For Pineda, the acronym RAISE is his beacon to keep him on the right track. He assesses these five life areas every day: 1. Relationships 2. Assets 3. Intellect 4. Spirituality 5. Exercise
“I do not strive to destroy other flippers,” he explained. “But rather, being competitive influences my desire to want to get better. I want to surround myself with as many movers and shakers I can because it inspires me to get better. Business is business and you will lose if you don’t keep evolving.” One specific way Pineda has learned to evolve as a real estate investor and business owner is by negotiating creative financing. By entertaining creative capital, he has figured out how to turn “dead deals into big deals.” “On our acquisition side, we’re super creative on our deal structure,” he said. “We just had a deal where the market value of the homes was $825-850,000 on three different properties. They wanted 900k for all three. I thought, ‘no one would pay 900.’ Other investors might offer 600. I structured the deal and said I would give them 900 but on the conditions that they would finance over 15 years with no interest. Principle-only payments. And I would put $15,000 down, $5,000 per property. They like the deal because they get what they want. But I understand that I will cashflow on three properties for only 15k and at the end of 15 years, I’ll only owe about $300,000 on three properties. At three percent appreciation, they’ll be worth 1.3 million. Due to creative financing, I turned a deal no one else saw as a deal into a win-win for the seller and me and a potential $1million 15 years down the road. We accepted an offer to wholesale to someone else for $100k assignment fee. That hasn’t closed yet, so we’ll see. But either way, whether we make $100,000 today or $1million 15 years from now, I know it’s a great deal.” Another example of Pineda’s creative financing is a 10-unit apartment complex in Vegas that he bought with seller-financing. He said he negotiated no payments for three years while his company fixed it up. Now, it’s a cash-flowing property. “There are so many creative ways to make deals out of nothing,” he said. •
“This self-awareness practice has helped me shift my mindset to realize it’s not all about dollars.”
CREATIVE CAPITAL When someone transitions from one profession to another that is seemingly completely unrelated, it bares questioning what, if anything, correlates between the two. How, then, is a professional baseball career related to crushing it in real estate? For Pineda, the answer is two-fold: Extreme Discipline and Competitiveness. “Athletes understand discipline. They must develop a routine and become robotic because that’s the only way to develop their skills and to get better,” Pineda said. “The same is true in real estate. To be successful, you must be on the phone prospecting, or knocking on doors, or whatever the case is for you. You must be disciplined in your routine and understand that with the more reps you do, the better you’ll get. I see many people get bored, but when you learn to love your craft, you have a greater chance of success.” Pineda’s competitive nature served him well as an athlete, and he has noticed this trait serve him well in business. But a competitive nature does not mean wanting others to fail.
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