This is the last part of this series where we talk about the present and we did not expect to be where we are today. And we’re also in the middle of changing the name of our 6th company!
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In 2020, we were presented with our first mixed deal. There were fifteen turnkey properties and one 56-unit apartment complex in the offering. We knew the purchase would provide an excellent return but as it was our first multi family purchase, we underestimated the complexity not only of the purchase but also of the rehabilitation of the apartments. Thankfully, we had a relationship through Masterminds with an expert, who helped guide us through the process. This transaction led to the creation of Freedom Capital Investment, soon to be called Freedom Family Capital! We are excited about this rebrand that incorporates our freedom through passive income themes and creates a unique identity for us in the marketplace. And just as we have support from our relationships and Freedom team as we have built and grown our companies, we are looking toward the future. Our future goals are to help give you the life you want to live through building passive income and wealth through real estate, be a support system and share our passion for those who want to learn about real estate investing and be in a position to give back to the communities where we live and in which we serve.
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Hey everybody! Flip and Dani here, founders of the Freedom Real Estate Group Family of Companies and welcome to another episode of our podcast, which is called Freedom Through Passive Income. That's right, and welcome to the mini Docu series, documentary. This is the Flip & Dani story. This is Part 19. Hahaha! I've said it's part four, but some of these have gone long. Because there's just too much to put into the small time slot. Yeah. But this is the last part. This is part four. Yeah. And this is "Sharing Our Journey of Freedom Through Passive Income". Yes. I got it? Yes, exactly right. Woohoo! Yes, indeed.
So yeah, so we've gotten a little bit long, because we're trying to share key parts of our story that are relevant to how we got to where we are today. And this part right here has to do with really this podcast and our journey of trying to achieve Freedom Through Passive Income and where we started and how we got here and why we got passionate about doing a podcast like this, especially 365 days a year. Yup. Crazy. Yes, crazy.
There was a point in our real estate career as we are building the five companies where we had a package deal come our way. And it was 15 properties. Yup, 12 of them are single family. Three of them are duplexes. And it also came with a 56 unit apartment complex. This particular seller did not want to break up the package, because we just wanted the 15 properties. Correct. Because we are in the turnkey business and we're looking for deals. And so we love buying packages, because there's very little competition to buy packages. And so we're very excited about that. But he didn't want to sell the 56 unit alone. And so we decided we're going to wholesale that because we weren't into apartments, I always wanted to get into apartments. But that was a little bit down the road because we already had our hands full building five companies. Yes, exactly. Did not need to by choice, add another company to the plate because everything else was really built out of necessity.
So I think it took about 6, 7, 8 months. This is right around when COVID happened. Yeah, it just happened when we got this deal. Yeah. So this was in 2020. And the lender fell out from the person that we found to wholesale the 56 unit to, so he had to find a new lender. And that extended, you know, the process. Ultimately, there came a point in time, where we were like, come on, we gotta get these closed, I mean, Flip's just going, I need these 15 properties, I already know exactly who they're going to go to. So the person that was going to buy the property ultimately was just like, you know, I'll do it, but I want it for this price and ultimately kind of cut us out of the deal. We wouldn't have made any money. And so when Flip got that text, I was just like, forget it. You know what, we've waited this long. I'm just tired. And now he wants to screw around with us. I mean, this is kind of, quite frankly, the investor world sometimes. And so I said, forget it, we'll buy it, I don't care, we'll buy it.
So we decided that we were going to buy it and close on it. And this is the time where the seller was getting frustrated too. Yeah, he was ready to walk. If we did not make a decision like this. We lost the entire package. And we had been working on it for so long. So we decided to buy it and move forward. It took us I think two weeks to do all the inspections and put together the money to buy it. It was a 1.8? Yup. Or no 1.3 million dollar purchase. And then $800,000 rehab. So that was the, we just got the money together for the purchase. And then we had the rehab on hold because we didn't need it right away. Because there it was pretty much all occupied, I think, except for one unit. Yup.
There is a couple podcasts about this 56 Unit horror story. At least a couple. Okay. So it was probably the worst deal that we could have gotten into, it was a good deal. It was a homerun. So you'll also hear like, after the refinance the numbers, it was a homerun, slam dunk, but from point A to point Z was a nightmare. More like double Z. We literally probably went through everything possible and kind of prepared us for the multifamily world because now we're like, okay, I can do any deal at this point. Exactly. It can't be as bad as that one and it was interesting too, because at the time we had a backstop of partnering with somebody in our mastermind who had done over 2000 units in multifamily. They own that many and so we said hey would you be a part of this deal and just help us out you know and they were very small part because they were really the backstop, right? They were going to help us with liquidity needed, help us with the bank relationships for the finance, things like that. And then if we needed any help or guidance, they were there for us. Yeah. But we were doing everything else, the operations, everything with this department, because it was right in our backyard, probably 20 minutes from ours. Yes. So we went through that whole entire ordeal and it's funny, we didn't actually reach out to our partners through the whole thing. Because we had done so much turnkey like this was just on a larger scale, right? It's nothing surprising. It's just on a larger scale with 56 units. Yeah. And so we got through it, and you can listen to another podcast, if you want to hear that horror story. It's crazy what we dealt with.
But when we ended up telling them, they said, oh my gosh, I can't believe like, it's so incredible that you went through all of that, and you just took it in stride. And every single day, he just went after the problem, solved it, and then kept on going, found another problem, solved it and kept on going. So it really kind of speaks to the character of who you guys are. And so that was really good, you know, to hear. Yeah, it was good to hear that this wasn't normal. Yeah, I was like, Holy crap.
So that's how we got into apartments, once it was all said and done, after all the nightmares, starting to see that income coming in and the stabilization of that property. And realizing there was so many economies of scale in terms of the cost of our contractors, because they were in one spot, they didn't have to, you know, they could order in bulk, and then put it all into one of the units. And they didn't have to travel everywhere, they were just there. And they could just do multiple units at the same time. All of the things that we learned, we had four roofs instead of 56 roofs, like we learned so much through that experience. We quite frankly, at near the end of it, when we were done with the horror story and saw the money starting to come in that passive income, we're like, oh, we should do this. We need more of this. Yeah, this is what I'm talking about.
So it was really, really exciting to be kind of thrown into an experience, which is not unusual for us, we're very comfortable being uncomfortable. We're okay with chaos and crazy, we know how to tackle one problem at a time, find the solution, keep on going, ask for people for help, if we don't know the solution, and make sure that we are doing it correctly. So that experience just changed the course of our vision going forward. Yup.
And ultimately, that led to building our sixth company, and we're actually in the middle, and you're gonna hear this for the very first time, we're in the middle of changing the name. And the reason that we're changing. What?!? Yeah, I'm probably not going to tell you, you're gonna have to listen to the episode to actually hear this, we'll do an official announcement somewhere else, but you're gonna get the secret, or the sneak peek, whatever you want to call it. Freedom Family Capital is going to be our new name. And the reason we're changing the name is because we hired an amazing marketing team to really help us grow this company. And as we were looking at Freedom Capital Investments, we realized we're not the only company that's Freedom Capital Investments. So we're trying to figure out, Okay, what's the unique name that we could come up with it? Maybe not, everybody's going to think to call themselves. Right. And so one of the things, we love freedom. As we talked yesterday, all the names of our companies, with the exception of Bulldog Renovations, has a freedom theme, oh, and Cash 4 Ohio Houses. Those two companies that doesn't have a freedom theme, but we love freedom. And so we'd like that name. And very often, we've talked about the Freedom Family of Companies. So I googled Freedom Family, as I'm brainstorming names, and went Flip, hey, Freedom Family, you actually see a bunch of us. Yeah. I'm talking about Freedom Family of Companies. And so we thought of like three different names, we sent it to our marketing team as well. And it was a dead winner. Yeah. And so Freedom Family Capital is going to be the name, we've got the domain, we're working on a website, we're going to be rolling all of it out.
And so we just fell in love with this company. And we fell in love with what it could do for us first and foremost, because of our journey to Freedom Through Passive Income, and our desire to want to live a life that is a higher quality, that we're not chasing active income all the time, right? It's set, you know, it's set up, and it's going to continually come in for years and years to come. And the properties we're buying, we're buying long term, because we don't want to buy it, sell it, do it again, do it again, we want to keep doing it, but we want to hold it and get the passive income. And we're thinking of different ways on how we can take investors along this ride with us. And that's really truly what our passion is, is ensuring that we are taken care of first, our families taken care of, our team is taken care of beyond that. We want to help our investors do everything that we're doing. And we have the luxury of being able to do it full time.
And be able to give back and giving back is such a core thing for us as a family of companies. We do it now. But imagine what we can do as we continue to build this passive income, right, we can start identifying certain parts of that passive income that goes to causes that we care about. And now this cause is not getting a lump sum money that they don't get, again, they're getting passive income every single month to support them and help them grow and help them achieve what they're after no matter what the cause it may be. So there's a lot to our vision. And what we want to do and this is really it's kind of the sixth thing that we've just embraced fully and started this 365 day podcast because at the time we're building a company where our overhead is not being taken care of, we don't get a lot of active income from this company. This is the building wealth companies and the company that pays us way down the road. Right? So we don't earn a lot actively in this company. So it's been difficult to, it's like going back to the beginning and starting on a shoestring budget of how do I build this company and do what I want to do for our investors with very little money up front, knowing that it's all going to come in three or four years down the road.
So we have got so many plans, and you guys hear it a lot on this podcast, but that's why this podcast was created. And Flip, I've been talking forever. So you take it over. What's your, what do you love about this company? And what does it mean to you in terms of our story, where we came from, and what this company means to us and with regard to what we were searching for and what we wanted out of life?
Yeah, I think it's, thank you for asking the questions, because I don't think that there's anything that I could possibly add from what you just said. But it's interesting, because, you know, just a couple years ago, prior to 2020. You know, the, I don't think that I would have envisioned us being where we are now. You know, I don't, it didn't dawn on me. You know, I always joke about the Reese's Peanut Butter commercial, you put your peanut butter in my chocolate, right? Yeah. You know, that's what happened with us. And it was the, it was the, how many Disney themes can I pull in here? It was the glass slipper. You know, that fit, It was like it was meant to be, this was what we were meant to do. And it's not for us. I mean, yes, that's a byproduct of what we're but it's more of the giving back and showing people how to do this. You know, it's one of the reasons why I like going into turnkey is because we're doing a service for these people of, we're buying it, rehabbing it, putting a tenant in them, all they had to do is just collect the money. You know, and I love that. And I love the fact that it was repeat business, you know, we can call the same person over and over and over until they've got whatever but you can sell to the same person over and over. And I love this because you can help the same people over and over. And it's just a big, it's a big team. It's this isn't a one person trick. And if you want to try to do it by yourself, you know, good luck, you know, more more power to you.
But it is a team sport. And it's getting more and more people involved in, you know, and I can't wait for people to say, Hey, I heard you on your podcast. I just got this deal. Would you guys, you guys want to partner with us on it? You know, it's only a matter of time until that happens. That's right. Oh, actually, people have to listen to the podcast. Yeah. Anyway, but no, I mean, every day I'm just super excited about everything we're doing.
Yeah, very, very grateful. And so yeah, we have a new life because of this sixth company. It's really kind of changed the trajectory of what we're doing. To be focused from active to passive, and to be able to help people like us. And we say like us because we are busy entrepreneurs. And I can't imagine becoming an expert in crypto. Oh! Right? So if I want to invest in crypto, I've got to go find that expert. And if people want to build wealth through real estate, and they are a doctor or an attorney, or every other like high net worth career that you can have, and you're passionate about and that you love, you have to find an expert in the space where you want to invest so that you can build that wealth and get a great return and live the life that you want, that you deserve and do things on your terms. I think that's what this is all about.
I'm an expert in losing money in crypto. Does that count? Thanks for bringing that up. Yeah, you're welcome. I can't believe you told them our new name. Oh my god. Yes. Shh! Shh! I haven't officially talked about it yet. Don't tell no one. I'm sure we'll have a press release and you'll know when you can talk about it. That's right. That did not happen, that didn't happen.
Anyway, we hope you enjoyed this episode, make sure to head on over to our website, www.FreedomCapitalInvestments.com and join the investor club, make sure you're joining the Investing Club. Make sure you're talking to Ben and or CJ to find out about all the stuff that we've got going on. Because we got a lot of stuff going on before the end of the year.
But we'd like to end all of our episodes with Invest Smart, Live Happy. Bye everybody!
Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed, all investment strategies have the potential for profit or loss.
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