Blake writes: 1. Can I buy you lunch? 2. Do you like the daisy chain model?
Speaker 1: Welcome to the real investing show with Tim heritage each day, we’ll provide real investing for everyday investors. Tim is a nationally recognized real estate investing expert podcast, host and public speaker. He built his businesses from the ground up and is here to help you do the same. Here is your host Tim heritage.
Speaker 2: Welcome back to the real investing show. I’m Tim heritage today. Blake writes. Number one. Can I buy you lunch? Number two, do you like the Daisy chain model? Okay, so number one, Blake, you can [00:00:30] buy me lunch as long as you fly me and my family to The Bahamas. No, I’m just kidding. Uh, I love it, Blake. Great job. Uh, number two. So do you like the Daisy chain model? You know, I actually don’t have a problem with the Daisy chain model. So if you’re listening, the Daisy chain model is simply, uh, party number a party, a buys, a home or contracts, a home, and then party B contracts it from party a via an assignment or a joint venture agreement [00:01:00] or a purchase and sale agreement. And then party B sells it to party C and party C contracts it via, uh, assignment or contractor purchase the sale agreement.
Speaker 2: And then, you know, it can go, I’ve seen ’em with five or six letters. So some people say it’s not real investing and it’s driving up the cost. And I just disagree because in my mind, if party a knew how to sell that asset, that opportunity to, [00:01:30] or for the same amount as party E then party a would just do it. But if they don’t have the acquired knowledge or the acquired network or the acquired skill, then there’s a place and function for party B. And at the end of the day party a should become better educated and have a better network. So, yeah, I mean, I, I, I don’t necessarily like the Daisy chain model. I mean, I have partake in it. I mean, I’m, I’m party a lot of the time still to this day because [00:02:00] I may, uh, maybe be too busy, right.
Speaker 2: Or my team may, uh, contract a property that just doesn’t fit what I want to take down. And maybe I’m traveling, maybe I’m on the speaking circuit. What have you, uh, so we’ll sell to a big box wholesaler and then let the big box wholesaler wholes sale it. And, uh, they make money and we make money. And the assumption is that the end party, uh, got what they wanted. So yeah, I mean, you know, supply chain, distribution chains, they’re all the same to me. I, I, [00:02:30] I, I don’t ever have a problem with anyone making money. You know, one of my great mentors mark told me, he said, the minute you start watching, what’s on someone else’s plate, you’re not watching what’s on yours. And those are really words I live by. So I guess what I’m saying is I don’t have a problem with the Daisy chain model.
Speaker 2: I, I don’t like it or dislike it. I think it serves a function and it allows entrepreneurs of all skill levels and experience levels and time commitments to profit on real estate. Now I don’t like misrepresentation [00:03:00] though. So there’s some people that do, it’s just like anything, things can be done the right way in the wrong way. So I, I think as long as you represent who you are and what you do and what your plans and intentions are, then it’s okay. It’s I, I almost feel where this is going now. <laugh>, uh, there are, there are ways to do things, right. There are ways to do things wrong. So, uh, I always disclose everything I’m doing. I’m always clear. And if I’m even entering into a contract, buying a house from someone that I intend to sell, I will let them know. I’ll just tell ’em, I’ve got investors that I’m gonna place this with, and if that’s not okay, [00:03:30] then you know, it’s fine. You know, they can sell it to someone else. So, uh, that’s me, that’s it? Uh, I hope that answers your question, Blake. Thank you for riding in. Remember if you’ve got questions hop on over to Ihab lunch, money.com and we’ll see you tomorrow.
Speaker 1: Thank you for hanging out with us today on real investing. If you have questions, comments, or feedback, please visit Ihab lunch, money.com. Tim. Can’t wait to hear from you. We’re always grateful for your reviews. And if you enjoy this episode, please subscribe and share it with your friends. Remember the business is the vehicle, not the dream. See you. Next time. [00:04:00] The proceeding program is provided for general education purposes only and does not constitute legal tax, financial investment or other professional advice. No information contained in this program should be construed as financial investment or legal advice from any individual author of host or guest. You should always consult a financial advisor before investing.