy? And I always tell people like, hey, I'm not going to tell you that the motivated seller method should be your strategy. Here's here's a process I'll walk people through. I actually just created a freebie. I don't know if you mind me sharing it with your audience, but I just created a freebie. OK, awesome. And what I'll do is we'll create a link by the after I get done describing the freebie, but I created a freebie that literally walked somebody through. Hey, I heard about real estate and I want to get started, but I just don't know how, you know, most people, they're going to tell you that their way is the best way, like, oh, come, come, come join my course or come do my strategy or or I heartland investing is the best thing. Right. And so let's get one thing straight. Everything in real estate makes money, whether you're our fixer and flip or you're a wholesaler, you're a rental property owner, your syndicator, your land investor, your mobile home parks. All of these strategies make money. So how about we just do ourselves a favor just just just for this exercise, guys, let's take the money out of the equation, OK? It's going to make money. Any strategy you pick is going to make money. So if I'm taking the money out of the equation, then what do we focus on? Like how how do we pick our strategy? And again, I want you to ask yourself three questions, and then it's going to lead to another four questions with the first three questions are like this and you guys are going to get the survey. The first two questions are like this. What type of lifestyle do you ultimately want? How do you want real estate to facilitate that lifestyle? And by when? OK, when you answer these three questions, you are going to start being able to eliminate different real estate strategies, you may not be able to eliminate all of them, but you'll be able to start eliminating real estate strategies that don't best suit you because we're focused on you. We know that real estate is going to make money. Now we're focused on you. What do you need? Going back to how I focus on the motivated seller when I'm in the living room right now, we're focused on you. OK, so when you answer those three questions in the survey, you're going to get to another four questions. And the next four questions are super important because now it's focused on your resources, your commitment level. So question number one, what's your commitment level? How much capital do you have access to? How much time are you willing to dedicate? What is your experience? Education and real estate, if any? Again, it doesn't matter where you're coming from. You can have no capital. You can have no expense. You could have no time. You can have no commitment. Right. But the important thing is you need to know these things because of, say, your commitment level is low. I may say, hey, maybe you shouldn't you shouldn't have a goal of making a thousand calls. That's not going to suit you. You're probably going to fizzle out. Maybe you have a little bit of money hanging around. You should give your money to a syndicator and let them invest for you. Right. Because you know exactly where you are, who you are, what your resources are. Maybe you don't have a ton of money to invest. So maybe, you know, you need to find a way to carve out time to dedicate time. Right. So depending on those things, what I do in the PDF is I talk about wholesale and I talk about rental properties. Right. And I talk about the type of person that would fit those molds. And I give you a little blurb. And if that doesn't help, there's a link to a podcast episode that's forty five minutes long. That's going to totally describe it to you. So again, it's not specifically, hey, my strategy is the best, it's what's going to be best for you. And I'm going to break down every single strategy. So I'm going to show you how this can possibly suit you. And you've been gracious enough to let me share that resource with your audience. So we're going to create a link over it before the millions dotcom. Ford's last formula won the formula. Sure. OK, so the formula and you guys, you guys will get access to that free PDF and you guys can walk through that and you'll know your exact strategy at the end of the exercise here.
Dave Debeau [00:17:46] All right. Time flies when you're having fun. This is a short interview, that's for sure. So we'll have to have you on the show again sometime in the future. But again, just repeat, if people want to find out more about you and what you're up to, what's the best place for them to go?
Daray Olaleye [00:18:00] They could head over to before the millions dotcom. That's where I am. Or if you want to connect with me on Instagram, I love connecting on Instagram. You have any questions whatsoever? I love spitball and ideas. You can reach me on Instagram. My Instagram handle is Lollia. My first and last name spelt r a y o l l e y. Or if it makes it easier for you, you can head over to before the millions dotcom forced Instagram and others set you straight to my Instagram.
Dave Debeau [00:18:24] Sounds good. It's been a lot of fun. Thank you very much for sharing your story and your ideas. I appreciate it very much today.
Daray Olaleye [00:18:31] No problem, Dave. It's been a pleasure and hopefully I've been able to add some value to our audience. Thank you so much for what you do. I mean, there are a ton of investors out there and less than one percent of them are doing some type of give back component. And you have that. So I appreciate you for what you do and I appreciate you for having me on.
Dave Debeau [00:18:45] Thanks, my friend. Likewise. All right, everybody, take care and see you on the next episode of a. Well, thanks very much for checking out the property profits podcast and you
Dave Debeau [00:18:54] like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review it. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.