How to legally avoid paying taxes – feat. Tom Wheelwright


Hi, my name is Rod Khleif and I’m the host
of “Lifetime Cashflow through Real Estate Investing” Podcast and every week I interview
multifamily rockstars. We talk about how they built incredible wealth for themselves and
their families through multifamily properties. So hit the like and subscribe button to get
notified every Monday when a new episode comes out. Let’s get to it
Rod: Welcome to another edition of How to Build Lifetime Cashflow through Real Estate
Investing. I’m Rod Khleif and I’m thrilled you’re here. And I’m delighted to have my
friend Tom Wheelwright back on the show today. Now tom is a CPA and he’s CEO of a company
called Wealth Ability and what they do is they help people save money on taxes or avoid
taxes altogether. Now he also spends a lot of time traveling around the planet with Robert
Kiyosaki is one of the Rich DaD advisors and he speaks at conferences all over the world
for that. Tom welcome the show again brother. Great to have you back
Tom: It’s always good to be here with you Rod
Rod: Thank you thank you thank you. So listen why don’t you take a moment for those that
didn’t hear the previous interview with me to just talk about who you are and what you’re
up to, you know a little bit of background if you don’t mind, little back story
Tom: Yeah so I grew up in Salt Lake City, Utah. I naturally when I was a young man spent
two years as a missionary and I was a missionary in Paris. So I was teaching Mormonism to Catholics
in French Rod: While riding your bike around with the
suit-and-tie on Tom: Absolutely and I did the whole thing
you know except in Paris we ride the Metro right. We don’t ride bikes too much but I
did learn all about rejection right off the back. I mean that is, I think that’s the
big message and stayin on mission. I think the other thing is that you really learn about
staying on mission when you are a missionary. Its volunteer, it’s your own money, it’s your
own time, and you’ve got a whole lot of rules so you know getting that whole mission focus,
it’s almost like being in the Marine Corps only instead of shooting people you’re you
know you’re trying to convert them to you know a church. In any case, so I spent two
years there. I spend then I came home got my undergraduate the University of Utah in
Accounting and went to the University of Texas for Master’s of tax degree spent seven years
with Ernst & Young. One of the CPA firms in the world. In fact I was there in the last
time we had major tax reform 1986. So I watched the whole process at that time this process
was very different obviously and then subsequent to that I spent four years as the in-house
tax advisor for a fortune 500 company and then I started my own firm. I started up from
scratch. I had two clients and beat the streets and after nine months that doubled my business.
So I was at four and couldn’t dwell on that so I bought a practice and we’ve been off
the running since and not too long after that actually I met Robert Kiyosaki. He was a client
of a CPA firm that I bought and so I like to tell people, I paid good money for Robert
and we’ve been buddies and on stage and traveled the world for last up almost 20 years now.
And what’s fascinating is around the world now you probably encounter this yourself Rod
we’ll go around the world and what always happens is we’ll go we’ll do it like one day
or a two-day seminar and somebody’s going to come up to us and say you know what this
is really good stuff only you know you can’t do that here right. So frankly it doesn’t
matter whether it’s Moscow, Russia or whether it’s Orlando, Florida right you’re gonna get
the exact same response and it’s just because what we do you and I, Rod, is so different
from the norm what Wall Street’s telling you and what you brought up when you’re you know
in your education you know you know get a good education, get a job, buy a house, right
you know invest in a 401K, buy mutual funds, I mean that stuff is what we’re taught because
that serves Wall Street. We always call it the big Wall Street lie that you’re not smart
enough to handle your own money so you need to turn it over to Wall Street and I know
what you know Rod because this is what you do and what we teach our clients is that the
best person to handle your money is you and you can do a lot better than your returns
if you’re having your own money and learn how to do it
Rod: Yeah I couldn’t agree more my friend you know we’re trained, it really is the
operative word by this education system and we have in this country to fit into a box
and that’s box you know serves big corporations in Wall Street just like you said and so you
know I know that that you’ve added value you know for decades like you said and you know
let’s talk about, and you wrote a couple of books – can we get put a plug in for those?
Forgive me I forgot to mention those Tod: Let’s do it so one book I wrote, “Tax
Free Wealth”, that’s been a perennial bestseller and this is how to permanently lower your
taxes legally. And then I wrote a book with Robert Kiyosaki called “Why the Rich are
Getting Richer” and then with Rich Dad Advisers, we wrote a book called “Who Took my Money?”
which is all about building your team I know you’re you know you do multi-family so clearly
you’re all about team. I actually think that one of the best books in the world is this
team book Rod: It’s “Who Took my Money?”
Tod: Sorry it’s “More Important than Money” a really old book
Rod: Got it “More Important than Money” Tod: “More Important than Money” and it’s
really from every single adviser including Robert Kiyosaki and Kim Kiyosaki and it’s
all about how to build your team and who should be on your team. And I think that, I think
team really is more important than money as we were talking earlier you know how do you
get things done when you have a team right. The better the team and the bigger the team,
the more successful you’re gonna be Rod: Yeah I know. To those of you that just
to recap that conversation I was just telling Tom how impressed I was with his operation
you know because he is just all the different initiative that he’s doing and so I was just
congratulating him how impressive that was because I love seeing that and he said it’s
just having a great team. So that’s just a pre frame what Tom just was alluding to. Well
so let’s talk about taxes okay so you know there’s no greater vehicle on the planet at
least in the United States for minimizing and eliminating taxes than real estate. So
let’s dig into there where you are an expert and so you know I guess let’s start with this
this bonus depreciation conversation. And of course cost segregation. We’ve had we’ve
talked about costs seg on this show before but let’s go there first if you don’t mind
Tod: No absolutely. So we’re unusual in the U.S. in in two respects one is that we
actually depreciate used real estate okay. So we get a depreciation deduction which is
just you know a portion of the purchase price and we get that every single year even if
we bought it used. Most countries it’s only if you build it new and you only get depreciation
once we get it over and over and over again. So it’s a terrific, it’s a beautiful thing,
terrific incentive to be invested in real estate. Now it’s interesting because you don’t
get this benefit of it’s your own home. You only get it if you build housing for other
people so you know the more generous you are then you know the more tax benefit you get,
the way that works. So that’s depreciation in the first place but what we also get since
2017 is we get this new bonus depreciation and it applies again to both new and used
properties. We’ve actually had bonus depreciation for many many years if only applied a didn’t
play in A, real estate and B, it only applied to new properties so the big change in 2017
is it applies to real estate and it applies to used real estate and the amazing thing
is, if you look at the numbers of course that’s what you know my network and I do all day
is look at numbers what you find is is that if, let’s say that you’re invested in multi-housing
deal okay and you put down $100,000 into that deal but then you know the developers going
to go out and they’re gonna borrow money. So let’s say it’s a 75% loan to values right.
So three dollars of borrowing to one dollar of equity what you’re going to end up with
is a initial tax deduction of somewhere between $80,000 to $100,000 for putting in a $100,000.
So it’s obviously, you can actually end up and I’ve actually seen this, you can actually
end up with a bigger deduction than your initial investment you know depending on how good
the cost segregation is depending on you know what type of property is and so forth. But
I’ll tell you what, the tax benefit there I mean literally consider almost a dollar-for-dollar
deduction. So in that very first year where typically most real estate developers you
know you know you’re improving the property, you’re getting ready, you’re gonna have a
you know you thinking you need to see, “oh a 6% or 7% you know preferred return or 8%
preferred return and that’s really what you’re expecting the first year but consider that
that first year from a tax standpoint you might end up with a 40% return. So the tax
benefits actually exceed the other financial benefits in many cases on real estate now
because of the bonus depreciation Rod: No kidding. It’s that substantial like
you could say from a seven pref to a 40% return based on the tax benefits based on your personal
situation I would guess then Tod: Well yeah if you’re in a 40% tax bracket
between federal and state which you know most accredited investors are going to be in that
tax bracket right. So if you’re 40% tax bracket and you put a hundred thousand dollars you
get forty thousand dollars off your tax bill right away. So it’s really like the government’s
investing forty thousand dollars in the deal and you’re investing sixty thousand dollars
in the deal Rod: That’s beautiful. I’ve never heard it
actually described that way but that is that that really is amazing and we’re like we bought
a thousand doors last year and we’re doing cost seg on all but one of them the one is
getting pushed back to this year because it was destroyed by tornado. By the way guys,
we have another 500 doors under contract right now. If you are accredited, please text the
word “partner” to 41411 to get on our radar and get on our calendar as we’re very
very conservative. They’re very exciting deals in three states and we’d love to chat with
you about them. So just text “partner” to 41411 if you’re accredited and we’d love
to chat with you, Robert, my partner and I and we are doing exactly what Tom is talking
about here we are cost sagging and doing bonus depreciation on these assets. So you know
what he just described is what we’re pushing for because
Tod: This is actually what I’ve been pushing through Rod because I’ve seen a lot of developers
who don’t understand the bonus depreciation and the value of the conservation. And they’re
not doing that or they’re doing it poorly. I mean I actually got a report on a thirty
two million dollar building but the first year depreciation was going to be a million
five and I’m going, how’s that even possible, well clearly they’re not taking bonus depreciation
so what I end up having to do, what I end up doing is my team we end up going back to
the developer and saying, wait a minute okay well our clients are you know because we’re
able to, our clients are all able to take advantage right it’s not like it’s passive
long and yes it may be passive loss but we’re still would take advantage through good tax
planning and so we’re looking at this is. This is a really big deal I mean the difference
between you know a 5% depreciation rate and 100% depreciation rate is like major dollars
Rod: Right right. Oh it’s extremely exciting now guys his website is wealthability.com
and they do proactive tax planning. So many CPAs drive through life looking in the rearview
mirror and what happened behind. You need to be proactive and looking forward and it’s
hard to find decent people in that you know that have that frame of mind I looking in
the mirror as I’m saying this. And so it’s so critical to find proactive forward-thinking
people in the tax space like Tom here because you know it’s critical. Now can you take,
without making my eyes crossed can you can you briefly explain bonus depreciation
Tod: Yeah I can make it really simple. So think about this when you buy a property you’re
really buying four assets. You’re buying the land which doesn’t wear out so you don’t get
depreciation you’re buying the building which wears out for a very long period of time and
in residential case the IRS says it wears out over 27.5 years, commercial 39 years,
and there’s no bonus depreciation on buildings okay. There’s just regular depreciation and
then there’s two other things though that you might typically you buy land improvements
and I’m looking at your backyard there and you got all these palm trees and you got all
this great landscaping and you know you’ve got all these things outside that are improvements
to the land. Well those are called land improvements and you get basically the regular rules are
fifteen years you’d appreciate those over 15 years okay. And then you buy everything
that’s inside the building so you buy all of the window coverings, and the cabinetry,
and the flooring, and the fixtures you buy all of that kind of stuff when you’re buying
that property. Well what a cost segregation does is actually breaks out your purchase
between those four categories. Now what bonus depreciation does is they say instead of depreciating
the land improvements over 15 years and the contents over five years. You get to depreciate
the land improvements and the contents immediately. So that means if let’s say that 20% typically
what we find is about fifteen to twenty percent of the purchase price is the contents of the
building and another five to ten percent on the land improvements okay. So that’s as much
as thirty percent of the building. So let’s say you’ve got a million dollar, you just
go buy a million dollars complex right you know my million dollar building, 30% of that,
as much as 30% of that might be deductible the first year. So that’s $300,000 you may
only have to put $200,000 down to get that million dollar building and you’re getting
as much as a 300,000 bar deduction that how bonus depreciation works
Rod: That is beautiful that’s beautiful thank you for that. So let’s also talk about if
you don’t mind the 20% pass-through deduction. You mind expanding on that a little bit?
Tod: Yeah this is actually important for real estate because of bonus depreciation you know
if you think about in the past we typically haven’t really had to pay any income tax on
real estate because we’ve got enough depreciation each year to offset the cash flow from the
real estate. But if you take all that depreciation upfront, the second year you’re probably going
to have taxable income. Well this actually works with this new 20% deduction. So basically
what the percent deduction was, was kind of a nod to the small business and the real estate
investor because big businesses were getting their taxes reduced from 35% vs 21% okay that’s
the corporate tax rate reduction you’ve all heard about. So this 20% deduction just says
we’ll look remember income from a pass-through entity like a partnership which is what you
guys. You are taxed as a partnership, that’s corporation. Right one of the two is unless
you’re probably an S corporation that is, you’re only tax on 80% of that okay. So
80% of the income is what gets taxed very much if you think guess so when I guess you’re
only taxed on 85% of your income because you have this percentage depletion. Well it’s
very similar to that so that’s probably where the rule came from is that you’ve got this
twenty percent deduction which means that effectively you’re only taxed like 80% of
your income. Well if you think about it the first year you’re getting a big loss, the
second year you’re probably going to have positive taxable income but you’re only
getting taxed for 80% of it. So it’s a great deal especially I mean you consider we have
bonus depreciation in full only for the next couple of years. So we kind of have an urgency
here because being 2023 it starts phasing down right
Rod: oh it does Tod: So we’ve got a 100% for 2020, 2021, 2022,
2023 it starts facing down over the next several years alright. So what that means is is that
we might have, we might be out there investing for the next couple of years we build enough
we’ve got a good nest egg here you know we might want to be whether we’re waiting for
a market correction or whatever we’re doing, we might find that we have a whole bunch of
taxable income from our real estate because we took all that depreciation upfront to offset
other taxable income. All right now what do we do? Well good news is we only get taxed
on 80 percent of it. Obviously, there’s lots of details in there. I know if I went through
your eyes from class over at about 15 seconds Rod: Okay
Tod: Rather than do that, just sit down with your tax adviser now
Rod: Yeah sure. So can you speak to Section 179 as well if you don’t mind
Tod: I don’t mind at all. Now 179, a lot of people are familiar with it because they
have small businesses and Section 179 is basically a deduction that is very similar to bonus
depreciation okay. The difference is that there are limitations on Section 179 that
aren’t in bonus depreciation. So we almost never take Section 179 anymore. There are
a couple of times we do because there are a couple of types of equipment in commercial
buildings, it does not apply to residential, but in commercial there’s a few things that
are deductible under Section 179 that don’t get bonus depreciation which would include
your HVAC and include your fire alarm you know so your roof okay, but that’s specific
to commercial and commercial meaning people don’t live in there. I mean commercial loans
you know people get confused by that it means it’s a commercial building used for something
other than people living there. So 179 does apply there but for most residential
Rod: Multifamily and single-family Tod: Multifamily and single-family you probably
are not going to use 179 at all as long as we have bonus depreciation
Rod: How about 1202? Tod: All right so this is an interesting one.
So 1202, and I think this is a lot of fun and I that a lot of your investors have their
own businesses okay. So it’s not really a real estate tax issue but it is a tax issue
for those of you who are building businesses and one of your businesses might be property
management, Rod: Construction
Tod: might be fixing and flipping properties, it might be construction, so those are different
types of businesses because they’re not investing really they’re an actual business. And with
that we have this rule that’s been around for ages but the reason we’ve never heard
of it is because it only applies to a C corporation and remember prior to 2017, prior to 2018,
C corporations were taxed at 35% and they were double taxed.
Rod: Double taxed yeah Tod: So you’re paying 35% the first time and
then the next time you’re paying another 15%-20%, why in the world would you ever put your business
into a C corporation unless you’re going to be a public company right. But now it’s a
21% rate. So your effective rate is not that high even if you pull money out but if you
leave money in, a year effect to raise 21%. Well here’s the cool thing, let’s say that
you start a business and you’re running this business you’re going I’m gonna build this
business I’m really gonna put my money back into my business like I’m building a new business
right now and I’m not gonna pull money out all that money is going back into the business
right. You see this a lot with technology companies but you know a construction company
could be the same you might want to just build build build build and then down the road you’re
gonna sell the business. Well wouldn’t it be nice if you could pay twenty one percent
tax now which is about half the regular tax rate and pay zero when you sell it? 21% now
and zero when you sell it, well that’s what 1202 gives us. So if you have a business,
you can actually set it up again this is something you sit down with your tax plan okay do not
do this on your own right, those commercials with the racecar drivers right don’t do
that. it’s a closed track don’t do it on your own. Go get professional help. So imagine
that you can get 21 percent on your tax on the income you sell it you get this big cash
payout and it’s not taxable. That’s what 12 – it’s pretty well given the new tax rate
it’s for corporations, it’s a real opportunity for businesses particularly small businesses
Rod: So you know my listeners are primarily multifamily investors, aspiring multifamily
investors, so what you know can you maybe expand on this wisdom that you’re sharing
as it relates to your wheelhouse, no pun intended, that as it relates to the you know tax is
there any questions, I haven’t asked or anything you could add to my
Tod: Yeah there’s all sorts I mean there’s literally thousands of tax incentives in the
law. Fundamentally, the tax law is really just a series of incentives and if you remember
back to 1986, the big loser in the 1986 tax law was real estate. That’s the big S&L crisis
you know some of us are old enough to remember that probably most of your listeners not.
But I remember it very well Rod: And I remember some of the stuff I bought
back then which was unbelievable. Anyway I don’t want to derail your thought process
please keep going Tod: Anyway so big loser in 1986 was a real
estate, big winner in 2017 is real estate industry. And so what to remember is that
it’s not just depreciation or the 20% deduction there are big wins for real estate investors.
For example you’ve got a new automobile deductions right that you didn’t have before. We have,
depreciation is different, we have not only do we have Section 179 available to us but
we actually have bonus depreciation on automobiles. So here’s what we want to do, we want to make
sure that our automobiles were using them as much as possible for business where people
get really confused here is the importance of a home office for your automobile deduction
because what a home office does is, remember that the IRS says that the first trip you
take every day and the last trip you take every day is community and preemptable. So
let’s say that what you’re doing is you’re going out to see your properties every day,
you go to the first property, the second property, third property and then third property home
where you go that’s all business. Well no, I’m not putting the IRS, in the IRS that first
trip to the first properties and community the last trip home is the community and so
the only the only tricks that are deductible are the ones from the first property, the
second property, the same property and the third property. You can cure that with a home
office because if you have a home office, the IRS says that your commute is from your
kitchen to your office and so that 30 feet is your commute and that means that first
trip of the day and the last trip of the day are going to be business expense. So I’ve
actually seen people Rod go from 50 percent of their business, their car being deductible
to a hundred percent because they literally that commute was 50 percent of their travel.
So if you take out that commute by having a home office, now you’ve got a much better
deduction and consider if you’ve got a big SUV which you probably do or a pickup truck
right which you probably do if you’re a real estate you know if you’re a professional real
estate investor, you’ve probably got one of those two trucks. Well those are if you’re
over six thousand pounds gross vehicle weight you just checked your door let’s see what
we grow spec weight is, if you don’t or six thousand those are a hundred percent deductible
to you you buy it because it’s bonus depreciation Rod: No kidding. Wow I’m actually looking
to buy a twenty five hundred truck right now to pull a trailer on that truck
Tod: Well, there you go and now you can $60,000 on that truck and let’s say zero down on
that truck okay, what are you gonna do? You get zero down on that truck, get a very low
interest rate over five or six years and the bank’s gonna put all the way down on that
truck and you’re gonna get the deduction. It’s an amazing tax benefit but seriously
in order to do that you’re really gonna have a home office. So you have to go through and
take that home office Rod: Okay okay so when you sit with a real
estate investor and you do some tax strategy, some forward-thinking tax planning, are there
any other things that you can chat about, that you might look at think about, suggest
just at a high level. I mean you know I’ve had people on the show talk about captive
insurance when you get to a certain level and some other things life insurance strategies
do you have any any things that any other things. I mean I’m putting you on the spot
here Tod: No problem. Here’s actually the most
important thing I would suggest, and that is how do you do your tax planning. What we’ve
actually developed is a process for doing tax planning that’s far more successful than
even if you got the exact same advice from the exact same accountant because tax planning
is a process that the tax law works as a roadmap and you have to follow the roadmap and you
have to make it simple enough. Remember that I can’t change your taxes, only you can change
your taxes right. If you’re going to change your tax, you have to change your facts, I
can’t change the facts, I can only tell you what facts to change right. It’s like if you
go to a doctor, the doctor can’t take the medicine for you, you have to take the medicine,
you have to go get the medicine, you have to take the medicine, you have to make sure
you’re doing that. The same thing is true with taxes I can diagnose it but I can’t do
it. So it’s very important that you sit down with your accountant and your tax advisor
and you actually look at not just what’s going on now, but what your plans are for the future
and even what your plans are for your legacy because what I think one thing that’ll I would
say almost every tax advisor I’ve ever met missed is the interaction between your estate
planning and your income tax planning. Your estate planning and income tax planning are
very intricately connected okay. So to do one without the other I think is a shame and
at the best. And so we always look at we’re looking at the very very very biggest picture
possible when we sit down with a client to do a wealth and attack strategy because we
want to make sure we take advantage of everything. We’re not just looking at you know you know
what’s this question, what’s this question, what’s this question, because you’re gonna
miss something you’re absolutely gonna miss something. So the process you go through in
your tax planning is frankly more important than who your tax adviser is. So following
the process, we have been, a quick example if I can
Rod: Yeah please Tod: We actually had a prospective client
come to us and he was all gung-ho when we went through you know basically the process
didn’t go through and we told him which CPA firm you know we thought he’d be working with.
Well he went behind their backs and went direct directly to the CPA from. Now this CPA firm,
they’re good, CPA firm we prefer clients to them we you know they’re well-trained he
came back to us a month later and he says and he was complaining he goes, “It didn’t
work the way you said it was going to do” Well the CPA firm didn’t follow the wealthability
process and so even though they were smart CPAs, it’s the process that makes it work.
It’s not the smart CPA. So it’s not just who your CPA is it’s what process are they following.
And that’s really what I do most of my day is develop the process and train the CPAs
on that process and how to really serve a client in a much more effective way than anybody
else that I’ve seen you know will do. Most CPAs, the problem is, you ask the question
they answer it Rod: Right that’s it that’s it and it’s based
on historical data usually as well Tod: Exactly exactly. So what we want to look
at is we want to look at the future. We want to look at your whole picture. We look at
things like what’s your relationship with your spouse with your children, from a money
standpoint what do you want to have when you die, what do you you know what are you trying
to get to, you know what kind of asset base are you trying to achieve and we set goals
and we and we track this and we help you all the way through, it’s our goal to work with
you for a few months and then be done although you know the reality is typically we’re going
to reduce taxes by 10 to 40 percent within the first three months. Our goal is to be
working with you for the rest of your life because it’s really a daily, tax planning
is daily right like it’s even as much as which credit card do you use you know to pay for
something you know what do you do when you go on vacation? Do you spend time doing business
so you can take your travels as a deduction? You know it’s how do you record your expenses.
I mean everything you do has a tax impact so why not make it a good tax impact instead
of a bad tax impact Rod: Love it love it love it love it. Can
you share one quote or saying that you love because you are so motivated all the time.
You’re always on you know you’re making stuff happen I’m just so impressed with how far
you’ve come just in a little while that I’ve known you and I know you’ve been doing this
for a long time. You know talk about something that drives you that motivates you that pushes
you Tod: Thank you for asking that. I’m gonna
tribute this to one of my first tax professors Dr. Sally Jones who is since retired she was
at the University of Texas and later at the University of Virginia and I remember in the
tax research class I took from her and this is broadly applicable to everybody. She says,
“You know the great thing about our profession is, the more you know, the more you realize
you don’t know” and people will ask me, “So how do you choose somebody to come into
your network?” How do you you know how do you determine who should come in your network,
I said, well if they already know everything, I’m not interested in them because there’s
so much to learn as you know. I mean, …everything there is to know about multi-family housing
Rod: not a chance that’s why I set up my mastermind. It’s a just to be around people that have,
yeah we share experiences and incredible Tod: You know we do a mastermind with our
with our CPAs, and they sit around, so what I’m gonna do right after we’re done here?
you know at mastermind, we do it every single month with our CPA members. We sit down and
we share experiences and issues that we have and experiences because we’re always always
always learning. So you know to me the most important thing we can do is to continue to
learn you know too many people stop learning you know the minute they leave high school
or college. And they go well I’m you know I’m done with that I don’t have to do that
anymore you know for me you know it’s a lifelong process of learning. I mean I learn from you
Rod. I learned from you know other real estate people I’m learning from other business people
I get to travel with Robert Kiyosaki. I mean he’s like one of the greatest financial instructors
in the world and we’ll have these long conversations about what’s going on, and you know what do
you think of this, what do you think of that, so I think surrounding yourself with good
people, your mastermind is a great example, surround yourself with people I mean the reality
is, if you’re in a row of 40 people you should have 39 people that room that are smarter
than you. I mean if you are the smartest person, you need to get out of that room
Rod: Yeah I love it I love it . You know you guys have heard this me say ad nauseam about
the power of your peer group which is you know a Napoleon Hill said, speaks about the
mastermind, “You get two like minds together, with what he calls the definiteness of purpose,
you’re aligned in your goals in other words I think you create this third intangible mind
that’s greater than the sum of the parts and amazing things happen and we, Tom and I talked
for a little bit about masterminds before we got started. Well listen brother, I really
appreciate you sharing your wisdom on the show. You’ve added incredible value as always
and blessed to know you my friend Tod: You know always good to be with you and
your people. They’re so motivated and so anxious to do better and improve their lives and the
lives of many people. I mean I think of multi-family house, all the lives you’re improving when
you go in and renovate those properties you know if you have a 200 unit complex, you’re
improving the lives of 200 people. I think that’s an amazing thing that you’re doing
Rod: Yeah thank you my friend. Well be well. I hope we’ll see you soon
Tod: Absolutely take care Rod: Take care
Any investment opportunities mentioned on this podcast are limited to accredited investors.
Any investments will only be made with proper disclosure and subscription documentation
and subject to all applicable laws.

Drip Market To Motivated Sellers For 2.5 Cents – Video 3


I’m going to show you how to drip market
to your seller leads and your buyer leads for 2.5¢ per message. Instead of having to
send out a postcard that costs you a dollar to send out, you can send out a text or a
voice blast that costs you 2.5¢ and you can also put them into a drip system that sends
them a sequence of messages over a period of time.
The Automarketer is actually set up with sequences already in place. We’ve got a three-month
sequence for For Sale By Owners to help them, to make offers to them so that they will contact
us and allow us to buy their property on terms. And when we buy properties, by the way, we
buy them with no money down and in fact we’re not just able to buy these property without
using our money. When we close, we get money. So we set these structures up so that we get
money. And all this is taught inside the Automarketer.
You can also look at my blog and my other videos. I talk a lot about the For Rent Method.
I talk about the other Zero Down Structures. The whole hierarchy of zero down structures:
Subject To, Multi-mortgage, Land Contract, Contract for Deed, Assignable Cash Deal and
Lease Options. If you’ll understand how these zero down structures work, you can make
an offer on For Sale By Owners. You can make an offer on expired listings, you can make
an offer on absentee owners or any other type of seller lead that you come in contact with.
The Automarketer is actually set up so that you can create your own campaigns if you want
to, or you can use the preexisting templates that we use, that we have tested and tried
over the years that work very effectively. Let me how you how the drip campaigns work.
Let’s take a look. I’m logged into the Automarketer now, and
if you’ll remember from the last video I showed you the Automarketer, Zillow Automarketer,
and showed you how the campaigns work, how they scrape leads and how they put them into
the system and how they send them out with a campaign. In this video, I’m going to
show you how to use the follow up campaign that will, how we actually set up the follow
up campaign. So the system scrapes the lead, it then puts them into a campaign and these
campaigns will actually send out a series of messages. And they can be voice messages,
voice blasts. They can be text messages or they can be emails.
And the emails can only go out to opt-in leads. We don’t have a way to scrape leads from
craigslist or Zillow with emails. But we do have their phone numbers. So, what I’m going
to do is go into the Automarketer campaigns, because we’ve got different campaigns that
do different things. But I’m going to show you the Automarketer campaigns that are set
up. And let’s look specifically at the three-month
campaign because that’s the one that I was showing you yesterday and that’s the one
that we use the most. So, I’m going to go here and I’m going to actually – and you
can see here I’ve got 655 people that are currently in the Automarketer, and 1,700 of
them are in the system right now. So I’m going to look at the details of this particular
campaign. You can create your own campaign. You don’t
have to use this one and there’s a lot of different ways that you can create these campaigns.
And I want you to know right up front you don’t have to do this at all. This is already
set up for you. You don’t have to know this stuff, you don’t have to understand how
it works. You don’t have to do any of this stuff. I just want you to see what the capability
of the system is because it can do a lot more than you’ll probably ever need it to do.
And we set it up so not just, so that you couldn’t just send out the kind of campaign
we think you should send out, but you can send out a campaign that you want to send
out. Or, you could modify one of the campaigns
that we create. And we’ve got it set up here so you can actually clone our campaigns
and then you can go in and modify a campaign so you wouldn’t have to start from scratch,
or you can start from scratch. So, let’s take a look at what this means and how this
thing works. This is a campaign. You can see that there’s
14 total events. In this particular campaign it’s all text messages. But it could be
a text message, it could be a voice message where it leaves a message on their voice recorder,
on their phone. Or it can send them an email. It can also set up a task system so that we
can say here’s a task that needs to be done and have that message go out to one of your
team members and remind them that hey, you need to do this today, or you need to do that
today. And you can create templates of tasks. I’m going to show you how to do that in
a later video. It’s a very cool thing that will make it possible for you to completely
automate and systematize your business. It’s absolutely an amazing addition to this Automarketer.
But this is a text blast campaign that is designed for the Automarketer, for the scrape
ads, the FSBO scraped ads, of the For Rent ads that are coming in from the Automarketer.
And you’ll see here I’ve given it a title. We gave it a category so this in the Automarketer.
And I could set it up so that if, when this campaign ends I could have it start another
campaign. I’m not going to do that on here. I’ve got it set up as active. I’ve also
got it set up so that the email events, the mail events, oh, yeah – it also sends out
snail mail which I’m going to show you in a later video.
This will send out postcards, self mailers, letters – We Will Buy type campaigns that
all you have to do is click a button and it’ll send those things out. But I’ve got that
turned off. You can put them in a campaign so that you could do a series of postcards
that go out over time. It sends out text messages, I’ve got that turned on. And voice blasts,
I’ve got that turned off in this particular campaign. You can see I’ve got 2,400 people
that are active in this campaign right now. Now, as I scroll down the page, this shows
you the events that are going out. Again, it’s got 14 events. That means 14 texts
that are going to go out over a three-month period. Because I set this up as a three-month
campaign. And I can create new events on this and I can put as many in here as I want. If
I wanted to add voice blasts into this campaign I could. If I wanted to add snail mail into
it I could. I could add, you know, email into it as well and create these new events if
I choose to. But I just want to show you how these events, what these events look like.
So, on day one the first thing that gets sent out is a text that says, “I saw your home
advertised and I was wondering if you’d consider selling it” and this would go out
immediately. If I wanted to change this to go out over a period of time I could change
it to this and then I could change the days, hours, weeks months – how often it needs
to go out. But I’m gong to have it go out immediately. So as this campaign is attached
to a lead that is scraped it’s going to send out this text blast. “I saw the home
you had advertised . . .” If I wanted to modify this message, I could.
All I have to do is click on this little button here and it’ll open up this in a window
and it’ll allow me to change the text message that is going out. The second message that
goes out is on day four, and these are days that I decided. You can change them if you
want. I think this makes a lot of sense and you probably want to use the system that I
set up at least until you understand what you’re doing and are able to get going on
it. And it’s going to send out a different message on day four, with a URL this time,
that goes to one of the clone sites. This goes to the Rent To Buy seller site.
On day eight it sends out another. And again, I can modify these, change them, I can add
things to them and make that work. And down below, if I scroll down below, you can see
the activity log of this campaign. So, you can see all the ones that have been sent out
since you know, since I’ve been running it. About 40,000 text messages have been sent
out through this particular account to these particular campaigns that I’ve run in the
Automarketer. If you’re watching this video on YouTube
make sure to hit the subscribe button. If you click the one with the little bell, YouTube
will send you and email every time I release a new video in the series. If you go to JoeCrumpBlog.com
you can also sign up for my email subscription and you’ll get all sorts of free content
that I don’t have on YouTube.

No Money, No Deals, No Time? Overcoming Real Estate’s “Big Three” | BP Podcast 272


this is the BiggerPockets Podcast show
272. You’re listening to BiggerPockets radio simplifying real estate for
investors large and small if you’re here looking to learn about real estate
investing without all the hype you’re in the right place stay tuned and be sure
to join the millions of others who have benefited from BiggerPockets.com your
home for real estate investing online. What’s going on everyone this is David
Green today’s host of the BiggerPockets podcast and I’m here with my co-host mr.
Brandon Turner I don’t know what makes you think you me the host today I have
bigger stronger hands in you and I could just take the microphone away that is
completely – all right guys so this is Brandon and David here are we’re
actually doing a special show today just for all of you that is a little
different than normal we’re not doing an interview we’ve actually done maybe half
a dozen of these since the beginning of the podcast because sometimes we just
hear certain issues that are coming up over and over and over and over with
investors and we just want to we would want to touch on them today in fact
today we’re covering the big three I got no deals I got no money and I got no
time and so we wanted to spend a good chunk of time I don’t know an hour ish
whatever going through that before we do we got a few housecleaning things to do
so let’s get to that first number one today is we gotta get today’s all right
today’s quick tip is very simple if you have not yet introduce yourself in the
BiggerPockets forums we actually have a forum for that for people to introduce
themselves it’s such a good idea to do right is get out there and meet people
and say hey my name is John and unless your name’s not John and then say hey my
name is Bill or Sally and I am looking to do whatever in wherever right by
doing those things you people will jump in they’ll get keyword alerts and
they’ll go in there and meet you talk to you you never know what kind of
relations you do so head over there be a pocket scomp slash new member and I know
we set this one up times but it’s so important so do that today now David you
were to do this are you ready yeah I am born ready Brandon you tell me where you
want to go first all right so let’s just dive right into this so we’re gonna
cover like we said earlier with the big three today which are no no money no
deals in no time and I think we should hit in that
order because that’s generally the order in which people struggle the most right
the biggest problem people have today I hear it over and over and over and over
especially with new investors is they don’t feel like they have enough money
to get involved and so what we’re gonna do actually may go through kind of a I
think we’ll go through a philosophy of how to think about not having money and
then we’ll actually go through some tactics actual things you can do
starting today to invest in real estate even if you don’t have a lot of cash
that’s not good I get I didn’t give you a choice everybody so while we start
with that philosophy so the thing I like to stress about no money I would say I
wrote a book on creative finance and the thing I talked about in there is that
creative finance is often like a toolbox there is no one way to do it the more
tools you have though the more projects you can take on so all you have is a
hammer you can hit somebody in the head with it or you can pound in a nail but
you can’t build a house but the more tools you do have the more you can take
on so I actually recommend getting a good broad overview have a lot of
different strategies cuz then when a deal comes into your view into your
targets you can figure out where best to fit it how can you best take that deal
down so I definitely recommend that yeah I think that that’s that’s a amazing
point that Brandon made comparing the more you know about real estate the more
tools you have in your toolbox or on your tool belt the more opportunities
that you’re gonna have to take down a deal so we’re gonna talk about some of
the common ways that people that are they’re dealing with with no money or no
deals or no time can kind of overcome those hurdles when it comes to the
solution that you’re gonna use though you can only use what you already know
if you don’t understand how seller financing works you can’t propose it to
the seller in a way that makes sense to them to the where they’re seeing a win
if you don’t know how to explain to somebody that has the money that you
don’t have hey this is a great deal you’re gonna get an amazing return in
it’s a really safe bet you’re not gonna be able to use private money okay so the
more that you learn about how real estate works the more options you’ll
have the more options you have the more powerful you’re gonna be and that’s what
this is all about we want to be able to take down every single deal that comes
our way you can only do that when you understand a lot about real estate and
the options that you have available to you nice alright so the second thing on
a kind of philosophical side of creative finance is this the better deal you have
the easier the financing is let me prove that to you if I were to sell you my
house my house is worth let’s say three quarters of a million dollars right
three hundred and some thousand dollars if I were to sell you my house right now
for 10 grand and you had two weeks to figure out how to come
ten grand to buy my house but you had nothing no money at all what would you
do my guess is even in that one second of
silence right you’re already starting your brains working like well maybe I’d
borrow it from a parent or maybe I’d partner with you on it or maybe a
partner or somebody else honor me like that exactly the point right now you’re
not gonna find a ten $300,000 house for ten thousand bucks right but the point
is the better deal you get the easier the financing becomes so like while we
are gonna talk a lot about here about no money strategies and low money
strategies remember that the deal matters moron so that’s we’re gonna go
after that so why don’t we just run through kind of a list of different
things that both David and I have done in our investing to be able to acquire
real estate deals and you know actually before we do that maybe people don’t
know who you are David I know you’ve been on the show a few times but can you
give like a 30-second explanation of who you are and your investing strategies
you got it my name is David Green I’ve been a police stop here officer that’s
enough so we’re gonna go it’s about nine years I’ve been a police officer I
started buying rental property with my own money and then I was buying about
two maybe three deals a year and kind of slowly building up my passive income
well I got to the point where I learned how to BER and I started buying two to
three deals a month and I really saw BER is an acronym that stands for buy rehab
rent refinance repeat it ends the order in which you are purchasing and
financing your properties it’s the most efficient way to do it I’m sure we’ll
talk about that more today but my my career really took off as far as my
success with real estate and what I found is that when I learned more about
real estate I started making better more efficient
decisions and my wealth started to grow a supercharged rate now I’m passionate
about sharing that with other people so now I work as a real estate agent in
order to California I share the stuff that I’ve learned about real estate
investing with my clients and I’m just kind of like totally jumped all-in on
this real estate thing I’m a big fan of bigger pockets because I know the bigger
pockets is what helped make me to be I got the successful level that I’m kind
of operating at now I wouldn’t have done it without it and I want all you guys to
be able to do the very same thing I did because if a dumb blue-collar cop can do
this all of you guys can do it too I don’t know dumb is the right word but I
will go with it we’re gonna go through the list now of a ways that we’ve done
our deals using a little – no money down in fact I mean I didn’t have any money
the first like seven years of my best you think I built like I achieve
financial freedom – real estate like was able to quit my job without ever putting
money into deals I want to kind of walk you guys through
some of those strategies and the first thing that I did so I’ll give you guys a
quick story of how I did it so I had a triplex that came up on the market in my
area amazing deal for those triplex I really wanted it and there was one two
small problems right the first one is I had no money I mean like a thousand
bucks to my name maybe and the second problem was I had no job cuz I just quit
it to go flip houses which I hadn’t really flipped into yet so like I had no
ability to get a mortgage none right so what most people do is they go well
guess I can’t do it and they walk away but the deal was so good and that’s why
I was telling us earlier the good deals you figured out so I actually went name
was talking with some friends of mine who knew that they loved real estate
like they liked the idea of buying real estate but listen they were they were
you know your quintessential bankers best friend they had full-time jobs both
of them worked for the government made really good income made had amazing
credit scores of low income low debt they had their house paid out and there
are perfect bowers right but they didn’t have the hustle or the time needed to go
in and put all the work into a deal and so instead what we did it was just
partnered together in talking with them I said hey would you guys ever be
interested or I think I even approached it this way do you know anybody who
would be interested in this that’s how I always approached asking people for for
like lending I said you know anybody because then it makes it not so awkward
right for somebody you know am I asking them for money I’m asking them if they
know anybody that would want to be in on this opportunity and that’s another
mindset shift right there I’m not asking for money I’m asking for people to join
my opportunity and they said sure that we actually think that would be a very
fascinating thing so I said okay great so what they did is they actually
because they had their house paid off they used a line of credit on their
house to cover the down payment so they didn’t even put any money in the deal
they got a line of credit in their house to cover the small down payment and then
we went to a bank and we got the mortgage in their name not all banks
will do this but this was a small local community bank the mortgage is in their
name but both of us are untitled now even if they we could have probably both
put us on title as long as there were strong enough to cover which they were
but at the time we just all thought it would be better that way anyway
regardless at the end of the day I put no money mine into the deal
technically they put no money of theirs into the deal because it was a line of
credit we bought the deal and every year this
is what I love about the story is every single year we go once a year to this
Mexican restaurant in my town which is the
I don’t know it’s like the best restaurant in my town or second best and
shout out the savory fairs being the best but we go to this Mexican
restaurant we sit down we eat an amazing dinner and then I showed them all the
books I show them here’s all the income that came in here’s the expenses like
that’s really all that they care about right and then we figure out how much
profit we made over the last 12 months we each write at WIC we write ourselves
a check for an entire year thil profit and every year I walk out of that meal
with like $5,000 extra it’s fantastic I just love that it’s like free money
every year I just get like 5 grand and they they actually use that money
oftentimes for a cruise they want to cruise every year and they just use that
money so again it’s like taking an asset with no money figuring out a couple
creatives off from options in there and then getting a better life because of it
so again that’s just that’s kind of a partnership how I did that there’s
actually a few different strategies incorporated in there but primarily like
I use the partnership because I didn’t know what to do so I don’t if you use
partnerships you want to go on to the next one or two and pick something else
yeah I think the point that I want to make about partnerships is that like
when you’re building a house not everyone does everything there’s a roof
guy there’s a contractor guy there’s an electrical guy there’s a plumbing guy
there’s a floor guy they all kind of specialize in what they do and a lot of
new new real estate investors think that they got to learn how to build an entire
house from the ground up they have to know all the framing and all the
painting and everything and you really don’t if you’re really good at doing
your thing there are people out there that know how to do their thing when you
put everyone together that’s how you build a house okay so if you know you’re
really good at analyzing deals get really good at analyzing deals and find
people that are not really good at analyzing deals but they’re good at
raising money or they’re maybe like that gadfly that can just talk to anybody and
they can find people that might want to raise money before you for the deal or
contribute to the deal or maybe you find a contractor who’s really really good at
fixing stuff and he’ll go in there and do it for free to make the deal work
okay there’s always somebody who has a skill
that you can be partnering with to fill in a gap that you don’t have that’s the
best point of partnerships now the thing that I would say for people who don’t
want a partner with somebody is consider house hacking now most investors know I
need to put 20 to 25 percent down if I’m buying an investment property because
that’s what most banks demand however you can buy a two three or four unit
property that will still qualify as a primary residence that you can use a
primary residence loan to get and sometimes those can be as little as
three and a half three point five percent down or even less I know of in
my areas some government grants where we’re actually
getting the government to give you 5% towards your down payment so you don’t
have to pay anything okay if you bought a four-plex that way rented out three of
the units and lived in one yourself you could have yourself your very first
investment property that would most likely cash flow or at least be breaking
even without having to put a lot of your money down then you create equity
through that property and boom you’ve got money for the next deal so that’s
actually how I started my very first like rental property I know I had one
live in flip but my first rental property was a duplex I lived in one
half rent to the other half out it wasn’t an FHA loan but it was basically
the same thing it was like a whatever back bit was 2008 so they had a bunch of
weird loans but anyway I bought this thing lived in one unit and then my
mortgage payment was like 620 a month or 630 somewhere like that and the tenant
came over and paid me rent a 650 once I got to rent it out and I was like this
is amazing like that’s how I discovered the power of rental properties so that
means I didn’t have to spend all of my income going towards my mortgage payment
which most people do they spend the biggest chunk of their money easy their
taxes are going towards that so that was a gave me the ability to actually stop
working that’s when I quit my job and one started flipping houses and that
what’s led to the triplex I told you guys about earlier so how ii very
powerful I know other guys do it as well I got a Scot trench who wrote the book
separate step for life Craig curl up who has been on the
BiggerPockets podcast he’s a bigger pockets financial analyst I think he
does it and others like I mean it’s such in fact I was going through I’m putting
together a future book for bigger pockets this is the first hint at it but
it’s coming out here this fall that Josh Dorkin and I are writing and in the book
is like a bunch of stories of our podcast guests and some really legit
good real estate investors and as I’m putting these stories together and
compiling them and writing these stories I realize a pattern it was over and over
and over and over of how many successful investors started with house hacking you
don’t need to but it’s such a good way to build that foundation so yeah great
house hacking awesome what else we got all right next up is private money now
private money is a fancy way of saying somebody else’s cash okay
we’re living in an era right now where interest rates are ridiculously low now
that’s good for spurring the economy it’s terrible for anyone who’s trying to
make any kind of interest off of their money so if you find somebody and
they’re they’re out there trust me that has a lot of cash sitting in the bank
it’s not doing anything you can offer them the opportunity look I found this
great deal we’ll use your money will use my deal in
my time in my expertise well partner together on the deal
however you decide that you want to offer it to them and that’s how you’re
gonna put the deal together now get out of the mindset of thinking that they’re
doing you a favor by giving you their money you’re doing them a favor by
getting them a way better return than they would have got on the bank and like
Brandon said earlier the better your deal is the more likely they’re gonna be
to jump in and want to do this with you okay so if you find a deal finding the
money is gonna be much much easier that’s just a matter of we’re gonna talk
later on in this podcast about the Lapps funnel and it’s a really cool way that
Brandon’s come up to make sure you’re successful pretty much anything you do
but if you get out there and you tell enough people I’m looking for someone
who wants to earn a really good return on their money somebody knows somebody
that has that money that you can use for your deal that’s that’s so good yeah and
again just to harp on that one more point one more time I mentioned it twice
already like I mentioned David’s is like you are not begging for money you have
to get out of that mindset if you find good deals you are offering something
amazing what’s funny is when I tell that story I told a minute ago about the
partnership of the triplex I tell the story and I always get one of to react
one of three reactions the first reaction people say wow that was great
good job Brandon right but a lot of times I get one of two completely
opposite reactions some people say well why would that partner ever do that they
can just go do it themselves that you’re just ripping them off Brennan the other
people say why would you give your partner’s half a deal for not bringing
anything other than money to the deal that’s crazy Brandon they’re ripping you
off and isn’t that funny how like they’re completely two different
opposing thoughts yet like it’s just because like where do you value like
what do you value the deal and them and then hustle and the knowledge and all
that like what does that fit in and again I value that very highly today I
probably wouldn’t give somebody half just you for giving me a downpayment in
fact I wouldn’t write like I’d figure out another way cuz that’s a very
expensive money in fact that probably ain’t for like hard money over that cuz
I’m not giving fifty percent away so speaking of hard money you want to go
there yeah so let’s say that you find this great deal and you offer to someone
and you say hey and they you can come in on this you’ll finance it and I’ll do
all the work and they say I want half and you say there’s no way I’m giving
you half right you can go find a hard money lender which is basically just a
lender who is lending money against a hard asset which in this case would be
real estate and where where I’m located you’re typically finding somewhere
between nine and twelve sent to use your money and somewhere
between two and four points now that is expensive but it is usually much less
expensive than 50% of the deal if that’s what somebody wants what’s the point a
point would be 1% of the loan value so if you’re looking to borrow a hundred
thousand dollars from a hard money lender a point would be 1,000 bucks so
if they want two and a half points that would be $2,500 right now that’s because
they’re making a riskier loan to you because they’re loaning against a
property that’s usually in bad condition and their their their money isn’t
secured by anything other than that asset so it’s a little more expensive
but it’s often way less expensive than half of the deal okay so so hard money
is another way that you can find people who they don’t make money unless they
loan money they need you you’re a lead to them and they’re trying to find
people like you to let you borrow money to buy deal and if the deal is good
enough it will absolutely pay for the points and the higher interest rate that
you’re having to use to get the hard money hard money is definitely better
than no money and if your deal is good enough it’ll work now another strategy
we can talk about is the bursh Reggie burr is an acronym that stands for buy
rehab rent refinance repeat okay now all of those things when you’re buying a
rental property are being done in some point typically when you’re buying the
property you’re financing it as you buy and they’re kind of in the same step
well with burr you’re not gonna finance it until after
you fixed it up right so a typical deal for me where I’m gonna burst something
would look like I buy a property that would normally be worth 120 thousand but
I get it for 60 thousand because it’s in such bad shape and this person really
needs to sell it okay then I spend about thirty thousand dollars to fix it up
because it needs a lot of work but maybe I get forty five to fifty thousand
dollars worth of value out of that rehab because my contractor is better than
everybody else’s contractor because I’ve spent a lot of time finding the best
ones okay so I’ve spent ninety thousand dollars on this house that’s gonna be
worth 120 thousand we call that the ARV the after repair value it’s now worth
120 thousand the bank’s gonna come in they’re gonna say hey David I see that
you just bought this house for a hundred twenty thousand and you want a loan I’m
gonna let you borrow somewhere between 70 and 80 percent usually of whatever
that after a pair of value is which would be what the appraiser comes back
and says it’s worth so when he comes back and he says it’s worth 120 thousand
dollars they’re gonna let me borrow anywhere between 70 and 85 thousand
dollars on that now I’m not sure about the math I had to just do it in my head
maybe used to be closer to 90 thousand dollars
seventy percent at eighty four thousand so whatever eighty percent of 120 is is
ninety-six there you go so somewhere between eighty four to ninety six
thousand right now in this hypothetical example I only spent ninety thousand
dollars on this house okay so the bank’s gonna come back if they let me borrow on
the low-end eighty four I’m leaving six grand in the deal and if they let me
borrow on the high-end I’m getting ninety six thousand that’s six thousand
more than what I put in okay so I walk away with basically no money left in
that deal on average because I added so much value through buying the property
correctly and doing a very good rehab that’s the way that bir rewards you for
doing a really good job with your investing and you end up getting all
your money back and then you can go invest in the next thing and you don’t
have to worry about not having money now you need money up front to be able to do
this but I could come from hard money it can come from private money it can come
from partnerships it can come from creative financing there’s all kinds of
things that you can do to actually get that money the point is you’re getting
it back so you can pay those people back without having a really high interest
rate and now boom you’ve got a property that you financed at a low interest rate
and it’s very profitable I personally think way more investors should be doing
this learning how to burr it’s gonna absolutely supercharge the amount of
success that you have in real estate and understanding that I’m not leaving any
of my money in this deal is a really powerful incentive do a really good job
there you go yeah I love the burst strategy I do it all the time in fact
that I talk a lot about on the show the four Plex that I bought for my daughter
Rosie the week she was born if you’ve never heard that let me tell you a quick
story so the week rosie was born I bought a four-plex I used direct mail
marketing to get it I bought the four Plex for super cheap the guy want a
ninety thousand but it was a disaster I mean just a complete pit needed a
complete gut job every unit pretty much need to be remodeled and it’s actually
four separate houses but I really liked it a lot so he on a ninety I said
there’s no possible way I can do that I could pay like 40 and he basically hung
up the phone a month later came back and said okay
can you go a little more forty five I said okay I can do forty five and so I
bought it I ended up putting a hundred and twenty thousand dollars of work into
this so it needed a massive for him and I wouldn’t over budget on this thing but
yeah at the end of the day now we have a hundred and sixty thousand dollar total
into it it’s worth somewhere between 220 and 240 right now so I got all the
sequitur in it so then I went to a bank and I refinanced it now my plan was to
refinance eighty percent of it or the bank when I went through it they said
that would be just fine even the 70 to 80 percent that’s fine then
the day they they stop mean they only let me do like a hundred and ten I think
my loans for one hundred and ten so I got a little bit of money left in the
deal if I want to go back now and refinance it again which I might at some
point I could by this point I didn’t but either way I didn’t get all my money out
but I still got this thing done now it’s on a thirty year well I shouldn’t say
it’s on a thirty year mortgage but I set up payments so it’s paid off in 17 years
so why did I do that why did I set up this pay off in 17 years
because in 17 years Rosie Lew is gonna be going off to college that should be
worth by that point 17 years from now to 20 to 40 should be worth hopefully three
three fifty somewhere in there you know conservatively so you know she’ll have a
third of a million dollars to use for college or to use for her own real
estate down payments or to use for whatever but basically I was able to
help my daughter not be strapped by hundreds of thousands of dollars of
student loan debt because of a real estate deal that I made today and I mean
anybody can actually know we’re not really talking about no money here but I
just love that strategy because any parent if you got a kid under the age of
like five right now or six or seven all you need to do is buy one property that
breaks even like I’m not saying breaking but like if all you did was bought a
property that broke even on a 15 year mortgage you could pay that thing off
over the next 15 years and that your kids college and you get to use that as
a case study to show your kids how wealth and financial freedom works in
the real world so anyway this is a side note there I think that’s just kind of
one of my coolest things strategies for real estate Brendon let me ask you how
much equity is in that house right now so counting what I put into it or the
actual loan right now so if I have one sixty and it’s worth 220 that you know
let’s say conservatively it’s worth 220 and I have 160 in this what’s that sixty
grand of equity but I only owe one hundred and ten and it’s worth – what
did I say – twenty so what’s that hundred ten thousand
dollars in equity so you’ve got a hundred and ten thousand dollars of
equity in this property if you wanted to buy another property and this wasn’t
Rosie’s property it was just a regular person would you have any problem with
one hundred and ten thousand dollars in equity in that house that you could tap
into through an equity line of credit or a business line of credit or anything
else yeah I definitely could in fact right now I could even go to a bank or
even a private lender and I could say hey look this is worth 220 mm you know
minimum it’s kind of a weird property to estimate which is why it’s hard to know
exactly what it’s worth but you know say it’s worth 220 Island on 110 hey can I
borrow a sixty thousand dollar line of credit on it and most banks will say in
fact I don’t know why I never actually
thought of doing that I should actually just go do that I can get a line of
credit this is awesome this is like live help him from from David Green here if I
go to a local community bank and say hey can I get a second mortgage on this
rental property there are some that will do that not a lot but some and then I
have more cash to go and do another deal and so I could tap into equity if I want
to but I also just really like the idea paying that off before college so the
point here is you really only need to get one really good deal and that should
provide you money for your next deal which would provide you money for your
next deal and as long as you’re buying right every time and adding value to
your properties you’ll only struggle with not having money for your very
first deal okay so do everything you can to get that first deal and do a really
good job with it and then boom that problem is gonna be solved for you okay
in order to get that first deal another way that you can look into doing this is
with seller financing okay and now really quickly seller financing is
basically just I’m gonna buy your house but I’m not gonna give you the cash for
it that I got from a bank you’re gonna hold the no and I’m gonna make a payment
to you instead of a payment to the bank all the time now you may be thinking
people don’t care about that but they really do there’s people out there that
would totally carry the note for you because they’re probably gonna get a
better deal themselves as far as how much that the purchase price of the
house is so one of the options that I’ll do is I’ll say hey I want to buy your
house they’ll say I want a hundred grand and I’ll say well I can give you sixty
five and they’ll say no way I need a hundred and I’ll say okay I’ll tell you
what I can give you sixty five F I pay cash I can give you 85 if you fund half
of the deal and I can give you your hundred if you fund the entire thing is
0% interest okay I give them options so that they don’t feel like they’re being
taken advantage of they can choose and if they really want that hundred grand
and they’re willing to finance the entire note as long as I calculate it
and make sure that a cash flows that’s a win-win for me because I’m putting no
money into this deal the rents gonna be going up every single year I’m making
money right out the gate he’s happy cuz he got to feel like he got more for his
house and he still has some passive income coming in we all win so don’t
neglect to tell people this is something that I can do for you if you’re not
having any money right there’s tons of creative things like that that you
should be spending your time learning if you’re really worried about not having
money that people have used before to find success in the past when they
didn’t have money you’re not the first person with this problem you’re not even
the millionth person with this problem there are tons of people who have been
here before books have been written articles have been written podcasts have
been recorded tons of work has been done for how people got started just keep in
mind when you’re done listening to this find that first deal and that should
supply you money for your second yeah I love that and in fact the mobile
home pipe that I just closed down here a couple months ago I bought my first
mobile home park the seller actually carried the contract on that most of it
I think we put down I think at the end of the day we ended up putting down
around 10% it was about to be 20 but we know it we have some good negotiation in
there I think what we had 5% interest for a 25 year note on it with no balloon
payment like that was from a seller and why people say well why would he hold
why would this guy take a 5% interest on it when he was just getting all the cash
flow before it’s cuz now this guy who was like I think he was in his 70s maybe
even late sixties early seventies anyway he’s now like able to just get a check
every single month we’re gonna mail him a check and he sold the people he knew
he’s actually a bigger pockets member so he knew me and the partners Ryan and
Mindy and he could trust that we were just gonna give him steady income for
the rest of his life he’ll never again have to worry about that park wants to
worry about phone calls want to worry about tax stuff like we are now the
owners of that park he just makes money every month so seller financed in a very
cool way to finance your deal my last twenty-four unit apartment complex also
with seller financing so you never know if you don’t ask right it doesn’t hurt
to ask somebody hey can you carry the contractor on it alright so then the
last point I hear about money that I just want to cover real quickly is that
this idea of you doesn’t have to be one of these you heard example after example
here but like creative finance is about finding a combination of things it’s
about asking how do I get this done not like you know will I get this done
it’s not a yes-or-no question right I think Rich Dad Poor Dad talks about that
you know Robert Kiyosaki says you know the rich poor people say I can’t afford
it rich people ask how do i afford it right so like the way that I figured out
most of these creative strategies was not reading a book I mean yes you should
read books but I didn’t like nobody told me in order to finance my 24 unit I
would have to do a combination of a triple net lease option combine that
with a home equity line of credit combine it with the partnership combine
it with seller financing and then Berthe thing nobody told me that that’s what I
would have to do to get that done and most of you have no idea what even I
just said right but like that’s how I did and you know when I figured that out
at about 4:00 in the morning trying to just trying to figure it out asking that
question over and over how do I get this done
that’s how you get these deals done it’s usually a combination of thing so if you
have no money you got a hustle you got to figure this stuff out and continue to
ask how do I get it done that is so good brandon and i think you just you just
saw a perfect example of you had a lot of things in your tool belt you used all
of them you use that the hammer for this the crowbar for this the screwdriver for
this the nail gun for this you put everything together to be able to build
that thing you needed to build and your reward was you made a bunch of money
because you knew how to do this stuff right and that’s just a matter of
educating yourself and knowing what options that you have available and not
having a quitters attitude where you say I don’t have any money I can’t do this
screw that there’s people that have done it with no money you can do it with no
money to listen to this again if that’s what you need to do write these things
down understand all the concepts we’re talking about and study them until you
can recite them to someone else that’s when you know you really know it and
don’t let no money down hold you back now the next thing that we find that
people fall into is this quitter attitude because of no deals they say
well there isn’t any deals anymore right now my opinion is the reason people do
this is because they got used to 2010 when every single house was for sale and
you would just like it was like hitting water falling out of a boat there was
tons of deals everywhere right it was it wasn’t hard to do well well now you got
to look for water a little bit more right or you got to make your own okay
and that’s what we’re gonna talk about today there’s lots of things you can do
if you take the same attitude that you had with the no money thing and you’re
like I’m gonna figure out a way to do this and you apply it to making a deal
you can do the very same thing where you can find a deal where it didn’t appear
that there was a deal before that’s how I’m getting like 80 to 90% of the
properties and I’m buying I am making it make sense for me now the point is you
don’t have to have like one specific tactic that’s magic and if I just do
this I’ll be completely successful right you have to pick something that you
think is gonna work something that you feel comfortable pursuing and just go
and go and go and go until you master that thing in a vegetable pay off there
are tons of ways people are finding deals the process and sticking with it
is more important than the specific tactic if you want to lose weight
there’s so many ways to do it right you could do sit-ups you can do pushups you
can go running you can do CrossFit there’s a ton of different things but I
guarantee you if you just picked any of them and you stuck with it long enough
you would get results okay once you’ve mastered one of them then worry about
going on in finding the next thing but don’t be the
guy that is always chasing the newest thing and trying to find the quick and
easy fix without having to work hard those people never find success okay
so Brandon and I both believe that in this market in most markets in the
country good deals are not found good deals are made okay there are several
ways to make deals and we’re going to share with you guys some of you actually
that good deals are not found good deals are made that’s a great idea
do they need to give credit so be ready Brandon when they tweet it yes will make
it easier at sign like Instagram Facebook or Twitter bigger pockets at
sign bigger pockets but yeah good deals are not found good deals are made David
Green okay so we’re gonna talk with you about that’s exactly what I’m gonna do
I’m gonna talk about some of the ways that we are making good deals where
there was no good deal okay the very first one and the easiest ones that’s
what we’re gonna start is just buying a fixer-upper property when I find people
that say David I can’t find a deal that makes sense and I say show me what
you’re looking at every single one of them is showing me primo properties that
pictures show great that are pretty much already at market value and they’re
trying to force that square peg into the round hole of a good deal and they can’t
find a way to make it work and they’re frustrated okay I’ll tell you guys right
now the majority of what I’m buying is distressed property that needs some work
and nothing that I look at looks really good if agents send me a deal that has
like good looking pictures I’m irritated with them for wasting my time
I don’t want it man I want a house that smells like cat pee that has walls in
the wrong places that looks like somebody started to fix it up and then
ran out of money and just left it there and it’s been rotting for the last year
right that’s like that perfect deal for me to be able to find because I can add
value through my rehab and I can make it worth a lot more money now there’s a lot
of different ways that we’re gonna do that but Brandon have you had a similar
experience uh I mean I suppose so I mean everything I’ve ever bought every single
property I’ve ever purchased ever has been a fixer-upper so there hasn’t been
one right I think I Kember who it was I think it was Michael Woodward who was on
the podcast back like four years ago and he had this line that I thought was just
classic he just said like when he walks into his house he brings his two boys in
the house with him his two young kids and they take a big whiff and just
smells like you know cat pee and everything he says boys what does that
smell like in the Unison ago money yeah I just love that story because
like that’s what like I’ve known investors who are like oh yeah I went to
that house I walked in the front door and he immediately turned around and I’m
like good for you that’s why I’m successful right like that’s why cuz I
go in and I’m like I like that so anyway fixer-uppers fantastic and that’s a good
way to make a deal happen but there’s other ways as well one of my favorite
tactics is to look for what I call hidden bedrooms which means you’re
looking for opportunity to add square footage at a bedroom at a bathroom
whatever where there isn’t currently one most specifically this is gonna be a
little bit market dependent but I’ll tell you what I look for I look for
two-bedroom houses that I can turn into a three-bedroom house and they’re
actually quite prevalent like a lot most agents don’t know what they’re doing so
like those list the house at a two-bedroom house and not realize that
there’s actually a third bedroom and right now there’s just you know some
reason no closet or they call it a rec room but the number of bedrooms makes
the biggest difference for me at least for rental properties but flippin as
well like a different the difference in value between a two-bedroom and a
3-bedroom in my area is huge that might be different your area I’m not saying
it’s a hard and fast rule everywhere but in my area between a2 and a3 is
massively different I hate renting two-bedroom houses out
I love renting three-bedroom house though so the way that I do that I look
for two-bedroom listings that have over a thousand square feet if there’s over a
thousand square feet listed on the listing and it’s only two bedrooms
there’s probably a hidden bedroom somewhere right there’s probably like
this massive rec room or this big attic space that’s just like empty and so I
will often turn those into a third or even a fourth bedroom making the value
is significantly higher again I I found you know like this hidden deal but
really I just made it because nobody else saw that so yeah yeah the reason
that this works is because Brandon I understand the way that properties are
valued okay now multifamily properties are considered a business and they’re
valued based on how much money they’re generating for the owner how much profit
okay single-family homes and by single-family I mean anything for two
units or less our value based on what somebody else paid for it so appraisers
are assuming that even though we’re investors they don’t care they don’t
know the difference to them how much is this house worth based on what another
house is worth because that’s what most people who are buying a house to live in
care about okay a three-bedroom house is gonna be worth noticeably more than a
two-bedroom house because almost everyone in the modern-day family wants
at least three bedrooms a four will be worth more than a three but not as
three more than two two a five will be worth more than a four but not quite as
much and eventually once you get above five it doesn’t really matter it’s just
the square footage in that area right yeah it’s a weird house because you
don’t need that many bedrooms okay so because we understand that we know how
appraisers think we we put the property in a condition appraisers gonna care
about more all right now another thing that appraisers care
about isn’t just the number of bedrooms it’s also the number of bathrooms like
anything more than one bathroom helps you a lot it’s hard living in a one
bathroom house if you can add a second bathroom to a house or a third bathroom
to a house that has two you can increase its value quite a bit because now
they’re using comparables that are three twos instead of two ones or two twos
okay that’s why that works there’s lots of ways that I figured out through
rehabs where I can add value to my home without spending a lot more money okay
we don’t need to actually go spend 30 grand add another wing onto a house
oftentimes there’s parts of that project that are already done for you and you
just have to go fill in the completions so I do a lot of investing in Florida
now in Florida they have what they call Florida rooms it’s like a sunroom okay
or we have them in California that oddly enough they’re called California rooms
it’s basically just like a part of the house that is like an indoor / outdoor
living space so it has a roof it has electrical run to it but it doesn’t have
four walls maybe it’s missing one wall so you’re still feeling like you’re in
the backyard in Florida they put up these screens or these Nets so the bugs
can’t come in there and bite you right the cool thing is the foundation the
roof the drywall the electrical and sometimes plumbing are already run to
that area but it’s not included in the square footage of the house now
appraisers care about how many square feet the house is because what they
generally do is they say the average price per square foot for this area is
$100 I multiply that times how many square feet the houses say it’s a
thousand square feet and boom that’s how they come up with the value of your
house then they adjust it based on how many bedrooms and bathrooms has next to
the comparable properties if I can add three or four hundred square feet to my
thousand square-foot house I’m making the price per square foot get multiplied
by a lot more square feet which means my house is gonna be worth a lot more if I
can do that for only six or seven thousand dollars because most of that
work is already done and all I have to do is rent up some drywall and put in a
ceiling fan and maybe build a closet not only did I add three or four hundred
dollars our sorry square feet of space but I did it very cheaply and I could
add a bedroom or a bathroom or bow to the home and boom I just created my
extra bedroom I routinely do this for six to seven thousand dollars okay
and I add 30 to 40 thousand dollars worth of value to the house because I
don’t have to build a whole wing onto a house I’m taking space that’s already
there and I’m improving it now that deal might not have looked like a great deal
when it was a two-bedroom one-bathroom house it was worth all the same as the
other ones but if I buy it and then I make it a three-bedroom two-bathroom
house with extra square footage now it’s comparing to much more expensive
properties my value skyrockets and then when I go to refinance and I’m getting
all my money or sometimes more of my money back out the lazy investor wants a
house that someone else has already done the work the pictures look great
it’s already renting for the most that it can be there’s nothing to be done to
improve it and they want to try to make that work as their investment the wise
investor looks for ways to add value to his property or her property get more
money back out of the deal and grow their net worth slowly and
systematically man that was awesome I love that example the sunroom or the
California room they’re very cool alright so I want to shift gears here a
little bit we’re gonna still talk about how to find deals I know you guys are
looking for some action ellipse and I hope that was actionable for right
before I’m gonna we’re gonna give you what we do to find deals however before
I do I want to explain a little bit about the process because again the
process is more important than the specific tactic that’s true and almost
anything right but in this case specifically like again I could give you
a couple tactics which we will but if you don’t run it to the right processor
you’re never gonna get this is what the process looks like and I call it the
lapse funnel El APs and it stands for this leads you have to get leads into
your business then you have to analyze them a you have to analyze them then of
all the ones you analyze you need to make some offers or I call that pursuing
a deal you have to go after some of those deals that you analyzed because
now you know how much to pay for right because you analyze it so you go after
him you pursue it and then the final s Sun laps is success some of those are
gonna turn out here’s a real life example so I sent out 300 direct mail
letters a year and a half ago when I was looking for almost two years ago now
when I was looking for that property for my daughter who was soon to be born so
it’s about 300 letters out of them I got back like 40 phone calls but I was a
good ratio I got a good number back it was a very targeted audience that I
mailed to it was like absentee owners who own their property over five years
with a certain amount of equity I can’t remember
my head but so anyway so I sent this list 300 got back 40 phone calls some of
them were tire kickers whatever but of them there was about a dozen that were
serious like put contenders right so out of those twelve I analyzed those ones
seriously so Ella’s leads I got three hundred cold leads forty hot leads you
could say and then I had twelve deals that were like worthy of analyzing I
made offers on all twelve and then I got one of those eventually accepted right
so now would I is that guaranteed you send out three
hundred letters you’re gonna get a deal of course not right but if you
consistently work this lapse funnel you’re going to get deals in fact this
is the exact process that every single solitary investor in the world does
don’t believe me like they’ve they might not know the word lapse funnel could I
made that up because I like making up names for things like burn house hacking
but like they they do it anyway like you can’t buy a house without pursuing it
right they don’t fall in your lap you can’t really pursue a deal unless you
know how much to pursue it for you have to come up with some kind of price in
your head and then you can’t really analyze deals if you don’t have some
kind of lead source right so my point is this
every single person follows the Lapps funnel the investors that are like the
best in the world the ones that we’ve interviewed here on the podcast for
years now like I came up with this sort of like methodology after talking to
almost 300 different investors the ones that are the high-volume investors are
the ones that are getting their goals accomplished are the ones that recognize
the funnel again they might not say laps whatever but the same thing they know
how many leads they’re getting they know how they’re getting leads so that’s what
we’re gonna focus on next you want to add to that before we move on to the
actual tactics yeah I just want to add that this is not unique to real estate
investors this is how every successful business person or sales person is
making money so in my first year being a real estate agent I was the number one
in my office out of a hundred right I didn’t know sales I was a police officer
the reason I did so well is I already understood this principle that Brandon
is talking about that I was applying into my real estate investing business
so it made sense to apply it to my real estate agent business right I had to go
get a bunch of leads which for me was people that I knew that would know
people that wanted to sell a house I had to talk to them at analyze is this
someone who’s gonna send me referrals or is this someone who doesn’t write maybe
they don’t even know anybody who lives in a house so that’s not a person that
I’m that’s worth pursuing then to pursue the people that I knew would
be most likely to send me deals and then I ended up having success okay you can
apply this to any thing that you’re trying to accomplish but why not apply
it to real estate investing because that’s what your goal is and that’s
where you get the most bang for your buck technically I applied this to
dating right so there’s a lot there were a lot of girls out there in college
right and there was tons of leads out there and then I analyzed some of them
and I found some that were you know fitting and then I want to be careful
here because how they were listened to this later and then I you know I
analyzed them and then I pursued one of them and then I got rejected this is
actually true story I got rejected from Heather the first time I asked her out
and then I got rejected from headed the second time I asked her out
maybe I rejected the third time I asked her and then the fourth time I was
basically like this is true story I was like I can’t be your friend I have to
just break this friendship off because like I need like I like you and she’s
like fine we’ll go out and and somehow it’s so like for the first like a month
I thought she was just be nice because I held that over her which there’s a lot
of sales techniques built into that story but I’m not gonna go into it now
because we want to get to the actual tactic so funnels are everywhere people
make fun of me because I put approached everything in life into a funnel right
people he means me all right so let’s get into some ways to fill your funnel
number one the MLS which means the Multiple Listing Service which is basic
the MLS is like this back in the day let me give you a quick lie people don’t
know the actual story and you can correct me if you know this any
differently than what I’ve known it but back in the day everyone had lists that
may be like facts around like here’s all the properties that are for sale and my
brokerage would send it over to your brokerage we compiled this big list of
them well then this thing called the internet came around and those lists
went online but still today those lists are governed by a whole bunch of
different groups called the different MLS’s right there’s like a MLS in the
northern Bay Area and there’s an MLS in the Seattle area and there’s an MLS and
like different just tons of I think there’s hundreds anyway and so the MLS
is when we people save the MLS we really mean the MLS essences but that would be
weird to say okay so there’s the MLS we’ll just call that and it’s where all
the real estate agents put their deals that are for sales so other real estate
agents can see it to have perfect access to the MLS you need one of two things
you can see there be a real estate agent or you
to have a real estate agent that’s gonna give you access to it you know I’d give
you a way into it now there’s a third way and that you all know about it I’m
sure it’s the portals so imagine a portal like you’re sitting outside a
house and you look into the window so Zillow Redfin Trulia realtor.com those
are portals they look into the MLS’s and they have special arrangements work out
with the various MLS’s but they’re not perfect well since we don’t have a good
real estate agent I’ll just have to jump in and do the job instead now the key to
finding a really good real estate agent is something I refer to as RK are rock
stars no rock stars okay you don’t want just any real estate agent you want a
really good agent and furthermore you want a good agent that knows how to work
with investors they could be an amazing agent that’s really good at working with
families trying to find a house and they will be horrible for the purposes that
you’re serving right remember our our tool belt analogy you don’t want a
hammer when what you really need the screwdriver you need to go find the
right agent to help you now one of the questions that I’ll ask agents when I
tell them I’m an investor looking for property is do you buy properties
yourself right if you find an agent that does buy investment properties
themselves they already get everything you’re trying to do especially if
they’re good at it right and they’re gonna know people that you’re gonna need
for your team in the book that I wrote for BiggerPockets long distance real
estate investing I talked about the core for those are the four people that you
need to put on your team to help you invest successfully if you find an agent
already knows those people boom in one step you’ve kind of figured out that
problem for yourself now agents will send you deals keep in mind that you’re
looking at deals for how you can make it a good deal you’re not just to give her
something that’s already been made so tell your agent I’m looking for houses I
can add square footage to I’m looking for two-bedroom one-bathroom houses
that’s what I want to go see then when you notice when they send you the list
that one of them has a thousand square feet that’s the one that you click on
and you start looking into and say hey where can I take a dining room and turn
it into a bedroom or a den or whatever the case may be maybe it already has a
bedroom and all I have to do is add a closet and it’s a it’s a official
bedroom right that’s something you can do for six or seven hundred bucks and
add a lot of value to your house by doing it right let your agent know this
is what you’re looking for and then kind of gauge how are they responding do they
seem really insure themselves like this isn’t something I do that’s the wrong
agent keep moving on if they get excited when you talk about this and you know
you found someone they can help you yeah and I love that and so to go back to the
rkr the rock stars and rock stars find a
rock star in your life i’m sony was awesome in that market you want to buy
in and ask them if they know any real estate agents cuz rock star is no rock
star is another thing you can do is go to your Facebook pages ask your family
and friends anybody have a recommendation now there’s no guarantee
they’re gonna be good it’s like a guy at work is an agent right but at least it
gives you some leads that you can then analyze and then you can pursue one of
those agents and you’ll find a good one right laps works in everything all right
so anyway so finally good real estate agent they can actually help you find
deals on the MLS like like David said one thing I like to do is have it your
agent if they have the ability which most do I’m assuming do you guys have
the ability set up automatic email alerts okay yeah so I can get an email
set up so that anytime a 2-bedroom house comes on the market in my Mart in my
area or any house under $200,000 I’ll get an email cuz I want to be notified
very very quickly so I’m gonna work with my agent to get the right email alerts
set up it’s a very quick actionable tip tip you can do today like don’t go to
bed until that’s done so anyway get a real estate agent okay next up is going
to be the wholesaler right wholesalers are people whose job it is to find a
deal put it under contract and then find someone like you that wants to buy it
now the question that I often get asked is is David if they buy properties for
themselves or they’re a wholesaler and they get great deals why would they give
it to me right that’s the question everyone says the reason is they
probably don’t have enough money to buy properties that they get under contract
just like you were worried that you didn’t have enough money at one point
okay everybody out there has the same problem they either don’t have money and
they have deals or they have deals and they don’t have money but no matter
where they are in the cycle somebody’s gonna have a property that’s a really
good deal that they can’t do anything with you want to know that person and
you want that person more importantly to know you so they bring you that deal now
the analogy that I like to use is I don’t want to just go learn how to catch
fish I want to find a fisherman that is so good at catching fish that he catches
more than what he can actually eat and the fish are gonna go rotten if he
doesn’t sell it to me at a discount right now I often find the most success
with this with wholesalers but I also do it with other investors who will earn a
wholesale fee for bringing me a deal or a real estate agent who does it himself
but he just he’s got three or four going on and his contractor is completely
swamped and he doesn’t have any more money you might as well represent me in
the sale of it then just lose it completely because that fish is gonna go
bad right so by by using the labs funnel to continually what we call lead Jenner
for more leads it can be properties for yourself or it could be people that are
gonna find properties and let them know if you find me a deal that means these
criteria I will pay you fill-in-the-blank five thousand dollars
I’ll send you a bunch more referrals for your business all that you partner on it
with me whatever you want to do but find people that are also like you looking
for deals and don’t think that they won’t help you just because they’re also
looking for deals they’re gonna find fish that they don’t
have time to eat and they want to sell it so that it just doesn’t go rotten in
the boat well you guys know most Dave is really good at analogies he’s fantastic
all right another technique for finding deals
check out things like Zillow I mean I actually got a deal last year just
somebody who was like I want to sell my house I don’t want to use a real estate
agent but they know Zillow cuz it’ll you know
like – it’s a powerhouse right so there’s one posted or like put their
house on Zillow and I happen to be looking at it that day and I went and
bought it and we flipped that house and so check things like Zillow but also you
can just spend time analyzing deals you find over on Zillow or realtor or Trulia
Redfin and get real comfortable with it those are good sites as well another
online website you can go to find deals actually is called BiggerPockets calm a
lot of you didn’t know that we actually on BiggerPockets have a marketplace
there are hundreds and hundreds of deals being added every single week from
wholesalers around the country from turnkey providers from real estate
agents they list the properties on our marketplace and you can go in there and
dig in and see what you can find that’s especially helpful since it’s the
national page if you’re interested in buying out of state so every you know
day or so just go in there and run through the list of all the new
marketplace listings and you might find your next fantastic deal there and let’s
go to the the big one that most I’d say most high-volume
real estate investor investors use and that is direct mail marketing and I
talked about earlier I said all 300 letters but yeah it’s like a simple
process you send a letter and then you get phone calls back and then some of
them work out right it’s just leads lapse funnel right the problem is people
will do like one direct mail like letter they’ll send out 500 letters a thousand
letters whatever and then they don’t get any calls they don’t get many and
nothing works out and they’re like this folks it doesn’t work Brendan’s a lawyer
and then they go back to watching TV every night right but the people who are
successful they just consistently send letters trying to tweak and test them a
little bit but they’re always trying to improve their
and over time is when Direct Marketing works I mean I I’ve heard some stats and
I don’t know the exact ones now on top of my head but like it’s like the
average like Direct Mail caller doesn’t call until they’ve received like seven
letters like it takes time and you got to make sure you get a letter to them
when they’re in that moment of okay fine I’m gonna sell this thing so drug
marketing can be very powerful if you’re gonna take advice from anybody on
persistence it needs to be Brandon Turner this dude married somebody so far
out of his league that most people wouldn’t even believe me if I told you
he out kicked his coverage because he was so stinking persistent right if he
got a great deal on a wife you can get a great deal on a rental property using
the exact same strategies this guy uses okay what I tell people is if your job
is to go out there and you wanted to chop down a tree and you swung the axe
one time when the tree didn’t fall would you quit what if it took five swings
would you quit you’re actually worse off if you swing five times and quit before
that tree goes down because you’ve expended all this energy and you got
blisters on your hands and you risk throwing out your back and then you got
no result okay you don’t find success from hitting a home run on the very
first pitch that you see you find success by slowly whittling down that
tree over and over and over until it finally topples and through the process
of that you learn what worked and what didn’t work and the next time you go
chop down a tree you do it in half as long because you learn how to swing the
axe better direct-mail works the same way look at all the Nazis that was
wonderful alright alright next up is driving four dollars you guys hear about
this one a lot it’s also door-knocking okay this is simply looking for
properties that appear like they’re in distress knocking on the door and seeing
if you can talk to any lives there or finding out who the owner is through the
tax records and sending them a letter saying they want to buy their house now
what I found is there’s three different ways that people find motivated sellers
it’s from some form of distress the three forms are market distress personal
distress and property distressed market distress would be like 2010 when we
talked about every single thing was for sale because the economy was in shambles
personal distress is really the best way that’s where you find someone that’s
going through like a divorce or a death in the family or a gambling debt or
whatever they have going on they have to sell that house really fast property
distress is the ones that I tend to target the house is that the house
itself is in disarray and so it’s not worth very much if you’re driving around
and you look for houses that are in property distress you’re increasing your
odds by a lot that LEED is more likely to turn into
something that’s worth analyzing that’s more likely to turn into something
that’s worth pursuing if you don’t know what to do
put on the BiggerPockets podcast drive around and educate yourself and while
you’re doing that look for houses that have really high grass need a paint job
really bad look like nobody’s been living there newspapers all over the
place all the signs is someone just stopped caring about that house and then
find a local real estate agent and say I’d like to get the mailing address for
this property right here they can look it up in the tax records for you you can
send a letter that person say hey I want to buy your house and your odds of
finding success are much bigger yeah that’s awesome alright let’s go through
that cut another couple I here’s a really tangible one that you can do
right now if you have no money to find deals I want to give you something that
it takes persistence but it can work really well and that is using Craigslist
but not like posting an ad you could do that too that’s not a bad idea but I’m
talking about going to Craigslist and finding mom-and-pop landlords who have
listed their properties for rent you can usually find them because they’re not
very good ads right property managers you can kind of tell which ones are
those and real estate agents if they’re listing it but look for mom-and-pop
landlords who just are using Craigslist to put their property for rent and then
call them up I mean like that is a lead right there and why do I say that
because every like I would say most I don’t have any stats to back this up but
I would say most landlords hate their life like most landlords have not read
the book on managing rental properties that my wife wrote most of like like
they don’t care they haven’t read the books they haven’t talked to other
Lando’s they just somehow fell into it and now they hate it because their
tenants are taking advantage of them and they’re not paying their rent and
they’re having problems there’s a lot of that that goes on so by calling those
people I mean they give you their phone number right in the ad usually like how
much easier can I get right and you call me back hey I’m a new real estate
investor and I I’m looking everywhere to find some my first property and I saw
you had one for rent and I’m not looking to rent it but I would love to talk to
you about buying it does any any chance you want to do that right yeah nine
times out of ten you might hit a no and one time out of ten you out here yes or
maybe let’s talk about it right in fact I’d probably guess more than one out of
ten you’ll get a hey let’s talk about it all right everything’s for sale to an
investor for the right price so get that conversation going and again now you’ve
got the leads you’re gonna analyze some even have those conversations and you’re
gonna pursue some of them get rejected a lot it’s gonna feel like high school
prom all over again and then another day you’re going to get some sick exactly
accepted but here’s the deal I’ve told this to people I look
all the time and I’ve done this a little bit but I’ll tell you why I failed at it
and why almost everybody does because I’m not persistent or consistent about
it right so I’ve done this one a few times but like it’s hard
I hate picking up the phone right so what I need to do I’m just thinking out
loud here like what I need to do is hire someone who likes the phone and they’re
gonna make phone calls and not just one so I want you guys to grab your phone
right now if you want to do this grab your phone right now and hold it up and
you know how you can talk to Siri right so like hold on and to remind me every
Monday at 5 p.m. go to Craigslist and get the landlords all right
and then series gonna do it for you that’s all you got to do to be able to
get like now you’ve got a system that you can work each and every week and if
you did that for 52 weeks in a row and you called 20 people every single week
do you think maybe somebody in there would want to sell you a house and maybe
you could work the Lapps funnel out right and if you’re like oh I’m busy I
don’t have time do you think you could find somebody that just has some stay at
home time and see if they want to do it I mean 20 phone calls a week is not that
bad right sorry but that’s that’s just another very simple thing you want to
have any money to do it you just got to have some hustle all right now keep in
mind that you may call those people email those people reach out to them and
they say no I don’t want to sell right they may not want to sell today but what
do you think about six months later when the pipe is busted and the tenant hasn’t
paid the rent and they have a dog that bit someone and they’re looking at a
lawsuit and all of a sudden their emotional state is oh my god I don’t
want to be a landlord anymore if you don’t call them when they’re in that
mood somebody else is going to it’s gonna be a real estate that they reach
out to to sell their house or it’s give me another investor that buys it it is
very important to be systematically and work a process and politely call that
person consistently and say hey I still want to buy your house are you
interested in it yet no okay and then two months later three months later do
the very same thing because there is gonna come a time where a lot of them
don’t want to own it anymore and with that same technique we can find another
lead source which is going to be meetups or other real estate investors okay lots
of people own real estate you are in the mood if you’re a bigger pockets person
of I want to buy as much as I can I want to own as much as I can and that’s
awesome okay there’s a part in this cycle where you don’t want to be a
landlord anymore you don’t want to own real estate anymore either you’re not
good at it or you bought bad properties or your life has changed and you just
want to put the time into it anymore and you want to get rid of it be the person
that finds that person first and say hey if you ever want to sell
I want to be the first one to get a crack at it I want to buy these
properties okay landlords on Craigslist yeah that the
reason that’s gonna work is because you know they own properties well so do
other investors okay and if you can build a really good
relationship with that person through meetups through REI a meetings through
BiggerPockets through whatever you’re doing they’re gonna come to you first
and I’ll give you guys another little quick tip here the more someone likes
you the harder it is for them to take advantage of you the more they like you
the better price then better terms they’re gonna give you on that deal
right so networking with other investors and letting them know what you want to
do and why you want to do it and bring you value to them is a great way to get
first shot when they want to sell their properties in fact so here’s a chavin
actually told the entire in-depth story yet about how I got the mobile home park
that I got recently but what happened was Ryan Murdoch who had been on the
BiggerPockets podcast back at last June I think he had bought a property from
another BiggerPockets member and the guy had carried the contract on it seller
financing anyway so this is a few years ago so now this investor was getting
ready to retire like completely get out of the game and he had this mobile home
park so you know what this guy did he didn’t go and listed with an agent he
went an email ryan said hey you have any interest in a mobile home park ryan was
like no not really but i know a guy who does so then ryan called me up and said
hey Brennan you want I know you wanted a mobile home park what do you think of
this one and he he thought there was like no way
I was gonna care about it cuz like you know he said it was a long shot but it
was exactly what I was looking for so I said sure Ryan if you partner with me I
don’t gonna buy a property I mean I mean hawai right now right that’s like sixth
out you cannot get farther away from Hawaii than Bangor Maine but Ryan
partnered with me on it we brought in Mindy Jensen as well and her husband
Carl and boom now we got this awesome mobile home park deal that it’s kind of
like we use bigger pockets in so many ways and we use that same technique
you’re saying just keep relationships with other investors they can oftentimes
be a great source you know one more just quick tip and then we’re gonna move on
to no time in finding deals and this was just one last thing about how about
finding deals is tell every single person you know that you’re looking for
a deal and get specific right so two quick quick stories first one when I was
looking for my very first apartment complex I’d read a book on buying
apartment complexes and like it was a Ken McIlroy’s ABCs every law state
investing and the next day at church I was like talking to this older couple
and I said hey someday I want to buy a Harman complex and they’re like well
that’s weird we actually have one we want to sell right was that lucky of
course did I tell every single person I knew I wanted to buy an apartment yes
right yeah take advantage of luck so just like tell everybody you want so
when you’re when those situations come up you’re prepared second quick story
even quicker I was at a real-estate meetup that Darren Sager was holding in
New York City he’s got an awesome meetup he’s old that pretty much monthly brings
in some really great speakers and I was there and I was talking about how I
wanted to buy a mobile home park to everybody that was in the room everybody
could tell and you guys are probably heard me as well right you knew who was
in that room that day mr. Ryan Murdock the same guy who then two weeks later
received an email that said he would I told everybody that room I wanted a 50
unit mobile home park he got an email from a guy that had a 46 unit
technically zoned for 50 unit mobile home park and so I was top of mind to
Ryan to think oh yeah Brennan just said and he just told me last week or two
weeks ago he wanted one so tell everybody you know you never know who’s
out there that might have a deal if you have like you know 50 friends that know
that you’re the guy or you’re the gal who buys real estate they probably have
50 friends as well so like that’s I don’t know the math there it’s a lot
right so like there’s a lot of people out there in your circle that know
people who might sell you their property so again tell everybody all right we got
to move on to the next one this is gonna be the world’s longest podcast and the
last one that a lot of people struggle with they might have some money they
might have some deals even now especially to listen to this they’re
just saying David Brandon I just don’t have time I got a full time life I got a
full time job I got family obligations of god
you know civic obligations I got church obligations I got just life is busy so I
want to talk about that for a few minutes because like I know what that’s
like right like I am for those people who know me like I this is gonna sound
like total like bragging but like I have like one of the busier lives of anybody
I know generally right like I do a lot of stuff constantly and I’m still
writing books and I’m still trying to raise my little girl I’m trying to surf
on the beach in Hawaii like I try to put commas in so I’ve learned a few cool
techniques to reduce the amount of hours it takes so the first thing I want to
mention is this understand that you have a hundred and sixty eight hours in your
week that’s actually how the math works out right so take 168 subtract out your
40 hours that you are at work and you’re at 128 subtract out another 20 hours it
looks like commuting and random like getting ready or himself so now you’re
at what are we at 108 right take out
another 50 hours of sleeping that’s fine you’re still at all what 58 hours now of
every week that you’re just like losing so I’m not saying that you don’t like
I’m not what I’m saying is this take an inventory of what you’re spending your
time doing because with a hundred and sixty eight hours in your week there’s
probably time somewhere the second point I’ll make to that is this it does not
take three or four or five hours a day to invest in real estate almost every
single test mean David’s been actually talking about this a lot since you’ve
been out here we’ve been just talking about how like almost everything we do
is like a one-minute task or maybe a 5 or 10-minute task very few things in
real estate other than reading like a book or reading a contract take more
than about 15 minutes here’s what I mean by that right now the next thing that I
need to do to you know let’s say let’s go my apartment complex I got in
Cincinnati like the next thing that I absolutely have to do to get that thing
moving forward is I need to contact my assistant who is another tip but I have
a part very very part-time assistant I need to contact her to have her contact
the property manager on a systematized process so it’s like a five-minute email
I need to write and then that’s moved off my plate it’s onto somebody else’s
now we’re good kickback to me I’m gonna move it on somebody else everything’s
like that maybe you again you need to analyze a deal right maybe you need to
make a phone call to an agent maybe you need to go on Facebook and ask for
recommendations for an agent no matter what it is everything is like a
five-minute task and if you were consistently doing that every single day
that’s when progress gets made the problem is people are like you know I
don’t have any time so they work on their real estate for an hour to one day
because they’re excited after a podcast like today’s and then they don’t touch
it again for a month and then they come back and they do it again like that
logic does not work think about going to the gym doing that right I’m gonna go
run the treadmill and then a month later I’m gonna go lift some weights and then
a month later I’m gonna go do the elliptical machine which is pretty much
worthless I think and so at the end of the day like consistency is what matters
consistency with the right things and so figure out what those few little things
are that you need to do and the way I generally recommend it is analyze a deal
spend five minutes a day running the numbers on a deal maybe through the
BiggerPockets calculators or however you do it and do that or spend 10 15 minutes
a day getting some leads coming in somehow
and over time that compounds on itself it’s like the compound effective.i
Darren Hardy anyway those are just a few of my tips I just were thinking about it
when David I’m sure you got some more because you know a thing or two about
not having much free time yeah that’s right so the way that I got started
buying real estate was I working like crazy I was working a literal 90 to 100
hours a week and sleeping in my car twice a week because I didn’t have
enough time to drive home and sleep and come back again so I was doing this with
very very very minimal time and what I found out is exactly what Brandon just
said most of the tasks that I was doing were somewhere between 30 seconds and 3
minutes it was very little time that actually had to be spent once I
understood what I was doing okay so I came up with a couple things that I can
share with you guys to actually save myself a lot of time and remove that
excuse of I don’t have enough time the first is what we call the 1% rule the 1%
rule is just a rule of thumb that states if a property rents for 1% of what you
paid for it it is very likely to cashflow positively so if I’m paying
$100,000 for a house and it rents for a thousand it will cashflow positive
$200,000 from our house and it rents for $2,000 it will be able cash flow
positive now you don’t have to be right at that but if you’re close to it
odds are that that property’s gonna cash flow positive I don’t look at buying
hold properties that don’t meet the 1% rule because I don’t want to waste my
time right I can right away throw out a ton of stuff that gets sent to me by not
waste by not looking into it another thing is I got really really specific on
my own criteria that I wanted for a house and I didn’t make so many of them
that I would fall into analysis paralysis ok so when anybody brings me a
deal the three things that I’m looking for are am i buying it under market
value for me that means I want to be all in acquisition plus rehab for 75% of the
ARV so I want to be paying 75% of what that property is worth when I’m done I
want it to cashflow positively which means it’s going to need to meet the 1%
roll or close to it and I want it to not be in a really bad neighborhood if it
meets those three criteria I will buy it now the reason that I can be so liberal
with the way that I’m buying houses is because I know if it’s 75% of what it’s
worth I’m gonna be able to burn it and get all my money back out and as long as
it cash flows positive it’s not a bad neighborhood why wouldn’t I do that deal
it doesn’t have to be a home run but that’s a pretty freakin good deal and
then I can go buy the next deal right because my criteria are simple but
effective and safe I don’t need to spend a ton of time analyzing 50 properties
and trying to figure out which is the best of the
50 that I could buy I can just go buy the six that make the most sense right
or pick one out of those six and say this is when I feel best about buy it
burr it see what I learned and go and do the next one that’s really all that you
need to be thinking about when you feel like you’re overwhelmed you don’t have
enough time is that you’re probably making this more complicated than it
really needs to be yeah like that and another thing on that note is I don’t
typically and this is maybe a little more of an advanced strategy but I
typically don’t look at a property until I’m in negotiation on it here’s what I
mean by that so if I typically only get about one out of every ten offers I make
accepted so like why would I go and look at those ten properties just waste my
time right so when I find a property I run the numbers based on all of my best
estimates whether my if my agents been in the property hopefully if I’ve had a
contractor maybe in the area they might look at it I’m not gonna worry about any
of that stuff or I’ll just make it based on the photos if it looks pretty good in
the description I’ll run my numbers as good as I can and I’ll make an offer
nobody in the last five years I’ve never I don’t think I’ve ever had an offer
just flat-out accepted there’s always some negotiation because everyone feels
like they have to negotiate right that’s when I go look at a property so I wait
like they’re always like okay if I offer $95,000 for a property they’ll come back
and be like no 120 and I’ll beg okay well I don’t know if 120 will work but
let’s go look at the property cuz now I got a really good shot of getting this
thing and that’s what I’m gonna go and look at it so that has saved me a ton of
time too many investors get too caught up in the like I got to go look at the
house and my agent can’t go until Saturday and so I’m gonna go on Saturday
to look at it’s gonna take an hour to drive there and an hour to look at an
hour back then an hour over coffee that I got to talk about the deal and my time
they’re done they spent five hours and then they get rejected what a waste of
time you gotta optimize your time so anyway that’s another one another thing
that I do is I constantly you know we talked about earlier about how almost
every task is like a 1 to 5 in a task identify what that is I call that the
mins mi NS your most important next step like you know any task that you have any
big task in the world like I need to buy a rental property I always ask people
what’s your very most or like what’s your most important next step and
they’re like I gotta buy it I’m like no get more focused okay well I I need to
find a real estate agent nope that’s not it either what’s your next actionable
step your most important next step I need to open up a browser window
navigate to facebook.com ask my family and friends for recommendations for
agents that now you have your most important next step and you realize how
stupid is that you haven’t been doing this for two months like this has been
on your plate for two months and it’s really only a 30 seconds task so now you
go do it either you do it then or you time block it you put it on your
calendar as an appointment more important than meeting with the
president and you do it when the time says you put in your calendar you
schedule it if you have to wake up 10 minutes earlier wake up 10 minutes
earlier if that’s what you got to do again and the I said a minute ago but
I’ll say it again now the BiggerPockets calculators make it very very simple and
easy I mean let’s be honest like when we built the calculators when I designed
them and I put them together and had a developers build it I did it more for my
own sake or as much as for my own sake as anybody else like I needed a better
system for analyzing deals and keeping track and organized on all that so we
built the calculator so you can quickly run the numbers in under five minutes
figure out how much you can pay for a property then I go and offer on it and
if you get rejected there’s even a feature that most people don’t know
about in the calculator that you can get reminded about the about that property
later on so I’ll go in if you click the word tools on the nav bar and go to
previous reports there’s like this little ellipses next to every one of the
reports you’ve done click that and it says remind me you can choose one week
or I think is like one day in one week 2 week 3 week 4 week whatever so that way
if I want to go in Rio for edit a month from now I can do that or if I don’t
want to follow up with the seller a month later two months later
BiggerPockets will actually remind me which is a super thing and cool thing so
again there’s just these little techniques to be able to simplify your
life and the last thing I’ll say is this on that point when I got started and I
started getting overwhelmed back maybe like eight years ago I needed help but
simplifying all the things I was doing right so I brought in some help I I
realized I hated answering the phone I hated talking to tenants so I actually
brought in my mother-in-law and said hey would you mind and I think we paid her a
couple hundred bucks a month when we started we said hey would you mind just
answering phones and then just write down the message and then get it to us
and that was it but that one thing saved me so much both actual time and like
mental energy so I could focus on building my business so people think all
time well I don’t have enough money to hire a full-time assistant don’t do it
hire finally little TAS that you can find other people to take off your plate
maybe an overseas person maybe it’s a family
member a friend or somebody who just needs to earn more money listen like for
every task that you hate doing somebody puts food on their table doing that task
right for every task you hate doing somebody loves doing it if you hate
answering the phone somebody loves answer the phone my mother-in-law loves
talking to tenants it’s like her thing she’s like it’s amazing at it and like
that’s all she wants to do she doesn’t want to be involved with like buying
like they are now buying property but even that like my father-in-law handles
a lot of that stuff as well so like find people to do those little tasks in your
life if you can’t afford a full-time assistant anything you want to add no
that’s a mic drop man that’s very good all right guys so we’re going to shift
gears here and head over to the world-famous fight around it’s time for
the fire all right this is the bigger pockets
fire round we’re gonna fire some questions at one another that were
actually we found in the bigger pockets forums and we’re going to address them
because these are a real question that people are asking but before I get to
that I just wanna say I hope you guys enjoyed that last segment of the show
like that whole segment of the show it’s a little bit different show so would you
guys do me a favor head over to the show notes page for this podcast episode to
go to bigger pockets that come such podcast and you’ll find it in there and
let us know in the comment section if you enjoyed this any questions you have
any comments you have I’ll let us know there kind of gives
those feedback should you like more do you want more of these shows you can
also hit me up on Twitter at Brandon at BP and let me know do you like this
format if so we’ll do more of these if not then maybe we won’t but I thought
this was kind of a fun idea to test out so with that let’s get to the fire
around these questions again are from the BiggerPockets forums first question
few would deny that the market is cyclical it goes up for a few years and
then down for a few and then repeats I want to hear from other investors your
thoughts about how to handle this we’re nearing the top especially my area and
it scares me a little I want to keep investing but I worry about timing
should I hold on to cash and wait for the downward cycle to begin David what
do you think this is an awesome question and this is right why I wrote the book
long distance real estate investing because markets are specific to where
you live it is not the same arc in the entire country one market could be
nearing in top another market might not have even got it started yet and another
market is getting some Amazon Supercenter that’s about to go in it’s
about to blow up okay you may be maxed out at your market where you feel like
you’re at the quote unquote top but another market is ready to run and you
can get in there by learning how real estate investing works you can be
empowered to go invest and the markets that makes sense not just the markets
that’s close to you okay when people tell me that they’re afraid that the
market is reaching the top the first question I ask is like how do you know
what the top is right it may seem expensive to us but are you taking into
fact that wages are going up too and jobs are growing and companies are
moving in and interest rates are really low and it’s really is it really near
the top like what you’re thinking the next question I ask is when you say top
do you just mean that it won’t cash flow anymore
that’s what most people think I can’t buy a property that cash flows any more
there’s two things that you can do one you get better deals by getting more
leads pursuing those leads harder analyzing more of them and finding
success or two you go to a market where you are more likely to have success now
be I’m very busy just like Brandon is
running the businesses that we run it makes more sense for me to go to a
market that has a lot of deals right I actually look for markets that have a
high day on market the average house takes a long time to sell there because
I don’t want to be fighting with 19 other investors that all want the same
property and I know that my appraiser is gonna value it based on the comps he
doesn’t care how long it’s at on the market for that’s not gonna be hurting
me now if I was trying to flip houses that might not make sense for me but
because I’m buying rentals that’s something that I want right I go to
areas where I know I have a competitive advantage and it’s gonna be easier to
find a deal so I don’t care what my market is doing cuz it’s not my market
it’s just the market where I live in right if the market that I’m in right
now decides that it’s gonna be too expensive as to our defined deals other
people are there I will go to another market and I will put my system together
build my core for and start getting deals out of that area remember that
real estate is market specific what is happening in your market is not what is
happening in other people’s markets and don’t get discouraged yeah that was
great the only thing I’d add on to that is like buy good deals and bad markets
buy good deals and good markets buy good deals no matter what that’s why it’s so
important to run that lapse funnel and to know the numbers so all right next
question I’ll let you take this one all right does anyone have any tips on how
to handle cleaning of the unit after guests leave this is like an Airbnb type
of a situation there’s a small window of time each day to clean and is almost
impossible to do it yourself while working a full-time job Brandon you do
Airbnb right I had an Airbnb I actually just sold that Airbnb and basically it
basically became just a flip I held it for a year and what I’m not gonna go
into the reasons why I sold it but basically it was just too much work and
this is one of the reasons why because coordinating cleaners was tough now this
person is asking how do you do it when I have a full-time job you don’t like
that’s just the short answer it’s like you don’t clean the unit when you all
don’t have you find somebody else remember I said earlier for every job
you hate doing there’s somebody who puts food on the table there is somebody in
your market right now who wishes they had a flexible job that they could go to
for a couple hours to go and clean because they don’t have they can’t go
and get a 100 dollar an hour job at the local whatever but they can clean a
house right there’s people that are desperate for that job right now that
you could actually help them put food on their table you need to find that person
so what we did is we found a couple different people there’s one primary and
we just let them know here’s what the deal is people come and they usually
stay for a day or two days or three days we need you to be flexible and when they
leave you got to get in there like there is no other option
can you do this we set the expectations up front we define what we needed and
also we have a very clear checklist on what has to get done this this this this
we have pictures even on what we wanted things to look like within the air being
me we systematize the whole process and we
had a first-person and then we had a backup in case the first person for
whatever like one time her car got stolen and she couldn’t do it had a
backup run in there and got it done so that like again don’t do that yourself
but if you’re using Airbnb that the guests are actually paying for the
cleaning anyway there’s a cleaning fee like don’t look at that as income like
your time is better spent finding deals or spending time with your kids so
that’s my answer of that one all right next one thanks all right if I was
wondering I was wondering if I should be building a website before I start my
whole sign business I was looking at my list of things to do and wondering if I
can get buyers and sellers on my team if I do not have a website what are your
thoughts on that David so a website is a tool that can help you but it’s not
necessarily something that you have to have okay
wholesalers do a good job because they find people that are in distress and
need to sell their house and because they have a deal it’s easy to go find a
buyer like brandon said earlier find the deal and everything else is gonna come
having a website can help you but it’s not something that you absolutely need
to have now in today’s world having a website is so easy I can’t think of any
reason why you wouldn’t want to have one right if not for the simple fact that
when you’re you’re reaching out to people it will just help you establish
rapport that you can say look I have a website I’m more professional it might
not be super effective at finding deals but it might make your job easier once
you’ve found them to kind of build rapport with that person and get a deal
now a lot of people do use websites and they’re very successful at it I know
there’s one company called investor karat I believe that basically makes
like a high SEO website right out the box that helps people find you when
they’re looking to sell their house those work better in some markets than
another if you were in California with an investor care website and you know
your house is worth half a million you’re not gonna go to a wholesaler and
let him buy it for 200,000 very likely but if you’re in like Indiana Kentucky
some of these areas where they have like not as many people chasing after houses
you’re more likely to to call the person or to Google hey how sell my house in
Indiana I want to get a good deal lead propellor is another one that’s a really
good website that people use that they can drive traffic to them to find these
deals and they’re not very expensive like this is a really good way to kind
of get started see what works see what does
and then start building from there you start writing blog posts and driving
traffic to your website and you start reaching out to other people like
Brandon said and telling them hey I am looking to buy property here is my
website check it out if you hear of anyone that wants to sell call me or
have them register from my website I can get in mine India what their house would
be worth as someone’s gonna buy it for cash for me in my opinion this is a
really cheap easy and quick way to get yourself started you don’t have to do it
but I don’t know any good reasons why you wouldn’t want to yeah I actually
made my website so I have two of my apartment buying website was built
through lead propellor and my like home mine website was built through Wix calm
it cost me like $8 a month or something stupid cheap like that right then one
that’s cost me 8 bucks a month I actually did a flip last year made
$50,000 on it she found me through that website so was that worth $8 $8 a month
for that Wix website yeah if you uh if you guys were to go YouTube also if you
type in well just go to bigger pocketses YouTube page and then look for the most
popular video that we have on the entire I mean YouTube channel you can like sort
by popularity the most popular video we’ve ever put out got like almost a
million views now I think maybe half a million it’s on how I built that exact
web site I filmed it like four and a half years ago it’s horrible quality
because I was not really sure what I was doing with this technology stuff but
anyway that video people tend to like it a lot so if you want to learn exactly
how I built that website that made me 50 grand check that out alright so let’s
see last question the day on here it’s not actually a question as David and I
were going through the forums trying to look for a really good question we just
saw this post and we were like we just have to talk about this for a minute
because this is like the coolest thing so James K put a post on there that
basically said then we pull up and read the exact title of it multifamily brr
strategy that we talked about it earlier it’s like buying fixer-uppers and then
refinancing them later after they’re fixed up so multifamily Borough strategy
that created 4.5 million dollars of value in 12 months
so James K is a syndicator in Austin Texas but I think this property was
actually in San Antonio in San Antonio 174 units they basically like did the
Bur strategy they bought it they fixed it up and then they rented it like you
know raised all the rents rented it out got a fully working well it says this
the deal was bought at six point nine million they added one point three
million to the rehabs and like what mid eights the property then
appraised at 2.7 that’s when I 12.7 creating 4.5 million dollars of value in
a year and then they went refinance it because now let’s got that new value and
actually pulled out all their money and then some
so they actually made money at the thing and so now they can go back with their
investors money and do it again and again and again right so anyway that I
just thought it was super cool James Kay nice work well some of the things that I
loved about this post is that he’s using the techniques that were talking about
in this exact podcast to help you guys right so he bought this at a very steep
discount he said he bought it at 39,000 dollars a door why because it was a
direct buyer seller transaction he found an off-market deal where the seller
needed to sell that property they were very motivated and he was able to buy it
and then he did what we called the the seller the seller financing where he
actually assumed the loan that they already had he didn’t have to go get his
own loan and pay closing costs right he got to take over a loan that they
already had which was in really good shape and when you’re buying multifamily
properties the loan can be a really big deal he was able to just take theirs
then he went in and he rehabbed it effectively he added value through the
rehab he painted it he added new fixtures they made the place a lot nicer
and that ended up increasing the rents by a hundred and seventy three dollars
per door on average and this was 169 units I think that it was 174 massive
value that he created by bumping the rents up that much which made that thing
worth so much more okay by combining all of the tools that we’ve talked about
today from his tool belt they were able to put them all into the same deal and
create four and a half million dollars in twelve months by doing a really good
job on a rehab that is why I’m so excited about real estate investing in
the the stuff we’re talking about this podcast this stuff works for the big
boys and it works for the new guys right like all of this it’s the same tools
that we’re all using listen to this podcast again take notes write down the
stuff that you don’t understand and write down the stuff that you really
like master it so that you really know I can do this this is how I’m gonna make
it work and deals that don’t seem like good deals like maybe this one didn’t
even look like a great deal but he knew how much he could push the rents he knew
how much he could rehab it he got it at a better deal than what he thought
because there wasn’t a broker involved he did everything right and created four
and a half million dollars in 12 months that is amazing yeah I love that that’s
super awesome so anyway hope you guys enjoy that little it was not a question
but you know we’re cheating so that’s okay and with
let’s get today’s let’s get to today’s famous alright if you guys are looking
to the show before you know that this is the part of the show where we go through
the same four questions every single week and we ask every guest since we
don’t have a guest today it’s just me and David hanging out and talking to you
guys telling you guys what we know about solving those three big problems we all
have no time no money no deals we’re going to tweak the famous for just a
little bit we want to just give you guys some of our favorite real estate book
recommendations and business book recommendations and then we’ll go into
hobbies in the last question but so first of all favorite real estate books
if you want to know more about these topics a few books that stand out to me
first of all Anson Young wrote a book that we published here called finding
and finding great deals like it’s about finding great deals and then funding
them like it’s like it’s a no brainer go pick that out bigger pockets that comes
I store also David here wrote a book on long distance real estate investing
called long distance real estate investing and and like yeah we’re really
clever with our names so definitely check that out as well you can get and
get that bigger pocket talk about a store you can also get these books at
Barnes & Noble you can get them an Amazon but if you buy in my bigger
pockets you get a whole bunch of tons of bonuses and David’s bonuses are actually
super cool because I filmed them in my own living room so we actually did a
whole bunch of cool video filming in my own living room you guys all love it so
check it out again BiggerPockets icon slash store but that’s just a couple
real estate books anything you want to add to that or you want to go to
business books well I really like the book on investing in real estate with no
and low money down that Brandon wrote because this is a problem a lot of
people have especially when they’re new what I find is that most of the people
that are on bigger pockets now not everyone but a big chunk of them they’re
new and that’s why they’re here right there’s also a lot of successful
investors that are here I’ve listened to every single episode when it comes out
but for those of you that are new and you’re worried about specifically the no
money get that book and realize that all of these problems have already been
solved you just have to use a tool that somebody else has already made another
book that I really like is by Gary Keller is called the millionaire real
estate agent now the reason that I like this book because
not everybody out there actually wants to be an agent or should be an agent is
because he basically outlines what Brandon calls the Lapps funnel he talks
a lot about how it is all about getting leads and then working those leads into
the success that you’re looking for and it applies very very very strongly to
real estate investing if you can train your brain to start
working backwards from your goals right like I want to have success for me
that’s buying a house how am I gonna do it I’m gonna have to write offers how do
I know what offer tried I have to analyze a property how do I know what
properties to analyze I need to get leads and then start working backwards
from there using the mins the most important next step okay how am I gonna
get a lead well first I have all these things that Brandon and David just
talked about that I can start pursuing I need to start telling other people I
need to be joining a meet-up I needed me meeting real estate agents and meeting
contractors or write down a list of everything you need to do and then use
the mins fundal to figure out what’s the most important next step that I should
be taking to get myself a lead by combining these things together you’re
gonna get great leads was that just so fire that I made you sneeze now that’s
all I’m getting at is take these techniques that we’re teaching you
because we’ve we’ve talked to so many successful people and they’re all doing
it if you just copy what they are doing you will end up having the same results
that they’re having retrain your brain to think along these terms and you’ll
find yourself successful quicker than what you thought awesome
alright so let’s say favorite business book you mentioned real said agent it’s
a real estate book that’s a business book there’s two that I want to point
out that I made a big impact on me with the time thing like I don’t have enough
time that is the compound effect by Darren Hardy fantastic book I love that
book I actually read it over and over and over and the next one I actually
read a lot too the 12-week year it was a two books that I made a massive impact
on my life and one more is the 80 80 20 sales and marketing made a huge
difference on my life as well in terms of thinking in terms of funnels and
getting other people into your life to help you with things that’s why Perry
Marshall we actually had him on the podcast awhile back so again compound
effect 12-week year 8020 sales and marketing and then of course the one
thing written by Gary Keller and Jay Pappas and that had a big impact on my
life as well yep those are pretty much the exact same
books that I would recommend my advice to you guys would be if you know that
there is something holding you back you have that little itch in the back of
your brain that just says I’m not doing this because of this reason find a book
that tackles that reason listen to it on audio read it yourself talk to a friend
about it start a group where you basically hold yourself accountable to
all your buddies and say look I’m having a hard time with this thing it could be
having confidence to move forward it could be I don’t think I’m gonna math
and I can’t analyze deals it could be not a people person I don’t want to pick
up the phone and talk to somebody talk to other investors and other buddies and
let them come up with solutions for you for getting around it like Brandon
acknowledged all of you hundred thousands of people that are listening
to this I don’t like to talk on the phone and it was holding him back right
but he didn’t let that stop him he went and found someone else that likes to
talk on the phone not only is the phone talking getting done but that person now
likes him because that he’s letting them do something that they wanted to do
right I do the very same thing in my business like there could be a topic for
another podcast but I’m not afraid to say I suck at these things and I don’t
enjoy doing them and I will find someone else to do it so I can focus on what I’m
good at and that’s how we’ve been able to find
success and you guys can too love it alright next question on the famous four
with hobbies what do we do for fun let’s change a little bit what have we been
doing for fun here in Hawaii we’ve done a lot of fun stuff lately about like you
know what one of the things that I really like to do is find out what’s
going on in my friend’s life and how I can help him get there with what I have
going on in my life right and I found that when you pour into other people and
you help them become more successful you end up finding answers to your own
questions and then they’re more incentivized to do the same for you so I
would like to encourage everybody out here to go find the friends that you
already have or the business partners that you have and figure out what is
their problem and help them solve it increase that friendship make it even
better make them want to return the favor for you and maybe in solving their
problem you can kind of come up with what would help you with yours yeah
that’s awesome yeah we’ve been doing a ton of that because I got a lot of
problems and David the smart dude so other things we’ve been we’re gonna be
doing some surfing on Saturday that should be a lot of fun so anyway that’s
that’s hobbies lately has been that hanging out with family we went to
Waikiki Beach last night we actually met rich Carrie who was on the podcast just
a few weeks back rich Carrie is an awesome dude we had
some Cheesecake Factory with him that was rich eight one uh those go to the
last question David what do you think I’m gonna just ask you and then I can
maybe I’ll chime in on your answer but what sets apart successful real estate
investors those who find deals who find the money who find the time what sets
apart them from everyone else who struggles gives up fail and never get
started so every time I’m asked this question on the podcast I have a
different answer as I kind of evolved through time and what my answer is right
now is I really believe that is the perience that the investor has when they
first get started if their expectation was I’m gonna walk out there make a
couple phone calls find a deal get it under contract banks are gonna be
throwing it themselves to give me money it’s all gonna be a thirty-year
fixed-rate at a really low interest my tenants are gonna be wonderful just like
I would be in take care of my house they get discouraged very very quickly before
they’ve had enough success to make it worth it to power through that right and
then they quit so what I want to tell people is understand that you need to
protect your experience that you’re gonna have with this by seeking wisdom
listen to these podcasts and understand there are gonna be many hurdles that
come up it is they are all worth it literally every single thing that I have
ever accomplished in my life that I am proud of was hard there’s not one thing
that fell into my lap and I’m like oh this was awesome right and it just came
really easy I had to work for every single one of them and now I don’t trust
it if it comes easy it’s probably not gonna be good
Brandon just told us that story and it was kind of like oh haha my wife
rejected me four times in a row it is not fun to get rejected by someone you
have strong feelings for that is really really hard and a lesser person would
have quit and not got there right because Brandon understood it is worth
it to go through this pain he ended up having kind of like you know the awesome
fairy tale story at the end of the thing but real estate can work the same way
make sure that your experience is good by not having bad expectations and not
setting yourself up to fail don’t go after homes that are in perfect
condition and right way below asking price offers and then it gets courage
when everybody says no look for houses that you know are more likely to take
your offer look for people that you know are more likely to trust you and respect
what you do and ask them for money don’t go to complete strangers that don’t know
you at all and say can I have $90,000 to buy a house make smart decisions so your
experience isn’t bad get some success and then you’re not gonna mind the
headaches that come your way I got nothing that oh that was awesome drops
mic alright guys so I hope you enjoyed this episode of the BiggerPockets
podcast again a little bit different format than usual but I thought since
David was out visiting me here in Hawaii right now I thought it’d be fun to just
you know pick his brain talk together kind of do a little masterminding
together and try to help solve your problems good again the big three that
everyone struggles with I don’t have any money I don’t have any deals I don’t
have any time after today’s episode I hope you don’t have those excuses in
your life anymore and you can go out there and take massive action so with
that if you enjoyed this episode do me a favor share it on your Facebook page or
you know whatever social media channel you like better
or the best tell your family and friends about us like you never know like whose
life you could change completely because you introduced them to the world of real
estate investing podcast in a cool way to do that so if you thought this was a
good show to share share it and of course leave us a rating and review over
in iTunes because that helps us reach more people by being in the iTunes
charts so that’s all I got I hope to see you guys around make sure you check out
the bigger pockets webinars we do them every single week BiggerPockets comm
slash webinar and Dave you got any final thoughts nope this is the host of the
BiggerPockets podcast david green for brandon married way out of his league
turner signing up you’re listening to bigger pockets radio simplifying real
estate for investors large and small if you’re here looking to learn about real
estate investing without all the heights you’re in the right place be sure to
join the millions of others who have benefited from bigger pockets calm your
home for real estate investing online

How to Invest in Real Estate with Your Retirement IRA or 401K (Roll Over 401k to IRA?)


(upbeat music) – [Toby Mathis] Can I roll over my 401k to a self-directed IRA to
invest in real estate? The answer is, absolutely. However, do you really want to? Because, depending on the
401k, again there’s two types. There’s multi-employee plans, where’s it’s an employer and they have lots of employees in it
and there’s restrictions on what kinds of investments you do, and then there’s the Solo
401k that you control. And honestly, you’re
better off using that 401k for the investment in real
estate if that’s what you’re doing because you don’t need a custodian. You can sign your own closing docs. You don’t have unrelated
debt finance income issues, that way you can borrow money. Whereas, in an IRA, you
have to pay the tax on it. IRAs are also single owners, so if spouses are buying
a property in their IRAs, well there’s actually two
owners on that property or you’re setting up an LLC, which is actually my preferred method. You’re setting up an
LLC inside of the IRA, it’s called a checkbook IRA
or an LLC inside of the 401k to make sure that you don’t
have unlimited exposure due to liabilities that could
come from that real estate. So if you own real estate, in a self-directed IRA, you’re ultimately, as the individual
retirement account holder, you’re personally liable
for the activities. So if you have a rental
property on an IRA, and there’s a slip and fall,
you’re ultimately responsible. So, we always want to make sure that we’re cognizant of asset protection when we’re setting this up. But yes, you can absolutely roll it and use a self-directed IRA or you can just use a Solo 401k. Or if this is with an employer, a past employer, they
allow you to roll the plan, I mean if it’s a past employer you can absolutely roll the plan. If it’s a current employer they could say ‘no you can’t until you leave service’. But if you have an old 401k
and you want to roll it in, one of the best things you
can do is set up a business and have a sponsor 401k. You just remove the issues. Nothing against IRA custodians but they don’t work on weekends. So if you’re buying property
and you’re there on a Saturday and it’s a bidding situation, you’re not closing and
you’re not able to even bid ’cause you can’t get a signed
offer from the custodian until they get back in the office. So if you want to avoid
that, you use a Solo 401k. Alright, we have lots of questions. I don’t see any of ’em
pertaining to that one so I’m going to skip
through to the next one. You want to add anything onto- – [Jeff] No I’m good, I’m just watchin’. – [Toby] All right. Some of this stuff is more
lawyer than accountant, so, in that particular case, as long as you’re going plan to plan, you don’t have to worry. And I’ll say, I can twist words, we can play the Roth game and say oh it has to be a traditional
IRA 401k to a traditional or a Roth 401k would have
to go through a Roth IRA. You cannot go back from a
Roth IRA into a Roth 401k. A lot of people don’t know that. So we can twist it. – [Jeff] Right. – But we don’t.
– No. – [Toby] We’re not going to do that. Even though we just- (upbeat music)

Are You Ready To Start Wholesaling Real Estate? 1st Deal Challenge


Hello’s Kevin Gibbs and if you’re interested in starting real estate wholesaling business Then you’re in luck because today I’m gonna give you my seven step system. My seventh step 30-day first deal Blueprint. Alright, let’s get straight to it first and foremost. What is real estate wholesaling? we defined as the art and science of Finding deeply discounted properties and locking them down under contract and assignment for a lucrative Assignment fee write that in a nutshell If you want to know more about real estate wholesaling, you can watch any of my videos I have a lot of videos on my channel Also, let’s get to this on 30-day. It’s a 30 day challenge. All right, 30 day challenge to help accelerate. How booth Help explore you real estate wholesaling business so that all you can hit the ground running, right? Because we know this is a game of momentum All right, and I’m consistency So the first thing you need is the script alright and you can get the script on we have everything that you need and um If you download if you look cooking on the description below and you could download two free books real estate money on real estate money secrets and smart real estate wholesaling And um, he watched a video it will show you how to become part of our mastermind. We have a real estate investing mastermind wholesaling mastermind and digital market mastermind We’re on UK own network with a what a lot of people have been in the game for a long time Right, and I experienced people and you also could get a mentor if you need a mentor, right? so, um first thing you need is a script right we have scripts and um, Especially if he’s just starting out. We always recommend using the first thing is on Cold calling, right? Well, we got coca-cola in a certain way and um There’s a we use a power dialer, which is number two, right? But the first thing you do is you need a neat you need a script You need to know what you call them for and what’s your goal? What’s your objectives and how to dig and try to find motivation? That’s the key thing that you’re looking for You’re looking for motivation, right? You’re looking for a motivated sell it. So you’re looking for motivate motivation You need to know ask questions to find the motivation that you’re looking for right in There’s seven different outcomes that could all happen when you call someone right? They could say yes and They could say no they could say maybe maybe there’s no right. Like I said, how’d you get my number, right? And you could just tell them that it’s public records Its public right was when someone owned a home right that people always wondering how you got that number most times and pre-foreclosure That’s a lot Alyssa Nicole and I said, I’ll tell them I said well you you know You do know you’re in pre-foreclosure and then you know, we could start developing a conversation I had many conversations just developed just by, you know, just, you know being honest with people and you know leading with value right If you if you’re going through any of these on courses that we’re offering then you will know that Value, right. If you’re watching my videos you continuously hear me talk about leading with value. Right? So, um, you also could have Maybe later, right which is usually know but you never know right? Um, also, um if the offer is right, All right, and then you know, like I said, these are just little points where you could develop More of a conversation to engage and really try to find that motivation Right and a lot of times someone else a su right get on my face and they will come on phone again But it’s just part of the game and you gotta have thick skin All right So you gotta have your script, you know, whatever script there’s no one perfect script But you gotta no one. Would what you looking for when we looking for motivation in this case, right? Second thing you knew you need is a dollar, right? I use the Mojo power dialer we could call eighty people in an hour right on they also have a three line data But for this case, you could just use the single dial especially just starting out All right, um and just use that dollar it loads up eighty I mean it calls eighty numbers right and on in one hour, which is great um So number three is that’s number two number three is you got to download 1000 download and skip trace 1000 records per month minimum right minimum 1000 per month And that’d be a good place to start in the first month. Um, we also have skip-tracing services like I said Just click on the description below you can basically get all of our services and On all of our products that really help you in your business and really help with celebration and put you ahead of the game Right. That’s what we’re here for is to help you stay ahead of the game right, and I’m gonna create good partnerships and create good education platform for People to learn this game won’t really say wholesaling, right? I mean that 1,000 records are really gonna you know help you out on and give you some skill development cuz you’re certain skills that you get that that you need to develop if you want to be a real estate wholesaler and Question-asking is one of the biggest skills that you can you can own obtain You just want you want to get quick right? You want to get straight to the plan? Um Get what you’re looking for cause you want to be speaking to a hundred people in One minute and not spend 100 minutes on one person. All right, um, Number four is if you have a team, right? Over your individual you could dial one hour per day five hours per week, right? but if you have a team you can maximize that that’s a good thing about the way that I’m teaching how to set up your Business you could always scale this business up But you can always leverage and on these tools if you know, you can leverage the tools different tools You know sometimes you know new tools come out, so I don’t want to get so You know stuck on the tools but I’m just talking about the system the business system that I’m giving you the seven step system that I’m giving you to close a Deal in 30 days, right? And it’s not no guaranteed You gonna close you’re dealing 30 days but if you go out this like this for 30 days you’ll be ahead of the game and I Guarantee you’d be another 30 days or another 30 days that if you keep it going at it You’ll be ahead of the game You have a lot of skill development where you know You’ll be a lot closer to closing your first deal the second day or third day But you’ll have a business set up right where you’ll be able to scale it and you’ll have sustainability Okay, so on that’s not goal for you Um number number five is on track your progress with a CRM Right on I said the Mojo is also used as a CRM. That’s like such a great tool You can get you get a lot of bang for your buck. You get a power dialer you get it on My CRM also like I said You can add different dollars like when you want employees and you want people to own as you start scaling your business You can get on Agents on there that could work under you for a very small, right? So you keep your same system and just keep teaching your system over and over and over and this is what I’m trying to show You right how to keep your system going over and over and over so it could work like a machine That’s the digital age. So this is this is this is the first step for you opening up those doors Alright, this is just you getting in the game You wanting to learn how to be a real estate wholesale the most people get Um getting a game and they don’t learn the right way to set up their business and operate their business They get out there freestyling wasting a lot of energy wasting a lot of time That’s why I said seven step system save yourself time energy and money. That’s what I’m trying to do, right? You’re gonna spend more money not listening Than just listening, right? Okay, so I’m number seven is Number six is share. Your results are number six is share your results, right Facebook Instagram. Share your results. Tell people what’s going on Even if you didn’t close the deal like right let people know what you experience You know that it’s a it’s a journey that you want. It’s a challenge It’s a 30-day challenge where you could get that deal in the thirty days you’d be real happy You know, that’s what I’m trying to help you do but you know, that’s that’s that’s up to you But um, if you follow this blueprint, I guarantee you be successful and number seven is on finding Network right Your network is your network? But you want to be around people that some more experienced than you right? You want to be mingling iron sharpens iron? So get around somebody that’s Sharper iron so you could sharpen your skills and then you know you sharpen somebody else’s skills but if you’re not sharp, you can’t shop in no one else so There you go. That’s your seven step System that I’m giving you that I gave you seven step blueprint Actually, I’m gonna put this in a download you could click in the description and you’ll be able to UM see the seven step system And I also want to tell you about the three C’s right you want to stay focused on the seven step daily? Um the seven step system for the 30 day challenge to get your first deal is you’re gonna take commitment consistency and confidence this will do the three C’s that this Training so to sort of speak training why are you going through bootcamp is that it’s going to develop inside it’s going to value the confidence to speak to people that know what you’re talking about and know all the how to handle all the Objections that may come your way It’s going to teach you to be consistent because you’re gonna show every day for a certain period of time and and you’re gonna know your numbers and I was also gonna um, See if you really commit it right commitment lasts way longer than after you start something Commitment is is you show up to work every day no matter um, if you feel like it or not, right? So there you go. Um, if you like anything I send this video, please like share subscribe You can click on an almond Bell to receive Notification of more videos also, please click on the description below If you want to free books smart real estate wholesaling, and on real estate money secrets. Thank you

Investing In Real Estate With A Full Time Job?


All right, what’s going on everybody? In today’s video we’re going to be talking
about, can you have a full-time job and still invest in real estate? I would say absolutely you can and, not only
that, but you should have a full-time job. If you’re looking to become a full-time real
estate investor, I would actually recommend that you have a full-time job and then do
real estate investing on the side before you gain some consistency to the point where eventually
you could quit your job if you wanted to. There’s a couple of reasons for that. Number one, just like any business when you’re
getting started, it’s going to be hard to be consistent and do consistent deals when
you’re first getting started. Now, some people, they might start doing two
or three deals per month but other people, it might take them a little while to get started. From a pure cash flow perspective, you might
save up some money but if you’re not making consistent income, like you would from a normal
job, that money can dry up pretty quickly, ask me how I know. I would definitely recommend having a full-time
job. Ideally, a full-time job in the real estate
industry so you can gain even more experience before you even think about quitting your
job. The next thing I would keep in mind is, when
you’re getting started as a real estate investor sometimes you can do extremely well in your
first couple deals, and it might even just be dumb luck. If you’re doing marketing sometimes you can
just … I know some investors that have made 100,000 on their first couple deals, which
is definitely doable but it’s, I’d say that’s, I’d probably consider that pretty rare in
the real estate industry. You want to be able to have done at least
a minimum of three deals but ideally more like five or six deals before you think about
quitting your full-time job. The reason for that is, yeah, some deals might
be amazing, other deals might take a little bit longer and you might not make as much
so you want to have a wide spectrum of deals under your belt before you decide to quit
your job. Sometimes you get cocky too after you maybe
do two or three good deals but then your fourth deal, because you’ve done so well in those
first couple, you think, “Oh, I’m going to hit another home run,” and then that deal
doesn’t go so well. You really want to see a wide spectrum of
deals before you think about quitting your job. Another great reason to invest in real estate
on the side, while you have a full-time job, is to build up assets. By that I mean you want to build up … You
can even buy rental properties. It’s going to be significantly easier to purchase
rental properties if you have a full-time job rather than if you’re just self-employed
doing the whole full-time real estate investor thing, so that’s one reason. You can buy two, three, four, five rental
properties with your full-time job income before you take the leap to being a full-time
real estate investor. Then, in that case you have cashflow coming
in that would help to stabilize some of the months when you’re first getting started. Not only that but you also want to extend
your credit lines and potentially get new credit lines as much as possible when you
have the security of a job. Myself personally, I have over 100,000 in
credit and I’m trying to get over a million dollars in personal credit and possibly business
credit as well. When you have a job that’s going to be 10
times easier because they just look at the income, they might look at your taxes, and
they’ll give you sometimes a pretty quick approval. You should have, I’m talking about credit
lines with the bank. Sometimes you can just get a personal credit
line with your bank and you can apply for 50,000. Now, they might not give you 50,000 and they
might say, “Hey, what are you spending that for? You say, “Hey, I might be making some large
purchases soon.” You don’t really need to get too specific. I don’t want you to lie or anything like that
but, generally speaking, if you have good credit and a steady job you can ask for a
personal line of credit, which is essentially like cash. It’ll just be in your account and you can
use it whenever you need to. You should do the same with credit cards. You should have three or four credit cards
and try to extend the credit lines on those as much as possible. Most people are not even aware that you can
probably just call your credit card company today and ask, if you’ve been paying on time
and you have a steady job, probably ask them to double your credit limit. That could give you a lot more financial security
when it does come time to quit your job. What will happen is when you’re self-employed,
especially when you’re getting started, you’re going to have amazing months where you’re
like, “I’m a genius, I’m going to be a millionaire next month.” Then you have months where you’re like, “Crap,
I need to get a new job. I need to get a subsidized apartment. I need to make some serious life changes.” Having all that built in, credit lines that
you can rely on if you need to. I’m not saying get a credit line just to go
buy a boat, which theoretically you could, but use those credit lines as security or,
potentially, if a buying opportunity comes around sometimes you might … Maybe there’s $100,000, you need to bring
$100,000 to the table and you might be able to finance that in creative ways with credit,
your credit line, and savings, for that matter. Okay. The next reason why I recommend investing
in real estate part-time, while you have a full-time job, is you can get good at outsourcing. Being a real estate investor, being a full-time
real estate investor, you actually don’t spend as much time as you might think. A lot of my business is outsource. You should outsource these three things when
you get started as a real estate investor. Number one. Your leads. Some investors purchase leads, you can purchase
different motivated seller lists. You can also pay a researcher. I have a virtual assistant that I’ve trained
to basically pull different motivated seller lists for me. You want to have somebody get the list for
you, the list of motivated sellers, the list of people that you’re going to be marketing
to. That’s just for my business, some people have
other ways of getting deals. The way I get deals is I basically have a
long list of people and I send them a lot of direct mail. Now, there’s other ways of getting deals. You can do a ton of networking, you can just
search the MLS, but in my experience I think direct mail is definitely the best way to
go. You would outsource getting the list, and
I have different videos on how I get lists and different things like that. If you have questions about getting lists,
just drop them in the comments and I’ll respond. The next thing you should outsource is having
somebody answer the phone. You should have a business phone line with
your business. You don’t want to just put your cell phone
on different marketing pieces and things like that, it doesn’t look very professional. If you’re working a full-time job you’re not
going to be able to just answer every single phone call. There’s plenty of, there’s countless services
where you can have Phone.com to get a business phone number. Then, I use a call service called Dedicated
Office Systems. They just basically screen all my calls and
send me leads, essentially. They notify me via text message as well as
email and it just says, just has the lead info sheet which basically has the property
address, the name of the seller, how soon they’re looking to sell, the address, and
the amount they’re looking for. I know pretty much within 30 seconds whether
it’s a good deal or not because they’ll say, “Look, I want to sell fast, the house needs
a lot of work, and I’m looking to sell it for 200,000,” which might be an amazing deal. You should outsource the calls as well so
Dedicated Office Systems is good. There’s Pat Live, P-A-T Live. There’s also Answer First, and then there’s
also you can hire a virtual assistant. There’s plenty of other services but those
are really good for real estate investors. Then, the third thing you should outsource
is your direct mail. I do a lot of direct mail. If you’re doing cold calling, you can do that. If you’re doing networking, that’s obviously
more in person. If you’re searching the MLS, maybe you can
just pay someone to search the MLS for specific types of properties like TLC, Handyman Special,
Investor Special, things like that. Then, maybe they could send it to you every
single day. For outsourcing my direct mail, I use a service
called clicktomail.com where the person sends me my list that I’ve already outsourced. I basically upload that list to Click to Mail
and it sends out postcards for me. I basically just do that once a week and I
send out a lot of postcards. I get about a 1% response rate but out of
that 1% response rate you’re going to get some very motivated sellers, especially if
you get 10 phone calls. If you can just make your phone ring 10 times
in a month, you’re going to get two or three pretty motivated off market sellers, that’s
also going to help you. Once you go full-time, you’re going to have
a good idea of building a team and things like that. Once you go full-time, you’re going to want
to have a steady source of leads coming in, a steady source of deals that you can evaluate. You can practice with that, with outsourcing
those three things. Then lastly, before you become a full-time
real estate investor, it’s good to have a job in terms of the cashflow. You can also say, “Look, a year from now I’m
going to be a full-time real estate investor and I’m still going to have a job, I’m still
going to have the cashflow coming in. Maybe within that year you say, “Look, I’m
going to network. I’m going to meet 100 different people in
the real estate industry.” You can say, “I’m going to try three different
strategies for finding deals.” Maybe one would be direct mail, maybe one
would be cold calling, maybe you set up a YouTube channel, but you should try three
different marketing strategies during the time just so you can test and tweak and see
what works because once you go full-time you’re pretty much going full-time. It’s kind of hard to go back to work in a
full-time job. You need to be sure that your marketing strategy
is scalable, and that it works for you, and that you can get predictable results. That’s what I like about direct mail, it’s
very predictable. I know if I send out, let’s say, 500 letters,
I pretty much know how many phone calls I’m going to get. If I send out 1,000, it’s going to pretty
much be the same percentage. Obviously, if I send out 100,000 there might
be some, eventually it’s not going to have the same percentage but, generally speaking,
you can predict how many leads you’re going to get. Use your full-time job as security. Maybe you start buying some rental properties,
maybe you start flipping, maybe do at least five deals before you really jump in. Use that time to network as much as possible,
go to RIAs, meet up groups, anything like that. Try to meet at least 100 different people
in the industry and then try different marketing strategies while you’re working a full-time
job. Maybe you just wake up an hour earlier and
you send out some direct mail. Maybe you wake up an hour earlier, you make
a YouTube video, you do different networking, you reach out to different people. You really want to have tested some market
strategies before you jump full-time into the business. There you have it. Hope I answered your question on can you have
a job, a full-time job, and also invest in real estate. I would highly recommend that you do get a
full-time job before you think about becoming a full-time real estate investor. Especially, if you can get a job in real estate,
it’s even better because there’s going to be a lot of things that will carry over to
your own business. Thanks for watching. Please like, please share, please subscribe,
and I will see you in the next one. All right, bye.

How to Buy a Car in an LLC


Can you use your car
as a business expense? That’s today’s show. Let’s dive into it. Hey everyone, I’m
Clayton Morris. I’m Natalie Morris. And welcome to the Investing
in Real Estate show. This is the show where
we try to help you build financial intelligence. We use buy and hold real
estate as our vehicle to passive income and
monthly cash flow. But there’s so many different
ways to build cash flow. There’s so many different ways
to lower your taxable base, I guess you could say. And we talk about all of
those different strategies here on the show. And one thing that we
talk about regularly is setting up a business,
right, setting up your LLC, becoming smarter by
incorporating your family. And then there’s so many
expenses as it relates to that. So I want to read a
question, because we got one from a viewer. Jeff Shelton wrote us. He said, “Hi, Clayton. I’d like to submit a
request for your podcast to cover the issue
of a company car and if it’s beneficial
to have a lease or purchase, to pay
monthly or pay it off, and how to write off the
expense for such a car.” Jeff, great question. I’m going to hand
it over to Natalie. And going to go take
a cigarette break. No, you’re not. OK. You’re going to stay right here. OK, so the reason that he says
he’s going to hand it over to Natalie is because I’m the
one who tries to figure out, in our life, can we
legitimately funnel this expense through our business? Now why do we want to do that? Let’s back up just
a tiny, tiny bit. Now obviously, if you own an
LLC inside of your family, right– there’s some kind of
business that operates out of your family– whether you
sell masquerade masks on Etsy, or you own real
estate, right, there is a spectrum of
what you could be doing to make money
inside of your house as a legitimate business. And then what we
do in our house is try to make sure that
what we need in our lives, we can legitimately pay out
of the business expense. So we like to have cell phones. We pay that as a
business expense. That means that
that expense is paid for with pre-tax dollars instead
of post-tax dollars, right? Right. So we do that as much
as we possibly can. We have entire episodes on that. Hopefully this is an
agreed upon value. So now we can talk
about that’s obviously why you want to have a car
as a business expense, right? Right, and I get excited
about this stuff. And by the way, I don’t smoke. But I might start,
because it’s tax time. And you get a little
stressed during that time. But I get excited about these
different expenses that we can write off, whether it’s
your printer in your office, or the computer that you’re
buying for your business, or it’s things that you
might not even think about. Maybe it’s your internet access,
or your newspaper subscription. Right. Because maybe you’re
a blogger, and you write about current
events like we do. We talk about, hey, Amazon
just built this plant, and it’s going to
affect real estate. So if you have a Wall
Street Journal subscription, those things are a
write-off for your business. Because as an
individual, right, if I get paid as Natalie
Morris the lady, and I report those dollars on
my own personal social security number, then I’m going to
get taxed on the total amount of what I’ve been paid. So I make $1,000, I
get taxed on $1,000. But Natalie Morris the LLC,
if that company makes $1,000 but I had $500 in
expenses, well, now I’m only taxed on $500. The expenses lower
your tax rate, right? So you want to make sure those
expenses– you don’t just buy things to lower your tax rate. That is not the way you do it. That frustrates accountants. Like, you get people calling
up, can I buy a computer at the end of the year? Can I do all this stuff? No, no, no, no. But instead, you buy things
that you would want anyway with pre-tax dollars, right? So another– so here’s a funny
little personal share is that I like to have my hair blown out– Yes, she does. –pretty regularly, because
I don’t like to do it myself, and because it’s amazing. I have to hear about her
hair on a regular basis. Yes. She’s like, oh, my hair today– And so obviously, we make
money by podcasting to you. That’s one of our
revenue streams. So before we do these shows,
I go and get a blowout. Now those blowouts last
me several days, right? But I do do it for the show. That is a pre-tax expense. It is allowed. I don’t even know how
that’s possible, number one, that your– a hair
cut or blowout could last multiple days. Because I never wash my hair. So when I wake up
in the morning, my hair looks like a rat’s nest. So if I got it done the day
before, I would wake up, it would be an absolute mess. I’d have to shower and
get it taken care of. We’re totally
off-topic of a car. OK, the point is that my
hair looks nice like this– The bottom line– –because I used
pre-tax dollars. Right, the bottom line
is you can get things that are for your business. If you have to do a photo
shoot for your website, you go and get your hair cut– Right. –those things can be
legitimate business expenses. So begin to brainstorm and
think about those things. So Jeff was brainstorming
about purchasing an automobile. And perhaps if he’s a
real estate investor, or if he owns an LLC, how can he
benefit from purchasing a car? OK, so Jeff is trying to
decide, can my LLC own it, or can I own it, right? Is that the main question? That’s the main part
of the question. Or is talking about
lease versus purchase? Well, both. Where should we go first? OK, well, talk about
the purchase part. So should he, the person,
be the owner of this car, or the LLC be the
owner of this car? OK, your business can buy a car. But you have to prove
that you legitimately need it for business expenses. Now me, what I use my car for– I have a big old family
sedan with three rows, right? And I just do carpool. I go, and I pick up
my kids from school, and I take them to golf lessons,
and that’s about it, right? I don’t run around actually
looking at our properties. So few of our properties are
in the state we live in anyway. I don’t know, I sometimes
go meet with bankers, right? But it would be
really hard to prove that I needed this car
for our business, right? You, on the other hand, you
do go look at our properties. You do go meet with investors
that you don’t otherwise need a car, right? You can’t say, I need a car
to drive to my business, like you have an
office in your town. Because the IRS doesn’t
let you have a car or write off mileage just
for commuting to the office. To the office, OK. That doesn’t count. It has to be trips
that you go on. So if you can
legitimately make the case that you need this
car for your business, you can then buy a car
with your business. Perfect example– Joe
the architect, right, our friend the architect– Yes. –great architect
in Pennsylvania. We met with him this week. And of course, he has to
go around and visit clients all the time. He’s going to sites. We were walking
through the woods, looking at stakes in
the ground, and where this build-out is going to take
place, and all of these things. He’s driving to that location. Right. So that’s a legitimate
business expense. He’s using that car to go
out and scout locations for his architectural business,
meet with clients on their job sites. And therefore, that’s
an easy write-off. Yes, you cannot really write off
a car in this same way if you lease it out, like an Uber
car or a utility vehicle, like a steamroller or
something like that. Those things have
their own rules, right? I mean, you could buy a car to
start an Uber-type business. That’s very different. So you’re saying if I leased a
steamroller for my business– There’s a completely
different set of depreciation rules for that. There’s different– so
we’re talking about car you drive to work. Now there are some tax rules
around luxury vehicle versus, I guess, non-luxury vehicle. Right, regular car. Regular car. Well, in the new
law, full-size trucks are now given an
extra advantage. You can write off 100% of that. I mean, your father, who runs
a large landscaping company, the benefit to him
in this new tax law is phenomenal,
because he’s buying a lot of these big trucks. Now your LLC can go to
the bank and, if it’s an established business, perhaps
either get a loan for that car or buy it outright if
you have enough cash. You also can take your existing
car and gift it to your LLC if you want. That is a capital contribution. And you’ll want to
talk to your accountant about how that works. You don’t really get
reimbursed for it so much. You just say, now the
car is owned by the LLC. But then all of your expenses,
all of your maintenance, your tires, some of
your gas purchases, go on the company credit card,
or the company bottom line, right? You’re paying these things,
again, with pre-tax dollars. So how does mileage
go into this? So mileage is separate than
actually owning a car, right? So you can get the
reimbursement whether or not you have it in an LLC or not. Well, we’re talking about
things you write off now, right? So if you own the
car in your LLC, yes, you are going to write
off the mileage, right? And you’re going to
depreciate the vehicle. Your accountant should be
able to help you do that. You’re going to write off
those expenses, right? So you can just decide
either, I write off mileage– you get a specific– I think, right now, it’s
around $0.54 cents per mile if you’d like to
do it that way– or you can just write
off actual costs like gas bills, tires,
tune-ups, that kind of thing, oil changes. And I know what your– like
for instance, your father, in his company, with these
large, earth-moving vehicles, he made the point that these
things retain their value. So if he’s purchasing
one for, whatever it is, a million dollars, that
the depreciation actually allows him to, when he decides
to sell it 10 years from now, get the full value back,
plus the depreciation from the government. So again, the
government– the tax code is written to incentivize
entrepreneurship and business owners. And so if it’s an
incentive for him to go out and buy a large
thing from Caterpillar Company, right, that helps Caterpillar. It helps the jobs. It helps his company. And then he’s also able to
write off that depreciation. And then it still
retains its value. Right. Now if your employer
owns the car and you use it for company
trips or work trips– again, not commuting
to the office. That doesn’t count. Everyone has to get to work. That’s just– none of us get any
kind of perks for that, right? Yeah, we don’t get a Star Trek
teleporter to get to work. So it’s like you go on
some kind of outing. My first job was as a reporter. And so I would write
down the mileage that I went out on stories
and then send that in. And I would get
a specific amount back on my paycheck every week
when I reported my mileage. So you could do actual costs,
or you can estimate mileage and take so much per mileage. Again, that’s up to you. And you need to work with your
accountant to figure out– usually it’s nominal. You just choose
one or the other. So– All right. –that’s that. So is there any more to this
saga about getting a car? Again, you want to
make sure you’re taking full advantage of depreciation. You want to make
sure that you’re doing the right way of
minimizing– or writing off your expenses, right? And then you want to
make sure that you’ve got really good proof. Because if the IRS came to me
and said, hey lady, all you do is pick up your
kids from school. Why are you writing
off this car? You’d be in some
deep doo-doo, right? So you need to be
able to prove– like with Clayton, again, you
could look at your schedule and say, oh, he does meet
with investors at coffee shops all the time. He does look at
these properties. He otherwise doesn’t need a car. He doesn’t drive to
an office, right? That’s not a part
of your commute. In which case, the
IRS would understand. Right. So make sure you have a
good accounting of it. Because that’s some– one way
the IRS is cracking down– as you’ve listened to Tom
Wheelwright, our accountant, talk about it– have a good record of it. And a little dongle
called automatic, it can plug right into
your car’s dashboard in the diagnostic
port if you go to– I think it’s automatic.com. And it actually will track
your mileage for you. You can tag it in an app with
your smartphone to let it know, hey, this is a business
trip, or this is personal. And then you can actually add
it right to a Google spreadsheet automatically. It does it. So you can track all of that for
free using that little like $25 dongle. There’s little
automated ways to make your life a little bit easier
if you’re an entrepreneur. So– I also keep spreadsheets
for our vehicles. Maybe there’s an app to do this,
but I’ve just always done it. Because when I sell
the car, I want to give the new
owner– instead of just a file of a bunch of stuff, I
give them an Excel spreadsheet. And I just say, here’s the date. And I just have it
organized by date, mileage, and then what was done to it,
whether it got a new tire, or whether it got a 30,000-mile
service, what was there. So I can give them
those receipts. But they don’t want that, right? So keep good
records of your car. And then you won’t have
to do so much digging. It’s just a matter of keeping
a lot of good records. Because OK, here’s a
fun little factoid. People who do business– It’s fun fact time. People who do business
in their own names are much more likely to
get audited than people who do business in an LLC. So you’re doing all of this
in the event of an audit. If you have an LLC and
you’re doing it right, the government thinks,
well, this person’s at least got this far. Probably they’re not doing
some shady stuff, right? So you’re only preparing
for the worst really. I think that tells
you a lot, right? If the IRS thinks that, hey,
if you’re doing business, and you’re just doing
business in your own name– like you’re the
plumber, and I’m writing you a check to Joe
Smith, and that’s it, not Joe Smith LLC,
then the IRS probably thinks, hmm, probably not the
savviest bookkeeping going on at this person’s house. Right. That’s a pretty
interesting insight into the way the
IRS views people that don’t know that they
need to incorporate in order to protect themselves
and do things properly. So there you go, Jeff. I hope that answers your
question about purchasing a car in an LLC. I’d love to hear your
comments in the thread below. Let us know your thoughts. And you can always weigh in
and send us show suggestions if you would like. Thank you so much
for subscribing. Now go out there, take action,
and become an investor, real estate investor. We believe it’s the number
one way to build wealth. We’ll see you next
time, everyone.

Getting Started with Real Estate Investing using Surplus Funds



hey guys what's going on this is Spencer van from surplus fund secrets and first of all before we get into the actual training part of this video I just want to say thank you guys for everyone that's watching this that was on the webinar this past week we've literally got like a hundred 150 different people that emailed us and just told us some awesome things about the webinar and so I just want to say thank you guys about that again we're putting on a last webinar this upcoming week so if you've not signed up sign up now I'll have a link down below but assuming you're signed up that's why I went ahead and put this video together cuz I wanted to give you guys some context as to why surplus funds is such a great opportunity and exactly what it is so let's break it down first as to what the heck is surplus funds so let me see here I'm not the grass artists so surplus funds I can type that out at least that's the good news I don't know how to move it it's just gonna be stuck there that's fine can we make it bigger added man all right so check this out guys so this is what surplus funds is now and I'm sure a lot of you guys that are in real estate have heard of a foreclosure right so there's a house okay and that house goes up into foreclosure okay so we're gonna put a big red X boom on the house because it's no longer owned by the person right and we're gonna put a someone here with you know the red to signify they used to live there and they're very sad and their eyes are bleeding into their mouths I've gotta know if they're that sad but they are sad right they just lost their house things are not going good for them well this house is then sold at an auction right sold in an auction and if it's sold to a third party which you know I don't have a statistic of how much it is but I would say the majority of time it is sold to a third party okay so that means that it's sold for dollar signs right that means the bank that is foreclosing or whatever loan is foreclosing gets paid okay now let's say that this loan that they owed was will make it really easy we'll say it's like a hundred or we'll say you know say it's a hundred thousand all right a hundred thousands alone and they go and they saw the foreclosure like I said but instead of getting a hundred thousand for it they get five hundred thousand we'll just say all right or you know we won't even sit up will say uh let me erase this will say they get say they get out enough two hundred thousand right two hundred for the house alright 200k okay so obviously the bank loan gets paid off so we can erase this 200k boom it gets paid off but then there's this extra hundred thousand dollars okay and you know if you guys are following along by now you probably already know this is supposed to go back to that sad homeowner over there on the left the problem is is that the bank is supposed to notify them and they do but they don't they like send a letter to the house that was foreclosed on as if these people are still there but again these people are long gone most the time they're living at you know an aunt and uncle's house their mom's house or dads house they're just not there anymore okay and the bank is not Dog the Bounty Hunter so they're not gonna go and track someone down to give them money that's not a very profitable business or for the bank okay so what happens is you've got this hundred thousand left this 200,000 was you know someone's given the bank someone's given to this this fun and this becomes a surplus fund okay so you've got this excess fund now sometimes there's other liens on the property and those have to get paid first okay in this case in this example to keep it really simple we're gonna just say that there's only one lien now obviously you know again we don't know but we're gonna say there's only one lien that already got paid off and was a mortgage so there's 100k okay so again the bank has it and then the bank transfers it over to the courthouse okay and so the county courthouse and so now it's at the county courthouse and you've got like the court boom and the door okay and it's out the county courthouse that's a horrible strong courthouse okay and it sits there for a while and then then it goes to this state and the state has I'm gonna just write CA I'm gonna try to draw it's like I drew a see into the era that's how great an artist I am right goes to CA and you know yeah you guys get the point here okay is it kind of just moved around but in certain states like specifically California the state I'm in it never disappears it just kind of sits around now there are certain states very few I believe that have a time limit okay which means you only have 90 days to your fund this excess hundred K in this example would disappear in ninety days if we were in I think Texas is one of them don't quote me on that I'm not sure but I know for a fact California is not okay so you can go back you know to 1990 and close the deal if you want to okay now the whole point of me try to explain this to you is that this person sad and they're owed this money but they don't know they almost never know in fact so this money moves around they don't they have no idea and this is where we come in so we're this third party we're blue I don't know why we're blue but we're blue okay and we're here and we're savvy entrepreneurs and investors and I'm gonna have a little smirk on my face boom with tiny eyes one's bigger than the other one okay and I and I realized that this over here would really benefit this person okay because think about it they just went into foreclosure and I mean the probably most important thing you need when you go into foreclosure is money and something like a hundred thousand dollars is huge money for someone that just lost a house right so long story short is what we do is we then contact this person so we contact them so contact I'm going to put put cont okay boom that's one we bone so we contact then we agree so agree they they have to agree to work with us obviously that's two that's two I don't know what I just did a great gun I am horrible at this I apologize oh goody and then 30 or whatever number that okay three or yeah there you guys a little bitter we are going to recover their fun now we're not really gonna do it we're gonna have a lawyer do it but don't worry I know it sounds a little scary that's not the that's not that scary so long story short is we're gonna we're gonna do those three things and we're gonna get them back they're funded in the process of that we're gonna be able to make a commission off of this which is beautiful right so the cool thing is is that you know with surplus funds there's not really a standard to it so obviously you don't want to piss people off you don't charge them a ridiculous amount of money but if it's something like 100 you know 25 30 % is completely within the ballpark of that and and I didn't seen people do more like 40% although I personally think that's a little bit too much for a hundred thousand that's just my opinion okay now again this is kind of the basis of it okay so now I'm going to go over to surplus list comm this is the lead site for surplus fund leads so if you're looking to get starting this is where you should go and if you scroll down here we can look at let me show you the criteria so we've got 20 18 leads from March 1st to June 1st ok today is what's today today's June 6th as I'm recording this okay and we scroll down here we're putting a minimum amount of a hundred thousand so all of these deals are gonna fall in this or more they're gonna be at least a hundred thousand in surplus funds and we say we have three thousand ten or twenty five records just in those three months which is amazing actually I think yeah Justin us three months March to March to June okay and obviously these are going up so one hundred one hundred thousand sixty two hundred thousand sixty five and they just go up and up and up up all the way to the bottom is like you know 1.1 million and all that but there's a ton of leads okay a ton of leads for this and so all we need to do is just track these people down and give them back their phone it's really a simple very very simple process and yeah so with that guys I hope that gives you guys kind of a basis of surplus funds I'm super excited about this webinar we've had some awesome feedback again and yeah guys I'll see you guys this week on the webinar again if you haven't signed up yet make sure you do and if you have next you guys are there book your calendar you know make sure you space out your time so you can get there you can take notes you'll be ready to go and yeah I'll see you guys there you

How To Become Successful In Real Estate Investing



what's up fruitful investors in this video I'm going to share with you how to get successful through real estate investing so I'm gonna take a very complicated topic and try and smash it into like 10 minutes because I know you're busy and I just want to go over some of the key highlights that I think you should really take into heart when you want to get successful in real estate number 1 what you want to do first and foremost is take action and do deals so when I really want to call this video was millionaires act fast and pussies analyzed however that would have been not good for the YouTube algorithm and this video were to drop to the bottom but that's the premise of what this video is about so I want you to do deals and what I mean by that is stop looking for homerun deals a lot of real estate investors real estate investor that follow me or come up to me or does that I meet at events whatever they just say I just want a great deal I'm gonna I'm just gonna wait out for this great deal you know I want numbers at 8% cap rate 10% cap rate which if you're in my area is a damn joke you're never gonna find those which means you're never going to invest in real estate so there's have to be the 8% 10% cap rate thing but people are always looking for the grand slam deals and only then when they find it will they invest in real estate and actually pull the trigger on it they probably still won't even do that but stop looking for the homerun deals if you want to become a real estate investor a real real estate investor okay the real ones we're not always looking for homerun deals I love those too but I'm doing the singles and the doubles in the middle I'm doing all the deals that makes sense and that make me money okay you want to be busy you want to keep going you want to build your name we're get into why that's important in a sec but you want to do deals be active and just stay in it don't get rusty it's like a fighter in the UFC or or a box or whatever when they get out of the ring for six months a year and they come back they're rusty they get their head kicked in or punched in okay the same thing with real estate investing you want to be busy you want to be a movie not every single deal there's gonna be a grand slam you know crazy ass deal that we should all write a paper on or make a video about okay they're just gonna be nice easy deal cool do those that's how you're truly gonna get successful ok next thing up stop waiting until you feel ready same kind Lions but even worse what I mean by that a lot of people will read books watch YouTube videos like this with guys if you watch this video cool man as long as you're acting and taking action on it a lot of people just watch these kind of videos for years and then they'll look back five years and be like oh man I wasted so much time now I'm like 65 years old I can't do anything I'm just kidding maybe not that long but pretty much actually a lot of people in the average world they literally wait and piss around until they're 65 then they go now it's kind of too late yeah it kind of is okay stop waiting until you feel ready you're never gonna feel ready I'm still not feeling ready I do deals all time every deal I can wait – I'm like nervous about like I might lose my shirt I might screw my partner but I do it anyway I ran the numbers it makes sense I pushed myself I do it I've done over 35 deals or whatever by this point I'm a multi-millionaire real estate investing I still get nervous every time I go to buy property the same thing with a famous musician or a public speaker they feel nervous every time they go onstage before they go on but they do it anyway okay they've done the practice they've done the homework that feelings never gonna go away of I gotta feel ready I got to read more books etc next thing up stop waiting for deals to fall on you or partners to come to you or just for things to fall into your lap again this is like a thing and it's all of society here that was a hard word to pull out a lot of people in society wait for things to fall into their lab okay we don't want to do that either deals aren't gonna fall in your lap you're to work for them you have to look for them there's a network for them meet other real estate investors meet other Realtors we're gonna find you those deals etc you have to find the deals you have to put in the work okay number two how are you successful in real estate this is a very important one I talk about all the time you want to buy in good areas good quality areas with good economic fundamentals is their job growth is their rental demand is their population growth are there things happening in your city is it a very diverse industries in your city which means you're not a one-hit Pony area for example a lot of areas are like let's say manufacturing towns they got all these cool car Toyota's in there Chevy's in there whatever and that whole town relies on that now it's bumping because we're in a boom market let's say what happens when the recession comes and if people aren't buying cars anymore that whole town goes under all the real estate that town goes under you don't want to buy that kind of area you want to buy in the area that has diverse industry so that if the manufacturing industry does go down no problem we have a big education sector we have a big trade sector we have a big technology sector or whatever medical sector all these different areas to pick up the load when the recession comes so that your area doesn't go to and you don't lose all of your real estate so a lot of people will do is that they'll focus on cheap real estate I want to buy cheap real estate it's easier I need less partners I can finance it easier all true things what normally happens with cheap real estate that they're in cheap shitty areas for me I don't do that I only buy in a high quality area so I live in Kitchener Waterloo Ontario Canada it's about one hour south of Toronto if you have no idea what the hell I'm talking about very very high quality area very diverse industries we had the recession here and we all did in 2008 literally nothing happen to Kitchener Waterloo just weathered the storm no problem the next recession is probably coming up in the near future I almost guarantee it the bet all my money on it same thing is gonna happen again in my town nothing's gonna happen I'm not investing in shitty areas however my real estate costs more it's harder to finance because I need more money for more partners however when I do buy those properties it's a done deal man if you watch all my other videos you know my strategy is very passive boring I don't want to piss around I don't take too many chances I want guaranteed predictable wealth that's why I'm investing in my area and that's what I would highly recommend for you as well is to invest in a good quality area number three secret on how I get successful in real estate is to realize that real estate takes time this is probably a 10 to 20 year game plan that you're playing right now if you want to invest in real estate need to realize that once you get comfortable with that real real as a realization I've done too many videos today man my mouth is just like all right once you get used to that real real whatever man 10 to 20 year game plan once you realize this you're gonna change the way you buy real estate and you're gonna buy better quality stuff because you know you're playing a long game a lot of the people are playing at 1 year game plan true your game plan may be max a 5 year game plan that's how they're buying and their risky shitty areas that's how they're buying cheap real estate it might work out for them I hope it does long term and probably won't you want to buy in good quality areas that aren't gonna go down in recessions like I said so play the long game play chess while everybody else is playing checkers my favorite sayings I always say that's the reality if you want to get successful in real estate that's how all the successful people did it it took 10 20 30 years for these real estate investors they get super wealthy if you want to super ballsy this is the game you're in the next thing you want to do basically become a marketing genius what I mean by that is to build your brand and shout it the top you're longing so everybody here is it so everybody knows what you do so that they can partner with you and give you their money so you can buy more real estate that's exactly what I do I think I'm pretty damn good at marketing and branding it's how I've built my business my realtor business my real estate investing business you know I've raised over ten million dollars from joint venture partners from YouTube social media Instagram mainly YouTube every single partner I've ever got has come from YouTube so I think I know what I'm talking about when it comes to this in fact I have a course right below called unlimited cash which teaches you exactly how to build your business how to build your brand properly step by step everything you got to do in the right order to build your brand to get joint venture money like a magnet that's what I'm really good at but this is super important you want to become a marketing genius and focus on getting rich and wealthy so I'm talking about like I said social media right Instagram Facebook YouTube I'm going to write them all you know them all I'm sure this is really the secret okay the marketing game is changing the world of business and money is changing everybody's looking online people are getting more introverted and doing all the research at home they're watching videos like this scrolling on Instagram scrolling on YouTube scrolling on Facebook looking for people to connect with so take advantage of that this is the way the world is changing again I have my course below it will teach you exactly how to do this I also have a ton of videos on here for free you can watch if you think I'm just trying to sell you some the course is it really that much at all but I have a ton of free videos if you have a really tight pocket watch filter through all those videos there's so many good tips on how to build your brand and how to do this for real the last thing I just talked about it because I did both in one become a social medium genius I guess again I'm talking about social media and Facebook and Instagram this is the secret honestly to build your business this is the game plan on how to get successful in real estate that is the end of this video I tried to smash it in like ten minutes or so I could talk about this for hours and hours and hours but I hope you got some good tips if you learned anything and you'll like this video at all please click like right below it goes a long way to helping these videos get more views and again get my free books and free courses below contact me if you want to partner with anything I'll learn from me or just message me on Instagram or YouTube here I'm happy to help you and answer some sweet questions I love connecting with you guys so that's the end of this video I'll see you in the next video

Grant Cardone & Sunil Tulsiani Talk Real Estate in Canada



so just a kneel right here ladies and gentlemen hey down in Miami Cardone headquarters I'm so happy to be here with the grant cardone 10 X there I'm telling you or might one one of my top heroes Thanks so excited which I'm so excited to be with you my friend thank you very much for me I can't wait to come to Toronto and what's the date on that it's March 21st 20th that's my birthday what that's about birds okay that tells you everything there's no that that's that's that's my whole work ethic right there birthday no birthday you know when I was coming up as a speaker but when I was 30 years old every Thanksgiving I would go to Canada Wow because you you guys don't do Thanksgiving that's right I couldn't make money down here everybody shut down and I'm like I need to make money because my whole goal was every speaking fee if I was paid whatever the number was I would take 1/3 of the money of everything that I earned the top third would come off and I knew I was buying real estate with that I was 30 years old when I was already playing I hadn't bought any real estate I wouldn't do my first deal for like three years right but every time if I got a speaking gig to pay me $10,000 three grand of that I knew would buy me $10,000 for the real estate right so to me it was like okay if I can if I can earn ten I'll pull three off and it becomes ten again with the reverence right wow I'm late I'm gonna get rich one day I had no idea I would be being interviewed by you today a few years later so wow this is so amazing thank you we love you in Canada as you know thank you you know and they are looking forward we're actually doing this the first time a place called Roy Thompson Hall it's a like a very prestigious yeah yeah I know I state you know okay good so we're gonna have you there we partner up with top brass from the Ritz right that's right okay that's right your room there I'm gonna get your room they're a big suite you got it you got it and of course some of our diamond attendees are we're including the rooms at the ritz-carlton for them as well okay so it's gonna be awesome some of the people are never met bad people at Ritz Hotel I mean I thought you know they like even if you meet a bad guest at a Ritz is still better than meeting a good guest at a Holiday Inn I just say I love it I love the place and it was actually and my son who said you know it Roy Thompson Hall is there you cross the road literally you cross the road Ritz Carlton's right there yeah so we're actually planted very very well and we're March 24th 10 to 20 I mean it's it's that day for people to be this is the only place to be yeah for you know if they are thinking of making lots of money in real estate and a lot of kind of stuff so Kenna can I just say something say it reminds me because you're Greek right so Aristotle Onassis the great Greek shipping magnate I read this when I was 31 32 years old he said they somebody asked him in an interview where he drinks his coffee and he's like it in his Greek way in the most expensive coffee shop he could Vaughn wherever he was in the world yeah he would go to the most is before Starbucks yeah and he says I will always go to the most expensive start a coffee place and they're like well why would you do that exactly because the most expensive coffee places always have the best ideas because the people there are all thinking how to get to another place that's also you know and that really changed my thinking about where to stay what events to go to it changed you know because I used to be only focused on saving money and it was those little things getting around people like yourself you know that have clubs that people that are attracting super successful people thank you sitting in the front of the rooms yes like cities paying the extra money to buy your way into a club yes yes so let's talk about yeah let's talk about it why is it there there people watching right now that you know our tickets start at $50 to $15,000 yes so why should first of all they should come right you should buy a ticket no matter what you can afford right now yes and you're like here's two things that I see going for people and it has going on for me number one people wait until the end to do what they would have we're gonna do anyway yes so here we are whatever month we're in right now you should make a decision do something now yeah not not wait until later yes right you're gonna do it anyway yes so why would you do something now that you don't get four months though because you get the commitment yes you get the velocity and momentum of a commitment of a decision and so there's programs and workshops that I've gone to this has never ever failed me if I'm gonna go to something next year I'm gonna buy it as soon as I can because I actually am convinced that I start tapping in to the Future intelligence yes of whatever is there waiting for me okay I I'm telling you every time I make a commitment to the future the future my future gets better that's interesting and and I see people wait till the end I'm like why'd you wait man why'd you wait until the end when you were gonna go anyway so also the people that can only have four fifty dollars by the fifty dollar tears I've whatever seats you can commit to whatever you can right now make that commitment to the future now and then upgrade as you go along just call up say hey can I upgrade my seat because you're obviously gonna take care of those people that acted first absolutely another reason actually with the level that we are right now they actually get to pick their seats now actually as opposed to so if you're gonna buy a $10,000 ticket do you want to sit in the front row of that or the third row yeah or do you want if you find a $50 ticket do you want to be in the front row there you mean the back yeah so one of the benefits right now for this event because they can actually pick the seats that they want right now yeah which which is great in addition to what you just said which is the commitment part yeah what do you say to people who say well I don't have the money let's talk about that because you know there's two things in addition to not having the money you don't have the time yes and this is what you tell yourself every day I know at the time and I are the money and the reason you don't have time and money is because you don't invest time and money it's so how important I know some of the busiest people on planet Earth in there and I'm like how did they have time and but why do they also have more money than I have why do they appear to have more time and more money because they invest time and money right so that's the beauty of real estate and what you're gonna learn there is look some the richest not I mean financially rich I'm talking about freedom rich yes you know my difference well money comes in a lot of different ways I've made a tremendous amount of money but that's not what I'm most proud of I'm most proud of my ability to do what I want go where I want say what I want leave or stay as long as I want and get rid of the people in my life I mean nobody ever talks about this being on their financial statement but the ability to say I don't wanna do business with you anymore okay I was in a deal and the deal it was a good deal it was gonna be great piece of real estate but I had an investor come in that had a bad attitude and he was extremely wealthy what more wealthy than me he gave me a check for 20 million dollars okay this is true financial freedom right here right I need you he gave me a check for 20 million started acting like a wanker I warned him once and the next time I gave him is money betting here's a 20 million back let's just me and you stay friends let's don't be partners yes there's gonna be better as a friendship than a partnership yes and and that is ultimate financial freedom to be able to say I don't need your money yes and and and so I think a lot of people are just trying to get enough money to pay bills rather than I want enough money to do what I want with who I want and say no to those I don't want very good and and you too there there's a lot of times you talk about money right I mean we grew up with some issues with money yeah tell us a little bit about that I mean I heard you many times because when I'm on big stages I'm talking about money sometimes people get a little different about yeah you know what they've been taught about money and how important tell us how important the money is if nobody's telling you it's important with everybody's telling you is it's not important like listen to listen to the programming go on yes money's not in part and it's not the most important thing don't work for money everybody is telling you that either doesn't have any or they have so much that they're now like post not important Bill Gates says it's not important Steve Jobs says it's not in part but you need to look at where they said that yes in their cycle because when Bill Gates was 20 years old money was important yeah when he was 60 years old yeah yeah after the first million nothing changes anything well he's he's a billionaire yes eighty billion of them he backed up eighty billion that's like money's not important to him anymore but that's not what he was saying was twenty and that's not what Steve Jobs would say anyways twenty and anybody is telling you money's not important it's either made so much it's not important or they've never made any and quit on it and that that is the bulk the majority of people are telling you money's not important and it won't make you happy and it can't change your life and you should just be happy satisfied with whatever you don't have when in truth is they quit they quit on the very thing they're given advice on your 10x amazing genius idea I mean it's so simple how did that come up to tell me a little I was trying to solve a problem all all my books are written to solve a problem that I'm having and and so the 10x rule I didn't know the name of the book I think the book originally started as the biggest problem of my life which was I couldn't get off the the track I couldn't get out of the the hamster truck yes I was just like on the wheel yes and I couldn't no matter how hard I worked like the 4-hour workweek when I saw that book I'm like yeah I want to work four hours a week I'm like that's impossible you just can't work four hours and make money but the concept was how can I do less and have more yes well I told you before we started day I said you told me you were from India background I said yeah we're all Andy look if you're if you're Indian descent you understand hard work yes work works not sure issue now yes now the issue is how do I get on something that actually pays me enough yes so that the work that I'm doing pays me ten times not one dime I love it and so what had happened was I was 50 you only know me because my life changed when I was fifty let's see I'm 61 so you're 61 right now yeah I'm about about 52 53 years old that's when everything changed for me Bobby about a decade ago yeah yeah about 10 years ago oh nine years ago maybe a little less than that okay and so like in that book basically showed me I have been under estimating my potential and I had also been under estimating the amount of energy it takes romantic effort it takes Brian and I kept thinking it was about my efforts I was studying the wrong people Sania is studying I was watching but my buddy Ralph that was buying real estate in San Diego and so he busted out in 2010 whoa I'm watching him okay I want to be more like Ralph Ralph goes broke I don't want to be like Ralph and then I switched over who do I want to study and I start studying companies yes I start studying guys that have done a hundred and forty thousand apartments everything changed for me I'm like I've been studying individuals and I should have been studying companies I was studying I would go to a workshop and listen to the guy that was doing the flips and I'm like okay that's at some point you can learn about the flips but all flippers want to do what I'm doing now which is building out last week we did 240 million dollars worth of purchases five that okay so I put those on the board any thought about it I closed them a week ago I'm like okay good there dude those things next time I see those deals they'll be worth three quarters of a billion dollars Wow and so we're buying cash flow properties big massive massive properties so seven eight nine years ago I just made a commitment hey I'm about 10 times bigger and it's sort of solving problems for me yeah you know we're not when this is your problem when your pins your problem or time or money $50 yes $50 is my problem when you're trying to solve a $50 problem you will always have a $50 problem okay the way to ultimately solve that $50 problem is to give yourself a 50 million dollar problem okay or a five hundred million dollar problem I traded in my old problems okay far you know what I was fine like here's an example and I was 52 years old and I was flying commercial everywhere Wow and I was bitching all the time goddang tsa lines golly they hang me up in Toronto when I fly in there late they're late and my wife's like once you just by playing that I'm always like she's the the big thing right I said what she's like watch about that's ridiculous well then that's what you're complaining about yes and if she didn't press on it but I walked away and I said yeah why I mean I'm not complaining why wasn't I thinking about that as a solution instead I'm bitching about this constant I got to get to the airport I got to get to the airport I got all this energy man all this energy and complaining right about the airlines and complaining about the seat and complaining about the passenger plane about the food and then Austin I took all that energy instead I'm about plane I'm gonna figure out about plane two years later on the plate Wow okay so it's a good bird yet now I'm the problem the problem is no longer now $50 or they're late it's what's the jet fuel cost yes right and then and then but but it's expand your thinking it's like that commitment thing when you commit oh I can't I can't pay $50 that's a commitment when you say hey I'm gonna spend ten thousand I'm gonna invest 10 grand and go sit on the front seat in front of the front rows and I'm gonna have that in March of next year ready it's gonna be pulling me forward the whole time you could start actually connecting with the people that are buying tickets probably call your office and say hey I'll give you ten grand for a seat but I want to know everybody else is sitting in VIP and I want to be able to send an introductory letter to them absolutely you do that absolutely do not want access to people nice idea now it's not a one-day event this is a problem with events people go for one-day event like I hope something happens to me I go to events and say I'm gonna make something happen – right I want to know who's going who's gonna be there who am i sit next to we're gonna have a millionaires and multimillionaires sitting right in the front rows yeah these are people like if you're a real estate investor one of the things that you want is good deals yeah access to money yeah those are two things that you know that's how a private investment club grew it's like provide access to these kind of things you want you want access you want access and this is what they this is what the middle class is never taught go sit with Bill Gates let's study these guys at the top of the food chain where does Goldman Sachs go twice a year Wyoming and they go to Davos if you get access to this what Aristotle was saying hey go sit with the rich people okay so what the coffee's then another three bucks that's not the problem the problem is not three is three trillion bucks right so if you're if you're struggling with money right now you're struggling finding deals or you're struggling with investors the problem is you're not around the right people that can invest in your deals so how important is it I mean I've already that relationship since everything it's people man you want to be with the right people you know why am i flying from San Paolo Brazil to Toronto because I want to be with the right people so when you tell me when you told me hey there's we're having an event first question we ask is what price of the tickets yes and how many people are gonna yes and when you tell me that oh you're gonna be around your people are gonna be spending 12 grand for I'll be there it's a sorry oh yeah it's it's a filter on this planet thank you and unfortunately unfortunately the people most 90% of the population you're taught to buy low and sell high get the best deal you can you have the wrong data that is not how the super-wealthy operate the super wealth you're like yeah I'll pay the extra money I'll pay too much look at the look at the mergers and the IPOs and the transactions going on this planet you know where they're like now we're gonna overpay for the company and we're gonna control the environment because money's useless and unfortunately people are just what we're misinformed on this okay I think yours has got maple syrup ah yeah and so you know we're so worried we're so worried about this that that we never get assets and all I'm doing today I try to I get this and all I'm trying to do one thing I'll be talking about at the conference is how do you take this that we know 10 years from now will be worth less than it is today yes pick pick pounds euros Canadian dollar I don't care pick them off pesos they're all going to be worth less 10 years 15 years 20 years now if you think they're gonna be worth more than just take it put it right here and come back and see it ten years from now it will be worth less and or it'll be gone or will be destroyed or something might not even exist that's right okay but if I buy I don't know if you could show me any that property we buy behind this Johnny probably can't yes put it in you know I bought 38 acres cost me 90 million bucks it pays me you know I earn five or six or seven percent the first year next year to be seven or eight you're after that be eight or nine then it'll blow up to ten or eleven ten years from now it will it still be there I mean if it's not there then North Korea went nuts none of us are there so it doesn't matter right so so I'm trading a piece of garbage piece of paper yeah so it's completely made up I have this zero attachment to it none but what I do have an attachment to is the things that we'll buy so I trade garbage for assets and it's crazy it's crazy this is a gimmick even exist on this planet like even the real estate investors in your room like you guys are going to wake up I promise you ladies and gentlemen when you leave you're going to be a real estate investor at a completely different level and when you leave cuz you're gonna be like whoa what were we thinking you have money in the bank and you should be buying real estate in Toronto or Vancouver or Calgary wherever you're you should be buying the real estate in the United States a lot of people are buying a lot of greens are buying in the United States because opportunities are different and you have you have the scale here Yeah right absolutely every deal that I'm on today I see a Canadian trying to buy it's good but I always outbid you guys but that's okay buzz we can invest with you you could right we can we can definitely invest once you know when you play the game Monopoly once somebody grabs Park Place okay you're playing with your sister your family and somebody gets Park Place what would you pay to have that right now exactly more right yeah I'll give you all my money right yeah exactly but that that means the value went up just because the ownership changed and so one of the things I'll be sharing there is like how to take this asset this whatever this is actually it's not even as a liability this is a liability is a debt obligation and exchange it for something that is real that actually makes babies has little baby what do you call your dollar daughter can you know is it like that's a dollar okay yeah Ludi so there's a loonie and a Joanie yeah exactly well that says it all right there Looney in the day and people make it fun a Bitcoin look all this stuff should be made fun yeah okay and that we have such an attachment to it like even the people they don't love money they're like I don't you know love of money and the root of all evil and all that stuff like you guys love your money look you're saving it you save it you love it why are you trying to save it I'm saving for for the disaster that happened what if that disaster never happens and and you just end up old I saw a statistic the other day 30% of people over 55 years old in America have zero money at 55 zero money set up for savings it's not different in Canada yeah pretty close to that and I actually don't want any money in savings what I want is cash flow from properties that can live that can take care of me through my disabilities so it's an asset you're trying to buy an ounce I want to buy assets they're produce cash flow they have to produce cash flow I won't touch it so if you called me up with a deal and said I have a construction deal it's gonna like you finished the construction yeah you fill it up I'll pay you a premium to do all that work that's all I say so if you wanted 80 million for it I'd rather pay I'd rather pay the Builder a hundred let him make his twenty million but I want cash flow the next month you do buy in Canada as well I would oh good I'm a complete coward when it comes to investing oh but but we have 1.2 billion dollars for the real estate that's so but I'm a coward I only bought something that will pay my next month okay so cash flow and that's what Ralph didn't do sea rat Ralph Ralph was a speculator and I'm not so I I see you got caps and hats and all the cash flow yeah obviously yeah cash flow cash flow cash is not King Oh cash flow is king right hash is not king that's just a big liar the banks the banks are the ones that came up with that model yes cash is king keep your cat Wall Street Wall Street they're the smartest people in the world let's convince people to keep their cash liquid stay liquid Wall Street is the only group that's fine Johnny Wall Street is who benefits from the consumer being liquid right because if you're liquid the stockbroker can get your money yes okay goldman sachs hates the way I invest because when you take like like those deals I did last last week there were I put 80 million down at my own money yes nah I didn't raise that money okay that's I wrote a check right when that eighty million dollars goes away goldman sachs will never get a chance to see that money and they know that oh you see what I'm saying mmm they can never ever sit down with me and convince me hey grant once you put that 80 million in mutual funds or ETFs ur like they're never gonna get the money because they know it's an illiquid event I want to be a liquid now this is a very interesting point because most regular people and I do that at the private investment club most regular people invest in in us is called 401k yes and in Canada is called RRSPs and and and basically it's mutual funds ETS ETS stocks yeah rich meats and basically you look pretty money to somebody because so you talk and they even sell you that though you're liquid you can get your money back the next day and if it's a good deal I don't want my money back next trust me this is not what I want again we go back to why would you want this back who convinces this was even valuable so so what you want is you want you you if the bank if the casino tells you offers you insurance okay or a drink or free dinner or if the casino offers you a hotel room it's probably not good for you my mom used to tell me this if we're in Vegas at the Bellagio and they offer you to surrender they're not offering you surrender because it's good for you so Johnny I said loudest marker in the world right there Johnny yeah no no we're good we're good honey they're good they'll wait for us so so if the point of that is when the banks or when Wall Street says hey your investment is liquid you can get your money back if you need it tomorrow that's not good for you it's good for them or they wouldn't offer to you number two the other thing they tell you particularly on their their funds their funds are like our funds are short-term three years from now five years from now you can get out why are they offering you a short-term investment other than that sounding good to you the truth is that pays the manager their fee that's when they can bang their fee out the back door hmm and I'm not opposed to that the manager should make fee people should make these but like like our funds or ten years with the discretion to go to another ten and discretion to never ever sell again correct biggest mistake I've made in real estate I'll bet you the biggest mistake you made to is selling you that stuff you are absolutely right absolutely sure so none of it and now we're bit coming back again yeah doing again so that's awesome surrounding yourself with like-minded people you mentioned that you don't just touch why is that so important I actually you know Warren Buffett says look you want to be around people that think bigger than you do and have better habits than you do you that you want to be around people did not richer than you you you want to be around good ethical people that don't go to shortcuts I don't you don't want to be around Ralph Ralph is going to go bankrupt and Ralph is making bad decisions and Ralph you know that guy Ralph that I'm talking about he knows who he is he might be listening this Ralph was made up name your exception no no no it's a real Oh real bad they take shortcuts at Sue's people okay that doesn't do the right thing that that overextends themself in situations is you know that that look the real estate play is a it's a long play it's not a quick thing all right so if you need money just go out at the street corner beg somebody for money give me money give me money it's easy to get money real estate you're creating wealth and you don't create wealth quick like I've never wanted to get rich quick I don't know whether my dad influenced me with that or the way I was brought up I've never wanted to get rich quick but I have wanted to get rich for sure yes and the way I invest in real estate it is get rich for sure it's not great rich quick it's not this week it's not this month it's not but it's for sure it's just when it's gonna happen so that's why I like the Google stocks the alphabets the the the Netflix and the the uber investment IPOs like I don't do any of that stuff because and I probably missed a bunch of great opportunities right but I am extremely focused okay there's only so many things that can be good at and and so what I invest in is myself tell me about that tell me about how I should invest in yourself education like like find out I find out goldman sachs is having an event here in town for a bunch of billionaires somewhere okay how much in the tickets well they're 20 grand all right I'll give you two it here there's 20 of those there's nothing anyway I want the relationships I want to sit next I want to rub knees with people that that hang on yeah yeah that have better habits better experiences better connections like it's such an easy thing to do man you can exchange money for excess so so number one invest in yourself that should be the first investment the first investment should not be real estate should be in yourself oh that's interesting I like I like that why would I invest in real estate the most the most valuable piece of real estate you have a yes right right like if you're not confident and there was a time when I wasn't confident I miss deals yes I I wouldn't confident with me I had the data I had all the information I had everybody telling me go go go I had the loan I had the money I had everything I didn't have confidence in me to be to know I was right cost me hundreds of millions of dollars so first me number two I want to invest in my whatever my my business is right now right yeah like like if you have a company you got a plumbing company and you're trying to move into real estate you should keep investing in your plumbing company yes until their surplus money okay and you don't have any more money you don't have any you can't like reinvesting that money now is like dude this is just slop now like this is I'm successful I'm making money that money should then fall into the third bucket which is real estate I get a lot of people's not like some people come to me and sits no you'll just talk about sales you just talk about revenue generation you just how important is that for a business it's everything because because again every time I pick every time I get $1,000 you know every time I bring in $1,000 if I can save 300 of it and I live extremely like I don't have fancy belts and stuff you know I'm starting to have a few fancy things okay I got this passive income yes you know from 30 years yes but but if I could take this $300 left over from the thousand and then say okay dad is going to buy $1000 for the real estate then I just triple my money that's right right so 10,000 I got $10,000 I squeezed three out of it I saved three I live on 70% to pay the taxes over there were you guys right it's just insane I said so whatever you got 20% left over right so I got 20% left over I take that 20% let's say it's $2,000 I'm like I move about $6,000 but just start moving that up hunter grant or a million a million dollars in cash today in America buys three million dollars with the real estate you're talking pure magic like it's the most legal scam legitimate scam on the planet I could take 1 million dollars and turn into 3 million dollars for the real estate that pays me next month like to me it's the best deal on the planet it's not very complicated to weigh and think about it I mean you still I mean you can understand the concept you buy a property yeah when they start talking that automation yes Elon musters talking about going to Mars I don't know what we're going for yeah these guys start talking about like some of the stuff they're talking about I'm like I don't know what you're talking about anymore when you talk about 2103 second Avenue yes it's across the street from and 17 people live there and we have leases for the next and all that it's so simple what are the leases 1250 okay good 1250 times 17 it's the location good it's a great location Starbucks is moving in a block away oh wow what could we move the rest to well the rents over here are going to be 20 you know simple in fact real estate I don't know if it's made the most millionaires but I know that it's made the most millionaires of common everyday people yes well it it's been said I think 80 percent of the people on the planet not only this country but on the planet self-made millionaires and multimillionaires yes come from real time but we don't know I don't know if that's true or not but I do you know I do know that most of the real estate people I've met whether it was Fred Trump I didn't meet him but these guys the guy Donald Brent and in California and he's one of the richest I I did it I mean I know you did it yeah yeah like these are not Donald Brendan's not the smartest guy in the world Fred Trump was it and neither one of those guys were connected Sam Zell yes like Sam Sam's an everyday guy blue collar kind of grinder well what hard worker knows about revenue knows about customers knows about taking care P he's not a scientist Yeah right and that's my point like you don't have to go to college to be a real estate I didn't buy ya what's obvious what thank you soon as you meet him you're like you must be in the county Indian people had this intelligence doctor engineers are accountants that's the best when I was growing up my parents told me that get good study hard you get good grades my dad used to the minute that I used to be introduced to my uncles and other people the first thing he says this is Sidney oh my son and he stinks at school he doesn't know what he's doing blow but I was really bad in school well I would never guess that I thought you were like super great no man I was really bad in fact to the point where the point where it was quite depressing because my dad's I become a doctor I'm like dad I don't you know okay you can't be a doctor become an engineer so well I don't wanna be like that okay if you can't be an engineer become an accountant yeah well I hate the county and then he goes okay then you know losers become businessmen well then I don't tell your dad that I have doctors accountants and CPAs that both rent from me and invest with me yeah he knows today now right now he's okay so when I left when I was told you about my story about being a police detective I know that kind of stuff so I was a police officer for 15 years my wife comes to me says look this is not working out so I basically said I got to decide between my business and I got to decide between my family what I want to do so I go into real estate that's the only thing I didn't know that and the first year I buy and sell buy and sell 77 properties that's how I made my first I mid $900,000 that year almost a million bucks Wow doing it here you would be working 50 years to make that on the police force officer I would never be able to see more apartments the departments or single family did single-family detached home condos it didn't matter we look more single family in one year than he might arrest thirty in that – yeah look at the energy all you did was transfer energy from being a policeman to finding real estate well the some of the same skills – detective yes find the property gotta know how to talk to due diligence building rapport making sure somebody's telling you the truth or not it worked out really well that way and then then I opened up me you need to know when people aren't telling you yeah well they're going to remember coming to United States and there was this builder who's building all these condos and houses and all that stuff I said well I'm coming over yeah I'm gonna for due diligence can you have everybody that's in your team come and see me and they I never had this they had a whole board room and the boardroom they had the developer they had the management company they had all these people sitting around and I'm asking questions and the guy goes what do you got comp yes funny thing you say that to do that kind of stuff I look forward I cannot wait to come there that's right exactly so cordoned capital we know we don't have Mike oh maybe just have a video we want to see what a Greek guy looks like yes okay you guys remember when the Greek controlled planet Earth oh my god talk about a real estate play yeah is my new buddy right yes so so real estate like they did the Greek they were little little dude 16 years old man Alexander yes just running around the planet grabbing as much real estate Genghis Khan he was a real yes okay yeah they English when the English were in control when they took all of India they still have it right it was a real estate place right sounds good man that's awesome thank you very much you say something like this yeah so ya know the L so the L is look you buy the best location in real estate it is not about viola so hard and the Canadians need to get this right now because you've missed many great meals in Vancouver and Toronto oh but God stuff so expensive guess what it's gonna be more expensive the next time you look at it because the locations are sick we're not talking about blocks now we're talking about cities that are becoming location hubs New York City there's gonna be problems in New York here that's a great opportunity right now okay and the losers are gonna just like they're gonna bail out of that place but they got rent control going in there they got government problems going in you got to know you got to know where you're floating even if you're an investor in Toronto Vancouver Calgary New York wherever and you're coming to this event right you got a good location thank you yeah the winners are going to that location absolutely and when you buy when you pay extra to get a good location a great location somebody will pay you to win a great location later that's awesome awesome and so we're gonna what are you gonna have me do when I'm in Toronto well I'm gonna we're gonna teach we're gonna educate it we're just gonna tell stories no we're gonna teach we're going to talk about the sales we're gonna talk about cash flow we're talking about where the real estate is going because that's important lot of people wanna know like should I invest right now you mean you just mentioned you know people saying it's very expensive should they invest right now in cash flowing properties in 2020 should they do it and and if so what should they do well you know how so one of the things I'll be sharing with you there what's the name of the place Roy Thompson Hall Roy Thompson Hall okay well you don't need to know where you're going yet you just need to grab your seat at the that's right below okay $50 – how much $50 – $15,000 I would strongly advise you invest in the $15,000 go sit with the players yes but if you can't do that okay buy a $50 ticket out great on your way make a commitment to being there make a commitment to say because guess what man if you can't do 15 grand you're not gonna buy any real estate in Canada that's right if this is your problem your problem is this I need five thousand units there cash flow or a thousand units okay start thinking like that get around people say you can do it you come to me and say I want about five thousand six a five thousand units I'm not gonna tell you you can't I'll be like yeah you should and this is how you do it so one thing we'll be talking about how to do that the second thing is why you should do it and why you should do it as fast as possible okay we're going to need as zero percent interest rates worldwide there will be no place on on the planet they're gonna take this and they're gonna charge you to keep it okay this is this is what's happening everywhere in America it's happening in Europe it's happening the England's happening Germany has happened in Poland has happened in Russia it's everywhere you keep this they will charge you to keep it in the bank you have to get this into an asset that produces a lot more this that is going to be the new way to actually fight inflation well we're talking to real estate investors we're talking about real estate brokers we're talking to if your mortgage broker if you are coach mentor yeah any type of service oriented business we're talking about making this event it'll be completely life-changing event that I mean having you it's just a huge treat to be able to do that okay so the resident agent they need this story see what they do is they get hung up on the comp down down down the road they're like oh you're 200 grand higher they need to get into this story about hey what are you gonna do with your money right now sitting in the bank at point zero zero one two percent you're losing money at the bank you're complaining about the wrong things so they the real estate agent needs these skills to be able to make sense of the future of real estate and whether they're but they're it could be an accountant who who wants to scale this business 10x right they should be there they should be there any type of real estate here in accounting a plumber or contractor like if you're a plumber and you got a bunch of real estate people in the room like it seems to make sense that you want to be in a room with real estate people that have a bunch of plumbing and accounting too if you're they can't really count it wouldn't you want me to me you know coming to you and say would you invest fifteen thousand dollars to pick up a couple clients I would go just for the network well it's it's the most important part of being and in live event make sure I got a Cuban cigar there though okay all right I can't wait to you guys grab your seat I can't wait to meet okay awesome Thank You Angela the Greeks the Italians in the Indians are all gonna be in one place